Financial Data and Key Metrics Changes - For the full year 2025, the company generated net income of $123.1 million, or $0.71 per share, compared to a net loss of approximately $1.4 billion in 2024 [14] - Consolidated core net income was $149.3 million or $0.86 per share, compared to core income from continuing operations of $124.3 million or $0.98 per share in 2024 [15] - Utility core net income for the year was $177.5 million compared to $180.7 million in 2024, driven by higher O&M expenses and other factors [15] Business Line Data and Key Metrics Changes - The utility's core net income decreased due to higher operational expenses, including deferred consulting and legal fees, and higher interest expenses [15] - The holding company reported a core net loss of $28.2 million, an improvement from a loss of $56.4 million in 2024, attributed to lower interest expenses and higher interest income [15] Market Data and Key Metrics Changes - The utility achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% RPS requirement by 2030 [8][9] - Customer bills remained stable in 2025 despite significant investments in wildfire safety and resilience [9] Company Strategy and Development Direction - The company is focused on advancing key initiatives related to wildfire safety, legislative measures, and financial stability in the face of severe weather events [4][7] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [10][11] - The company is pursuing low-cost financing options to reduce impacts on customers from critical investments required for safety and resilience [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the path ahead, highlighting progress made in key initiatives and the importance of resolving outstanding appeals related to the tort settlement [12][14] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [17] Other Important Information - The company successfully issued $500 million in utility debt and increased its revolver to $600 million to support financial flexibility [8] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [12][13] Q&A Session Summary Question: What are the chances the Hawaii Supreme Court will take up the insurers' appeal? - Management noted that the only remaining item is the appeal, and previous decisions by the courts have been supportive of the settlements [21] Question: What are the latest thoughts on financing the second settlement payment? - Management indicated a preference for convertible debt for financing and stated that no financing would occur until after the settlement is approved [22][23] Question: How much of the $250 million ATM program will be used for financing? - Management stated that the ATM program is available for opportunistic use, depending on market conditions [24] Question: What is the timing for the divestment of the remaining stake in American Savings Bank? - Management confirmed plans to divest the remaining 9.9% stake in 2026, subject to market conditions [25] Question: What are the key elements in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustments, PIM redesign, and ensuring targets are within the company's control [31][32] Question: What are the milestones for the Wildfire Recovery Fund and liability cap process? - Management outlined that the PUC rulemaking process for the liability cap is expected to take 18-24 months, with critical milestones tied to this process [41][42]

Financial Data and Key Metrics Changes - For the full year 2025, the company generated net income of $123.1 million, or $0.71 per share, compared to a net loss of approximately $1.4 billion in 2024 [17] - Consolidated core net income was $149.3 million or $0.86 per share, compared to core income from continuing operations of $124.3 million or $0.98 per share in 2024 [18] - Utility core net income for the year was $177.5 million compared to $180.7 million in 2024, driven by higher O&M expenses and other factors [18] Business Line Data and Key Metrics Changes - The utility's financial performance was impacted by higher operational and maintenance expenses, primarily due to previously deferred consulting and legal fees, and higher interest expenses [18] - The holding company reported a core net loss of $28.2 million, an improvement from a loss of $56.4 million in 2024, attributed to lower interest expenses and higher interest income [18] Market Data and Key Metrics Changes - The company achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% statutory RPS requirement by 2030 [10][11] - Customer bills remained stable in 2025 despite significant investments in wildfire safety and resilience [11] Company Strategy and Development Direction - The company is focused on advancing key initiatives related to wildfire safety, including the Maui wildfire tort settlement and legislative measures to support community safety [5][9] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [12] - The company is pursuing low-cost financing options to mitigate impacts