The energy midstream sector has been a great spot for investors to go if they want to make some passive income
Many companies in this sector produce very stable cash flow as oil and gas flow through their pipelines and related midstream assets
That gives them money to pay lucrative dividends and invest in growing their businesses
and Kinder Morgan (NYSE: KMI) are among the top options
for those seeking passive income in the sector
Here's why this trio of midstream companies could help you create years of passive income
Our analyst team just revealed what they believe are the 10 best stocks to buy right now
Reuben Gregg Brewer (Enbridge): The midstream sector is tied at the hip to oil and natural gas producers
But not every pipeline company is the same
A key corporate goal is to provide the world with the energy it needs
only around 75% of Enbridge's earnings before interest
and amortization (EBITDA) are linked to oil and natural gas pipelines
given that Enbridge is one of the largest midstream players in North America
And this foundation has handily supported regular dividend increases
with the annual streak now up to three decades
But long-term dividend investors need to pay particular attention to the other 25% of EBITDA
The rest of the portfolio is split between regulated natural gas utilities and renewable power investments
Both of these businesses provide reliable cash flows
the utility business tends to provide more consistent opportunities for capital investments
while clean energy investment is expected to grow materially in the years ahead
And both natural gas utilities and renewable power are moving Enbridge in the same "cleaner power" direction as the rest of the world
Enbridge is preparing today for the energy market of tomorrow
and a business that is changing with the energy needs of the world
Enbridge is the kind of dividend stock you buy and hold for the long term
Neha Chamaria (Enterprise Products Partners): Enterprise Products Partners is one of the largest midstream energy companies in the U.S.
with a massive pipeline network spanning over 50,000 miles
While its large footprint provides critical energy transportation services to the economy
Enterprise Products has judiciously used capital over the decades to grow its business and reward shareholders while maintaining a strong balance sheet
Enterprise Products has increased its dividend for 26 consecutive years
and its distributable cash flows (DCF) have covered its dividend payout by at least 1.5 times since 2018
DCF is an important metric for master limited partnerships like Enterprise Products
as they are required to distribute a major portion of their income to shareholders in the form of dividends
This is a great time to invest in Enterprise Products stock
The midstream giant expects major projects worth $6 billion to come online this year
That's nearly 80% of all major projects under construction
As these projects start contributing to the company's earnings and cash flows
Enterprise Products should be in an even stronger position to not only pay regular dividends but also increase them year after year
Enterprise Products is one of the best midstream stocks to buy to earn years of passive income
Matt DiLallo (Kinder Morgan): Kinder Morgan currently clocks in with a dividend yield approaching 4.5%
That high-yielding payout is on a very sustainable foundation
The natural gas pipeline giant generates very stable cash flow
as 95% comes from highly contracted and predictable sources
the company pays out less than 45% of its stable cash flows in dividends
That enables it to retain significant excess free cash flow to invest in expanding its operations
The company has $8.8 billion of growth capital projects in its backlog
primarily natural gas pipeline expansions ($8 billion)
It currently has projects underway that it expects will enter commercial service by the end of the decade
That gives it a lot of visibility into its ability to grow its cash flow in the coming years
Kinder Morgan's backlog has ballooned by more than $5 billion over the past year as it has secured several large-scale natural gas expansion projects
These drivers should enable Kinder Morgan to continue securing additional expansion projects in the coming years
The pipeline giant's cash flow should grow briskly over the next several years as its growing backlog of expansion projects enters commercial service
That should enable Kinder Morgan to continue increasing its dividend
The company recently raised its payment for the eighth straight year
Given its high yield and growth visibility
Kinder Morgan can certainly create years of passive income for investors
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enbridge wasn’t one of them
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The Motley Fool has positions in and recommends Enbridge and Kinder Morgan
The Motley Fool recommends Enterprise Products Partners
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HOUSTON, May 5, 2025 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that Robert G
(Bob) Phillips has been appointed as an independent member of its general partner's board of directors
Phillips brings more than 47 years of experience and leadership in the midstream industry to the board
and Chief Executive Officer of Crestwood Equity Partners LP ("Crestwood") following its successful merger with Energy Transfer LP in November 2023
Phillips founded Crestwood in 2010 and over the next 13 years
led the growth of the company to greater than $7.1 billion in enterprise value through a combination of organic growth and M&A activity including successful mergers with Oasis Midstream Partners LP
as well as the acquisitions of several strategic midstream companies across various shale plays
Phillips served as President and Chief Executive Officer of Enterprise Products Partners L.P.
Chairman and Chief Executive Officer of GulfTerra Energy Partners
President and Chief Executive Officer of Eastex Energy
Phillips currently serves as an independent director of South Bow Corporation
which specializes in transporting Canadian crude oil production to refining markets in the US Midwest and Gulf Coast
the largest privately owned natural gas storage company in the United States
Phillips previously served on the board of directors of the Energy Infrastructure Council since its inception in 2019
and he co-chaired the ESG Committee which focused on the development and implementation of industry-wide Sustainability Standards across the midstream sector
"We are delighted to welcome Bob Phillips to our board of directors," said Oscar Brown
President and Chief Executive Officer of WES
"His extensive industry expertise and proven leadership will be instrumental as we continue to execute on our strategy of capital-efficient growth that creates long-term value for all of the stakeholders of WES."
"WES is tremendously fortunate to have a candidate with Bob's background join the board," commented Jeff Bennett
Chairman of the general partner's board of directors
"We are confident that Bob will be a valuable addition to our already exceptionally talented group of directors and bring beneficial perspectives as we continue to deliver on our mission of improving lives through safe
"It is a privilege to join the board of directors of WES's general partner
and I look forward to collaborating with the team to continue building upon WES's strong foundation and to help successfully guide the partnership for years to come."
Phillips will serve on the board's Compensation Committee and Special Committee
the board of directors of WES's general partner will have eight members
LP ("WES") is a master limited partnership formed to develop
WES is engaged in the business of gathering
and crude oil; and gathering and disposing of produced water for its customers
In its capacity as a natural-gas processor
and condensate on behalf of itself and its customers under certain gas processing contracts
A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts
For more information about WES, please visit www.westernmidstream.com
Daniel JenkinsDirector, Investor Relations [email protected]866-512-3523
Rhianna DischManager, Investor Relations[email protected]866-512-3523
LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a ..
LP (NYSE: WES) ("WES" or the "Partnership") announced that tomorrow before the market open it will..
