Q2 2024 Western Midstream Partners LP Earnings Call Transcript
Key Points
- Western Midstream Partners LP (WES) reported record throughput for natural gas, crude oil, and NGLs in the Delaware Basin for the fifth consecutive quarter.
- The company executed numerous agreements with new and existing customers, enhancing its commercial success and expected future growth.
- WES achieved its net leverage ratio threshold of three times earlier than anticipated, improving its financial flexibility.
- The company is focused on strategic capital allocation, including organic growth projects and accretive M&A, to enhance returns for unitholders.
- WES maintains a strong distribution yield, offering a compelling investment opportunity compared to its midstream peers and broader market indices.
- Reported crude oil and NGLs throughput declined by 9% on a sequential quarter basis due to equity investment divestitures.
- Adjusted EBITDA decreased by 5% sequentially, impacted by the sale of the Marcellus gathering system and increased operational expenses.
- Produced water throughput decreased by 4% sequentially, influenced by fluctuations in recycling activities and upstream operations.
- The company anticipates higher operation and maintenance expenses in the third quarter due to increased throughput and seasonal utility costs.
- Despite strong commercial agreements, the immediate financial impact is limited, with most benefits expected in future periods rather than 2024.
Good afternoon. My name is Ludi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners Second 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 Second 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 are Michael Ure, our Chief Executive Officer; and Kristen Shults, our Chief
| 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
