April 29th, 2026

The call conveyed solid operational and financial progress: adjusted EBITDA grew 5% year-over-year to $288 million, free cash flow increased (FCF after dividends +8% YoY), the largest-ever $1.1 billion acquisition closed ahead of expectations with integration on track, and liquidity remained strong (> $800M). Management highlighted commissioning of compression capacity, water system integration (completion by year-end 2026) and a development program expected to yield high-single-digit EBITDA growth and high-teens to ~20% returns on base investments. Near-term headwinds include increased capex, $25M of remaining integration costs with benefits phased into 2027, and elevated near-term leverage from the acquisition and buybacks. Incremental upside from data center/local power projects is promising but still early and unquantified. Overall, positive operational execution and financial resilience outweigh the manageable integration, capex, and timing risks.

Company Guidance

Management reaffirmed unchanged 2026 guidance and expects high‑single‑digit EBITDA growth, with Q1 adjusted EBITDA of $288M (+5% y/y), free cash flow of $192M before dividends and $85M after dividends (+8% y/y); they closed a $1.1B acquisition in February, exited the quarter with leverage in the low‑3x range and >$800M of liquidity, and expect leverage to decline toward a ~3.0x target by year‑end 2026. Capex is expected to increase over the next few quarters in line with the full‑year budget as they commission growth projects (dry‑gas compression expansion completed) and complete water system integration (roughly $25M total, ~$5M for gathering work, about 50% complete) to support three rigs on the rich gas system, one on dry gas and one on the acquired blended system; the base business targets high‑teens to 20% ROIC with upside above high‑single‑digit EBITDA growth if AR ramps to three rigs and two completion crews.