Oil & Energy
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Personnel Announcements
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DTMDT Midstream
a leading provider of natural gas transportation and storage services
has released its Form 10-Q report for the third quarter
The report highlights significant financial growth and operational achievements
driven by strategic acquisitions and long-term service contracts
The company continues to expand its asset footprint and remains committed to sustainable and responsible operations
SEC Filing: DT Midstream, Inc. [ DTM ] - 10-Q - Apr. 30, 2025
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The ADT Fidelity Lions produced a stunning performance to blitz the Vodacom Bulls 57-33 in a highly entertaining Carling Currie Cup encounter in front of a full house at Midstream College in Olifantsfontein on Friday night
Earlier in the week it was announced that the Bulls would be taking the important match to the College as an initiative to bring the game closer to their younger fan base
However it was the Lions who seemed more inspired as they tore into an early lead
led comfortably at halftime and saw out the game in style to clinch a vital win in the end
The result saw the Lions leapfrog the Bulls to the top of the Currie Cup log and they are now odds on favourites to finish top after the final weekend of pool action next weekend
It was a great start to the match for the Lions as they cruised into a 19-0 lead after 21 minutes with three early tries
First some great interplay in the Bulls 22m saw outside centre Erich Cronje hand off a Bulls defender and go over for an unconverted score in the fourth minute
The visitors' forwards then took centre stage as a number of pick and goes finished with flank Ruan Venter forcing his way over
before a big maul was driven towards the line
where hooker PJ Both broke off to reach over and score
with flyhalf Nico Steyn slotting both conversions
The Bulls finally responded in the 27th minute as they setup a lineout in the Lions' 22m
saw their maul stopped short before flank Corne Beets crashed over to score
converted by flyhalf Jaco van der Walt to make it 19-7
However the Lions hit straight back four minutes later
taking play into the Bulls half where inside centre Marius Louw broke the line and offloaded to scrumhalf Morne van den Berg to score their bonus point try
It was then an action packed finish to the half as Lions wing Tapiwa Mafura was yellow carded for cynical play after illegally preventing an offload attempt from Bulls fullback Canan Moodie close to the try line
But the visitors ended the half on top as they setup a lineout in the Bulls 22m
set the maul and powered it over for Botha to get his second as they took a 33-14 lead into halftime
The second half was a back and forth affair
with the Bulls getting off to a good start as they drove a maul over for hooker Joe van Zyl to score in the 48th minute
converted by replacement flyhalf Keagan Johannes as they cut the deficit to 12 points
But the Lions struck back in the 54th minute
taking play into the Bulls 22m where prop Morgan Naude crashed over to score
The Bulls then responded with a superb grubber from Moodie in the Lions 22m allowing wing Katlego Letebele to run onto and score
converted by Johannes to again bring themselves back into the game going into the final quarter
But the Lions weren’t done either and after Steyn knocked over a close-range drop goal to push them more than two scores ahead
try scoring machine loose forward Renzo du Plessis joined the fray and promptly added his name to the score sheet
converted by replacement flyhalf Sanele Nohamba to put them into a 50-28 lead after 70 minutes
as they pulled a lineout move which allowed replacement hooker Juann Els to power over in the corner
But it was the Lions that finished with a flourish as they attacked from their own half
before wing Rabz Maxwane finished it off to put the cherry on the cake
Juann Els; Conversions - Jaco van der Walt
Rabz Maxwane; Conversions - Nico Steyn (5)
Phillips as an independent member of its general partner's board of directors
With an extensive 47-year career in the midstream industry
Phillips is well-recognized for his transformative leadership at Crestwood Equity Partners
Crestwood grew to an enterprise value exceeding $7.1 billion through strategic mergers and acquisitions
including successful integrations with Oasis Midstream Partners LP and Inergy Midstream L.P
Phillips will join the Compensation Committee and Special Committee
contributing to a board comprised of eight members
This appointment underscores Western Midstream's commitment to enhancing its governance framework while leveraging Phillips' substantial industry expertise and leadership acumen
Phillips continues to serve as an independent director at South Bow Corporation and Enstor Inc.
bringing valuable insights to these positions
His extensive experience in the midstream sector and involvement with the Energy Infrastructure Council
position him as a key figure in driving sustainable growth and value creation
WES President and CEO Oscar Brown expressed enthusiasm for this strategic appointment
highlighting how Phillips' proven track record aligns with WES's focus on capital-efficient growth and long-term value generation
emphasizing the valuable perspectives Phillips will bring
For more information on Western Midstream Partners
visit their official website or contact their Investor Relations team
Western Midstream Partners (NYSE: WES) has appointed Robert G
Phillips brings over 47 years of midstream industry experience
and CEO of Crestwood Equity Partners following its merger with Energy Transfer LP in 2023
Crestwood grew to over $7.1 billion in enterprise value through organic growth and M&A activities
His appointment brings the total board membership to eight
Phillips currently serves as an independent director at South Bow Corporation and Enstor Inc.
and previously co-chaired the ESG Committee of the Energy Infrastructure Council
Western Midstream Partners (NYSE: WES) ha nominato Robert G
Phillips come membro indipendente del consiglio di amministrazione del suo partner generale
Phillips vanta oltre 47 anni di esperienza nel settore midstream
avendo recentemente lasciato l'incarico di Fondatore
Presidente e CEO di Crestwood Equity Partners dopo la fusione con Energy Transfer LP nel 2023
Crestwood è cresciuta fino a raggiungere un valore aziendale superiore a 7,1 miliardi di dollari attraverso una crescita organica e attività di fusioni e acquisizioni
Phillips farà parte del Comitato per la Remunerazione e del Comitato Speciale del consiglio
La sua nomina porta a otto il numero totale dei membri del consiglio
Phillips è direttore indipendente presso South Bow Corporation e Enstor Inc.
e in precedenza ha co-presieduto il Comitato ESG del Energy Infrastructure Council
Western Midstream Partners (NYSE: WES) ha nombrado a Robert G
Phillips como miembro independiente de la junta directiva de su socio general
Phillips cuenta con más de 47 años de experiencia en la industria midstream
habiéndose retirado recientemente como Fundador
Presidente y CEO de Crestwood Equity Partners tras su fusión con Energy Transfer LP en 2023
Crestwood creció hasta superar un valor empresarial de 7.1 mil millones de dólares mediante crecimiento orgánico y actividades de fusiones y adquisiciones
Phillips formará parte del Comité de Compensación y del Comité Especial de la junta
Su nombramiento eleva a ocho el total de miembros de la junta
Phillips es director independiente en South Bow Corporation y Enstor Inc.
y anteriormente fue copresidente del Comité ESG del Energy Infrastructure Council
Western Midstream Partners (NYSE: WES)는 Robert G
Phillips는 최근 2023년 Energy Transfer LP와의 합병 후 Crestwood Equity Partners의 창립자
그의 리더십 아래 Crestwood는 유기적 성장과 인수합병 활동을 통해 71억 달러 이상의 기업 가치를 달성했습니다
현재 Phillips는 South Bow Corporation과 Enstor Inc.의 독립 이사로 재직 중이며
이전에는 Energy Infrastructure Council의 ESG 위원회를 공동 의장으로 역임했습니다
Western Midstream Partners (NYSE: WES) a nommé Robert G
Phillips membre indépendant du conseil d'administration de son partenaire général
Phillips possède plus de 47 ans d'expérience dans le secteur midstream
ayant récemment pris sa retraite en tant que fondateur
président et PDG de Crestwood Equity Partners suite à sa fusion avec Energy Transfer LP en 2023
Crestwood a atteint une valeur d'entreprise de plus de 7,1 milliards de dollars grâce à une croissance organique et des opérations de fusions-acquisitions
Phillips siégera au comité de rémunération et au comité spécial du conseil
Sa nomination porte à huit le nombre total de membres du conseil
Phillips est actuellement administrateur indépendant chez South Bow Corporation et Enstor Inc.
