On November 1, 2023, Western Midstream Partners LP (WES, Financial) released its third-quarter 2023 financial results. The company reported a net income attributable to limited partners of $270.8 million, generating an Adjusted EBITDA of $510.9 million. Cash flows provided by operating activities for the quarter were reported at $394.8 million, generating a Free cash flow of $200.4 million.
Financial Highlights and Achievements
WES announced a third-quarter Base Distribution of $0.5750 per unit, or $2.30 on an annualized basis, representing a 2.2% increase to the prior quarter's Base Distribution. The company also repurchased 5.1 million common units from Occidental Petroleum Corporation for $127.5 million, reducing Occidental's total ownership interest in WES to below 50.0%. Additionally, WES repurchased $159.1 million of near-term senior notes at approximately 94% of par during July.
Operational Performance
WES achieved record Delaware Basin natural-gas throughput of 1.67 Bcf/d for the third quarter, representing a 5% sequential-quarter increase. The company also gathered record Delaware Basin crude-oil and NGLs throughput of 220 MBbls/d for the third quarter, marking a 6% sequential-quarter increase. Furthermore, WES gathered record Delaware Basin produced-water throughput of 1,101 MBbls/d for the third quarter, a 14% sequential-quarter increase.
Key Financial Statements
The company's total revenues and other for Q3 2023 were reported at $776,013,000. The total operating expenses for the same period were $449,265,000, resulting in an operating income of $360,762,000. The net income attributable to Western Midstream Partners, LP was $277,296,000, with a net income per common unit (diluted) of $0.70.
Management Commentary
Michael Ure, President and Chief Executive Officer, commented on the company's performance,
During the third quarter, total throughput for natural-gas, crude-oil and NGLs, and produced-water increased on a sequential-quarter basis primarily driven by new production coming online, and continued high facility operability in the Delaware Basin. We remain focused on creating substantial value for our unitholders by efficiently allocating capital for future growth organically and through accretive M&A."
Future Outlook
Looking ahead, WES anticipates its 2023 Adjusted EBITDA to be towards the high end of its previously announced guidance range of $1.950 billion to $2.050 billion, considering the growth experienced in the third quarter and the expected contribution from the Meritage assets.
Explore the complete 8-K earnings release (here) from Western Midstream Partners LP for further details.
