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Overview of Western Midstream's Strong Performance

On February 26, 2025, Western Midstream Partners, LP (NYSE: WES) announced impressive financial results for the fourth quarter and the full year of 2024. The company reported a net income attributable to limited partners of $325.9 million for the fourth quarter, translating into $0.85 per common unit. This marked a significant achievement alongside an adjusted EBITDA of $590.7 million for the same period. Furthermore, Western Midstream's results for the entire year reflected a net income of approximately $1.537 billion, equivalent to $4.02 per unit, and an adjusted EBITDA amounting to $2.344 billion.

Key Financial Highlights

The results for 2024 surpassed the company's expectations, particularly in relation to adjusted EBITDA, which exceeded the guidance range of $2.200 billion to $2.400 billion. Notably, the cash flows generated from operating activities topped $2.137 billion, contributing to a free cash flow of $1.324 billion. The figures indicate both significant revenue growth and operational efficiency across various metrics, demonstrating the robustness of Western Midstream's business model.

Cash Flow and Distribution

For the fourth quarter alone, Western Midstream provided cash flows from operating activities of $554.4 million. The fourth-quarter free cash flow was reported at $309.3 million. The base distribution for unitholders remains steady at $0.875 per unit, consistent with the previous quarter.

Annual Highlights

Key achievements in 2024 included:
A record natural gas throughput of 5.1 Bcf/d, reflecting a 16% year-over-year increase, adjusted for prior divestitures.
Crude oil and natural gas liquids (NGLs) throughput averaged 530 MBbls/d, which marked a 12% rise from 2023, again adjusted for sold assets.
Produced water throughput reached 1,124 MBbls/d, an 11% year-over-year increase.
Notably, Western Midstream executed divestments of non-core assets yielding $794.8 million, which was strategically used to pay down long-term debt.

Additionally, the company initiated operations for the 300 MMcf/d Mentone III processing train in the Delaware Basin, while progressing on a second processing train due for completion in early 2025.

Quotes from Leadership

Oscar Brown, President and CEO of Western Midstream Partners, expressed satisfaction with the year’s accomplishments, saying, "2024 was a successful year for WES as we achieved double-digit throughput growth across all three product lines while substantially increasing both Adjusted EBITDA and Free Cash Flow."

He highlighted the importance of their operations in the Delaware Basin as the primary growth driver and underscored a commitment to returning value to unitholders through a well-structured capital distribution and reinvestment strategy. He elaborated on the company’s plan to target a mid-to-low single-digit growth rate in annual distributions for the year ahead, supported by the continued growth and free cash flow generation of the underlying business.

Future Outlook

Looking forward, the company plans to maintain operational momentum with the construction of the Pathfinder pipeline, which will improve the disposal of produced water at their facilities. This innovative solution aims to enhance serviceability and position WES for future growth in line with the expanding needs of Delaware Basin producers.

In conclusion, Western Midstream Partners is poised for continued growth and operational success, backed by strong financial results and strategic investments in infrastructure. Investors can look forward to further developments as the company adjusts its strategies to align with market demands and technological advancements in the energy sector.

For in-depth insights on Western Midstream's performance for Q4 and the complete year of 2024, attend the upcoming conference call or access information through their investor relations site.