Western Midstream Partners Boosts Natural Gas Processing Capacity by 18% in West Texas
2024-05-15
Western Midstream Partners, a prominent player in the energy industry, recently conducted its First Quarter 2024 Earnings Conference Call, during which key figures like Daniel Jenkins, Michael Ure, and Kristen Shults deliberated on various aspects of the company's performance and future prospects.
During the call, a major highlight was the announcement of the successful completion of Mentone Train III, a significant construction endeavor that augmented the company's natural gas processing capacity at the West Texas complex in the Delaware Basin by approximately 18%. This milestone is projected to positively impact the company's financial performance by reducing dependence on offloads and improving operational efficiency.
The company disclosed that its performance in the first quarter of 2024 surpassed expectations, citing factors such as robust producer activity levels, increased rates linked to cost of service rate redeterminations, and sustained high levels of system operability. These factors culminated in heightened throughput and enhanced profitability for Western Midstream Partners.
Looking to the future, the company foresees higher average year-over-year throughput growth rates for all products based on the latest producer projections. Furthermore, Western Midstream Partners anticipates a surge in throughput in the DJ Basin for natural gas, crude oil, and NGLs in 2024, driven by the expansion of new wells.
Over the years, Western Midstream Partners has concentrated on bolstering liquidity, fortifying its balance sheet, and achieving cost savings. Through divesting non-core assets, investing in expansion capital, and aligning distribution policies with business growth, the company has strategically positioned itself for sustained success in the energy sector.
Investors can look forward to further updates from Western Midstream Partners in the upcoming months as the company continues to navigate the dynamic energy landscape and capitalize on emerging opportunities for expansion and profitability.