Shares declined 1.9% following the quarter as optimism around raised full-year EBITDA guidance was tempered by cautious commentary on flat Permian production and headwinds from one-off items and maintenance. Investor hesitation likely reflects uncertainty on near-term volume growth and margin sustainability despite incremental guidance upside.

• Reported Q1 adjusted EBITDA was $730 million, supported by a full-quarter contribution from the Cactus III acquisition.
• Full-year 2026 adjusted EBITDA guidance was increased by $130 million to a midpoint of $2.88 billion, driven by NGL segment outperformance and operational optimizations.
• NGL segment delivered $145 million adjusted EBITDA, outperforming expectations owing to higher straddle production and improved frac spreads; divestiture now expected in May.
• Crude oil segment adjusted EBITDA of $582 million included negative impacts from Permian winter weather, system maintenance, and timing of minimum volume commitments.
• Permian crude oil production guidance remains flat year over year, signaling no near-term growth; leverage expected to decline toward low end of target range by year-end following NGL sale proceeds.