Q3 2024 Western Midstream Partners LP Earnings Call Transcript
Key Points
- Western Midstream Partners LP (WES) reported strong operational performance with natural gas throughput increasing sequentially, marking the seventh consecutive quarter of record throughput in the Delaware Basin.
- The company executed new agreements for the Mi Vida joint venture, providing 100 million cubic feet per day of dedicated natural gas processing capacity starting mid-2025, enhancing flow assurance for customers.
- WES successfully issued $800 million in senior notes, which were well-received by the market, indicating strong investor confidence.
- The company maintained a high distribution yield, ranking number one among midstream MLPs and other midstream companies with an investment-grade credit rating.
- WES continues to focus on capital allocation priorities, including high-return organic expansion opportunities and accretive M&A, while maintaining a strong investment-grade balance sheet.
- Adjusted EBITDA declined relative to the second quarter due to decreased natural gas liquids volume, lower commodity pricing, and higher seasonal operations and maintenance expenses.
- Total crude oil and NGL throughput declined by 2% sequentially, impacted by lower volumes in the DJ Basin and the sale of certain assets.
- The company expects moderated throughput growth in 2025 compared to previous years, partly due to asset sales and reduced demand volumes.
- Lower earnings are anticipated in 2025 from crude assets in the DJ Basin and South Texas due to contract changes.
- The CEO transition was perceived as abrupt by market participants, raising concerns about continuity and strategic direction.
Good afternoon. My name is Joanna, and I will be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners third-quarter 2024 earnings conference call. (Operator Instructions)
I would now like to turn the conference over to Daniel Jenkins, Director of Investor Relations. Please go ahead.
Thank you. I'm glad you could join us today for Western Midstream's third-quarter 2024 conference call. I'd like to remind you that today's call, the accompanying slide deck, and last night's earnings release contain important disclosures regarding forward-looking statements and non-GAAP reconciliations.
Please reference Western Midstream's most recent Form 10-Q and other public filings for a description of risk factors that could cause actual results to differ materially from what we discuss today. Relevant reference materials are posted on our website.
With me today include our newly appointed Chief Executive Officer,
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