Ladies and gentlemen, thank you for standing by. Welcome to the Summit Midstream Corporation Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Randall Burton. Please go ahead.

Thanks, operator, and good morning, everyone. If you do not already have a copy of our earnings release, please visit our website at www.summitmidstream.com where you will find it on the homepage, events and presentations section, or quarterly results section. With me today to discuss our fourth quarter of 2024 financial and operating results is Heath Deneke, our President, Chief Executive Officer and Chairman, Bill Mault, our Chief Financial Officer, along with other members of our senior management team. Before we start, I would like to remind you that our discussion today may contain forward-looking statements. These statements may include, but are not limited to, our estimates of future volumes, operating expenses, and capital expenditures. It may also include statements concerning anticipated cash flow, liquidity, business strategy, and other plans and objectives for future operations. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can provide no assurance that such expectations will prove to be correct. Please see Summit Midstream Corp.'s quarterly report on Form 10-Q for the quarterly period ended September 30, 2024, which the company filed with the SEC on November 12, 2024, the 2024 annual report on Form 10-K, which we filed soon, as well as our other SEC filings for our listing of factors that could cause actual results to differ materially from expected results. Please also note that on this call, we use the terms EBITDA, adjusted EBITDA, distributable cash flow, and free cash flow. These are non-GAAP financial measures and we provided reconciliations to the most directly comparable GAAP measures in our most recent earnings release. And with that, I'll turn the call over to Heath Deneke.

Thank you for joining us today to discuss our fourth quarter and full year 2024 results. Summit Midstream Corp. had a very active and transformational year in 2024. As we entered the year, we were midway through a very thorough strategic alternatives review to determine the best path forward to maximize unitholder value. After careful consideration of the alternatives, we elected to pursue a series of transactions in a corporate strategy that we believe would deliver significant value for our unitholders in 2024 and beyond. The first step was the decision to divest the Northeast segment for $700 million in total cash proceeds, which immediately reduced leverage from 5.4 times to 3.9 times and drove an increase in our unit price from around $17 a share or a unit at the beginning of the year to nearly $30 a unit shortly after announcing the transaction. Following that, in July of 2024, we successfully refinanced the balance sheet with an upsized credit facility and new second lien notes. This significantly increased our financial flexibility, reduced our interest expense, and extended our nearest maturity out to 2029. Then in August, with the support from our unitholders, we simplified our corporate structure by converting from a master limited partnership to a C corp, which broadened our investor base and significantly improved our overall trading. Following these series of transactions, Summit Midstream Corp. emerged in the third quarter of 2024 with a strong balance sheet, a simplified corporate structure that made our equity easier to own, and with ample liquidity and a higher valued equity currency to pursue our corporate strategy to rebuild scale through value and credit accretive transactions. Then during the fourth quarter, we executed on that corporate strategy by signing and closing the value and credit accretive acquisition of Tolup Midstream…

Thanks, Heath, and good morning, everyone. As Heath mentioned, we had a great year and are extremely excited about how 2025 is shaping up. I'll start by discussing our financial performance followed by providing a bit more color on 2025 guidance. Summit Midstream Corp. reported fourth quarter net loss of $24.8 million, adjusted EBITDA of $46.2 million, resulting in full year 2024 adjusted EBITDA of $204.6 million, which includes $30.6 million from the Northeast segment that was divested in the first half of the year. Capital expenditures totaled $15.8 million for the quarter and $53.6 million for the full year 2024. With respect to Summit Midstream Corp.'s balance sheet, and pro forma for the add-on to the second lien notes we executed in January, we had net debt of approximately $852 million. Our available borrowing capacity at the end of the fourth quarter totaled approximately $444 million, which included $1 million of undrawn letters of credit. The Rockies segment, which is inclusive of our DJ and Williston Basin systems, generated adjusted EBITDA of $23.2 million, a decrease of $1.6 million from the third quarter largely due to a 3% decline in liquids volumes from natural production declines and lower water sales partially offset by a 2.3% increase in natural gas volumes. Liquids volumes averaged 68,000 barrels a day, a decrease of 2,000 barrels a day relative to the third quarter due primarily to natural production declines, partially offset by seven wells connected toward the end of the fourth quarter, so did little to offset natural production declines during the quarter, but will begin contributing in the first quarter of 2025. Natural gas volumes averaged 131 million cubic feet per day, an increase of 3 million cubic feet per day relative to the third quarter, primarily due to WellConnects during the…

Thanks, Bill. Look, as discussed on the call today, we are very pleased with the progress we've made in 2024 and are excited about the outlook and the opportunity set for Summit Midstream Corp. to continue to drive value for our shareholders in 2025 and beyond. We continue to see strong operating momentum and high free cash flow generating growth from our existing portfolio of assets, and we believe we are in an opportunity-rich environment to continue to scale up the business through value and credit accretive acquisitions in the future. We're excited about the opportunity to further expand our investor base as we continue to execute on our base business plans and our corporate strategy. Bill mentioned in his remarks, at the midpoint of our guidance range, we expect to generate more than $100 million of levered free cash flow after growth and maintenance capital in 2025. We plan to utilize that to continue to delever the balance sheet towards our 3.5 times long-term leverage target. We hope that our current and prospective investors are taking note of the sizable amount of distributable free cash flow that our business model generates, as well as our ability to consider a stable return of capital program as a mechanism to further enhance shareholder returns in the coming years as we achieve our targeted leverage profile. With that, operator, I'd like to open up the call for questions.

Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. At this time, I show no questions in the queue. This does conclude today's conference call. Thank you for participating. You may now disconnect.