et a précédemment co-présidé le comité ESG du Energy Infrastructure Council
Western Midstream Partners (NYSE: WES) hat Robert G
Phillips als unabhängiges Mitglied in den Vorstand seines Generalpartners berufen
Phillips bringt über 47 Jahre Erfahrung in der Midstream-Branche mit und ist kürzlich als Gründer
Vorsitzender und CEO von Crestwood Equity Partners in den Ruhestand gegangen
nachdem das Unternehmen 2023 mit Energy Transfer LP fusionierte
Unter seiner Führung wuchs Crestwood durch organisches Wachstum und M&A-Aktivitäten auf einen Unternehmenswert von über 7,1 Milliarden US-Dollar
Phillips wird im Vergütungsausschuss und im Sonderausschuss des Vorstands tätig sein
Mit seiner Ernennung erhöht sich die Gesamtzahl der Vorstandsmitglieder auf acht
Phillips ist derzeit unabhängiger Direktor bei South Bow Corporation und Enstor Inc
und war zuvor Co-Vorsitzender des ESG-Ausschusses des Energy Infrastructure Council
2025 /PRNewswire/ -- Today Western Midstream Partners
LP (NYSE: WES) ("WES" or the "Partnership") announced that Robert G
For more information about WES, please visit www.westernmidstream.com
Daniel JenkinsDirector, Investor Relations Investors@westernmidstream.com866-512-3523
Rhianna DischManager, Investor RelationsInvestors@westernmidstream.com866-512-3523
View original content to download multimedia:https://www.prnewswire.com/news-releases/western-midstream-announces-appointment-of-robert-g-phillips-as-independent-director-302443043.html
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Our Midstream business is focused on connecting customers and markets to critical forms of energy
our Midstream business provides our customers at home and abroad with reliable
This includes global market access for North American LPGs
which provides our customers with attractive prices for propane and butane while delivering diversity of supply and supporting stronger energy security in Asia
enhances communication between teams and takes a proactive approach to get projects off the ground and moving forward
TRC understands the needs of your project life cycle and can support them from the initial planning and development stages through the construction and operations of your assets
We recognize that in today’s competitive market
it is imperative to focus on scheduling tasks and your budget to deliver work and support project completion in the most expeditious and cost-effective manner possible
As one of the most comprehensive solutions providers in the pipeline and midstream industry
TRC understands the ever-changing landscape of the energy industry and its challenges — both new and old
we have aligned and integrated our solutions from front-end engineering and design (FEED) through permitting and project execution
maintenance and right-of-way vegetation management
Our experts understand the dynamic forces that drive project success and how to manage cost
schedule and quality during the execution phase and beyond
Our capabilities and experience extend far beyond pipelines and their associated facilities to include exploration and production
gas processing and energy transition projects involving the transportation and storage of hydrogen and CO2
It’s our mission to understand the unique situations your energy organization finds itself in and come up with integrated strategies that keep you compliant
Contact Us
we understand the complex challenges facing the midstream oil and gas sector
Our tested practitioners are dedicated to helping you adapt to this dynamic landscape with innovative
Contact our team to learn more about our midstream advising and our capabilities
Our practitioners share their insights and perspectives on the trends and challenges shaping the market
Managing a construction project is a challenging job that involves careful planning
Learn more about how to avoid some of the most common mistakes in construction management so your projects stay on track and within budget
Cybersecurity threats to the Bulk Electric System (BES) are escalating
with attackers continuously evolving their tactics to target critical infrastructure
While advancements in technology have introduced innovative methods to enhance efficiency and accuracy
the core principles of maintenance remain essential for ensuring pipeline integrity
data centers form the backbone of cloud computing
artificial intelligence and the vast array of digital services we rely on daily
companies are racing to expand these facilities
Construction project planning and scheduling are critical but complex processes that can lead to delays
Success requires proper stakeholder communication
regulatory compliance and innovative tools and techniques throughout the project’s life
Vegetation management is evolving to reduce the risk of damage to utility infrastructure
Learn how our vegetation management services can help
Pipeline systems that transport millions of gallons of liquids or billions of standard cubic feet of gas a day require careful planning and constant supervision to operate smoothly
INOGA is working with Indiana’s Department of Natural Resources to improve regulations at the state level
explore the benefits of third-party hydrotesting and see how TRC can support your project’s success
PHMSA announced that they issued a final rule that significantly expands Federal pipeline safety oversight to all onshore gas gathering pipelines
Williamson to help oil and gas clients navigate the compliance issues surrounding PHMSA’s upcoming Gas Mega Rule
PHMSA announced it has submitted an advisory bulletin underscoring to pipeline and pipeline facility operators requirements to minimize methane emissions
The Security Directive will require critical pipeline owners and operators to report confirmed and potential cybersecurity incidents
The Biden Administration signals both a renewed and accelerated focus on climate change
Vice President – Transaction Advisory Services
was part of Intralinks virtual roundtable series Oil & Gas Part II
TRC’s own Lauren O’Donnell is currently the elected Chair of the INGAA Foundation
The Foundation’s primary activity is to sponsor research aimed at promoting natural gas use and safe
efficient pipeline construction and operation
The board of directors of the INGAA Foundation elected Lauren O’Donnell as its chair for a one-year term
Why Does Soil Resistivity Testing Matter for Cathodic Protection Design
To have an impact on the delivery or operation of a pipeline
it’s vital to eliminate the intra- and inter-company barriers
including those in the areas of communications
The Pipeline and Hazardous Materials Safety Administration this week published important new rules aimed at improving pipeline safety
Contact Us
TRC ensures nondiscrimination in all programs and activities in accordance with Title VI of the Civil Rights Act of 1964
If you need more information or special assistance for persons with disabilities or limited English proficiency
Martin Midstream Partners LP (MMLP) and investor Martin Resource Management Corp
(MRMC) have mutually terminated a deal under which MRMC would buy MMLP common units it did not already own
The cancellation comes after two other investors opposed the takeover by MRMC
which owns the 100 percent general partnership interest in MMLP
Nut Tree Capital Management LP and Caspian Capital LP
Under the transaction agreed between MMLP and MRMC
each non-MRMC-owned common unit representing a limited partnership interest in MMLP would be converted into cash
MMLP was to survive as a wholly owned subsidiary of MRMC
MRMC initially proposed a purchase price of $3.05 per unit
which own limited partnership interests in MMLP responded with a counter-offer to buy the common units targeted in MRMC’s proposal for $4 a unit
Nut Tree and Caspian later raised their proposal to $4.5 per unit and expressed willingness to increase their offer further
MMLP announced a definitive agreement under which MRMC would acquire all MMLP common units it did not already own for $4.02 per unit
rebuffing Nut Tree and Caspian’s increased offer
its purchase by a party other than MRMC would likely necessitate the purchase of its general partner
MMLP has said it could not make a sale transaction with another party because MRMC had no intention of selling the general partner
MRMC owns about 15.7 percent of MMLP common units
while Nut Tree and Caspian have “economic exposure” of around 13.2 percent of MMLP common units
according to information shared with the United States Securities and Exchange Commission
Announcing the termination of the takeover agreement with MRMC
MMLP said it would “continue to operate as a standalone publicly traded company”
president and chief executive of MMLP’s general partner
“We appreciate the feedback we have received from unitholders during our extensive outreach and engagement over the last several weeks”
“We greatly value unitholders’ perspectives and are pleased that unitholders have confidence in the future of MMLP as a standalone company”
“We will continue to focus on executing our long-term strategy
including strengthening the balance sheet through debt reduction and improving operating results
processing and storage services for crude oil and petroleum products
It also offers land and marine transport for oil
MMLP also distributes natural gas liquids and offers blending and packaging services for lubricants and grease
as well as manufactures sulfur and sulfur-based products
“MRMC markets over 250 million gallons of diesel fuel and lubricants per year along the Gulf Coast and over 1.5 million barrels of naphthenic lubricants and base oils per year throughout the United States”
World Cup-winning Springbok Canan Moodie and Junior Springbok of the Year Corné Beets both return to the matchday 23 to bolster the Vodacom Bulls ahead of the 2024 Carling Currie Cup Jukskei derby at Midstream College on Friday 30 August 2024
This grandiloquent celebration of back-to-school rugby – against the Fidelity ADT Lions – is set for 17h15 in Olifantsfontein and will be played out in front of a sold-out crowd
Head coach Phiwe Nomlomo has shuffled his forward pack which sees Dylan Smith
Joe van Zyl and uMacingwane u Khuthazani ka Mchunu lining up at the front row
Behind the trio will be the lock pairing of 2024 Junior MVP Merwe Olivier and Sintu Manjezi who gets a run at five this week
Nizaam Carr will be at six flank alongside Beets who returns from injury
uMnguni kaYeyeye u Celimpilo ka Gumede – who was player of the match in round 8 – completes the forward pack at eight
‘el maestro’ Bernard van der Linde (scrumhalf) will be paired up alongside Jaco van der Walt who slots into flyhalf
‘Rocketman’ Stravino Jacobs will run at left wing with Springbok Sevens star
Katlego Letebele getting the opportunity to run on the right-hand side of the park
Canan Moodie will marshal the troops from fullback with Chris Barend Smit and Cornel Smit at centre
Nomlomo has assembled a six-two split impact squad that features 2023 under-21 Forward of the Year Juann Else
VODACOM BULLS vs FIDELITY ADT LIONS STARTING XV: 1
MANAGEMENT: Jake White – Director of Rugby
Darryn Berry and Pieter du Plessis – Physiotherapists
Bernado Botha – Strength & Conditioning
Andries Nkabinde – Logistics Manager
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Tel: 012 420 0700
Ticket Office Fax: 012 344 1245
info@bluebull.co.za
© 2025 Vodacom Bulls. Designed & Developed by Electric Pencil
operate and decommission a deep-water port to export LNG from the US
Delfin Midstream has announced significant progress in securing key permits and approvals for its energy infrastructure project in the US
received a licence from the Maritime Administration (MARAD) on 21 March 2025
operate and decommission a deep-water port to export liquefied natural gas (LNG) from the US
The licence was issued under the Deepwater Port Act of 1974 and MARAD’s 2017 Record of Decision
aligning with President Trump’s executive order
Delfin’s deep-water port project will be the first offshore LNG export project in the US
The approval process involved collaboration between MARAD
the US Coast Guard and approximately 15 federal agencies
along with the states of Texas and Louisiana
Don’t let policy changes catch you off guard
Stay proactive with real-time data and expert analysis
the Department of Energy approved an LNG export permit extension for Delfin LNG
granting additional time to commence exports from the project
previously delayed under the prior administration
was announced by Secretary Chris Wright during his opening remarks at CERAWeek in Houston
The brownfield deep-water port being developed by Delfin requires minimal additional infrastructure investment to support up to three floating LNG vessels producing up to 13 million tonnes (mtpa) of LNG
In addition, Delfin Midstream and SEFE Securing Energy for Europe have signed a heads of agreement for the long-term supply of 1.5mtpa of LNG for a minimum of 15 years
The LNG will be sourced from Delfin-deployed floating LNG vessels 40 miles offshore near Cameron
The free-on-board deliveries will commence immediately after the construction and commissioning of the floating liquefied natural gas vessels
ensuring SEFE can provide LNG supply security to its customers
Give your business an edge with our leading industry insights
View all newsletters from across the GlobalData Media network
(P&GJ) — Vaquero Midstream announced plans to significantly expand its natural gas gathering and processing infrastructure in the Southern Delaware Basin with a new 70-mile high-pressure pipeline and a 200 MMcf/d cryogenic processing plant
The Dallas-based company said the 24-inch pipeline will loop its existing gathering system
running from its processing complex near the Waha Hub in Pecos County
to its existing infrastructure in Loving County
The expansion will increase gathering capacity from 400 MMcf/d to approximately 800 MMcf/d and extend Vaquero’s reach into Ward
RELATED: Vaquero Midstream Secures $400 Million for Delaware Basin Expansion Projects
“Vaquero is dedicated to maintaining its position as one of the most reliable midstream operators in the Delaware Basin,” said Harrison Holmes
“This expansion of our gathering system will be key in providing direct access on Vaquero’s system from northern Reeves and Loving Counties to our processing complex near Waha
Our continued goal is to offer producers a unified gathering platform
supported by downstream market connectivity and reliable power infrastructure.”
