Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q4 2024 Earnings Presentation
42 slides from Western Midstream Partners, Lp's earnings presentation, Feb 27, 2025
Slide 1: Fourth-Quarter 2024 Review
Fourth-Quarter 2024 Review February 26, 2025
Slide 2: Forward-Looking Statements and Ownership Structure
Forward-Looking Statements and Ownership Structure WES OWNERSHIP STRUCTURE This presentation contains forward-looking statements. Western Midstream Partners, LP Occidental Public Unitholders (“WES”) believes that its expectations are based on reasonable assumptions. No assurance, however, can be giv
Slide 3: Recent Highlights
Western Midstream Recent Highlights
Slide 4: 2024 Highlights
2024 Highlights Operational & Financial Accomplishments Total Total Achieved double-digit throughput growth Natural-Gas Crude-oil and NGLs across all three products1,2 Throughput Throughput 5.1 Bcf/d 530 MBbls/d Achieved record throughput across all products in the Delaware Basin 16% Y-o-Y 1 12% Y-o
Slide 5: WES's Capital Allocation Priorities
WES's Capital Allocation Priorities With leverage below 3.0x – primary focus will be on expansion opportunities Net Leverage Reduction1 Future Capital Allocation Priorities Continue Executing Expansion Opportunities Targeting organic capital projects that meet or exceed mid-teens, unlevered rates of
Slide 6: 2025 Free Cash Flow Priorities
2025 Free Cash Flow Priorities Committed to investing in expansion opportunities and increasing the distribution Capital Expenditures Free Cash Flow Capex • 67% allocated towards expansion capital Guidance range of $1.275 billion - $1.475 billion1,2 Base Distributions • Targeting long-term mid-to-lo
Slide 7: Significant Return of Capital to Unitholders
Significant Return of Capital to Unitholders Targeting sustainable annual distribution growth Future Base WES’s Base Distribution History1 Distribution Growth 152% Distribution per Unit Growth 2021 – 2024 Targeting Mid-to-Low Single-Digits Annual Base Distribution Growth Rate WES has a consistent hi
Slide 8: Pathfinder Pipeline & Water System Expansion
Pathfinder Pipeline & Water System Expansion
Slide 9: Pathfinder Pipeline & Water System Expansion
Pathfinder Pipeline & Water System Expansion Innovative midstream solution for produced-water disposal in the Delaware Basin • Pathfinder Pipeline Overview • ~42-mile, 30-inch poly-lined steel transportation pipeline • >800 MBbls/d of initial throughput capacity • Enables access to high-quality pore
Slide 10: Produced-Water Disposal Dynamics
Produced-Water Disposal Dynamics Navigating the challenges of produced-water disposal in the Delaware Basin • Produced water disposal challenges in the Delaware Basin are driven by significant production growth and limitations on available incremental disposal capacity • Key drivers of the evolving
Slide 11: Fourth-Quarter Performance
Fourth-Quarter Performance
Slide 12: Fourth-Quarter Operational Performance
Fourth-Quarter Operational Performance 3Q 2024 4Q 2024 Actuals Actuals Natural-Gas Throughput (MMcf/d) 5,016 5,213 Adjusted Gross Margin for Natural-Gas Assets ($/Mcf) $1.29 $1.29 Crude-Oil and NGLs Throughput (MBbls/d) 506 534 Adjusted Gross Margin for Crude-Oil and NGLs Assets ($/Bbl) $2.88 $3.00
Slide 13: Fourth-Quarter Financial Performance
Fourth-Quarter Financial Performance 3Q 2024 4Q 2024 ($ in millions) Actuals Actuals $326 Operating Cash Flow $551.3 $554.4 million Cash Capital Investments1 $186.2 $245.2 4Q'24 Net Income4 Free Cash Flow $365.1 $309.3 $340.92 $340.93 $591 Cash Distributions Paid million Free Cash Flow After Distrib
Slide 14: Full-Year Performance
Western Midstream Full-Year Performance
Slide 15: Full-Year Operational Performance
Full-Year Operational Performance FY 2023 FY 2024 Actuals Actuals Natural-Gas Throughput (MMcf/d)1 4,432 5,052 Adjusted Gross Margin for Natural-Gas Assets ($/Mcf)1 $1.28 $1.30 Crude-Oil and NGLs Throughput (MBbls/d)2 652 530 Adjusted Gross Margin for Crude-Oil and NGLs Assets ($/Bbl)2 $2.48 $2.94 P
Slide 16: 2024 Financial Scorecard
