WESTERN MIDSTREAM ANNOUNCES SECOND-QUARTER 2024 RESULTS

Rhea-AI Summary

Western Midstream Partners (NYSE: WES) reported strong Q2 2024 results, with Net income of $369.8 million ($0.97 per unit) and Adjusted EBITDA of $578.1 million. Cash flows from operations reached $631.4 million, generating Free cash flow of $424.8 million. WES announced a Q2 Base Distribution of $0.875 per unit ($3.50 annualized).

Highlights include record throughput in Delaware and DJ Basins, new commercial agreements, and debt reduction. WES reduced total debt by $762.6 million since year-end 2023, achieving its long-term net leverage target of 3.0x earlier than expected. The company expects 2024 Adjusted EBITDA and Free cash flow to trend towards the high end of guidance ranges.

Positive

• Record natural-gas throughput in Delaware and DJ Basins (1.9 Bcf/d and 1.5 Bcf/d)
• Record total operated crude-oil and NGLs throughput of 396 MBbls/d (6% increase)
• Executed multiple new commercial agreements in Delaware, DJ, and Uinta Basins
• Reduced total debt by $762.6 million since year-end 2023
• Achieved long-term net leverage threshold of 3.0x earlier than expected
• Expects 2024 Adjusted EBITDA and Free cash flow towards high end of guidance ranges

Negative

• 5% sequential decrease in Q2 Adjusted EBITDA due to lower distributions from equity investments
• Higher seasonally-driven operation and maintenance expense
• More normalized property and other taxes

Insights

Financial Analyst

Western Midstream Partners' Q2 2024 results show strong operational performance despite a slight decline in financial metrics. The company reported $369.8 million in net income attributable to partners and $578.1 million in Adjusted EBITDA, down 5% sequentially. However, this decline was expected due to asset divestitures and seasonal expenses.

Key positives include record throughput in multiple basins and products, with Delaware and DJ Basins seeing 6% increases in natural gas throughput. The company's commercial success is evident in new agreements across various basins, potentially leading to full plant utilization by 2026. WES's capital return strategy remains strong, with $942.6 million in senior notes reduction since January 2020 and substantial returns to unitholders.

While maintaining its $0.875 per unit Base Distribution, WES's financial position and growth prospects appear solid, positioning it well in the midstream space.

Market Research Analyst

WES's Q2 results reflect a strategic shift towards core assets and operational efficiency. The sale of Marcellus assets and debt reduction have streamlined operations, leading to a faster-than-expected achievement of the 3.0x net leverage threshold. This positions WES favorably in terms of financial flexibility and future growth potential.

The company's success in securing new commercial agreements, particularly in the Delaware, DJ and Uinta Basins, indicates strong market demand for its services. These agreements not only provide near-term revenue visibility but also set the stage for potential capacity expansions in the coming years.

Investors should note the company's balanced approach to capital allocation, focusing on growth investments and shareholder returns. The maintained Base Distribution and potential for Enhanced Distributions offer an attractive proposition for income-focused investors in the current market environment.

Energy Sector Specialist

WES's Q2 performance underscores its strategic positioning in key U.S. basins. The record throughputs in the Delaware and DJ Basins, along with growth in the Powder River Basin, highlight the company's strong asset base in areas of active production. This aligns well with the ongoing U.S. energy production growth narrative.

The new agreements with Phillips 66, Williams Companies and Kinder Morgan demonstrate WES's ability to attract major industry players. These partnerships not only provide stable, long-term cash flows but also position WES as a critical infrastructure provider in the evolving energy landscape.

The company's focus on natural gas and NGLs is particularly noteworthy given the growing importance of these commodities in the global energy mix. As LNG exports continue to rise, WES's strategically located assets could see increased utilization and potential expansion opportunities in the coming years.

• Reported second-quarter 2024 Net income attributable to limited partners of $369.8 million, generating second-quarter Adjusted EBITDA⁽¹⁾ of $578.1 million.
• Reported second-quarter 2024 Cash flows provided by operating activities of $631.4 million, generating second-quarter Free cash flow⁽¹⁾ of $424.8 million.
• Announced a second-quarter Base Distribution of $0.875 per unit, or $3.50 per unit on an annualized basis, which is in-line with the prior-quarter's Base Distribution.