on customers from necessary investments in safety and resilience [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting progress made in key initiatives and the importance of resolving outstanding appeals related to the tort settlement [15] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [20] Other Important Information - The company successfully issued $500 million in utility debt and increased its revolver to $600 million, enhancing financial flexibility [10] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [15] Q&A Session Summary Question: What are the chances the Hawaii Supreme Court will take up the insurers' appeal? - Management indicated that the only remaining item is the appeal, with no briefing scheduled yet, and expressed cautious optimism based on previous supportive decisions from the courts [24] Question: What are the latest thoughts on financing the second settlement payment? - Management stated that they are leaning towards convertible debt for financing and will wait until after the settlement is approved to raise funds [25][26] Question: How much of the $250 million ATM program will be used for financing? - Management confirmed that the ATM program is available for opportunistic use, depending on market conditions [27] Question: What is the timing for the divestment of the remaining stake in American Savings Bank? - Management plans to divest the remaining 9.9% stake in 2026, subject to market conditions [28] Question: What key elements will be included in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustments, PIM redesign, and ensuring targets are achievable within their control [33][34] Question: What are the critical milestones for the Wildfire Recovery Fund and liability cap process? - Management outlined that the PUC rulemaking process for the liability cap is expected to take 18-24 months, with no immediate legislative actions planned [42][43]

Financial Data and Key Metrics Changes - For the full year 2025, the company generated net income of $123.1 million, or $0.71 per share, compared to a net loss of approximately $1.4 billion in 2024 [14] - Consolidated core net income was $149.3 million or $0.86 per share, compared to core income from continuing operations of $124.3 million or $0.98 per share in 2024 [15] - Utility core net income for the year was $177.5 million compared to $180.7 million in 2024, driven by higher O&M expenses [15] - The holding company core net loss was $28.2 million compared to $56.4 million in 2024, attributed to lower interest expense and higher interest income [15] Business Line Data and Key Metrics Changes - The utility's financial performance was impacted by higher operational and maintenance expenses, primarily due to previously deferred consulting and legal fees, and higher interest expense [15] - The company achieved a 37% renewable portfolio standard (RPS) in 2025, remaining on track to meet the 40% by 2030 statutory requirement [8] Market Data and Key Metrics Changes - The company has approximately $16 million and $486 million of unrestricted cash on hand at the holding company and utility levels, respectively [16] - The holding company has approximately $530 million in combined liquidity available under its ATM program and credit facility capacity [16] Company Strategy and Development Direction - The company is focused on advancing key initiatives post-Maui wildfires, including wildfire safety improvements and legislative measures to support community resilience [4] - The company plans to submit a joint rebasing proposal with Ulupono Initiative by March 6, 2026, aiming for a non-traditional rate rebasing process [10] - The company is pursuing low-cost financing options to reduce impacts on customers from critical investments required for safety and resilience [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the path ahead, highlighting significant progress made in 2025 and the importance of resolving outstanding appeals related to the tort settlement [12][14] - The company anticipates making its first $479 million settlement payment in the second half of 2026, contingent on resolving outstanding appeals [17] Other Important Information - The company successfully issued $500 million in utility debt last year, enhancing financial flexibility and liquidity [8] - An executive transition is planned, with Scott DeGhetto resigning as CFO effective April 2, 2026, and Paul Ito returning to the role [12] Q&A Session Summary Question: Can you discuss the latest appeal by the insurers? - Management noted that the only remaining item is the appeal regarding the summary judgment that dismissed the insurers' claims, with no briefing scheduled yet [20][21] Question: What are your thoughts on financing the second settlement payment? - Management indicated a preference for convertible debt for financing, with plans to wait until after the settlement is approved before raising funds [22][23] Question: How do you plan to use