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Management attributed the 10% EBITDA growth to the successful ramp of new assets, including the Bahia NGL pipeline and Frac 14, which reached full capacity immediately upon service entry.

The partnership is leveraging a massive global supply disruption caused by the closure of the Strait of Hormuz, which has removed approximately 500 million barrels of hydrocarbons per month from the market.

Management highlighted a dramatic improvement in US petrochemical margins, with ethane-to-ethylene cracking margins tripling from 7"" to 23"" per pound following the Iranian conflict.

Operational leverage was demonstrated by 12 new volumetric records, driven by a fractured Asian supply chain that has forced international buyers to destock and pivot toward US feedstocks.

The partnership's integrated system allowed it to capture outsized spreads during Winter Storm Finn by utilizing its storage and trucking network to mitigate producer supply disruptions.

Management emphasized that the current environment has shifted international consumer focus toward US energy as a means to improve trade balances and ensure supply chain resilience.

Management expects 2026 performance to exceed their previous 'modest' growth guidance, citing a supply disruption of a scale they have 'never seen' in the industry.

Guidance for 2027 now includes additive contributions from two newly FID'd natural gas processing plants in the Permian, which were not in previous projections.

The partnership assumes the Strait of Hormuz will remain closed for normal operations until at least July, sustaining high international demand for US energy exports through 2026.

Management believes financial markets are currently underestimating the long-term global supply implications and the time required to repair damaged Middle Eastern infrastructure.

Capital allocation strategy for 2026 remains focused on a 50% to 60% split between unit buybacks and debt retirement from discretionary free cash flow.

The partnership received a final $596 million payment from ExxonMobil for its 40% interest in the Bahia NGL pipeline, offsetting a portion of the 2026 growth capital budget.

Growth capital expenditure guidance for 2026 was revised upward by $300 million to a range of $2.3 billion to $2.6 billion to account for accelerated Permian processing investments.

Management noted that while the futures market remains conservative, physical market premiums for Brent and other commodities suggest a significant disconnect from paper pricing.

Reliability at the Mont Belvieu PDH facilities has improved following targeted investments and a major turnaround at PDH 2, resolving previous operational inconsistencies.

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NGL export docks are approximately 90% contracted, with LPG contracts extending through the end of the decade and ethane contracts spanning 10 to 20 years.

Management maintains roughly 10% of capacity for spot opportunities to capture market volatility and price dislocations.

Management expects a return to significant 'outsized' spreads in 2026, noting that while 2025 was unusually benign, the current conflict-driven volatility creates high-value opportunities.

Specific gains from the Iranian conflict are expected to manifest primarily in the second quarter results.

Management observes that US producers remain highly disciplined, with no significant shift in rig activity despite the global supply shock.

Any incremental growth is currently anecdotal or limited to private operators rather than a broad industry breakout.

Management warned that even if the Strait reopens, it could take years to replenish global inventories because the volume of lost supply—estimated at up to 15 million barrels per day—could result in a deficit of over 700 million barrels in just two months.

There is significant uncertainty regarding the extent of physical damage to production and refining facilities in Qatar and Saudi Arabia.

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