HOUSTON, Aug. 7, 2024 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced second-quarter 2024 financial and operating results. Net income (loss) attributable to limited partners for the second quarter of 2024 totaled $369.8 million, or $0.97 per common unit (diluted), with second-quarter 2024 Adjusted EBITDA⁽¹⁾ totaling $578.1 million. Second-quarter 2024 Cash flows provided by operating activities totaled $631.4 million, and second-quarter 2024 Free cash flow⁽¹⁾ totaled $424.8 million.

RECENT HIGHLIGHTS

• Gathered record natural-gas throughput in the Delaware and DJ Basins of 1.9 Bcf/d and 1.5 Bcf/d, respectively, representing 6-percent sequential-quarter increases from both basins.
• Gathered record total operated crude-oil and NGLs throughput of 396 MBbls/d, representing a 6-percent sequential-quarter increase.
• Gathered record Delaware Basin crude-oil and NGLs throughput of 241 MBbls/d, representing a 7-percent sequential-quarter increase.
• Achieved sequential-quarter throughput growth for crude-oil and NGLs in the DJ Basin of 5-percent.
• Executed multiple commercial agreements with new and existing third-party customers for natural-gas and produced-water gathering in the Delaware Basin.
• Executed an amendment to DCP Midstream's, now Phillips 66's ("P66"), natural-gas processing agreement in the DJ Basin to extend the original firm-processing capacity of 175 MMcf/d from 2027 to 2029. Additionally, this multi-year amendment provides P66 with an incremental 200 MMcf/d of firm-processing capacity, primarily supported by minimum-volume commitments, starting in 2026.
• Subsequent to quarter-end, executed agreements with various customers supporting The Williams Companies' Mountain West Pipeline expansion to provide up to 110 MMcf/d of natural-gas firm-processing capacity at our Chipeta facility in the Uinta Basin.
• Subsequent to quarter-end, executed a multi-year natural-gas processing agreement with Kinder Morgan, Inc. ("Kinder Morgan") in support of its Altamont Green River Pipeline project providing for up to 150 MMcf/d of firm-processing capacity at our Chipeta processing facility in the Uinta Basin.
• As previously announced, closed the sale of the Marcellus Interest gathering system early in the second-quarter.
• As previously announced, repurchased $134.9 million of senior notes in the open market during the second quarter, bringing the year-to-date total to $150.0 million at an average of 96% of par.
• Reduced total debt by $762.6 million since year-end 2023 with asset sale proceeds, which helped achieve our long-term net leverage threshold of 3.0x earlier than expected.

On August 14, 2024, WES will pay its second-quarter 2024 per-unit Base Distribution of $0.875, which is in-line with the prior quarter's Base Distribution. Second-quarter 2024 Free cash flow⁽¹⁾ after distributions totaled $84.0 million. Second-quarter 2024 capital expenditures⁽²⁾ totaled $207.5 million.

Second-quarter 2024 natural-gas throughput⁽³⁾ averaged 5.0 Bcf/d, flat quarter-over-quarter due to strong throughput growth in our core basins offset by the sale of the Marcellus assets early in the second-quarter. Second-quarter 2024 operated throughput from natural-gas assets averaged 4.6 Bcf/d, representing a 3-percent sequential-quarter increase. Second-quarter 2024 throughput for crude-oil and NGLs assets⁽³⁾ averaged 515 MBbls/d, representing a 9-percent sequential-quarter decrease as a result of the equity investments asset sales which closed throughout the first quarter. Second-quarter 2024 operated throughput from crude-oil and NGLs assets averaged 396 MBbls/d, representing a 6-percent sequential-quarter increase. Second-quarter 2024 throughput for produced-water assets⁽³⁾ averaged 1,080 MBbls/d, representing a 4-percent sequential-quarter decrease.

"The second quarter was another strong quarter operationally for WES, with robust system operability contributing to operated natural-gas and crude-oil and NGLs throughput growth," said Michael Ure, President and Chief Executive Officer. "As a result, we experienced several throughput records during the quarter including record throughput for natural-gas in both the Delaware and DJ Basins, record total operated crude-oil and NGLs throughput, and record Delaware Basin crude-oil and NGLs throughput. Additionally, we experienced sequential-quarter throughput growth for both natural-gas and crude-oil and NGLs from our Powder River Basin assets of 5-percent and 9-percent, respectively. When taken together, this continued growth gives us confidence in our increased throughput expectations for all products for the year."

