Western Midstream Partners LP Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Spiro Dounis - Citi - Analyst : Thanks, operator. Good morning team. Oscar, I want to go back to some of your closing comments there, talked about strong balance sheet and flexibility and sort of mentioned capital allocation. So, I'm just curious, to the extent we do sort of move into a slower growth environment here, curious how that allocation stack, maybe restacks, how you reprioritize some of those some of those buckets? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 2:00PM, WES.N - Q1 2025 Western Midstream Partners LP Earnings Call

Question: Spiro Dounis - Citi - Analyst : Got it. It's helpful. Second question, just maybe go to guidance for the rest of the year. I think as it stands, looks like guidance would imply a stronger second half of the year. And so just want to get you to maybe fine tune that a little bit. I'm not sure if there's any specific projects ramping up from here. Obviously North Loving's online now just to really point to and maybe which basins are really driving that in the go forward.

Question: Spiro Dounis - Citi - Analyst : Great, I'll leave it there. Thanks.

Question: Keith Stanley - Wolfe Research - Analyst : Wanted to start on Pathfinder if there's any update on contracts in place. For the project and how discussions are going with customers, and then relatedly. Are you mainly targeting take or pay contracts with third parties on that pipeline, or would it be fixed fee commitments where you do have some volume risk?

Question: Keith Stanley - Wolfe Research - Analyst : Thank you, that was all for me.

Question: Jeremy Tonet - J.P. Morgan - Analyst : Hi, good morning. Why just wanted to, I guess, think about the producer outlook at this point, your producer customer conversation, just wondering how I guess recent they were at this point that we've seen a lot of changes already during earnings and it seems like it's been very fluid where things have been changing very recently. So just wondering. We've seen some announcements of CapEx cuts and rig drops, across multiple different producers here and just wondering, how recent are your conversations with your producer customers? Does it account for, I guess, the number of different updates we've been hearing during earnings season. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 2:00PM, WES.N - Q1 2025 Western Midstream Partners LP Earnings Call

Question: Jeremy Tonet - J.P. Morgan - Analyst : God, I understood not to belabor the point and realized it's probably too early to ask, but just wondering in a scenario with commodity prices, go to the mid 50s, whatever point that leads to flat permeant growth and gas growth is just modest. Just wondering any thoughts you might be able to share on how that, how West might look in that scenario?

Question: Jeremy Tonet - J.P. Morgan - Analyst : Got it. That's helpful. I'll leave it there. Thanks.

Question: Samantha Banerjee - UBS - Analyst : Hi, thank you for taking the question. Wanted to go back on return of capital for a second and capital allocation priorities. It's great to see that leverage is now below the 3 times, target. And so I know that you mentioned that you're targeting mid to low single digit distribution increases, but also wanted to ask how buybacks might fit into those priorities?

Question: Samantha Banerjee - UBS - Analyst : Got it. That's really helpful. Thank you. I'll turn it over. Thank you.

Question: Zack Van Everen - TPH & Co - Analyst : Hi, thanks for taking. My question. Maybe just going back to M&A, I know you mentioned if you know organic projects slow, there's still a lot out there on the inorganic side. Maybe touch on, I know you've talked about this before, but would these be in basin boltons on the GMP side, or would you guys also look outside the Permian and your current basins for different type of assets?

Question: Keith Stanley - Wolfe Research - Analyst : Got it. That makes sense. And then one more quick one on slide 24 you guys talked about. 2.8 BCF a day of natural gas, MVC or cost of service protection, as well as on the crude and NGL side. Have you guys ever broken out or could you give some more color on, where these contracts are? Is it mostly Permian and DJ, maybe a percent on which is MVC versus cost of service.

Question: Zack Van Everen - TPH & Co - Analyst : Makes sense. Appreciate the time. Thanks.

Question: Ned Baramo - Wells Fargo Securities - Analyst : Hi, good morning. Thanks for taking the question. In a flat permian production environment and assuming you pull back your PRB growth projects, which I think contribute to 2026 volumes but are currently included in your 2025 CapEx guidance, what do you think your spending budget would REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 2:00PM, WES.N - Q1 2025 Western Midstream Partners LP Earnings Call look like this year? Should we think about CapEx as the low end of your current CapEx guidance range or maybe just closer to sustaining CapEx levels?

Question: Ned Baramo - Wells Fargo Securities - Analyst : Understood, very helpful. Thank you. That's all I had.