icon
icon
icon
icon
Upgrade
icon

Western Midstream Partners (WES) 7 Nov 24 2024 Q3 Earnings call transcript

AInvestThursday, Nov 7, 2024 8:20 pm ET
1min read

Western Midstream Partners, a leading midstream energy company, recently held its Third Quarter 2024 Earnings Call, providing insights into its operational and financial performance. The call, led by the newly appointed CEO, Oscar Brown, highlighted the company's strategic direction, financial health, and growth prospects.

Operational Performance

The call underscored Western Midstream's operational success, with a focus on strong customer service, operational improvements, and cost reductions. The company reported strong throughput growth in the Delaware Basin and Powder River Basin, while natural gas throughput increased sequentially due to robust activity in these regions. Despite challenges such as elevated plant turnaround activity and recycling levels, the company's operational performance remained above 98%, demonstrating its resilience and adaptability.

Financial Performance

Financially, the company reported a decrease in adjusted EBITDA relative to the second quarter due to decreased natural gas liquids volumes and lower commodity pricing. However, expectations for the fourth quarter are optimistic, with higher throughput anticipated due to increased customer activity and lower operating and maintenance expenses. Western Midstream also executed new agreements to realign its commercial structure, securing 100 million cubic feet per day of dedicated natural gas processing capacity at the Mi Vida joint venture.

Strategic Direction

Looking ahead, Western Midstream plans to continue its strategic focus on growth and development. The company aims to invest capital in organic growth projects, evaluate strategic M&A opportunities, and potentially increase the base distribution for unitholders. The strategic shift towards sustainable growth, coupled with a strong financial position and disciplined capital allocation, positions Western Midstream well for future success.

Regulatory Environment and Market Outlook

The call also touched on the potential impact of regulatory changes, with optimism expressed about a more favorable regulatory outlook under the new administration. This could lead to increased customer activity and growth for the company, further enhancing its strategic position in the midstream sector.

In conclusion, Western Midstream Partners' Third Quarter 2024 Earnings Call provided a comprehensive overview of the company's operational and financial performance, strategic direction, and growth prospects. The company's operational resilience, strategic focus, and positive outlook for the future make it a compelling investment opportunity in the midstream energy sector.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.