"As expected, second-quarter Adjusted EBITDA declined 5-percent sequentially due to lower distributions from equity investments as a result of the previously announced asset divestitures, higher seasonally-driven operation and maintenance expense, and more normalized property and other taxes. We anticipate throughput to continue to grow throughout the remainder of the year, which will drive 2024 Adjusted EBITDA and Free cash flow towards the high end of our previously disclosed guidance ranges."

"During the second quarter, our commercial teams successfully executed numerous agreements with both new and existing customers in our most active basins. In the Delaware Basin, we executed several third-party natural-gas and produced-water gathering agreements, which will begin to benefit WES in the second half of 2024, and to a larger extent, in 2025. Additionally, we executed numerous agreements in both the DJ and Uinta Basins. We are excited to see a return to growth in these basins, and in fact, if these agreements are fully utilized, we could potentially see our plants reach full utilization starting in 2026. In the Powder River Basin, we continue to experience increased throughput from existing customers on our system as we fully integrate the Meritage assets, and customers begin to allocate incremental capital to the basin."

"Focusing on our capital-return framework, since our January 2020 bond offering, we have reduced our senior notes on a net basis by $942.6 million, paid out approximately $3.5 billion to unitholders through Base and Enhanced Distributions, and bought back over $1.1 billion of our common units, or 15-percent of the unaffected unit count. Going forward, we will continue to prudently allocate capital to efficiently grow our business through expansion-oriented capital spending and accretive M&A. Finally, we expect to use the Base Distribution, and our Enhanced Distribution framework, as the primary tools for returning incremental capital to unitholders. We believe our strong operating model, prudent capital allocation principles, and our transparent capital-return framework will further position WES as a leader within the midstream space," concluded Mr. Ure.

CONFERENCE CALL TOMORROW AT 1:00 P.M. CT

WES will host a conference call on Thursday, August 8, 2024, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss its second-quarter 2024 results. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A small number of phone lines are available for analysts; individuals should dial 800-836-8184 (Domestic) or 646-357-8785 (International) ten to fifteen minutes before the scheduled conference call time. A replay of the live audio webcast can be accessed on the Partnership's website at www.westernmidstream.com for one year after the call.

For additional details on WES's financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com. 

AUGUST CONFERENCE PARTICIPATION

Members of the WES management and investor relations teams will participate in the Citi One-on-One Midstream / Energy Infrastructure Conference in Las Vegas, Nevada on August 13 – 14, 2024. We will provide information on our conference participation for the remainder of the third quarter over the coming weeks.

ABOUT WESTERN MIDSTREAM

Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES's cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.

For more information about WES, 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.

______________________________________________________________

(1) Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures.

(2) Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta.

(3) Represents total throughput attributable to WES, which excludes (i) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.

 

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523

Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523

 

Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended June 30,				Six Months Ended June 30,
thousands except per-unit amounts		2024		2023		2024		2023
Revenues and other
Service revenues – fee based		$      793,785		$      661,506		$   1,575,047		$   1,309,373
Service revenues – product based		61,466		46,956		128,206		93,766
Product sales		50,111		29,659		89,403		68,684
Other		267		152		702		432
Total revenues and other		905,629		738,273		1,793,358		1,472,255
Equity income, net – related parties		27,431		42,324		60,250		81,345
Operating expenses
Cost of product		54,010		44,746		100,089		96,205
Operation and maintenance		223,319		183,431		418,258		357,670
General and administrative		62,933		53,405		130,772		104,522
Property and other taxes		17,429		18,547		31,349		25,378
Depreciation and amortization		163,432		143,492		321,423		288,118
Long-lived asset and other impairments		1,530		234		1,553		52,635
Total operating expenses		522,653		443,855		1,003,444		924,528
Gain (loss) on divestiture and other, net		59,342		(70)		298,959		(2,188)
Operating income (loss)		469,749		336,672		1,149,123		626,884
Interest expense		(90,522)		(86,182)		(185,028)		(167,852)
Gain (loss) on early extinguishment of debt		4,879		6,813		5,403		6,813
Other income (expense), net		4,213		2,872		6,559		4,087
Income (loss) before income taxes		388,319		260,175		976,057		469,932
Income tax expense (benefit)		755		659		2,277		2,075
Net income (loss)		387,564		259,516		973,780		467,857
Net income (loss) attributable to noncontrolling interests		8,916		6,595		22,302		11,291
Net income (loss) attributable to Western Midstream Partners, LP		$      378,648		$      252,921		$      951,478		$      456,566
Limited partners' interest in net income (loss):
Net income (loss) attributable to Western Midstream Partners, LP		$      378,648		$      252,921		$      951,478		$      456,566
General partner interest in net (income) loss		(8,807)		(5,821)		(22,137)		(10,507)
Limited partners' interest in net income (loss)		$       369,841		$       247,100		$       929,341		$       446,059
Net income (loss) per common unit – basic		$             0.97		$             0.64		$             2.44		$             1.16
Net income (loss) per common unit – diluted		$             0.97		$             0.64		$             2.43		$             1.16
Weighted-average common units outstanding – basic		380,491		384,614		380,258		384,542
Weighted-average common units outstanding – diluted		382,253		385,510		381,933		385,665

