01—Abstract
Summary
Summary of the 10-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Western Midstream Partners, LP (NYSE: WES) reported full-year 2024 results in its Form 10-K filed February 26, 2025.
Total revenues and other rose to $3.61 billiona in 2024 from $3.11 billion in 2023, and net income attributable to Western Midstream Partners, LP was $1.57 billion versus $1.02 billion. Adjusted EBITDA was $2.34 billion compared with $2.07 billion in 2023, and Free Cash Flow was $1.32 billion versus $0.96 billion. The company reported that 95% of its wellhead natural-gas volume and 100% of its crude-oil and produced-water throughput (excluding equity investments) were serviced under fee-based contracts in 2024.
The partnership divested several non-core interests in 2024, including its 33.75% Marcellus Interest systems for $206.2 millionb and several equity investments to third parties for $588.6 million in combined proceeds. It also issued $800.0 million of 5.450% Senior Notes due 2034, retired $150.0 million of senior notes through open-market repurchases, and reported $2.0 billion of effective borrowing capacity under its revolving credit facility as of December 31, 2024. In February 2025, the Board authorized a new buyback program of up to $250.0 million through December 31, 2026, and the fourth-quarter 2024 distribution was declared at $0.875 per unit, unchanged from the prior quarter.
Investors should note the concentration of revenue with Occidental Petroleum, which accounted for 60% of total revenues and other in 2024 and owns the general partner and about 43.5% of common units. The filing also cites the expected completion of the North Loving Plant in the first quarter of 2025 and 2025 capital expenditures guided to between $625.0 millionc and $775.0 million.
02—Key points
Key Highlights
- Total revenues and other of $3.61 billion in 2024, up from $3.11 billion in 2023; net income attributable to Western Midstream Partners, LP of $1.57 billion versus $1.02 billion.
- Adjusted EBITDA of $2.34 billion in 2024 versus $2.07 billion in 2023; Free Cash Flow of $1.32 billion versus $0.96 billion.
- Divestitures in 2024 included the Marcellus Interest systems for $206.2 million and several equity investments (Mont Belvieu JV, Whitethorn LLC, Panola, Saddlehorn) for $588.6 million in combined proceeds, with net gains of $63.9 million and $239.7 million respectively.
- Issued $800.0 million of 5.450% Senior Notes due 2034 and repurchased $150.0 million of senior notes; $2.0 billion of effective RCF borrowing capacity at year-end 2024.
- Occidental accounted for 60% of total revenues and other in 2024 and holds 43.5% of common units, a key concentration risk identified in the filing.
- Board authorized a new $250.0 million unit buyback program in February 2025 through December 31, 2026; quarterly distribution of $0.875 per unit maintained.
- 2025 capital expenditures are expected to range from $625.0 million to $775.0 million, with the North Loving Plant expected to be completed in Q1 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 26, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $3.60B$3.11B | +16.1% |
| Operating Expenses | $2.04B$1.87B | +9.3% |
| Operating Income | $1.97B$1.38B | +42.9% |
| Interest Expense | $378.51M$348.23M | +8.7% |
| Net Income | $1.57B$1.02B | +53.9% |
| EPS (Basic) | $4.04$2.61 | +54.8% |
| EPS (Diluted) | $4.02$2.60 | +54.6% |
05—Questions
Frequently Asked Questions
How much revenue did Western Midstream generate in 2024 and how did it compare to 2023?
Total revenues and other were $3,605.2 million in 2024, compared with $3,106.5 million in 2023. Service revenues from fee-based contracts were $3,248.3 million in 2024, up from $2,768.8 million in 2023.
Is the quarterly distribution expected to change?
The Board declared a fourth-quarter 2024 distribution of $0.875 per unit, unchanged from the third quarter of 2024, totaling $341.0 million in the aggregate. The filing notes distributions are determined quarterly by the Board and depend on available cash, which may not always be sufficient to pay distributions at currently announced levels.
How dependent is the partnership on Occidental Petroleum?
Occidental accounted for 60% of total revenues and other in 2024, and 34% of natural-gas throughput, 91% of crude-oil and NGLs throughput, and 78% of produced-water throughput (excluding equity investments). Occidental owns the general partner and held 42.5% of the limited partner interest as of December 31, 2024, and the filing says Occidental is under no contractual obligation to maintain its production volumes dedicated to the partnership.
What did the partnership do with its debt and capital structure in 2024?
WES Operating completed an $800.0 million offering of 5.450% Senior Notes due 2034, with net proceeds of $790.3 million, to repay a portion of the 3.100% and 3.950% Senior Notes due 2025 and for general partnership purposes. It also purchased and retired $150.0 million of senior notes in open-market repurchases. Total debt carrying value was $7.9 billion at year-end 2024.
What are the planned capital spending and buyback programs for 2025?
For 2025, capital expenditures are expected to range between $625.0 million and $775.0 million, including equity investments and excluding capitalized interest. In February 2025, the Board authorized a buyback of up to $250.0 million of common units through December 31, 2026, which the filing says may be suspended or discontinued at the company's discretion.
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