Western Midstream Partners LP Q1 FY2025 earnings call

• Completed commissioning of North Loving plant in Delaware Basin, increasing West Texas natural gas processing capacity by ~13%. - Strong balance sheet with net leverage below 3 times, $2.4 billion liquidity, and investment grade credit rating. - Natural gas, crude oil/NGL, and produced water throughput details; adjusted gross margin details for each segment. - Declared a quarterly distribution of $0.91 per unit, a 4% increase over prior quarter.

Natural gas throughput decreased 2% sequentially, with per thousand cubic foot adjusted gross margin increasing $0.05 QoQ. Crude oil and NGL throughput decreased 6% sequentially, with per barrel adjusted gross margin increasing $0.17 QoQ (operated basis flat). Produced water throughput decreased 2% sequentially, with per barrel adjusted gross margin decreasing $0.02, in line with expectations. Revenue contributions by segment were not explicitly broken down by percentage but detailed in operational and financial performance.

• Maintained 2025 financial guidance ranges; lower commodity prices could impact profitability but expected to be within ranges. - Portfolio wide throughput expected: mid-single digits growth for natural gas and produced water, low single digits for crude oil and NGL. - Delaware Basin expected to be main growth engine; other basins' throughput expectations include flat to slightly down in DJ Basin and slight increase in Powder River Basin.

• Market volatility and commodity price swings could impact profitability. - Changes in customer development plans could affect capital expenditure plans and future throughput expectations.

Q: Spiro Dounis asked about capital allocation and guidance for the rest of the year.

A: Oscar Brown mentioned no change in strategy, keeping an eye on M&A opportunities, and volumes expected to pick up with growth driven by West Texas and Uinta basins.

Q: Keith Stanley asked about Pathfinder project contracts.

A: Oscar Brown said there's strong interest from producers and midstream players, seeking MVC type commitments with various commercial structures.

Q: Jeremy Tonet asked about producer outlook and commodity price scenarios.

A: Oscar Brown said conversations with customers are real-time, and in a slowdown, growth outlook may change but free cash flow not severely impacted.

Q: Sumantra Banerjee asked about buybacks and capital allocation.

A: Oscar Brown said buybacks are opportunistic if return on equity exceeds growth opportunities.

Q: Zack Van Everen asked about M&A and contract details.

A: Oscar Brown said M&A likely in core businesses and geographies unless unusual value add, and detailed contracts mostly in Permian and DJ basins.

Q: Ned Baramov asked about CapEx in a flat production scenario.

A: Oscar Brown and Kristen Shults said CapEx would likely be at low end of guidance or sustaining levels if pullback occurs.