WES ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 RESULTS

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• Reported fourth-quarter 2024 Net income attributable to limited partners of $325.9 million, generating fourth-quarter Adjusted EBITDA⁽¹⁾ of $590.7 million.
• Reported full-year 2024 Net income attributable to limited partners of $1.537 billion, generating full-year Adjusted EBITDA⁽¹⁾ of $2.344 billion, and exceeding the midpoint of the full-year 2024 Adjusted EBITDA guidance range of $2.200 billion to $2.400 billion.
• Reported fourth-quarter 2024 Cash flows provided by operating activities of $554.4 million, generating fourth-quarter Free Cash Flow⁽¹⁾ of $309.3 million.
• Reported full-year 2024 Cash flows provided by operating activities of $2.137 billion, generating full-year Free Cash Flow⁽¹⁾ of $1.324 billion, and exceeding the high end of the full-year 2024 Free Cash Flow guidance range of $1.050 billion to $1.250 billion.
• Announced a fourth-quarter Base Distribution of $0.875 per unit, which is consistent with the prior quarter's Base Distribution, or $3.50 per unit on an annualized basis.

HOUSTON, Feb. 26, 2025 /PRNewswire/ — Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced fourth-quarter and full-year 2024 financial and operating results. Net income (loss) attributable to limited partners for the fourth quarter of 2024 totaled $325.9 million, or $0.85 per common unit (diluted), with fourth-quarter 2024 Adjusted EBITDA⁽¹⁾ totaling $590.7 million. Fourth-quarter Adjusted EBITDA⁽¹⁾ includes $9.2 million of positive revenue recognition adjustments associated with cost-of-service agreements at the DJ Basin oil and Springfield systems. Fourth-quarter 2024 Cash flows provided by operating activities totaled $554.4 million, and fourth-quarter 2024 Free Cash Flow⁽¹⁾ totaled $309.3 million.

Net income (loss) attributable to limited partners for full-year 2024 totaled $1.537 billion, or $4.02 per common unit (diluted), with full-year 2024 Adjusted EBITDA⁽¹⁾ totaling $2.344 billion, full-year 2024 Cash flows provided by operating activities totaling $2.137 billion, and full-year 2024 Free Cash Flow⁽¹⁾ totaling $1.324 billion.

FULL-YEAR 2024 HIGHLIGHTS

• Achieved record annual natural-gas throughput⁽²⁾ of 5.1 Bcf/d. Adjusted for the sale of the Marcellus assets in the second quarter of 2024, natural-gas throughput increased 16-percent⁽³⁾ year-over-year, in-line with our 2024 expectations of mid-to-upper teens average annual throughput growth.
• Achieved annual crude-oil and NGLs throughput⁽²⁾ of 530 MBbls/d. Adjusted for the crude-oil and NGLs assets that were divested during 2024, crude-oil and NGLs throughput increased 12-percent⁽⁴⁾ year-over-year, in-line with our revised 2024 expectations of low-double-digits average annual throughput growth.
• Gathered record annual produced-water throughput⁽²⁾ of 1,124 MBbls/d, representing an 11-percent year-over-year increase and in-line with our revised 2024 expectations of low-double-digits average annual throughput growth.
• Achieved year-over-year throughput growth across all products in the Delaware Basin of 14-percent, for both natural gas and crude oil and NGLs, and 11-percent for produced water.
• Divested multiple non-operated, non-core assets for $794.8 million, the proceeds of which were used to reduce long-term debt back towards pre-Meritage Midstream acquisition levels.
• Commenced operations of the 300 MMcf/d Mentone III processing train in the Delaware Basin and materially progressed construction of the 250 MMcf/d North Loving processing train that is expected to commence operations by the end of the first quarter 2025.
• Executed on our capital return framework by returning $1.246 billion to unitholders in 2024, which included a 52-percent increase in the Base Distribution in May 2024, and achieved our year-end 2024 net leverage ratio target of 3.0 times by the end of third quarter 2024.

On February 14, 2025, WES paid its fourth-quarter 2024 per-unit Base Distribution of $0.875, which is in line with the prior quarter's Base Distribution. Fourth-quarter and full-year 2024 Free Cash Flow⁽¹⁾ after distributions totaled negative $31.6 million and positive $78.1 million, respectively. Fourth-quarter and full-year 2024 capital expenditures⁽⁵⁾ totaled $179.2 million and $790.2 million, respectively.

