WES Earnings Prediction
The chart below shows how WES performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WES sees a -1.81% change in stock price 10 days leading up to the earnings, and a +2.51% change 10 days following the report. On the earnings day itself, the stock moves by -0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
WES Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
883.36M
13.83%
-2.46%
Gross Margin
77.49%
0.05%
1.97%
Operating Margin
42.57%
1.02%
0.26%
Net Margin
33.50%
-8.59%
-21.73%
EPS
0.74
5.71%
-23.71%
No Data Available
WES Earnings Analysis
Western Midstream Partners, LP Corporation (WES.N) Earnings Conference Call
Positive
Cash Flow Performance: 1. Strong Cash Flow Generation: Western Midstream generated cash flow from operating activities totaling $551 million, resulting in free cash flow of $365 million for the third quarter.
Natural Gas Throughput Increase: 2. Increased Natural Gas Throughput: The company reported a 1% sequential increase in natural gas throughput, driven by strong growth in the Powder River and Delaware basins, marking the seventh consecutive quarter of record throughput in the Delaware Basin.
Unitholder Return Commitment: 3. Significant Return to Unitholders: WES has returned $4.6 billion to unitholders through distributions and unit repurchases, demonstrating a strong commitment to shareholder value.
Strong Market Confidence: 4. Successful Debt Issuance: The company issued $800 million of new senior notes, which was oversubscribed by more than four times, indicating strong market confidence and providing funds for debt retirement and general partnership purposes.
Stable Base Distribution: 5. Consistent Base Distribution: WES declared a base distribution of $0.875 per unit, unchanged from the previous quarter, maintaining a strong distribution yield among midstream companies.
Negative
Adjusted EBITDA Decline: 1. Decline in Adjusted EBITDA: Adjusted EBITDA decreased to $567 million in Q3 2024, down from the previous quarter, primarily due to lower natural gas liquids volume and decreased distributions from equity investments.
Rising Operating Expenses: 2. Increased Operating Expenses: Operating and maintenance expenses rose sequentially, driven by increased maintenance and repair costs, impacting overall profitability.
Natural Gas Liquids Decline: 3. Lower Natural Gas Liquids Recoveries: The per Mcf adjusted gross margin for natural gas assets decreased by $0.04 compared to the prior quarter, attributed to lower natural gas liquids recoveries under fixed recovery contracts.
Moderated Growth Expectations: 4. Moderated Volume Growth Expectations: The company anticipates that overall throughput growth rates will moderate in 2025, particularly in the Delaware and DJ Basins, due to reduced activity levels and asset sales.
Asset Sale Revenue Loss: 5. Loss of Revenue from Asset Sales: The sale of non-core assets is expected to result in a loss of approximately $26 million in adjusted EBITDA for 2024, which will not repeat in 2025, alongside a $20 million reduction in fee revenue.
WES FAQs
How does WES typically perform around its earnings report dates?
Is Western Midstream Partners, LP Common Units (WES) Q3 2024 Earnings Call Summary positive or negative?
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WES Earning Call Sentiment
Western Midstream Partners, LP Common Units (WES) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
WES.N
-1.26%Positive
The earnings call summary presents mixed signals: strong shareholder returns and distribution yield are positive, but operational challenges, lower commodity pricing, and volume variability pose risks. The Q&A section highlights uncertainties in growth and regulatory outlook, with management providing vague responses on key issues. Despite a robust M&A environment and potential regulatory support, the lack of guidance on cost of service rates and moderated growth expectations suggest caution. Overall, the sentiment leans towards neutral, reflecting balanced positives and negatives.
