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    Douglas Irwin • Citigroup Inc.

    Douglas Irwin's questions to Kodiak Gas Services Inc (KGS) leadership

    Douglas Irwin's questions to Kodiak Gas Services Inc (KGS) leadership • Q1 2025

    Question

    Douglas Irwin of Stifel asked about the remaining variables in the 2025 guidance and how the current macroeconomic environment might impact results. He also inquired about a potential shift toward outsourced horsepower and whether demand differs between upstream and midstream customers.

    Answer

    CEO Mickey McKee identified the ongoing recontracting strategy and future expense management, including potential tariff impacts, as the key variables for 2025 guidance. He noted that while a significant shift to outsourcing compression hasn't occurred yet, it could materialize as customers finalize their 2026 capital budgets in the current environment.

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    Douglas Irwin's questions to Kodiak Gas Services Inc (KGS) leadership • Q4 2024

    Question

    Douglas Irwin asked about the potential to increase the pace of fleet additions in 2026 as one-time CapEx declines and whether high demand visibility allows for more opportunistic share repurchases.

    Answer

    CEO Mickey McKee stated that an accelerated pace of new unit growth in 2026 is 'probably likely' if market demand persists, given lower anticipated one-time capital needs. Regarding buybacks, McKee confirmed the topic is 'certainly top of mind' and that the company would be analyzing its options.

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    Douglas Irwin's questions to Kodiak Gas Services Inc (KGS) leadership • Q3 2024

    Question

    Douglas Irwin asked about the outlook for gross margins in 2025 and how Kodiak is balancing share buybacks against the need for increased share liquidity.

    Answer

    CFO John Griggs stated that while specific 2025 margin guidance will come later, the company aims to push the Contract Services gross margin beyond the current 66% through continued repricing, synergies, and cost management. CEO Mickey McKee added that share repurchases are being considered, especially in conjunction with future offerings from EQT, but any buybacks will be managed to ensure the company meets its year-end 2025 leverage target of 3.5x.

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    Douglas Irwin's questions to Delek Logistics Partners LP (DKL) leadership

    Douglas Irwin's questions to Delek Logistics Partners LP (DKL) leadership • Q1 2025

    Question

    Douglas Irwin of Citigroup inquired about the specifics of the recent intercompany agreements with parent company DK, the outlook for further deconsolidation, and the current sentiment from third-party producers given the macro environment, including details on the contracting mix for newly acquired water assets.

    Answer

    EVP Robert Wright explained the intercompany transaction was a recontracting effort to clean up agreements, moving refining-related activities to DK and midstream activities to DKL, which increased third-party EBITDA to approximately 80% with no material impact on net EBITDA. President Avigal Soreq and EVP Reuven Spiegel added that producer activity remains strong, with stable volumes in the Midland Basin and significant growth opportunities in the Delaware Basin, driven by their unique combined offering for crude, gas, and water, including new sour gas handling capabilities. They confirmed contracts have limited direct commodity exposure with strong counterparties.

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    Douglas Irwin's questions to Delek Logistics Partners LP (DKL) leadership • Q4 2024

    Question

    Douglas Irwin of Citigroup inquired about the drivers for the high and low ends of the new 2025 EBITDA guidance and asked about the execution plan for the $150 million share buyback, including its funding and near-term leverage impact.

    Answer

    President Avigal Soreq explained that the new guidance aims to provide clarity after numerous transactions and highlight the company's value. He noted the buyback is accretive, given the ~7% cost of debt versus the ~11% equity yield, and supports the strategic deconsolidation from sponsor Delek US (DK). EVP Reuven Spiegel added that the buyback is a two-year program, contingent on market conditions, compliance with covenants, and maintaining leverage targets.

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    Douglas Irwin's questions to Delek Logistics Partners LP (DKL) leadership • Q3 2024

    Question

    Douglas Irwin of Citigroup Inc. inquired about the new gas processing plant, asking for updates on its progress, timing, and potential sour gas opportunities. He also asked about the recent dip in Midland's volumes and for details on the new acreage dedication.

    Answer

    President Avigal Soreq and SVP Odely Sakazi responded. Sakazi confirmed the plant is on schedule for completion in the first half of 2025 and on budget, with major equipment already on site. Both executives highlighted significant sour gas opportunities, leveraging existing permits from the Triber acquisition. Regarding Midland volumes, Sakazi attributed the temporary dip to project timing and producer consolidation, projecting a recovery to ~190M by year-end and growth above 200M in 2025, supported by a new 50,000-acre dedication.

