The following is a summary of the Western Midstream Partners, LP Common Units (WES) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Reported Q3 net income of $282 million and adjusted EBITDA of $567 million.

• Adjusted EBITDA for Q3 declined due to lower natural gas liquids volume under fixed recovery contracts, coupled with lower commodity prices.

• Adjusted gross margin decrease largely attributed to lower NGL recoveries and lower commodity pricing.

• Issued $800 million of new senior notes at 5.45% due 2034 to refinance debt and for general purposes, which was met with strong market reception.

Business Progress:

• Notable operational successes with service continuity maintained above 98% operability and increased natural gas throughput in the Delaware and Powder River Basins.

• Executed new agreements for the Mi Vida joint venture, enhancing dedicated natural gas processing capacity by 100 million cubic feet per day beginning mid-2025.

• Retired several non-core asset sales which impacts future adjustments.

• Expect year-over-year throughput increase in all segments with mid- to upper teens percentage growth for natural gas.

Opportunities:

• Strategic refinancing of debt with favorable market conditions for the newly issued senior notes.

• Addition of dedicated capacity in the Mi Vida JV enhances service to Delaware Basin customers.

• Incremental capital allocation to Powder River and Uinta Basins reflecting a focus on facilitating throughput growth there.

Risks:

• Reduction in throughput expectations for crude oil and NGLs alongside produced water due to divestitures and transition in production strategies by producers.

• Variability in quarterly volumes due to producer recycling activities, impacting near-term volumetric flow.

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