Q1 2025 Western Midstream Partners LP Earnings Call Transcript
Key Points
- Western Midstream Partners LP (WES) reported strong financial performance for the first quarter of 2025, with net income attributable to limited partners of $302 million and adjusted EBITDA of $594 million.
- The commissioning of the North Loving plant in the Delaware Basin was completed ahead of schedule and under budget, increasing natural gas processing capacity by approximately 13%.
- The company has a strong balance sheet with net leverage below 3 times and approximately $2.4 billion of liquidity, providing financial flexibility.
- WES has stable long-term contract structures with cost of service protections and minimum volume commitments, ensuring predictable cash flows even during market volatility.
- The company declared a quarterly distribution of $0.91 per unit, representing a 4% increase over the prior quarter's distribution, demonstrating a commitment to returning capital to unit holders.
- Natural gas throughput decreased by 2% on a sequential quarter basis, primarily due to lower volumes from the DJ Basin and Powder River Basin.
- Crude oil and NGL throughput decreased by 6% on a sequential quarter basis, with reduced throughput from equity investments and lower volumes from the DJ and Delaware Basins.
- Produced water throughput decreased by 2% on a sequential quarter basis due to the timing of wells coming online in the Delaware Basin.
- The first quarter adjusted gross margin for produced water assets decreased by $0.02, in line with expectations due to a new produced water amendment and cost of service rate redetermination.
- Market volatility and recent commodity price weakness pose challenges, requiring close monitoring and potential adjustments to capital spending and growth plans.
Good morning. My name is Ludy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners first quarter 2025 earnings conference call. (Conference Instructions)
Thank you. 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 first quarter 2025 conference call. I would 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-gap reconciliations. Please reference Western Midstream's most recent Form 10k and 10Q and other public filings for a description of risk factors that could cause actual results to differ materially from any forward-looking statements we discussed today. Relevant reference materials are posted on our website. With me today are Oscar Brown, our
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