The following is a summary of the Western Midstream Partners, LP Common Units (WES) Q3 2024 Earnings Call Transcript:
Financial Performance:
Reported Q3 net income of $282 million and adjusted EBITDA of $567 million.
Adjusted EBITDA for Q3 declined due to lower natural gas liquids volume under fixed recovery contracts, coupled with lower commodity prices.
Adjusted gross margin decrease largely attributed to lower NGL recoveries and lower commodity pricing.Issued $800 million of new senior notes at 5.45% due 2034 to refinance debt and for general purposes, which was met with strong market reception.
Business Progress:
Notable operational successes with service continuity maintained above 98% operability and increased natural gas throughput in the Delaware and Powder River Basins.
Executed new agreements for the Mi Vida joint venture, enhancing dedicated natural gas processing capacity by 100 million cubic feet per day beginning mid-2025.
Retired several non-core asset sales which impacts future adjustments.
Expect year-over-year throughput increase in all segments with mid- to upper teens percentage growth for natural gas.
Opportunities:
Strategic refinancing of debt with favorable market conditions for the newly issued senior notes.
Addition of dedicated capacity in the Mi Vida JV enhances service to Delaware Basin customers.
Incremental capital allocation to Powder River and Uinta Basins reflecting a focus on facilitating throughput growth there.
Risks:
Reduction in throughput expectations for crude oil and NGLs alongside produced water due to divestitures and transition in production strategies by producers.
Variability in quarterly volumes due to producer recycling activities, impacting near-term volumetric flow.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
