Western Midstream Announces Sanctioning of New Cryogenic Plant and Updated 2023 Guidance
Concurrent with the sanctioning of the North Loving Plant, and based on the most current production-forecast information from our producer customers, WES updated 2023 guidance as follows:
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Total capital expenditures(1) are expected to range between
and$700.0 million , representing a$800.0 million increase to the midpoint of guidance previously issued with WES’s fourth-quarter 2022 earnings results (“Prior Guidance”). Total-year capital expenditures guidance includes capital attributable to a portion of Mentone Train III, a portion of the North Loving Plant, and additional expansion capital needed to support continued commercial success.$125.0 million -
Free cash flow(2) is expected to range between
and$1.00 0 billion , representing a$1.10 0 billion decrease to the midpoint of Prior Guidance as a result of revised capital expenditures guidance.$125.0 million
WES is maintaining its 2023 Adjusted EBITDA(2) guidance range of
“We are pleased to announce the expansion of our
“Over the past year, our commercial team has generated substantial value for WES by executing multiple, long-term agreements that provide up to 950 MMcf/d of firm processing commitments. While we have already realized some benefit from these agreements, the vast majority of the volumes are expected over the coming years, and the decision to sanction an additional plant greatly enhances our ability to accommodate our producer customers and generate incremental value for our stakeholders,” concluded Mr. Ure.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP (“WES”) is a
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES’s management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES’s assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the “Risk Factors” section of WES’s most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
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(1) |
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the |
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(2) |
A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Free cash flow range to net cash provided by operating activities, is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding GAAP equivalent for the Adjusted EBITDA or Free cash flow ranges. |
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(3) |
Subject to Board review and approval on a quarterly basis based on the needs of the business. |
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WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
Daniel.Jenkins@westernmidstream.com
832.636.1009
Source: Western Midstream Partners, LP.