Both projects are backed by the company’s $400 million credit facility
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DT Midstream, Inc. (NYSE:DTM) Q1 2025 Earnings Call Transcript April 30
Operator: Welcome to the DT Midstream First Quarter 2025 Earnings Call
I will now turn it over to our speaker today
I would like to remind you to read the Safe Harbor Statement on Page 2 of the presentation
including the reference to forward-looking statements
Our presentation also includes references to non-GAAP financial measures
Please refer to the reconciliations to GAAP contained in the appendix
So with that I will go ahead and turn the call over to David
I’ll touch on our financial results
provide an update on the latest commercial activity and construction progress on our growth projects
I’ll then close with some commentary on the current market fundamentals before turning it over to Jeff to review our financial performance and outlook
giving us confidence in our full year plan
We are reaffirming our 2025 adjusted EBITDA guidance range and our 2026 adjusted EBITDA early outlook range
And we continue to execute on our $2.3 billion organic growth project backlog
Our teams remain focused on integrating our newly acquired interstate pipelines
The key integration activities are progressing on schedule
and we completed full cutover of all financial activities into DTM systems on April 1
and are on track to complete all remaining milestones by year-end
We on-boarded all key employees at close and benefited from the team’s expertise with these assets during the winter season
which our pipelines were highly utilized and provided reliable service
As we gain additional insights into these assets and how they operate
we’re developing a clearer view of the commercial opportunities they present
including synergies with our existing network
and we feel that the growth and modernization opportunities offered from them are better than our initial assessment
Construction is currently underway on the first of these growth projects
the Midwestern Gas Transmission Power Plant Lateral to serve AES Indiana’s Petersburg Generating Station
all of our in-flight growth investments remain on track and on budget
And expansions across the gathering footprint will begin to contribute during the second half of the year
we expect these projects to ramp over a period of time and look forward to their contributions as they serve some of the most strategic supply areas in the country
I’d like to take a moment to address the recent market volatility and its long-term impacts to DTM and the broader natural gas sector fundamentals
The first quarter of ’25 was a volatile period for the market
rebalancing the market in driving natural gas prices up
followed by a decline in pricing as the market tried to understand the impact of tariff announcements
Despite the uncertainty ahead and volatility
is fundamentally well-positioned and our plan remains unchanged
Our contracts have been structured to be durable even in volatile markets with significant demand-based revenues
a customer base that is over 80% investment-grade rated and contract terms that average seven years
we have no commodity exposure and minimal volume exposure across our portfolio with our Pipeline segment comprising 70% of adjusted EBITDA
serving strong demand pull utility customers anchored by long-term contracts
We expect tariffs will have no material effect on us as we have procured long lead critical components for our projects currently in progress and maintain strong strategic relationships with suppliers
which is why we are confident in reaffirming our ’25 and 2026 adjusted EBITDA guidance ranges as well as our CapEx guidance
Looking out over a longer-term time horizon
we remain bullish about the outlook for natural gas infrastructure
natural gas supply and demand are both expected to grow by approximately 19 Bcf per day through 2030
with demand growth primarily driven by LNG exports
Our Louisiana assets are very well-positioned to serve this growing LNG demand in the Gulf Coast region
data center and utility scale power generation is expected to drive 25% growth in the PJM and MISO power market regions by 2030
and this is where the bulk of our pipeline assets are located
the long-term positive effects of higher tariffs will result in reshoring of industrial demand
requiring more power and natural gas to serve energy-intensive industries that relocate manufacturing and industrial operations to the United States
Two thirds of the supply increase to meet this demand growth is expected to come from the Haynesville and Appalachia regions where our assets are located
providing opportunities for higher utilization and expansion of our gathering systems to feed our pipelines
there is growing political and regulatory support emerging for natural gas and energy infrastructure
With the recognition of a national energy emergency and appreciation of the need to streamline the process for getting much needed infrastructure built
the fundamentals supporting the need for more natural gas infrastructure remain intact
and we are confident in our ability to continue to deliver on our commitments to our customers
I’ll now pass it over to Jeff to walk you through our quarterly financials and outlook
we delivered adjusted EBITDA of $280 million
representing a $45 million increase from the prior quarter
Our Pipeline segment results were $39 million higher than the fourth quarter 2024
which includes a full quarter contribution from our acquired interstate pipelines
Gathering segment results were $6 million greater than the fourth quarter of 2024
reflecting lower overall expenses in the first quarter of 2025 and the impact of growing volumes in the Haynesville
total gathering volumes across the Haynesville averaged 1.67 Bcf per day
driven by new volumes and the return of offline production
primarily across our Appalachia and Susquehanna gathering systems
but remain in line with our full year plan
which our full year guidance is based on is for adjusted EBITDA to be lower than the first quarter
Driven by seasonality across our interstate pipelines
and expected rate step-down on Guardian pipeline
and included in our transaction purchase multiple and typical maintenance activity across our gathering assets
We remain confident in our full year outlook and reaffirm our 2025 adjusted EBITDA guidance range and our 2026 adjusted EBITDA early outlook
reflecting the strong positioning of our assets and the durable nature of our contracting
We’ve increased our committed capital in 2025 and 2026 to reflect several new projects being executed
With approximately $365 million total committed in 2025 and approximately $100 million committed in 2026
We look forward to our annual rating agency meetings in mid-May
where we will discuss the strength of our credit profile and our commitment to preserving the strength of our balance sheet and achieving an investment-grade credit rating
we are currently investment grade with Fitch ratings and on positive outlook with both Moody’s and S&P requiring only one additional agency to upgrade us before fully achieving an investment-grade rating
we also announced that our Board of Directors approved our first quarter dividend of $0.82 per share
and we remain committed to grow the dividend 5% to 7% per year in line with our long-term adjusted EBITDA growth
I’ll now pass it back over to David for closing remarks
we remain confident in delivering on our guidance
continuing our track record of strong performance that we’ve maintained since we spun the company in 2021
Our high-quality pure-play natural gas pipeline asset portfolio is very well-positioned to take advantage of opportunities across our network and execute on our large organic project backlog
And the fundamentals supporting natural gas infrastructure remains stronger than ever
with significant increases in demand coming from LNG exports and the power sector
increased political support behind natural gas and energy infrastructure
and a broader realization of the key role natural gas will need to play as a reliable
and clean fuel to meet our country’s growing energy demands
Operator: And we will now begin the question-and-answer session
[Operator Instructions] And your first question comes from the line of Michael Blum with Wells Fargo
So you had a really big uptick in Haynesville and obviously a downtick in Northeast
just your — just speak to what’s happening there
Or is there anything in particular going on there
And then — how do you see the rest of ’25 and beyond playing out in both Northeast and Haynesville
that’s completely in line with our large public producers on what they’ve communicated and reported to the markets on their activity
I’d say the other activity that’s happening
particularly in the Haynesville is the privates are — have become very active
We have a number of privates on the network
So we’re working very closely with them as they seem to have been responding quicker to the price signals and the demand showing up in the area than some of the publics
we feel very confident in the Haynesville activity
very confident in our guidance for what we expect to see there for the balance of the year
likely continue to see some ramp throughout the year towards year-end
I feel very optimistic about the Haynesville right now
it’s playing out exactly as we expected it to play out in our guidance
There’s some timing of activity that’s kind of embedded in those volume numbers
we’ve talked about a number of projects clicking in
in the second half of the year in Appalachia
and that’s how you should think about the profile for Appalachia
very aligned with what we’ve got in our full year plan
And then I just wanted to ask in the past you’ve talked about multiple