the ATM program for financing? - Management stated that the ATM program is available for opportunistic use, depending on market conditions [24] Question: What is the status of the divestment of the remaining stake in American Savings Bank? - The company intends to divest the remaining 9.9% stake in 2026, subject to market conditions [25] Question: What are the key elements in the upcoming PBR rebasing proposal? - Management highlighted the focus on inflationary adjustment factors, PIM redesign, and expanding the scope of the Exceptional Project Recovery Mechanism [30][31] Question: What are the milestones for the Wildfire Recovery Fund? - Management indicated that the PUC rulemaking process for the liability cap is expected to take 18-24 months, with critical milestones tied to this process [39][40]

Financial Data and Key Metrics Changes - The company reported normalized funds from operation (FFO) of $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year, representing a 22% year-over-year growth in FFO per share compared to 2024 [22][23] - Total portfolio same-store NOI growth was 11.8% in Q4 and 14.2% for the full year 2025, marking the second consecutive year of double-digit growth [10][22] - The debt to EBITDA improved by nearly a full turn in 2025, indicating a stronger financial position [22][25] Business Line Data and Key Metrics Changes - The operating portfolio, including Trilogy and SHOP segments, contributed 76.9% of consolidated cash NOI, with Trilogy's same-store NOI increasing by 14% in Q4 and 18.4% for the full year [11][12] - SHOP segment same-store NOI increased by 24.6% in Q4 and 25.2% for the full year compared to the previous year [13] - Occupancy rates for Trilogy reached 90.6% in Q4, up 275 basis points year-over-year, while SHOP also surpassed 90% occupancy [12][13] Market Data and Key Metrics Changes - The company closed over $950 million in new investments in 2025, primarily in the SHOP segment, which is now the second-largest in terms of cash NOI [16][17] - The investment pipeline remains robust with over $230 million in awarded deals, indicating strong market activity [19][60] Company Strategy and Development Direction - The company maintains a disciplined investment strategy focused on high-quality care and superior health outcomes, with no changes in capital allocation or risk management frameworks [8][21] - The emphasis on high-quality care is expected to drive demand as the aging population grows, positioning the company well for future growth [12][18] - The company is actively pursuing development projects primarily focused on Trilogy expansions, aiming for attractive yields with limited market risk [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing discipline [12][13] - The leadership transition is described as seamless, with no changes in strategy, ensuring continuity in operations and execution [6][8] - The company anticipates that the demand for high-quality care will continue to grow, providing a favorable environment for its operations [12][18] Other Important Information - The company has been actively involved in off-market acquisitions, leveraging strong relationships with operators to secure favorable deals [82] - The revenue management system is being piloted with various operators, aiming to enhance pricing strategies and improve overall performance [50][51] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - The company continues to focus on higher acuity SHOP assets, which provide long-term stability [29][30] Question: Can you provide guidance on SHOP's performance? - The company expects a significant increase in pricing power as occupancy rates rise, with a conviction in future growth [35][36] Question: What are the expectations for Trilogy's occupancy and quality mix? - Trilogy's model allows for various drivers of NOI growth, with a focus on shifting to higher payor sources [39][40] Question: How is the revenue management system being rolled out? - The revenue management system is being tested with select operators, aiming to enhance their performance [50][51] Question: What is the status of the investment pipeline? - The pipeline is dynamic, with a high level of deal activity and a focus on off-market opportunities [60][61]