 

Western Midstream Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
thousands except number of units		June 30, 2024		December 31, 2023
Total current assets		$       1,068,290		$          992,410
Net property, plant, and equipment		9,644,413		9,655,016
Other assets		1,467,798		1,824,181
Total assets		$     12,180,501		$     12,471,607
Total current liabilities		$          634,120		$       1,304,056
Long-term debt		7,138,092		7,283,556
Asset retirement obligations		371,501		359,185
Other liabilities		612,779		495,680
Total liabilities		8,756,492		9,442,477
Equity and partners' capital
Common units (380,491,374 and 379,519,983 units issued and outstanding at June 30, 2024,      and December 31, 2023, respectively)		3,271,033		2,894,231
General partner units (9,060,641 units issued and outstanding at June 30, 2024, and      December 31, 2023)		12,192		3,193
Noncontrolling interests		140,784		131,706
Total liabilities, equity, and partners' capital		$     12,180,501		$     12,471,607

 

Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Six Months Ended June 30,
thousands		2024		2023
Cash flows from operating activities
Net income (loss)		$       973,780		$       467,857
Adjustments to reconcile net income (loss) to net cash provided by operating activities and      changes in assets and liabilities:
Depreciation and amortization		321,423		288,118
Long-lived asset and other impairments		1,553		52,635
(Gain) loss on divestiture and other, net		(298,959)		2,188
(Gain) loss on early extinguishment of debt		(5,403)		(6,813)
Change in other items, net		38,732		(10,738)
Net cash provided by operating activities		$    1,031,126		$       793,247
Cash flows from investing activities
Capital expenditures		$     (405,653)		$     (334,570)
Acquisitions from third parties		(443)		—
Contributions to equity investments - related parties		—		(132)
Distributions from equity investments in excess of cumulative earnings – related parties		24,303		23,179
Proceeds from the sale of assets to third parties		788,941		—
(Increase) decrease in materials and supplies inventory and other		(25,294)		(19,145)
Net cash provided by (used in) investing activities		$       381,854		$     (330,668)
Cash flows from financing activities
Borrowings, net of debt issuance costs		$         (1,206)		$       956,225
Repayments of debt		(143,852)		(918,332)
Commercial paper borrowings (repayments), net		(610,312)		—
Increase (decrease) in outstanding checks		14,172		(2,951)
Distributions to Partnership unitholders		(564,296)		(533,556)
Distributions to Chipeta noncontrolling interest owner		(1,678)		(3,470)
Distributions to noncontrolling interest owner of WES Operating		(11,546)		(11,131)
Unit repurchases		—		(7,102)
Other		(22,930)		(14,965)
Net cash provided by (used in) financing activities		$  (1,341,648)		$     (535,282)
Net increase (decrease) in cash and cash equivalents		$         71,332		$       (72,703)
Cash and cash equivalents at beginning of period		272,787		286,656
Cash and cash equivalents at end of period		$       344,119		$       213,953

 

Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES

WES defines Adjusted gross margin attributable to Western Midstream Partners, LP ("Adjusted gross margin") as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owners' proportionate share of revenues and cost of product.

WES defines Adjusted EBITDA attributable to Western Midstream Partners, LP ("Adjusted EBITDA") as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) interest income, (v) income tax benefit, (vi) other income, and (vii) the noncontrolling interest owners' proportionate share of revenues and expenses.

WES defines Free cash flow as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings.