six or maybe even more potential projects aims at supplying data centers and want to kind of hear the update where that stands today
there’s a large group of proposals on the table with numerous sites across our entire footprint
And that — and I’m referring to what I’ll call behind the meter data center power demand
there’s also numerous proposals across our entire footprint on what I would call utility scale power generation
So we’re seeing both those sectors very active and advanced commercial conversations in both those categories
we’ll be happy to share that with our investors
Operator: And your next question comes from the line of Jeremy Tonet with JPMorgan
I just want to start off with Millennium here
It looks like I think there might be an open season for about half a year or so
I’m just wondering if you could provide any color there on the outlook
if that’s in the backlog or any other thoughts you could share
I think that went public at the end of the week
I’d say that’s a good example of the level of inbound inquiries we’re getting right now across all of our pipelines
especially in the upper Midwest and Northeast areas
There’s just strong interest in incremental capacity
And Millennium is in a fairly unique position there
They’ve got some abilities to repurpose existing capacity and to leverage other assets that are in the ground locally that there’s synergies between the Millennium Pipeline and those other assets to get deeper into that New York and New England market
I think that market area has come to a realization that they are materially short capacity
And I think what I talked about in my opening statement
just that fundamental backdrop has shifted and changed in a positive way
And I think those utilities and those markets are sort of reassessing their situation
And — we’ll see how the open season goes
but this open season is really to draw in and get a better read from those markets
The nature of the demands that they’re — they need to meet and how Millennium can serve that — so stay tuned
That’s kind of the first step in a larger expansion project
We’re seeing similar inbounds across other FERC assets including our newly acquired assets
it just kind of goes to that fundamental backdrop that we’re operating in
Just clear demand growth occurring across our footprint
We’re in the early stages of assessing how we can respond to that and what type of expansions are acceptable in the market
Another data point to kind of support this early activity
We had peak day send outs on three of our FERC-regulated assets our storage business and two of our new pipelines
And that’s just an indication of that demand has grown in this region
So this is another good example of what we communicate with investors are projects that are either FID-ed or near FID in the backlog
Projects like this in their earlier days are kind of excluded from the backlog
the unadjusted backlog is actually growing right now
And stay tuned as we move these projects along and we’ll share the updates with the investors as appropriate
And maybe if I could just dig in at a high level a little bit more on some of the comments you said there
there’s a change at the federal level dealing with energy infrastructure and the utilities have a duty to serve their customers
maybe more at the local level or really at the state level
We’ve seen legal filibuster and other tactics in the past
different tone coming out of some of those stakeholders
And I think there’s a series of events has occurred over the last 12 months
and I’ll rattle off a few that I think are changing the sentiment in the market
I’d say one is a lot of the renewal builds that have been announced
They haven’t delivered as advertised
They’ve either been canceled or they’re showing up late for the cost is significantly different than what was originally intended
So that would be one thing that I think is soaking into the market
the true impact to reliability on the intermittency of these new generation assets is sinking into the market and being realized
And if there are service challenges in the future
that likely lands — the public sentiment will be with the utilities and they don’t want to be the ones “holding the bag” on that public sentiment
So I think that’s shifting the thinking around the executives with a bunch of utilities
Significant growth happening behind the utilities
So these are all just the fundamentals that are
causing sentiment in the market to shift and a realization that we’re probably short capacity
And I think we’re in the early days of that
So — and I think public sentiment has shifted as well
I think on the other side of the new administration and how the election played out
I think there’s just this recognition in the public
The general recognition of the public that
So there’s just a lot of things that I think have shifted here over the last 12 months that’s really moved the pendulum from what I’ll call maybe on the far left side to bringing it back to the center where there’s an appreciation we need all of the above
And I think that’s going to benefit the natural gas
and it’s also going to benefit the electric sector as well
I’m just wondering if you could comment on opportunities that might stem from that or anything else we’re seeing on LNG commercialization moving forward across the board
that FID was really positive when I read that the other day
part of that FID is the header system that serves that facility
It’s about a 3 Bcf a day header system
and it’s designed to connect directly into LEAP
So LEAP will be one of the handful of supply points into that header system
So we’re really happy and pleased to see that FID
And as we worked hand in glove with the previous owner
we will continue to work hand in glove with Woodside and the new ownership
Operator: Next question comes from the line of Theresa Chen with Barclays
I’d like to dig in a little bit more on your backlog
specifically related to your comments about potential further expansions that are under development
Can you provide some more color on where things stand with the integrated solution across your Northeast gathering as well as the existing pipeline into Midwest — newly acquired Midwest assets
Are there any commercial developments to note there
And can we just think about how much CapEx that could be for DTM if you were to bringing that molecule from our gathering system on to Nexus expansion
vector expansion straight to the end user in the Midwest
I think we talked about what’s happening already on lam
So I’m going to pivot over to the new pipelines that we acquired from ONEOK
had some record high sendouts on those assets
So I’m really pleased fundamentally with how they performed and our assessment of their importance to serve those load centers in the Upper Midwest
We’re taking a harder look and we obviously have more information now around the growth opportunities
the modernization opportunities and how they will integrate into the other assets
And what I’ll say at this point is that what we thought when we announced the transaction
The opportunity set is more robust than we thought it was when we announced the acquisition
it’s our job to commercialize that now
That power plant on Midwestern literally commercializing late last year right around close was a really good early indication of the opportunity set and the speed at which it can move
we will be providing more clarity and updates to the investors
I would just put a green arrow up on the backlog opportunities that are manifesting as we get more confident with them and can clarify them
Operator: And your next question comes from the line of Spiro Dounis with Citi
I just want to pull some of your comments together
It sounds like Haynesville activity is kind of ramping back up again
And I think our working assumption around the next LEAP expansion was that maybe it was years away just given the competing pipelines — coming online soon
Just want to get your latest thoughts there
LEAP — if you look at how we’ve expanded that over the last two
it’s been in these nice bite-sized adjustable increments
I don’t see that changing going forward
I think we’re really well-positioned in the market in terms of the service offering that we offer very competitive rates
We are highly interconnected to the supply across the entire footprint of the basin
And we have a lot of delivery and flexibility in terms of the physical deliveries we can make to a myriad of the LNG facilities on the Gulf Coast
So I’d say from a competitive perspective
We’re kind of coming out of this period where Haynesville kind of tapped the break over the last 18 months
And they’re now feels like they’re putting their foot back on the gas
So I think we just need to let the clock run here a little bit to see how the basin responds
You alluded to the new projects coming into service that are expected to come in later this year
That will digest into the market and then we’ll carry on from there
So nothing has changed in terms of how I think that will play out over time
The market is going to digest that and we’ll see where that takes us
But I feel good about our position right now
maybe just a finer point on maybe just the cadence as we think about the rest of the year
2Q maybe dips down a little bit on seasonality and some other factors
which does seem to imply kind of a pretty strong second half of the year
And so just curious if you guys put maybe a finer point on what the specific drivers are you maybe get you to that midpoint
How much is volume growth versus projects versus other items
So what we’ve got — you’re exactly right
we’re planning on being stronger than the first half
And you’re right that’s driven by volume and a couple of other projects coming online
And then the move from the first quarter to the second quarter is one item I mentioned was related to the Guardian
