Western Midstream Partners: Strategic Growth and Leadership Transition Ahead
2024-11-24
Western Midstream Partners had its Third Quarter 2024 Earnings Conference Call, where key figures such as Daniel Jenkins, Oscar Brown, Daniel Holderman, and others participated. The call began with Daniel Jenkins providing important disclosures on forward-looking statements and non-GAAP reconciliations, directing participants to the company's recent filings for risk factors.
During the call, Oscar Brown, the newly appointed Chief Executive Officer, acknowledged the achievements made under Michael Ure's leadership. These accomplishments included substantial growth, operational enhancements, and the delivery of value to unitholders. The discussion delved into factors influencing adjusted EBITDA, expectations for the fourth quarter, post-quarter end agreements, and strategies for capital allocation to drive returns.
The analysis during the call also covered trends in adjusted gross margins for natural gas, crude oil, NGL, and produced water assets. Insights were provided on the company's financial performance, cash flow, and fundraising activities. Additionally, the call explored MLP valuation, growth prospects in the sector, and the reasoning behind a potential valuation rerate.
Oscar Brown shared perspectives on the leadership transition, potential consolidation in the Delaware Basin, regulatory forecasts, and volume growth expectations. The discussion also touched on the moderated growth strategy, Mi Vida contracting, and earnings performance in various regions, offering a comprehensive overview of Western Midstream Partners' operations and strategic trajectory.
Looking forward, the company foresees growth across its portfolio, emphasizing organic expansion and M&A opportunities. Discussions during the call included board appointments, plans for capacity expansion, and the company's customer-centric philosophy and approach to new project underwriting. Oscar Brown expressed appreciation for the team, conveying optimism for future growth and success.