Q4 2024 Western Midstream Partners LP Earnings Call Transcript
Key Points
- Western Midstream Partners LP (WES) announced a large expansion of their produced water gathering and disposal infrastructure in the Delaware Basin, which is expected to support long-term upstream development.
- The company achieved double-digit and record throughput growth across all three product lines in 2024, demonstrating strong operational performance.
- WES reported a 13% increase in annual adjusted EBITDA and a 37% increase in free cash flow for 2024, indicating robust financial health.
- The company successfully integrated Meritage Midstream and completed several noncore asset sales, generating $795 million in total consideration.
- WES declared a record distribution payout in 2024, with a 52% increase to the base distribution, positioning it as having the highest distribution yield among midstream peers.
- The company anticipates a slight decrease in the first quarter per barrel adjusted gross margin for produced water assets due to new amendments with Oxy and cost of service rate redetermination.
- WES expects average year-over-year throughput in the DJ Basin to remain flat for natural gas and slightly down for crude oil and NGLs, indicating potential stagnation in this area.
- The decision to retire the enhanced distribution concept may limit flexibility in capital allocation and could be seen as a negative by some investors.
- The company faces challenges in managing the substantial growth of produced water volumes in the Delaware Basin, which requires innovative solutions.
- WES's capital expenditure guidance for 2025 indicates increased spending, which could impact free cash flow if not managed effectively.
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 fourth-quarter and full-year 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 Fourth Quarter 2024 Conference Call. I'd like to remind you that today's call, the accompanying slide deck 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-K 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. I'm pleased to inform you that the Western Midstream Partners
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