2024 Financial Scorecard PAID 2024 2024 Guidance Actuals (millions, except where otherwise noted) $1,246 Adjusted EBITDA1 $2,200 – $2,400 $2,344 million Total Distributions4 Total Capital Expenditures 2 $700 – $850 $790 ACHIEVED Free Cash Flow1 $1,050 – $1,250 $1,324 2.95x Per-Unit Cash Distribution
Slide 17: Guidance
Western Midstream Guidance
Slide 18: 2025 Guidance Highlights
2025 Guidance Highlights Adjusted Free Cash Leverage Cash EBITDA1 Flow1 Ratio Returns $2.45 $1.375 ~2.9x $3.605 Billion2 Billion3 YE’254 per unit5 ~13% Base ~5% increase ~4% increase Flat Distribution5 vs. 20242 vs. 20243 vs. YE’24 increase vs. 2024 Note: Based on current producer production-forecas
Slide 19: 2025 Financial & Operational Outlook
2025 Financial & Operational Outlook 2025 Financial Guidance 2025 Estimated Throughput Growth Rates5 Crude Oil & NGLs Low-single digits ($ in millions) Natural Gas Mid-single digits Adjusted EBITDA1 $2,350 – $2,550 Produced Water Mid-single digits 2025 Commodity Price Sensitivities6 Total Capital Ex
Slide 20: 2025 Adjusted EBITDA Guidance
2025 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION1 55% Delaware Basin 30% DJ Basin 65% Gas 87% Gas $2,350 Million 13% Oil 18% Oil to 17% Water $2,550 Million 6% Powder River Basin 4% Equity Investments 5% Other2 20 1) Excludes G&A. Represents asset-level cash contribution to EBI
Slide 21: 2025 Capital Expenditures Guidance
2025 Capital Expenditures Guidance 7% Other < 1% Equity Investments < 1% Equity Investments 3% Other 30% Powder River 14% Well Connect Basin $625 Million to 15% Maintenance & Regulatory $775 Million 67% Expansion 13% DJ Basin 49% Delaware Basin 71% Gas 39% Gas 29% Oil 11% Oil 50% Water 21 Note: Accr
Slide 22: Summary
\ Western Midstream’ " = Summary
Slide 23: Differentiated & Attractive Investment Opportunity
Differentiated & Attractive Investment Opportunity WES has been a leader in generating strong unitholder returns Total Capital Return Yield8,9 GROWING MAINTAINING Throughput & Profitability Capital Discipline 52% natural-gas growth in Delaware ROA of 18% compared to peer Basin since 20201 average of
Slide 24: Comparative Valuation Metrics
Comparative Valuation Metrics Highlighting midstream’s compelling investment opportunity Russell 3000 and Midstream Investment Grade Russell 3000 Companies Companies with ≥ 7.0% yield1 Credit Profile with ≥ 7.0% yield2 Company Yield Industry Investment Grade High Yield The Western Union Company 9.0%
Slide 25: WES – A Superior, Tax-Deferred Yield Opportunity
WES – A Superior, Tax-Deferred Yield Opportunity WES provides an attractive income opportunity relative to midstream and the S&P 5001 Dividend / Distribution Yield by Sector2 Midstream Dividend / Distribution Yield1,2 WES continues to maintain one of the most lucrative distribution yields relative t
Slide 26: Comparative Valuation Metrics (continued)
Comparative Valuation Metrics (continued) Strong track-record of returning capital to unitholders Total Capital Return Yield1 Total Capital Return Yield1 WES continues to be a market leader in total capital return yield relative to major energy indices, the S&P 500, and various publicly-traded midst
Slide 27: Comparative Valuation Metrics (continued)
Comparative Valuation Metrics (continued) Leading returns on capital and redeployment of capital to stakeholders Total Capital Return as a Percentage of Return on Capital Employed2 Enterprise Value since 20201 WES continues to be a market leader in returning capital to stakeholders through a balance
Slide 28: Well Positioned for Growth and Capital Return
Well Positioned for Growth and Capital Return Well-Positioned Asset Base Situated within core of most attractive basins Operations Operational Excellence Increased efficiencies and competitive cost structure Increasing Producer Volumes Supporting domestic energy growth Customers Three-Stream Service
Slide 29: Appendix
¢ Western Midstream Appendix
Slide 30: WES Liquidity Profile
WES Liquidity Profile Liquidity ($ in millions) Cash $1,090 Effective RCF $2,000 Capacity1 Senior Note Maturities ($ in millions) 2025 – 2027 $1,441 2028 $679 2029+ $5,857 Note: As of December 31, 2024. 30 1) Net of applicable commercial paper borrowings.