Financial Data and Key Metrics Changes - In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, a 48% increase compared to 2024 [5] - The company reported record revenue of $468 million, up 115% from 2024, with cost of sales at $385 million and mine operating earnings of $83 million [7] - Cash costs increased to $19 per ounce of payable silver, primarily due to changes in the production profile [7] Business Line Data and Key Metrics Changes - In Q4 2025, Endeavour produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces, representing a 146% increase compared to Q4 2024 [6] - Excluding Coba and Terronera, production increased by 27% compared to the same period last year [6] Market Data and Key Metrics Changes - Silver and gold prices have seen exceptional gains, with gold trading above $5,000 and silver above $90, reflecting ongoing confidence in precious metals [4] - The company is well-positioned to benefit from current silver prices, indicating substantial runway remaining in this cycle [4] Company Strategy and Development Direction - Endeavour Silver's strategic initiatives include the acquisition of Kolpa, achieving commercial production at Terronera, and advancing the Pitarrilla development asset [4][5] - The company plans to invest $68 million in Pitarrilla in 2026, focusing on exploration and technical studies [12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of security events in Mexico on operations, emphasizing the safety of employees as a top priority [3] - The company anticipates a substantial reduction in direct operating costs as it transitions to liquefied natural gas in Q2 2026 [8] Other Important Information - As of December 31, 2025, the company's cash position was $215 million, providing financial strength to advance strategic initiatives [10] - The company expects to achieve improved cost efficiency at Kolpa as its plant expands to 2,500 tons per day [11] Q&A Session Summary Question: Can you discuss the mill availability and electrical interruptions at Terronera? - Management confirmed improvements in January and February, with stabilization in throughput and recovery rates [16][17] Question: What is the guidance on grades at Terronera for 2026? - Management indicated a gradual increase in grades throughout the year, with higher grades expected in the second half [24] Question: How will costs at Terronera drop in 2026? - Management expects costs to decrease as one-time expenditures are reduced and operational efficiencies are realized [56][60] Question: What changes in security protocols have been implemented at Terronera? - Management stated that while there will be increased presence around transportation lines, no dramatic changes in security costs are anticipated [65] Question: What is the status of the Bolanitos sale and its accounting impact? - The sale closed on January 15, and an accounting gain is anticipated in Q1 [70] Question: What are the permitting timelines for Pitarrilla? - Management aims for a Q1 2027 permit for the tailings storage facility, with ongoing work on engineering and permitting [84][87]

Financial Data and Key Metrics Changes - In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, a 48% increase compared to 2024 [5] - The company reported record revenue of $468 million, up 115% from 2024, with cost of sales at $385 million and mine operating earnings of $83 million [7] - Mine operating cash flow before taxes rose by 116%, while cash costs increased to $19 per ounce of payable silver [7][8] - Adjusted net earnings for Q4 were $4.8 million, or $0.02 per share, impacted by realized losses from derivative contracts and higher financing costs [7][8] Business Line Data and Key Metrics Changes - In Q4, Endeavour Silver produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces, representing a 146% increase compared to Q4 of 2025 [6] - Excluding Coba and Terronera, production was up 27% compared to the same period last year [6] Market Data and Key Metrics Changes - Silver and gold prices have seen exceptional gains, with gold trading above $5,000 and silver above $90, reflecting ongoing confidence in precious metals [4] - The company is well-positioned to benefit from current silver prices, indicating substantial runway remaining in this cycle [4] Company Strategy and Development Direction - Endeavour Silver's strategic initiatives include the acquisition of Kolpa, achieving commercial production at Terronera, and advancing the Pitarrilla development asset [4][5] - The company plans to invest $68 million in Pitarrilla in 2026, including completing a feasibility study and advancing construction [12] - The focus remains on operational investment priorities across main operations and projects to drive growth in 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of safety and operational stability, especially in light of recent security events in Mexico [3] - The transition from diesel to liquefied natural gas is expected to significantly reduce operating costs starting in Q2 2026 [8][17] - Management expressed confidence in achieving a steady state of operations at Terronera by mid-year 2026, with expectations for improved throughput and recoveries [11][91] Other Important Information - The company raised $350 million through a convertible debt offering in December, strengthening its balance sheet [5] - As of December 31, 2025, the company's cash position was $215 million, providing financial strength for strategic initiatives [10] Q&A Session Summary Question: Updates on operational issues at Terronera - Management confirmed improvements in mill availability and electrical disruptions, with expectations to transition to LNG for