Western Midstream Partners LP Q2 2022 Earnings Call Transcript

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

Question: Indraneel Mitra - BofA Securities, Research Division - Analyst : Just wanted to bridge the guidance raise, given on the last quarter and also maybe what changed regarding O&M versus when you put out the guidance in Q1. What was expected and what was unexpected going forward, structural versus inflation? And then second, it was mentioned that the G&P rates will decline going forward as you use offtake agreements. Was that anticipated? And how long will that persist? Will it be till Mentone III comes online? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2022 / 6:00PM, WES.N - Q2 2022 Western Midstream Partners LP Earnings Call Kristen S. Shults - Western Midstream Partners, LP - SVP, CFO, Head of IR and Senior VP of Finance & Communications - Western Midstream Holdings LLC Yes. So a couple of pieces in there. When we announced the revised guidance last quarter, it took into account everything that you're seeing in Q2 and then it's still -- we're maintaining that right now. And so the G&P rate gross margin per unit, that's as expected and was part of that revised guidance and still holds true today, the O&M expense and the uptick that we were seeing that was also part of that and expected as well. So I think most of what we were expecting from an inflation standpoint, from just activity standpoint, spending standpoint is right in line when we're seeing actuals right now and when we're looking into the second half of 2022.