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    Douglas Irwin's questions to Archrock Inc (AROC) leadership

    Douglas Irwin's questions to Archrock Inc (AROC) leadership • Q1 2025

    Question

    Douglas Irwin requested details behind the sub-7x multiple for the NGCS acquisition and asked about the difference in compression intensity between the Permian and dry gas basins like the Haynesville.

    Answer

    CFO Douglas Aron explained the guided multiple is based on a forward run-rate and does not include any synergies, offering potential upside. President and CEO D. Childers confirmed the Permian has the highest compression intensity but noted that Archrock's small exposure to the Haynesville and broad operational footprint in other basins would mitigate the impact of any potential activity shift away from the Permian.

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    Douglas Irwin's questions to Archrock Inc (AROC) leadership • Q4 2024

    Question

    Douglas Irwin of Citi inquired about the key assumptions driving the high and low ends of Archrock's 2025 guidance range and asked about demand opportunities in basins outside of the Permian.

    Answer

    President and CEO Brad Childers explained the guidance range is influenced by the success of implementing price increases, managing costs, and the timing of new horsepower deployment. He noted that while the Permian consumes 60-70% of new capital, Archrock sees incremental growth in the Haynesville, Bakken, and Northeast. CFO Doug Aron added that the guidance range is intentionally tight for this early in the year.

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    Douglas Irwin's questions to Archrock Inc (AROC) leadership • Q3 2024

    Question

    Douglas Irwin from Citi requested directional guidance on the CapEx run rate for 2025 for the combined business and asked about the company's thinking on the mix between dividend growth and share buybacks for capital returns.

    Answer

    President and CEO D. Childers stated it was too early to provide 2025 CapEx guidance but reiterated a disciplined, high-return investment approach. Regarding capital returns, Childers emphasized balancing abundant growth investment opportunities against share buybacks, noting the company is not price-insensitive and is focused on supporting the expansion needs of its blue-chip customers.

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    Douglas Irwin's questions to Hess Midstream LP (HESM) leadership

    Douglas Irwin's questions to Hess Midstream LP (HESM) leadership • Q1 2025

    Question

    Douglas Irwin from Citi inquired about the potential for gas growth in the Bakken given rising GORs, particularly in a flat crude production scenario. He also asked for a breakdown of the company's $1.25 billion financial flexibility between leverage capacity and excess cash flow.

    Answer

    President and COO John Gatling acknowledged that GORs are expected to increase as wells mature, leading to gas volume growth, a trend consistent with broader basin forecasts. CFO Jonathan Stein clarified that the $1.25 billion in financial flexibility through 2027 is composed of roughly half from leverage capacity as debt falls and half from growing excess free cash flow.

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    Douglas Irwin's questions to Hess Midstream LP (HESM) leadership • Q4 2024

    Question

    Douglas Irwin asked for more color on what is driving the near-term increase in the CapEx budget for 2025 and the slight overage in 2024. He also questioned what longer-term growth CapEx might look like beyond 2027 and if a significant step-down is expected. Additionally, he inquired about the capital allocation program and how potential changes at the sponsor level might affect the attractiveness of buybacks.

    Answer

    President and COO John Gatling explained that higher near-term CapEx is driven by accelerated activity to keep pace with Hess's drilling efficiencies and includes initial spending on the new Capa Gas Plant. He anticipates a 'step down' in CapEx post-2027. CFO Jonathan Stein added that this declining capital profile, combined with growing EBITDA, will enhance free cash flow through the decade. Stein also affirmed the commitment to the capital return framework, stating it would not fundamentally change and that they might consider including the public in future repurchases as the public float grows.

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    Douglas Irwin's questions to Hess Midstream LP (HESM) leadership • Q3 2024

    Question

    Douglas Irwin asked if Hess Corporation's accelerated upstream drilling could pull forward HESM's volume growth into 2025. He also inquired about the 2025 CapEx outlook, noting that some capital appeared to have been pulled forward into 2024.

    Answer

    President and COO John Gatling responded that Hess's faster drilling provides greater certainty for achieving the guided ~10% volume growth through 2026, positioning HESM well for 2025. Both Gatling and CFO Jonathan Stein clarified that the higher 2024 CapEx reflects timing shifts within multiyear projects, and the overall capital outlook through 2026 remains consistent, though spending may shift between years.

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