better stability and cost efficiency [15][17] Question: Grade profile at Terronera - Management indicated that lower grades were due to mining lower grade stockworks initially, with expectations for higher grades in the second half of 2026 [19][23] Question: Capital spending and development at Terronera - Management acknowledged being slightly behind on development but expects costs to decrease as operations stabilize [26][28] Question: Impact of silver prices on costs - Management noted that higher silver prices would increase direct costs due to royalties and duties, but margins remain strong [41][43] Question: Derivative hedge and risk management - Management discussed the remaining gold hedge and the company's policy to remain unhedged on silver, focusing on managing exposure to currency fluctuations [48][50] Question: Accounting implications of Bolanitos sale - Management confirmed an accounting gain from the sale of Bolanitos and discussed the impact of construction costs on taxes [70][72]

Financial Data and Key Metrics Changes - The company reported normalized funds from operation (NFFO) of $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year, representing a 22% year-over-year growth in NFFO per share [22][23] - Total portfolio same-store NOI growth was 11.8% in Q4 and 14.2% for the full year 2025, marking the second consecutive year of double-digit growth [10][22] - The debt to EBITDA improved by nearly a full turn in 2025, with a net debt to EBITDA ratio of 3.4x [22][25] Business Line Data and Key Metrics Changes - The operating portfolio, including Trilogy and SHOP segments, contributed 76.9% of consolidated cash NOI, with Trilogy's same-store NOI increasing by 14% in Q4 and 18.4% for the full year [11][12] - SHOP segment same-store NOI increased by 24.6% in Q4 and 25.2% for the full year 2025, with occupancy surpassing 90% [13][14] - Trilogy's occupancy reached 90.6% in Q4, up 275 basis points year-over-year, supported by improved quality mix and Medicare penetration [12][13] Market Data and Key Metrics Changes - The company closed over $950 million in new investments in 2025, primarily in the SHOP segment, which is now the second-largest in terms of cash NOI [16][17] - The investment pipeline remains robust, with over $230 million in awarded deals and continued deal activity expected in 2026 [19][60] Company Strategy and Development Direction - The company maintains a disciplined healthcare investment strategy focused on high-quality care and superior health outcomes, with no changes in capital allocation or risk management frameworks [8][21] - The company is prioritizing expansions in Trilogy and campus growth initiatives, aiming for attractive incremental yields with limited market risk [21] - The focus remains on relationship-driven sourcing and disciplined underwriting to ensure long-term cash flow durability and growth [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing tailwinds [12][13] - The company anticipates continued demand for high-quality operators in the aging population sector, with expectations of sustained growth in the coming years [12][18] - Management highlighted the importance of maintaining operational momentum and capital availability to capitalize on growth opportunities [25][26] Other Important Information - The company has successfully accelerated several previously announced pipeline deals, closing approximately $665 million in new acquisitions in Q4 2025 [19] - The management team emphasized the importance of high-quality care and outcomes, which have contributed to strong financial performance [15][18] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - Management noted a focus on higher acuity SHOP assets, indicating confidence in long-term stability in that asset class [29] Question: Can you provide insights on SHOP guidance and occupancy? - Management acknowledged a significant occupancy increase in SHOP but indicated that future growth may not match previous years' rates [35] Question: What is the outlook for Trilogy's occupancy and quality mix? - Management highlighted the unique model of Trilogy and the importance of shifting to higher payor sources to drive NOI growth [39] Question: How does the revenue management system rollout progress? - Management confirmed that the revenue management system is being piloted with select operators, aiming to enhance overall portfolio performance [50] Question: What is the status of the investment pipeline and expected yields? - Management indicated that current acquisitions are stabilizing in the high 5% to low 6% range, with a focus on higher quality properties [67]

