HOUSTON - Western Midstream Partners, LP (NYSE:WES) reported a significant beat on first-quarter 2024 earnings per share (EPS) and revenue, exceeding analyst expectations.
The company's EPS came in at $1.47, surpassing the analyst estimate of $0.77. Revenue for the quarter was also robust at $887.73 million, ahead of the consensus estimate of $869.05 million.
The first quarter proved to be a record-breaking period for Western Midstream, with the highest quarterly net income and adjusted EBITDA in the partnership's history.
This financial success was primarily driven by increased throughput across all operated assets and products. Additionally, the company announced a first-quarter base distribution of $0.875 per unit, marking a 52% increase over the previous quarter's distribution.
President and CEO Michael Ure commented on the quarter's performance, stating, "These records were primarily driven by increased throughput across all operated assets and across all products."
He also noted the successful startup of Mentone Train III at the West Texas complex, which is expected to further enhance the company's processing capacity.
Following the earnings release, Western Midstream's stock experienced a positive movement, with shares up 1.4%. This increase reflects investor optimism after the company's results beat analyst projections.
In terms of guidance, Western Midstream has raised its average year-over-year throughput growth expectations for 2024.
The company is also positioned to achieve the high end of its previously announced 2024 adjusted EBITDA and free cash flow guidance ranges. These optimistic outlooks, combined with the strong first-quarter results, suggest a positive trajectory for the company's financial performance.
Ure expressed confidence in the company's strategic direction, emphasizing the commitment to capital discipline and shareholder returns.
"Our consistent focus on prudently allocating capital, targeting strong returns, and generating meaningful amounts of free cash flow has optimized the MLP model and transformed WES into a leader within the midstream space," he said.
Western Midstream's first-quarter achievements, coupled with its positive guidance, indicate a solid start to the year and a potentially strong performance in the upcoming quarters.
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