ESENTIA Reports Adjusted EBITDA of $86 Million and Cuts Leverage to 3.9 Times

Key Facts

ESENTIA reported adjusted EBITDA of $86.0 million in the third quarter of 2026, up 1.3% from the same period a year earlier, while adjusted revenue reached $111.7 million. The company said adjusted EBITDA for the first nine months was $262.5 million, up 3.5% year over year. Net debt to last-12-month adjusted EBITDA fell to 3.9 times on September 30, from 4.1 times at the end of 2025. The company attributed the improvement to adjusted EBITDA growth and a reduction in total debt. Adjusted revenue and adjusted EBITDA are non-IFRS measures, according to the company’s disclosure.

ESENTIA said third-quarter adjusted EBITDA growth was driven mainly by its natural gas marketing business, which benefited from higher sales volumes and a larger contribution margin. Increased interruptible transportation services and contributions from joint ventures also supported the improvement. The activity was underpinned by a stable base of long-term transportation contracts, the company said. For the first nine months, natural gas sales volumes rose 15% and the contribution margin increased 14%. The figures show that the expansion of the gas marketing business and its improved contribution accompanied growth in the operating metric during the period.

By contrast, ESENTIA’s net income was about $24.5 million in the third quarter, down 13.1% from the same quarter a year earlier. The company attributed the decline to a higher tax burden during the quarter. For the first nine months, net income rose 18.9% to $65.9 million. The comparison shows that quarterly net income moved in a different direction from the adjusted operating metrics, which posted year-over-year growth in the quarter. Net income growth for the first nine months also remained positive despite the decline recorded in the third quarter.

In the second quarter, the company reported adjusted revenue of $118.5 million, up 9.4% year over year, and adjusted EBITDA of $91.4 million, a 7.1% increase from the same period. Third-quarter figures were below those quarterly levels, while adjusted EBITDA remained above its year-earlier level. This coincided with the company’s announcement in September of an agreement to buy 100% of EOM for a total purchase price of $400 million. EOM owns and operates the Guadalajara-Manzanillo natural gas pipeline system, which extends about 313 kilometers. The acquisition links ESENTIA’s plans to expand its network to a system reaching the Port of Manzanillo on the Pacific coast.

The Guadalajara-Manzanillo system consists of two segments, according to the transaction description: the first extends about 5.5 kilometers and has capacity of about 500 million cubic feet per day. The second segment extends 307.3 kilometers and has capacity of about 360 million cubic feet per day. Seller TC Energy said the pipeline transports up to 500 million cubic feet of gas per day. After the acquisition closes, ESENTIA will become the only private company to own an integrated gas pipeline system connecting the Permian Basin in Texas with Mexico’s Pacific coast, the company said. This adds a route to the Port of Manzanillo within the integrated network described by the company.

ESENTIA expects to fund the EOM acquisition entirely with its own funds, without adding debt, and to complete it during the first half of 2027, subject to regulatory approvals and other closing conditions. TC Energy put the total sale price at $400 million and also expected the deal to close in the first half of 2027, subject to the transaction’s conditions and approvals. Chief Executive Daniel Bustos said the company’s priorities as it enters 2027 include completing Phase 1, closing the EOM deal and integrating it. He added that the company would pursue long-term growth opportunities with discipline. These priorities place completion of Phase 1, the transaction and integration of its assets within the company’s plans for the next stage.