Below are reconciliations of (i) gross margin (GAAP) to Adjusted gross margin (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that Adjusted gross margin, Adjusted EBITDA, and Free cash flow are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing WES's ability to incur and service debt, fund capital expenditures, and make distributions. Adjusted gross margin, Adjusted EBITDA, and Free cash flow as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Adjusted gross margin, Adjusted EBITDA, and Free cash flow should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as gross margin or cash flows provided by operating activities.

Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited)
Adjusted Gross Margin
		Three Months Ended
thousands		June 30, 2024		March 31, 2024
Reconciliation of Gross margin to Adjusted gross margin
Total revenues and other		$           905,629		$           887,729
Less:
Cost of product		54,010		46,079
Depreciation and amortization		163,432		157,991
Gross margin		688,187		683,659
Add:
Distributions from equity investments		32,970		48,337
Depreciation and amortization		163,432		157,991
Less:
Reimbursed electricity-related charges recorded as revenues		28,998		24,695
Adjusted gross margin attributable to noncontrolling interests (1)		19,741		20,240
Adjusted gross margin		$           835,850		$           845,052
Gross margin
Gross margin for natural-gas assets (2)		$           516,253		$           511,584
Gross margin for crude-oil and NGLs assets (2)		96,786		93,578
Gross margin for produced-water assets (2)		82,346		85,041
Adjusted gross margin
Adjusted gross margin for natural-gas assets		$           601,443		$           597,163
Adjusted gross margin for crude-oil and NGLs assets		138,894		150,269
Adjusted gross margin for produced-water assets		95,513		97,620

(1) Includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary, which collectively represent WES's noncontrolling interests.
(2) Excludes corporate-level depreciation and amortization.

 

Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited)
Adjusted EBITDA
		Three Months Ended
thousands		June 30, 2024		March 31, 2024
Reconciliation of Net income (loss) to Adjusted EBITDA
Net income (loss)		$           387,564		$           586,216
Add:
Distributions from equity investments		32,970		48,337
Non-cash equity-based compensation expense		10,391		9,423
Interest expense		90,522		94,506
Income tax expense		755		1,522
Depreciation and amortization		163,432		157,991
Impairments		1,530		23
Other expense		37		112
Less:
Gain (loss) on divestiture and other, net		59,342		239,617
Gain (loss) on early extinguishment of debt		4,879		524
Equity income, net – related parties		27,431		32,819
Other income		4,213		2,346
Adjusted EBITDA attributable to noncontrolling interests (1)		13,276		14,415
Adjusted EBITDA		$           578,060		$           608,409
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA
Net cash provided by operating activities		$           631,418		$           399,708
Interest (income) expense, net		90,522		94,506
Accretion and amortization of long-term obligations, net		(2,473)		(2,190)
Current income tax expense (benefit)		726		1,292
Other (income) expense, net		(4,213)		(2,346)
Distributions from equity investments in excess of cumulative earnings – related parties		5,270		19,033
Changes in assets and liabilities:
Accounts receivable, net		(28,436)		53,714
Accounts and imbalance payables and accrued liabilities, net		(13,338)		100,383
Other items, net		(88,140)		(41,276)
Adjusted EBITDA attributable to noncontrolling interests (1)		(13,276)		(14,415)
Adjusted EBITDA		$           578,060		$           608,409
Cash flow information
Net cash provided by operating activities		$           631,418		$           399,708
Net cash provided by (used in) investing activities		(14,995)		396,849
Net cash provided by (used in) financing activities		(567,550)		(774,098)

(1) Includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary, which collectively represent WES's noncontrolling interests.

 

Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) (Unaudited)
Free Cash Flow
		Three Months Ended
thousands		June 30, 2024		March 31, 2024
Reconciliation of Net cash provided by operating activities to Free cash flow
Net cash provided by operating activities		$           631,418		$           399,708
Less:
Capital expenditures		211,864		193,789
Add:
Distributions from equity investments in excess of cumulative earnings – related parties		5,270		19,033
Free cash flow		$           424,824		$           224,952
Cash flow information
Net cash provided by operating activities		$           631,418		$           399,708
Net cash provided by (used in) investing activities		(14,995)		396,849
Net cash provided by (used in) financing activities		(567,550)		(774,098)

 