Financial Data and Key Metrics Changes - The company reported normalized funds from operation (FFO) of $0.46 per diluted share for Q4 2025 and $1.72 per diluted share for the full year 2025, representing a 22% year-over-year growth in FFO per share compared to 2024 [21] - Total portfolio same-store NOI growth was 11.8% in Q4 and 14.2% for the full year 2025, marking the second consecutive year of double-digit growth [10][21] - The company improved its debt to EBITDA by nearly a full turn in 2025, entering 2026 with a net debt to EBITDA ratio of 3.4 times [21][24] Business Line Data and Key Metrics Changes - The operating portfolio, including Trilogy and SHOP segments, contributed 76.9% of consolidated cash NOI, with Trilogy's same-store NOI increasing 14% in Q4 and 18.4% for the full year [11][12] - SHOP segment same-store NOI increased 24.6% in Q4 and 25.2% for the full year 2025, with occupancy surpassing 90% [13] - The company expects continued strong performance in both Trilogy and SHOP segments, with guidance for 2026 indicating 8%-12% growth in Trilogy and 15%-19% growth in SHOP [23] Market Data and Key Metrics Changes - The company closed over $950 million in new investments in 2025, primarily in the SHOP segment, which is now the second-largest in terms of cash NOI [16] - The investment pipeline includes approximately $230 million in awarded deals, with ongoing deal activity expected to increase in 2026 [19][56] - The company anticipates that competitive pressure in its markets will remain muted due to historically low levels of new supply growth [18] Company Strategy and Development Direction - The company maintains a disciplined investment and capital allocation strategy focused on high-quality care and superior health outcomes [7][8] - The strategy includes a shift towards higher acuity assets and relationship-driven sourcing for acquisitions [16][64] - The company is focused on expanding its Trilogy segment and campus growth initiatives, leveraging existing assets to mitigate market risks [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of double-digit same-store NOI growth in 2026, supported by strong occupancy levels and pricing discipline [12][23] - The leadership emphasized the importance of high-quality care and health outcomes, which are expected to drive demand in the aging population [13][18] - Management acknowledged the challenges in the operating environment but remains optimistic about the company's ability to navigate these challenges and capitalize on growth opportunities [24] Other Important Information - The company has a robust pipeline of acquisitions and is prepared to deploy capital competitively in response to increasing deal activity [19][56] - The management team is committed to maintaining operational alignment and clarity of execution during the leadership transition [6][9] Q&A Session Summary Question: Can you dive deeper into the acquisition environment? - Management noted a focus on higher acuity SHOP assets, indicating confidence in long-term stability for this asset class [27] Question: Can you discuss the guidance for SHOP and potential deceleration? - Management highlighted a significant increase in occupancy in 2025 and indicated that pricing power would increase as occupancy rises [32][34] Question: What are the expectations for the investment pipeline and yields? - Management indicated that they are seeing cap rate compression and are focused on acquiring higher quality properties [63] Question: How does the revenue management system rollout progress? - Management explained that the revenue management system is being piloted with select operators, aiming to enhance performance across the portfolio [46][51] Question: What is the outlook for Trilogy investments? - Management acknowledged increased competition but emphasized their advantage in off-market acquisitions and strong relationships with operators [80][82]

Financial Data and Key Metrics Changes - In 2025, Endeavour Silver produced 11 million ounces of silver equivalent metal, a 48% increase compared to 2024 [5] - The company reported record revenue of $468 million, up 115% from 2024, with cost of sales at $385 million and mine operating earnings of $83 million [6] - Adjusted net earnings for Q4 were $4.8 million, or $0.02 per share, impacted by realized losses from derivative contracts and higher financing costs [6][7] Business Line Data and Key Metrics Changes - In Q4, Endeavour produced 2 million ounces of silver and 14,000 ounces of gold, totaling just shy of 4 million silver equivalent ounces, representing a 146% increase compared to Q4 of 2025 [5] - Excluding Coba and Terronera, production increased by 27% compared to the same period last year [6] Market Data and Key Metrics Changes - Silver and gold prices have seen exceptional gains, with gold trading above $5,000 and silver above $90, driven by inflationary pressures and global economic uncertainty [4] - The company is well-positioned to benefit from current silver prices, indicating substantial runway remaining in this cycle [4] Company Strategy and Development Direction - Endeavour Silver's strategic initiatives include the acquisition of Kolpa, achieving commercial production at Terronera, and advancing the Pitarrilla development asset [4][5] - The company plans to invest $68 million in Pitarrilla in 2026, focusing on exploration and technical studies [12] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of safety and operational stability, particularly in light of recent security events in Mexico [3] - The company anticipates a substantial reduction in direct operating costs as it transitions to liquefied natural gas in Q2 2026 [8][10] Other Important Information - As of December 31, 2025, the company's cash position was $215 million, providing financial strength to advance strategic initiatives [10] - The company expects to see improvements in throughput and recoveries as operations stabilize at Terronera [11] Q&A Session Summary Question: Can you discuss the mill availability and electrical interruptions at Terronera? - Management confirmed improvements in January and February, with stabilization of electrical disruptions and plans to transition to an LNG plant for better reliability and cost [15][17] Question: What is the guidance on grades at Terronera? - Management indicated that lower grades were due to mining stockwork, with expectations for higher grades in the second half of the year as operations progress [19][22] Question: How will costs drop in 2026? - Management explained that Q1 costs would be higher due to one-time expenditures, but costs are expected to decrease as operations stabilize and higher grades are processed [56][60] Question: What changes in security protocols have been implemented due to recent events in Jalisco? - Management stated that while there would be no dramatic changes in security costs, there would be increased monitoring of transportation lines [64][66] Question: What is the status of the Bolanitos sale and its accounting impact? - The sale closed on January 15, and the company anticipates recognizing an accounting gain in Q1 [72][73]

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses and the addition of high-quality acquisitions [3] - Adjusted EBITDA for Q4 was approximately $142 million, up from $114 million in the same period last year, and $6 million higher than the previous record set in Q3 [11] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22x [11] Business Line Data and Key Metrics Changes - In the Gathering and Processing segment, Adjusted EBITDA for Q4 was $71 million compared to $66 million in Q4 2024, primarily due to the acquisitions of H2O and Gravity [12] - Storage and transportation Adjusted EBITDA increased to $35 million from $18 million in Q4 2024, reflecting the sale of certain assets to DK [12] - The investments in pipeline joint ventures contributed $26 million in Q4, up from $18 million in the same quarter last year [12] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7] - The company is focusing on the Delaware Basin, where the need for sour gas solutions is urgent, and anticipates a step change in utilization once the sour gas gathering infrastructure is complete [8] Company Strategy and Development Direction - Delek Logistics aims to be a premier full-service provider in the Permian Basin, focusing on natural gas, crude, and water businesses [3] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5] - The integration of H2O and Gravity has strengthened the company's competitive position and growth platform [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders, supported by a strong financial position with approximately $940 million in available liquidity [11] - The management highlighted the importance of optimizing synergies and executing strategic priorities to capture the value of recent investments [10] Other Important Information - The Board of Directors approved the 52nd consecutive quarterly distribution increase, raising the distribution to $1.125 per unit, marking 13 consecutive years of distribution growth [5] - Total capital spending for Q4 was approximately $32 million, with $26 million allocated to growth capital related to sour gas capabilities at the Libby complex [13] Q&A Session Summary Question: Growth expectations for the GMT segment - Management discussed the variance in guidance and emphasized a clear strategy focused on crude, gas, and water in the Permian Basin, highlighting a return on investment of 1x-3x [16][17] Question: EBITDA impact from transactions with DK - Management noted that the transactions helped further economic separation, with 82% of EBITDA now coming from third-party businesses, and indicated that the impact on EBITDA was not material to either entity [22][23] Question: Next steps on Libby processing expansion - Management mentioned prior investments for future expansion and is closely monitoring customer activity in the area, indicating positive macro and micro conditions [28][29] Question: Thoughts on sour gas midstream M&A - Management stated that Delek Logistics remains open to acquisitions but will only pursue deals that are accretive to free cash flow and maintain financial discipline [34]