Evolve Transition Infrastructure LP

Revenue for the third quarter was $18.2 million, including $14.7 million from midstream and about $5.9 million from production; there was also $600,000 of loss on hedged settlements and $1.8 million of non-cash mark-to-market hedge loss. Operating expenses were $16.9 million, G&A and unit-based compensation were $5.3 million, and adjusted EBITDA was $18.4 million, up 4.3% sequentially and 3.4% year over year. Cash available for distribution was approximately $6.6 million, covering the newly reset $0.15 per common unit distribution 2.7 times. Debt outstanding in the credit facility was $184 million, against a $310 million borrowing base and $210 million in lender commitments. Management said the company believes it remains within its full-year forecast range, but did not give explicit next-quarter or full-year numeric guidance on the call.

Gerry Willinger framed the quarter around a broader shift in MLP valuation toward self-funding, strong coverage, and low leverage. He said the decision to reset the distribution to $0.15 per common unit was meant to improve financial flexibility and create room to fund accretive projects, repurchase units, and reduce debt. His tone was constructive and opportunistic, emphasizing near-term expansion possibilities in the Targa JV and on committed volumes, especially around in-field fractionation and Gulf Coast/NGL market constraints.

Chuck Ward walked through the quarter’s numbers and capital structure. He cited $18.2 million of revenue, $16.9 million of operating expenses, $5.3 million of G&A and unit-based comp, and $18.4 million of adjusted EBITDA, which included $6.4 million of cash distributions from the Targa JV. He also noted roughly $6.6 million of CAD after $2.5 million of cash interest expense, $100,000 of maintenance capex, and $8.8 million of preferred unit distributions, plus $184 million of debt outstanding and a recent $1.4 million sale of non-operated Louisiana assets.

Analysts focused on whether gathering rates might be lowered to support Sanchez Energy; management said the gathering agreements are locked in and were set at market or below-market rates, so no adjustment is planned. Questions also centered on whether the 50-well commitment at Catarina might change, and management said it does not see that happening. On capital allocation, Gerry said excess cash is likely to go first toward accretive projects inside the Targa JV and other expansion opportunities, with debt reduction and buybacks also enabled by the stronger balance sheet.