Western Midstream Partners, LP OPERATING STATISTICS (Unaudited)
		Three Months Ended
		June 30, 2024		March 31, 2024		Inc/ (Dec)
Throughput for natural-gas assets (MMcf/d)
Gathering, treating, and transportation		438		606		(28) %
Processing		4,209		4,050		4 %
Equity investments (1)		508		508		— %
Total throughput		5,155		5,164		— %
Throughput attributable to noncontrolling interests (2)		167		174		(4) %
Total throughput attributable to WES for natural-gas assets		4,988		4,990		— %
Throughput for crude-oil and NGLs assets (MBbls/d)
Gathering, treating, and transportation		396		374		6 %
Equity investments (1)		130		202		(36) %
Total throughput		526		576		(9) %
Throughput attributable to noncontrolling interests (2)		11		11		— %
Total throughput attributable to WES for crude-oil and NGLs assets		515		565		(9) %
Throughput for produced-water assets (MBbls/d)
Gathering and disposal		1,102		1,149		(4) %
Throughput attributable to noncontrolling interests (2)		22		23		(4) %
Total throughput attributable to WES for produced-water assets		1,080		1,126		(4) %
Per-Mcf Gross margin for natural-gas assets (3)		$                 1.10		$                 1.09		1 %
Per-Bbl Gross margin for crude-oil and NGLs assets (3)		2.02		1.78		13 %
Per-Bbl Gross margin for produced-water assets (3)		0.82		0.81		1 %
Per-Mcf Adjusted gross margin for natural-gas assets (4)		$                 1.33		$                 1.32		1 %
Per-Bbl Adjusted gross margin for crude-oil and NGLs assets (4)		2.96		2.92		1 %
Per-Bbl Adjusted gross margin for produced-water assets (4)		0.97		0.95		2 %

(1) Represents our share of average throughput for investments accounted for under the equity method of accounting.
(2) Includes (i) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary and (ii) for natural-gas assets, the 25% third-party interest in Chipeta, which collectively represent WES's noncontrolling interests.
(3) Average for period. Calculated as Gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.
(4) Average for period. Calculated as Adjusted gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) attributable to WES for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.

 

Western Midstream Partners, LP OPERATING STATISTICS (CONTINUED) (Unaudited)
		Three Months Ended
		June 30, 2024		March 31, 2024		Inc/ (Dec)
Throughput for natural-gas assets (MMcf/d)
Operated
Delaware Basin		1,858		1,761		6 %
DJ Basin		1,452		1,372		6 %
Powder River Basin		426		406		5 %
Other		898		978		(8) %
Total operated throughput for natural-gas assets		4,634		4,517		3 %
Non-operated
Equity investments		508		508		— %
Other		13		139		(91) %
Total non-operated throughput for natural-gas assets		521		647		(19) %
Total throughput for natural-gas assets		5,155		5,164		— %
Throughput for crude-oil and NGLs assets (MBbls/d)
Operated
Delaware Basin		241		225		7 %
DJ Basin		91		87		5 %
Powder River Basin		25		23		9 %
Other		39		39		— %
Total operated throughput for crude-oil and NGLs assets		396		374		6 %
Non-operated
Equity investments		130		202		(36) %
Total non-operated throughput for crude-oil and NGLs assets		130		202		(36) %
Total throughput for crude-oil and NGLs assets		526		576		(9) %
Throughput for produced-water assets (MBbls/d)
Operated
Delaware Basin		1,102		1,149		(4) %
Total operated throughput for produced-water assets		1,102		1,149		(4) %

 

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SOURCE Western Midstream Partners, LP

FAQ

What was Western Midstream's (WES) Net income for Q2 2024?

Western Midstream (WES) reported Net income attributable to partners of $369.8 million, or $0.97 per common unit (diluted), for Q2 2024.

How much Free cash flow did WES generate in Q2 2024?

WES generated Free cash flow of $424.8 million in Q2 2024.

What is WES's Q2 2024 Base Distribution per unit?

WES announced a Q2 2024 Base Distribution of $0.875 per unit, or $3.50 per unit on an annualized basis.

How much debt has WES reduced since year-end 2023?

WES reduced total debt by $762.6 million since year-end 2023.

What were WES's record throughput achievements in Q2 2024?

WES achieved record natural-gas throughput in Delaware and DJ Basins (1.9 Bcf/d and 1.5 Bcf/d), and record total operated crude-oil and NGLs throughput of 396 MBbls/d.