Aug 13, 2026 earnings call — Inaugural quarter: acquisitions and dividend start
Board approved first quarterly cash dividend at $0.50 per share, annualized $2 per share.
Revenue $0.0B (est $0.0B) · EPS $-2.54 (est $0.36)
Key quotes
"Since our initial public offering just two months ago, we have executed on both prongs, signing definitive agreements for acquisitions totaling nearly $112 million."
"On a forward-looking basis, we look to lock in through fixed price swaps, 90% of our production for the next 12 months, 80% of our production for the following 12 months and 60% of our production in year three."
"Our $0.50 dividend implies 1.3x coverage by cash available for distribution per share on a full quarter basis and reflects our expectation to pay out at least 75% of our cash available for distribution as a public company."
Analyst Q&A 5
long-term hedging plan
Q (Cobalt Capital): When gas may be much higher in a few years, when would you pull back from hedging? Or do you keep following the futures curve?
A: Management said they will keep layering hedges on a schedule and review them regularly. They expect operators to increase production as prices rise and said sometimes lower prices create buying opportunities.
clarify hedging approach
Q: The analyst repeated the hedging question after technical problems: when would you change the hedging program versus riding the futures curve?
A: Management said the hedge committee meets monthly to review the program. They will layer hedges and expect higher prices to lead operators to raise production, which benefits the company.
"We meet as a hedge committee monthly and review it." — Daniel Herz (CEO)
recent acquisitions and balance sheet
Q (Michael Scialla · Stephens): Were the San Jacinto deals part of the nine pre-IPO targets? How do these deals compare to past deals? Also, how will acquisitions affect leverage and your appetite for more deals?
A: They said the San Jacinto purchases are part of about $0.5 billion of immediate opportunities they had identified. They target below 1x leverage over time and expect acquisitions and EBITDA growth to leave them nicely below 1x levered.
"I think, so one, yes, this was part of what I would characterize as $0.5 billion of immediate opportunities in front of us that we had identified on the page that you're talking about." — Daniel Herz (CEO)
producers buying midstream and power demand
Q (Tuohy Brothers): Do big producers buying midstream change your investment decisions? Are your operators aligned on data center power demand timing and size?
A: They said they are closely tied to the largest producers and benefit from those operators' integrated models and pricing without spending capital on midstream. On power demand, they said most operators are aligned, some are better at capturing the opportunity, and they take a conservative view of demand growth.
"49% of EQT's production pays us royalties, 57% of Expand's production in the Haynesville pays us royalties." — Daniel Herz (CEO)
Series E preferred financing plans
Q (Selman Akyol · Stifel): What are the long-term financing plans for the Series E preferred, and will you use more preferred securities for acquisitions?
A: They said this security type has been effective for growing the company and they use multiple tools to grow. They are seeking the most efficient capital to drive cash flow and net asset value per share, and the recent deal shows accretion to cash flow and NAV per share.
"we have a number of tools to be able to grow our business and pieces of capital to grow our business." — Daniel Herz (CEO)