There’s a small decline in the rates related to that
That was all contemplated in the acquisition
and that’s all built into the guidance that we provided in for the full year piece of the guidance there
So I think those are really the factors to think about as you’re thinking about the modeling
it’s the second half of the year is stronger than the first half
we haven’t changed our guidance for the year
So if we felt we were getting outside of that
we would be updating you on that on the call
And I’ll just add to what Jeff said there — we had a pretty cold winter
I’ll use that word on our pipeline assets because of the severe winter that we had
We had almost a 30-year normal winter up here in the Midwest
long time since we’ve had a winter like that
So there’s some of that playing through in Q1 as well
Operator: And your next question comes from the line of John Mackay with Goldman Sachs
I wanted to go back to some of your comments
You commented that they’re kind of responding quicker to price signals
I guess I’d be curious to your view though
we’ve got of bounced back from $4.50 down to about $3 now
Are we seeing them kind of respond quicker in the opposite direction at this point
Or do you think this kind of first quarter strength can follow through
even if prices are a little weaker here in shoulder season
That’s a topic that’s at the forefront of my mind right now
We’re watching that very closely to see what you just described
is that they’re fairly quick on the draw
but they also are pretty disciplined about hedging when they see those attractive prices
Privates are typically PE backed and capital recovery is paramount in their minds
So if they can drill an edge and turn that capital quickly
So — we’re watching for that
We’re not seeing any signals of that at this point
We’ve seen a little bounce back here on price over the last week or so
but we’re definitely watching closely for that
Maybe if you can kind of just share your latest thoughts there
maybe what that looks like in this kind of softer liquids environment
And maybe anything you can kind of share on just pace of development from here
the area of the Utica that we’re gathering for EOG
which is — their economics are not NGL dependent
So it’s predominantly driven economically by oil
And I would just point you to what they’ve said publicly about their resource there
They have a massive resource footprint that they’ve established in that area
They’ve unlocked the rock technically
And the pace of development is consistent with kind of what we have in our guidance for this year and next year
We’re working closely with them and yes
we view that as kind of a long-term growth opportunity inside the Appalachia gathering portfolio
And the nice thing about it is that it feeds one of our pipelines as well
Operator: Your next question comes from the line of Keith Stanley with Wolfe Research
the high end of the 2026 CapEx range looks lower than last quarter
we’ll check the formatting on the slide
but there is no change in the high end of ’26 CapEx guidance
from our guidance and what we’ve guided you get to is we’re going to spend our free cash flow on organic growth projects
So that’s in your mind that what you assume
we’ll adjust that slide and make that match up to that guidance
you put out a large number of pre-FID projects in the refreshed backlog and you talked to a number of opportunities today too
Are there any projects you’d flag as closer to moving forward based on customer demand and timing from that list
And I guess I’m just curious what’s looking most interesting near term or making the most progress
I’m going to give you a high-level answer to that because I don’t want to get too specific just given the discussions that are happening directly with the anchor customers and some of our commitments
and I’m probably going to repeat what I said earlier is there’s a green up arrow sitting in that $2.3 billion backlog
Our assessment of the new pipelines we acquired is part of what’s driving that
which is hot off the press is driving that
I’d say a number of the projects that we’ve been talking to you about are progressing to FID
So what I’m seeing in that backlog is nothing but kind of fundamental green arrows up
as we get more confident because just to remind everybody
that backlog is not the total opportunity set
it’s only the opportunity set that we feel highly confident in executing on and delivering to our investors
So as that gross backlog continues to grow it’s going to eventually push into that $2.3 billion
So I’m feeling really bullish about it
but I don’t want to communicate anything until we’re highly confident in it
And I’d just say it’s consistent with my fundamental assessment earlier on the call that there is just a — it feels like we have — we went from a situation a year ago where it felt like we had a headwind that we’re constantly bucking to today
it feels like we actually have a tailwind now around the business
And we’re working hard to better quantify and assess that tailwind and how that would adjust into our future long-term outlook for the company
Operator: And your next question comes from the line of Jean Ann Salisbury with Bank of America
Boardwalk recently announced an open season for the Borealis project
which would source gas very close to your Appalachian footprint
do you see DTM as being a material beneficiary
that’s a really interesting project because as we look at our new asset footprint
Midwestern connects directly to Texas gas at a point called Portland
And there is an existing pathway into Clarington between that asset and one other asset that could potentially avoid a greenfield build or maybe said a different way
there could be some lower cost capacity expansions that could kind of marry into their open season
So we’re very aware of that and assessing that
But — so if there’s a benefit to our asset footprint
it would predominantly be as I just described
there is not an incremental couple of Bcf a day of gathering capacity to Clarington
I think there would be upstream incremental gathering investments that
And I think we would be one of the a short list of parties that would be a beneficiary or you’ll be able to participate in some of that to get more gas to Clarington
That’s a great example of what I just talked about on the previous question
just this tailwind that’s emerging in the region
there are concerns that if the China tariffs remain in place
you can see eventual significant pressure on U.S
which could reduce kind of the call on the NGL portion of Appalachia
Can you remind us what share of your Appalachia footprint is in the wet versus dry footprint
we don’t view that as a risk and very little of our Appalachian gathering footprint gatherers
what I’ll call the web side of the Marcellus or the NGL side of the Utica
So the EOG assets is really the oil side of the Utica
And the bulk of our gathering and Appalachia is on the dry side
So we don’t have any derivative exposure to the NGL side in Appalachia
is if that crack spread collapses or shrinks
what we do see is we see ethane rejection and what that means is they put more of the NGLs into the gas stream
which basically grows the gas production in the basin by kind of toggling over to the gas infrastructure versus the NGL infrastructure
And that would be a positive for us because that typically would show up on the egress pipelines
The capability to pivot that in Appalachia is capped by the gas quality specs
So you can only put so much ethane into the stream before you cap out on the quality specs
But that would actually be an opportunity for us versus a risk
Operator: And your next question comes from the line of Manav Gupta with UBS
There’s a lot of macro uncertainty out there
Some companies are actually withdrawing guidance
It’s very positive that you actually reaffirmed your 2025 guide and ’26 guides
So help us understand what gives you the confidence that you can navigate this kind of very tough macro environment and deliver on both ’25 and ’26 goals
So I would say the worry in the market is the word
That’s the worry is that we slide into a recession in the short term
So we’ve talked already about the long-term fundamentals and how we feel about that
and it’s intentionally built to protect to the downside
we have no commodity exposure in this portfolio
and that only exists in our Gathering segment
70% and — that’s predominantly 100% demand-based contracts
So it’s highly resilient to short-term economic fluctuations
you may want to add from a balance sheet perspective and a durability perspective
how we feel about what I’ll call our company itself going through turmoil
And just like you’re talking about on the commercial side
We’ve done the same thing on the balance sheet
We don’t have any maturities throughout through 2029
We’ve got over $1 billion worth of liquidity
We’re right here on the doorstep of getting upgraded to investment grade here soon
you can see where our leverage metrics and those things are
So we’re also not impacted by the broader macro sort of events
David Slater: And maybe my last proof point on that question
I think it’s on the mind of a lot of investors
so I’m glad you’re asking it
is when you look at historically look back at other cycles
that economic cycles that we’ve gone through
we’ve been able to grow through those cycles
And I’d say that’s the other maybe proof point to provide confidence that — nothing has changed with the management team in terms of how we’re running the company
And past performance is only one data point
but I think it’s another comforting data point to point to
we were in this power trade where data centers are going to need a lot more power
then came these all these announcements that Microsoft is pulling back from the data center
You are obviously negotiating with a bunch of customers about their power needs