Fourth-quarter 2024 natural-gas throughput⁽²⁾ averaged 5.2 Bcf/d, representing a 4-percent sequential-quarter increase. Fourth-quarter 2024 throughput for crude-oil and NGLs assets⁽²⁾ averaged 534 MBbls/d, representing a 6-percent sequential-quarter increase. Fourth-quarter 2024 throughput for produced-water assets⁽²⁾ averaged 1,191 MBbls/d, representing an 8-percent sequential-quarter increase.

Full-year 2024 natural-gas throughput⁽²⁾ averaged 5.1 Bcf/d. Adjusted for the sale of the Marcellus assets in the second quarter of 2024, natural gas throughput increased 16-percent⁽³⁾ from full-year 2023. Full-year 2024 throughput for crude-oil and NGLs assets⁽²⁾ averaged 530 MBbls/d. Adjusted for the crude-oil and NGLs assets that were divested during 2024, crude-oil and NGLs throughput increased 12-percent⁽⁴⁾ from full-year 2023. Full-year 2024 throughput for produced-water assets⁽²⁾ averaged 1,124 MBbls/d, representing an 11-percent increase from full-year 2023.

"2024 was a successful year for WES as we achieved double-digit throughput growth across all three product lines and grew both Adjusted EBITDA and Free Cash Flow meaningfully year-over-year," said Oscar Brown, President and Chief Executive Officer.

"With the start-up of Mentone Train III, WES has retained its position as one of the top natural-gas processors in the core of the Delaware Basin, and we expect the basin to continue to be our primary driver of volume growth in 2025. In the DJ Basin, we experienced strong throughput growth which resulted in record natural-gas throughput and our first annual increase in crude-oil and NGLs throughput since 2019. Additionally, we executed an amendment with Phillips 66, extending their original agreement and adding additional tranches of firm processing capacity in the DJ Basin, which should provide volume stability in the near term. Our Powder River Basin presence was significantly strengthened through the successful integration of Meritage Midstream, making us the basin's largest gatherer and processor and driving substantial throughput growth."

"In parallel with our commercial success, WES continued to execute on its capital allocation framework. We achieved our year-end leverage target of 3.0-times during the third quarter, while also returning more than $1.246 billion to unitholders through the Base Distribution. This included a 52-percent increase to the Base Distribution starting in the first quarter of 2024, to $0.875 per unit on a quarterly basis, which is 41-percent higher than our pre-pandemic Base Distribution level. We intend to build on this operational and financial momentum in 2025 and target a mid-to-low single-digits annual distribution growth rate, which will be supported by growth in the underlying business and incremental Free Cash Flow generation," Mr. Brown continued.

"This afternoon, we also announced that WES has sanctioned the construction of the Pathfinder pipeline to transport over 800 MBbls/d of produced water for disposal at WES's existing and new disposal facilities in eastern Loving County. This expansion will be supported by a new long-term produced-water agreement with Occidental to provide up to 280 MBbls/d of firm gathering and transportation capacity and up to 220 MBbls/d of firm disposal capacity, which is supported by corresponding minimum-volume commitments. We intend to utilize this first-of-its-kind, innovative produced-water solution to serve current customer needs and capture future growth as Delaware Basin producers execute their development plans. This project also advances WES's strategy of prioritizing capital-efficient, organic growth that creates long-term value for all of our stakeholders," concluded Mr. Brown.

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

WES will host a conference call on Thursday, February 27, 2025, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss its fourth-quarter and full-year 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.

FILING OF ANNUAL REPORT ON FORM 10-K

Today WES announced the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, with the Securities and Exchange Commission. A copy of the report is available for viewing and downloading on the Western Midstream website at www.westernmidstream.com. Unitholders may request hard copies of the report, which contains WES's audited financial statements, free of charge, by emailing [email protected], or by submitting a written request to Western Midstream Partners, LP at the following address: 9950 Woodloch Forest Drive, Suite 2800, The Woodlands, TX 77380, Attention: Western Midstream Investor Relations.

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 including Project Pathfinder; 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.

______________________________________________________________

 

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
[email protected]
866.512.3523

Rhianna Disch
Manager, Investor Relations
[email protected]
866.512.3523

 

 

 

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.

 

 

 

 

 

 

SOURCE Western Midstream Partners, LP