WGP Stock Price, News & Analysis

Western Midstream Partners, LP (NYSE: WES) is a Delaware master limited partnership that acquires, owns, develops, and operates midstream assets. These assets, located across the Rocky Mountains, North-central Pennsylvania, Texas, and New Mexico, are essential to the company's core business activities, which include gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural gas liquids (NGLs), and crude oil; and gathering and disposing of produced water.

Recently, Western Midstream announced a quarterly cash distribution of $0.5750 per unit for the fourth quarter of 2023, maintaining consistency with previous quarters. The distribution is payable on February 13, 2024, to unitholders of record as of February 1, 2024. The company will report its fourth-quarter 2023 results on February 21, 2024, followed by an earnings call on February 22, 2024.

In addition to its operational activities, Western Midstream has undertaken multiple strategic divestitures, including selling its remaining interests in several pipeline companies for a total of $790 million. This sale aligns with their strategy of divesting non-core assets to reinvest in core operations, driving growth and efficiency. The company expects these transactions to close by mid-2024, subject to customary conditions.

Looking ahead, Western Midstream anticipates a robust financial performance in 2024. With projected Adjusted EBITDA ranging from $2.2 billion to $2.4 billion and substantial capital expenditure plans focused primarily on the Delaware Basin, the company is poised for growth. Free cash flow is also expected to increase by approximately 19% at the midpoint.

The company's dedication to returning capital to its stakeholders is evident in its plans to increase the Base Distribution by 52% in 2024. This commitment is supported by continuous operational efficiencies and strategic capital allocation, ensuring long-term sustainability and growth.

Western Midstream is committed to enhancing operational efficiencies through new technologies and processes, focusing on employee safety and environmental sustainability, while maintaining cost control. The company's strong financial position and strategic initiatives position it well for future growth.