Western Midstream Partners LP Q2 2024 Earnings Call Transcript

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

Question: Gabriel Moreen - Mizuho - Analyst : Hey, good afternoon, everyone. I just wanted to ask about the growth that you're seeing in the DJ and the Uinta, and it sounds like weather, medium term or long term using up the rest of your slack capacity there how do you think about potentially growing beyond using up that capacity? Is that something that you're planning for right now and just managing growth just in those basins where I don't think investors were expected to see that six to 12 months ago?

Question: Gabriel Moreen - Mizuho - Analyst : Thanks, Michael. And then maybe if I can sort of follow-up to that question on secondary basins and what you're seeing out there. As far as M&A, are you able to get amortized at a really nice multiple. Are you still seeing that differential out there? I guess cash for assets outside the Permian, is that of interest, particularly now that you've seen, I guess, some perking up in growth in some other basins?

Question: Gabriel Moreen - Mizuho - Analyst : Great. And then just if I could squeeze one last one in. You mentioned some additional MVCs in the Delaware. Could you maybe quantify some of that? And also within the bigger picture of kind of where you stand third-party business versus OXY, what those MVCs and how they shift things for you? 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 08, 2024 / 6:00PM, WES.N - Q2 2024 Western Midstream Partners LP Earnings Call

Question: Gabriel Moreen - Mizuho - Analyst : Okay. Thanks very much.

Question: Keith Stanley - Wolfre Research - Analyst : Hi, good afternoon. So just touching back on, I guess, CapEx in the past, you've talked about a meaningful year-over-year decline in 2025 CapEx. Any updated comments you'd make there given the need to invest some in growth in the DJPRB. and Uinta basins? And then separately, any any progress on contracting for a new plant in the Permian? Or is there still a lot to do on that before moving forward?

Question: Keith Stanley - Wolfre Research - Analyst : Thanks for that. Second question. So leverage you got to your three times target now, does that impact how you think about the timing for another distribution increase? Or is that more tied to growth in free cash flow in the business yet?

Question: Keith Stanley - Wolfre Research - Analyst : Thank you.

Question: Jeremy Tonet - JPMorgan - Analyst : Hi, good afternoon.

Question: Jeremy Tonet - JPMorgan - Analyst : I just wanted to come back to the Uinta, if I could. And as it relates to Chipeta, just wondering how much we in processing capacity. Is there right now? I'm just trying to think through, I guess, how runway there and how much runway there is before there would need to be more investment we do.

Question: Jeremy Tonet - JPMorgan - Analyst : Got it. That's helpful. And then you listed an string of commercial wins here. And just kind of curious how capital intensive, I guess these initiatives are or is this just kind of a very accretive filling up open capacity for the most part.

Question: Jeremy Tonet - JPMorgan - Analyst : Got it. Very helpful. And just last one, if I could real quick here. I mean, we haven't seen I can't recall this number of commercial wins in one quarter. Anything that kind of fed into it now? Do you see more opportunities like this? Just trying to get a better view of the backdrop here.

Question: Jeremy Tonet - JPMorgan - Analyst : That's helpful. I'll leave it there. Thanks.

Question: Spiro Dounis - Citi - Analyst : Thanks, operator. Afternoon team. I just wanted to start maybe with the DJ, if we could. I guess as we understand it obviously has been pretty active there so far this year, but I think is the way it works with MBCs. We're maybe not seeing it show up on your side as much. And so you can I'm just curious any sense of how close you are to seeing the torque from that volume ramp? 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 08, 2024 / 6:00PM, WES.N - Q2 2024 Western Midstream Partners LP Earnings Call

Question: Spiro Dounis - Citi - Analyst : Got it. Okay. So we'll wait on that second question, just going to the guidance. And sorry, if I'm splitting hairs here a little bit, but you reaffirmed the top end of the range again. And it would seem as though some of these new agreements that you signed do have a benefit for 2024. So I guess I'm just curious, were these agreements contemplated in that guide and getting to that top end or does this actually create a scenario where maybe outperform the high end?

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

Question: Zack Van Everen - TPH - Analyst : Hey, guys. Thanks for taking my question. Maybe just a quick one on the contract extension with PSX or DCP, was that at the same rate? No, is just the length extension or was there any changes to the fixed rate there?

Question: Zack Van Everen - TPH - Analyst : Yes, that makes sense. And then maybe a bit of a hypothetical one here. But on M&A, you know, with CSX going through a bit of a transition, if those DCP assets were ever to hit the market, are you guys would that be too high of a concentration? 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 08, 2024 / 6:00PM, WES.N - Q2 2024 Western Midstream Partners LP Earnings Call Maybe Jay, as far as FTC risk or do you think that's something that they would allow obviously very hypothetical, but just looking at location and opportunity and how much contracts you already have with them?

Question: Zack Van Everen - TPH - Analyst : I appreciate that. Thanks, guys.