Slide 31: Diversified Asset Portfolio in Active Producing Basins
Diversified Asset Portfolio in Active Producing Basins Value-Focused Portfolio2 21 GATHERING Revenue: 53% Delaware Basin, 32% DJ Basin SYSTEMS1 Total Capital: 76% Delaware Basin, 7% DJ Basin PROCESSING & 75 TREATING FACILITIES1 Direct Commodity Exposure Protection3 95% Fee-Based Gas Contracts 7 NATU
Slide 32: Delaware Basin Asset Overview
Delaware Basin Asset Overview Leading Midstream Provider in the Core of the Texas Delaware Basin • Premier Texas Delaware Basin Location • Large asset base in the most prolific part of the basin • Nearly half of basin rig count within 5 miles of assets NORTH LOVING NEW MEXICO • Top Five in Natural-G
Slide 33: Delaware Basin Asset Overview (continued)
Delaware Basin Asset Overview (continued) Expansive Multi-Product Infrastructure Customer Base Percentage of Related-Party Product Volumes1 Gas 43% Oil 99% Water 78% Long-Term Contract Support Product Weighted-Average Remaining Life2 Gas ~9 Years Oil > 7 Years Water3 > 8 Years 1) Percentage of produ
Slide 34: DJ Basin Asset Overview
DJ Basin Asset Overview A Core Position in the Heart of the DJ Basin • 1,742 miles of natural-gas gathering pipelines and 1,750 MMcf/d of processing capacity COLORADO • Low-emission, centralized facility providing 155 MBbls/d of crude-oil and NGLs stabilization LATHAM • 361K compression horsepower w
Slide 35: DJ Basin Asset Overview (continued)
DJ Basin Asset Overview (continued) Customer Base Product Percentage of Related-Party Volumes1 Gas 54% Oil 99% Long-Term Contract Support Product Weighted-Average Remaining Life2 Gas ~88% = ~4 Years ~12% = Life of Lease Oil ~4 Years 1) Percentage of production from Occidental as of year-end 2024. 35
Slide 36: Powder River Basin Asset Overview
Powder River Basin Asset Overview Largest G&P Provider in the Powder River Basin • 2,767 miles of high & low-pressure natural-gas gathering pipelines WYOMING • 620 MMcf/d of natural-gas processing capacity with ~400 MMcf/d of CO2 treating capacity CAMPBELL • ~8-years of rich gas remaining contract l
Slide 37: Other Operated Assets Overview
Other Operated Assets Overview Strong portfolio of assets forecasted to provide incremental throughput growth Utah Southwest Wyoming South Texas • Chipeta facility provides 790 MMcf/d • Granger and Red Desert • Brasada provides 230 MMcf/d of of cryogenic and refridge natural- complexes provide natur
Slide 38: Equity Investment Overview
Equity Investment Overview WES Equity Investment Ownership Location Description Operator Mi Vida 50% Ward County, TX 200 MMcf/d gas-processing plant Energy Transfer Red Bluff Express 30% Reeves County, TX to Waha, TX 1.5 Bcf/d natural-gas pipeline Energy Transfer Front Range Pipeline 33.33% DJ Basin
Slide 39: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted EBITDA” 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
Slide 40: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted EBITDA” 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
Slide 41: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Free Cash Flow” 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. Three Months Ended Year Ended Dec
Slide 42: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted Gross Margin” 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 distributi
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