Shares rose 2.8% following Q1 results that aligned with guidance despite winter-related volume headwinds and the expected seasonal maintenance impact. The slight market gain reflects cautious recognition of stable margins and a cash flow outlook upgrade amid operational challenges.
- Q1 adjusted EBITDA was $300 million, down modestly from $309 million in Q4 2025 due to severe winter weather reducing volumes and revenues.
- Throughput volumes averaged 430 MMcf/d for gas processing, 119,000 barrels/day for crude terminaling, and 115,000 barrels/day for water gathering, with volumes expected to increase after seasonal maintenance in Q2.
- Capital expenditures in Q1 were seasonally low at $10 million, with a 33% reduction in full-year 2026 capex guidance to approximately $100 million, driven by operational efficiencies including Chevron’s longer laterals.
- Adjusted free cash flow guidance for 2026 was raised to $910 million–$960 million, a 20% increase year over year at the midpoint, supported by lower capex and cash tax deferral.
- Distribution increased 2% (8% annualized for Class A shares) and $60 million in accretive share/unit repurchases were completed, maintaining cash returns while reducing share count.
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