Has anything actually changed on the ground because of either DeepSeek or Microsoft pulling back the data center spend
the underlying demand for power is still growing and very resilient out there
So let me kind of break that question up into two parts
I’ll address the behind-the-meter site-specific power generation opportunities
and then I’ll address the utility scale power generation opportunities
because I think there’s different fundamentals driving those two different opportunity sets
And I don’t want to put a number out there because every time I put a number out there
I’m just going to tell you there are a lot of what I’ll call mature commercial proposals sitting in front of developers for numerous sites across our entire footprint
A lot of different elements have to come together for a site to commercialize
energy and fuel supply is only one of many elements
And then once all those elements are together and commercially sort of lined up
And I’d say that’s the phase that we’re in right now
We’re in a phase where sites have all the elements that they need now
And the final step is commercialization of the site
So that’s where we are with a host of opportunities across a myriad of our pipelines
So to the extent that the ultimate host is waiting or making decisions
And I suspect that’s true for all the other pipelines as well
Flipping over to the utility scale generation
They continue to move along and do the things that they need to do to commercialize that site
They’ve gone through the West Virginia regulatory process
So we see these utility scale sites advancing and continuing
this realization that there’s a reliability issue in PJM and emerging in MISO
The other generation that they thought was coming in isn’t coming in or it’s coming in at a different pace
All of those are positive catalysts to drive incremental utility scale generation and I’d say the last thing that we’re seeing on the utility side is the utilities
many utilities have been quietly very successful in connecting these data centers directly to the utility grid
And I would point the investors to public announcements made out of Wisconsin by some of the utilities there in Michigan by some of the utilities there
So the utilities are being — are getting a fair share of this demand directly connected to utilities
And what that does is it drives utility-scale generation
utilities are just rolling it into their portfolio and will add a plant to their future development
So — that’s how I would characterize what’s happening on the data center side
We’re active on both of those two dimensions
the utility scale and on the site specific
I’m highly confident we’re going to get our future of that market across our geographic footprint
Operator: Your next question comes from the line of Robert Mosca with Mizuho
It seems like your major customer in the Haynesville is building productive capacity this year that it could tap into in ’26
Just wondering the extent to which that’s captured in your preliminary ’26 guidance
the base case you’re assuming there
So I’ll just keep it at a high level
all of our customers provide us insights into their plan — and for all of our customers
that’s reflected in our ’25 and ’26 guidance
I would like to turn it back to David Slater for closing remarks
and I appreciate the support and look forward to catching up with everybody on the next quarter
this concludes today’s conference call
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HOUSTON, March 10, 2025 /PRNewswire/ -- Summit Midstream Corporation (NYSE: SMC) ("Summit"
"SMC" or the "Company") announced today that its wholly owned subsidiary
LLC ("Moonrise" or "Moonrise Midstream") from Fundare Resources Company Holdco
LLC ("Fundare") for a total consideration of $90 million
including $70 million in cash and $20 million in SMC equity
Summit also provided an operational update for its broader DJ Basin position
"We are pleased to announce the successful completion of this strategic bolt-on acquisition that further enhances our position in the DJ Basin
This acquisition not only expands our footprint and dedicated acreage in one of the most active areas of the DJ Basin but also provides incremental processing capacity that we expect to utilize in the coming years as volumes behind our legacy systems continue to grow
Following the acquisitions of the Outrigger and Sterling systems in December 2022
we have experienced significant volume growth behind our integrated DJ gathering and processing system and certain areas of our system are nearing full utilization
As a result of the limited available system capacity
some of our customers have deferred development activity behind our system in 2025
There are currently three rigs running behind our dedicated acreage position in the DJ and two of our key customers have sizeable multi-year development plans beginning in 2026
Moonrise adds 65 MMcf/d of processing capacity
approximately half of which is expected to be available to help alleviate our integrated DJ system constraints and enable our customers to continue to increase activity and grow volumes in 2026 and beyond
Summit is already operationally connected to the Moonrise system through multiple existing interconnections
and we expect to capture significant operational and commercial synergies with the combined systems
The expanded pipeline footprint will alleviate localized pipeline constraints on the northern end of our system and enable Summit to optimize capital expenditures as development shifts further north
With additional and expandable processing capacity at Moonrise
we will be able to further improve our plant operating margins
increase our overall system reliability and flow assurance
which will benefit both Summit and our customers
We remain extremely excited about the long-term opportunities in the DJ Basin as our customers continue to execute their development programs
with more than 800 dedicated undeveloped locations and sizable acreage positions in the area that Summit is very well-positioned to serve with the combined systems."
Under the terms of the acquisition agreements
Summit will acquire 100% of the membership interest in Moonrise Midstream
LLC for $70 million upfront cash consideration
and approximately 0.5 million shares of SMC Class A common stock
are comprised of a 65 MMcf/d natural gas processing plant
approximately 80 miles of low-pressure natural gas gathering lines
and approximately 25 miles of crude oil gathering pipelines
The gathering agreements for Moonrise are long-term
primarily fee-based contracts with approximately 50% of dedicated volumes under life-of-lease agreements and the other 50% have a weighted average remaining term of over 13 years
Volume throughput on the Moonrise system is underpinned by acreage dedications
with an estimated 60,000 leased acres from its key customers
Bison IV and a large integrated energy company
The dedicated acreage spans highly productive
with producers primarily targeting the Niobrara and Codell formations
Moonrise delivers residue gas to Trailblazer / Rockies Express Pipeline
natural gas liquids to Overland Pass Pipeline
Evercore served as financial advisor and Baker Botts L.L.P
SMC is a value-driven corporation focused on developing
owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins
processing and transportation services pursuant to primarily long-term
fee-based agreements with customers and counterparties in five unconventional resource basins: (i) the Williston Basin
which includes the Bakken and Three Forks shale formations in North Dakota; (ii) the Denver-Julesburg Basin
which includes the Niobrara and Codell shale formations in Colorado and Wyoming; (iii) the Fort Worth Basin
which includes the Barnett Shale formation in Texas; (iv) the Arkoma Basin
which includes the Woodford and Caney shale formations in Oklahoma; and (v) the Piceance Basin
which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado
SMC has an equity method investment in Double E Pipeline
which provides interstate natural gas transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws
performance or achievements and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "will be," "will continue," "will likely result," and similar expressions
or future conditional verbs such as "may," "will," "should," "would" and "could," including
statements regarding the Issuer's plans to issue the Additional Notes
the expected timing of the closing of the Offering
the intended use of the net proceeds therefrom and other aspects of the Offering and the Additional Notes
any statement concerning future financial performance (including future revenues
ongoing business strategies and possible actions taken by SMC or its subsidiaries are also forward-looking statements
Forward-looking statements also contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management's control) that may cause SMC's actual results in future periods to differ materially from anticipated or projected results
An extensive list of specific material risks and uncertainties affecting SMC is contained in its Quarterly Report on Form 10-Q for the quarterly period ended September 30
which the Company filed with the Securities and Exchange Commission (the "SEC") on November 12
including by the Company's Current Report on Form 8-K filed with the SEC on January 7
Any forward-looking statements in this press release are made as of the date of this press release and SMC undertakes no obligation to update or revise any forward-looking statements to reflect new information or events
Summit Midstream Corporation (NYSE: SMC) ("Summit"
"SMC" or the "Company") announced today that it will report operating and financial results for..
"SMC" or the "Corporation") announced today that its 2024 tax packages for Summit Midstream..
Acquisitions, Mergers and Takeovers
2025 (GLOBE NEWSWIRE) -- Delfin Midstream Inc
(“Delfin”) today provided an update on key permits and approvals for its leading US based energy infrastructure project under development in Louisiana and offshore in the Gulf
received a license from the Maritime Administration (“MARAD”) authorizing Delfin LNG to own
and eventually decommission a deepwater port
to export Liquefied Natural Gas (“LNG”) from the United States
The license was issued pursuant to the Deepwater Port Act of 1974 and MARAD’s 2017 Record of Decision and is in accordance with President Trump’s Executive Order titled
“Unleashing American Energy,” signed January 20
The Delfin deepwater port project will be the first offshore LNG export project in the United States
The approval process involved MARAD and the U.S
Coast Guard working with approximately 15 cooperating federal agencies along with the States of Texas and Louisiana
which had been delayed under the prior administration
was announced by Secretary Wright in his opening remarks at CERAWeek in Houston
said: “The level of support by the President of the United States and his administration for the development of critical energy infrastructure has been truly remarkable
The Delfin floating LNG project has the potential to be not just the first LNG export deepwater port facility in the United States
but a significant economic contributor and job creator over the long-term
We would like to express our deep appreciation for the significant work undertaken by Sean Duffy
“We also share our appreciation for the governors of Louisiana and Texas for their significant involvement and contributions to this process
this administration has enabled a project that can significantly realign energy economics for the long-term benefit of the people of the United States.”
Delfin is a leader in LNG export infrastructure utilizing low-cost floating LNG technology
The brownfield deepwater port that Delfin is developing requires minimal additional infrastructure investment to support up to three floating LNG vessels producing up to 13 million tonnes of LNG annually
Public RelationsDan GagnierGagnier CommunicationsEmail: Delfin@gagnierfc.com
The acquisition consists of $70m in cash and $20m in SMC equity
has announced the acquisition of Moonrise Midstream from Fundare Resources Company Holdco
The transaction was executed through SMC subsidiary Summit Midstream Holdings and marks an expansion of the company’s gathering and processing footprint in the DJ Basin
The deal’s total consideration of $90m includes $70m in cash and $20m in SMC equity
Moonrise Midstream’s assets are located in Weld County
and include a 65 million cubic feet per day (mcf/d) natural gas processing plant
They also comprise approximately 80 miles of low-pressure natural gas gathering lines
22,300hp of compression and approximately 25 miles of crude oil gathering pipelines
chief executive officer and chairman Heath Deneke said: “We are pleased to announce the successful completion of this strategic bolt-on acquisition that further enhances our position in the DJ Basin
This acquisition not only expands our footprint and dedicated acreage in one of the most active areas of the DJ Basin but also provides incremental processing capacity that we expect to utilise in the coming years as volumes behind our legacy systems continue to grow
“Following the acquisitions of the Outrigger and Sterling systems in December 2022
we have experienced significant volume growth behind our integrated DJ gathering and processing system and certain areas of our system are nearing full utilisation
some of our customers have deferred development activity behind our system in 2025.”
The acquisition is expected to boost the company’s processing capacity
redundancy and flow assurance while supporting expected volume growth cost-effectively
and strengthens Summit’s in-basin consolidation strategy
In March 2024, Summit Midstream Partners, a subsidiary of Summit Midstream, announced plans to sell its Utica shale assets to midstream company MPLX for $625m in cash
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Morgan Stanley Infrastructure Partners is exploring the sale of its stake in Brazos Midstream II
Morgan Stanley is gearing up to offload its majority stake in Brazos Midstream II, a move echoing the broader shale industry's consolidation trend
Situated in the resource-rich Delaware part of the Permian Basin
Brazos plays a pivotal role in transporting the region’s natural gas
Jefferies Financial Group is managing the sale
targeting midstream firms and investment entities as potential buyers
while current minority stakeholder Williams Companies holds back from bidding
This sale mirrors industry efforts to scale up and boost efficiency
following deals like Energy Transfer’s $3.25 billion acquisition of WTG Midstream and ONEOK's $2.6 billion purchase of Medallion Midstream
For markets: Industry consolidation on the rise
Investors are keeping a close eye on the shale sector as companies align through acquisitions to drive potential efficiencies
such as Kinetik's $765 million acquisition of Durango Permian
as the market embraces a tactical move towards consolidating infrastructure and enhancing synergies
The bigger picture: Transformation of shale infrastructure
The integration of privately-held pipeline companies into publicly-listed conglomerates is transforming the infrastructure landscape
This shift reflects broader economic strategies in the energy sector
where scaling up can optimize resources amidst variable market demands and regulatory frameworks affecting global energy supply
Theodora Lee Joseph, CFA
The Great Wealth Transfer Is Coming – Here’s How To Profit From ItStéphane Renevier, CFA
Markets Could Pick A Direction This Week – Here's WhyJonathan Hobbs, CFA
Why GameStop Might Actually Be Worth A Look Right NowTheodora Lee Joseph, CFA
Political Risk Is Part Of A Stock’s Value Now – And, No, You Can’t Afford To Tune It OutTheodora Lee Joseph, CFA
Apple And Amazon’s Results Were Sturdy, But Their Future Looks A Little Less SoREAD NEXTNews
Skechers Goes Private In $9.4 Billion Deal With 3G CapitalFinimize Newsroom
Edgewell Braces For 2025 Challenges As Tariffs BiteFinimize Newsroom
A Defensive Portfolio Prepared For The Wealth Effect’s ReversalStéphane Renevier, CFA
One Common Hedge-Fund Trade Could Bring Down Financial Systems – And It Nearly Backfired This WeekRussell Burns
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Disclaimer: These articles are provided for information purposes only
an opinion about whether to buy or sell a specific investment may be provided
The content is not intended to be a personal recommendation to buy or sell any financial instrument or product
or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience
your financial situation or your investment objectives
You may not get back all the money that you invest
The investments referred to in this article may not be suitable for all investors
an investor should seek advice from a qualified investment advisor
This article may contain AI-edited content
While efforts have been made to ensure accuracy
AI may not capture the nuances of the subject matter resulting in errors or inconsistencies
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Phillips 66 has completed the acquisition of EPIC Y-Grade GP LLC and EPIC Y-Grade LP for about $2.2 billion
boosting its midstream footprint in the Permian Basin
fractionation facilities and distribution systems
“This transaction strengthens our position as a leading integrated downstream energy provider”
Phillips 66 executive vice president for midstream and chemicals
“We are evolving our portfolio and enhancing our ability to provide seamless and efficient delivery of energy products
“Phillips 66 will offer producers unparalleled flow assurance
while advancing a strategy that is expected to deliver attractive returns and create long-term value for our shareholders”
The acquired operations comprise two fractionators with a capacity of170,000 barrels per day (bpd) near Corpus Christi
Texas; purity distribution pipelines stretching about 350 miles; and an NGL pipeline around 885 miles long and with a capacity of 175,000 bpd
Midland and Eagle Ford basins to the fractionation complexes and Phillips 66’s Sweeny Hub
a vacuum distillation unit and a delayed coking unit
The pipeline capacity is being raised to 225,000 bpd
in a project expected to be completed in the second quarter
A further expansion has also been sanctioned to grow the capacity to 350,000 bpd; completion is expected 2026
EPIC has also put in place plans to raise the fractionation capacity to 280,000 bpd
“The acquired assets connect Permian production to Gulf Coast refiners
petrochemical companies and export markets
and are highly integrated with the Phillips 66 asset base”
“Phillips 66 does not expect to increase its recently announced 2025 capital program in connection with that expansion”
Texas-based downstream oil and gas company announced $2.1 billion in capital for 2025
comprising $1.1 billion for growth and $998 million for sustaining capital
Phillips 66 expects the acquisition to be “immediately accretive to earnings per share”
Phillips 66 exceeded a $3 billion divestment plan meant to support its shareholder return target and other long-term priorities
“We intend to continue to optimize the portfolio and rationalize non-core assets going forward”
chair and chief executive Mark Lashier said in a statement December 16
announcing an agreement to divest DCP GCX Pipeline LLC
which owns a 25 percent non-operating stake in the Gulf Coast Express Pipeline
“The evolution of our portfolio underscores our position as a leading integrated downstream energy provider
enhancing shareholder value and positioning the company for the future”