Western Midstream Partners announced robust fourth-quarter and full-year 2024 financial and operating results, with Q4 net income attributable to limited partners totaling $325.9 million, or $0.85 per common unit (diluted), surpassing Wall Street expectations. Full-year 2024 Adjusted EBITDA reached $2.344 billion, and Free Cash Flow was $1.324 billion. The partnership achieved double-digit throughput growth across all three product lines for the full year, with natural gas throughput increasing 16%, crude oil and NGLs throughput increasing 12%, and produced water throughput increasing 11% from 2023, all adjusted for divestitures.
The company sanctioned the construction of the Pathfinder pipeline, a 30-inch long-haul pipeline designed to transport over 800 MBbls/d of produced water to new disposal facilities in eastern Loving County, Delaware Basin. This project, with an estimated cost of $400 million to $450 million over 24 months, is expected to be in service by January 1, 2027. It is anchored by a new long-term agreement with Occidental, providing up to 280 MBbls/d of firm gathering and transportation capacity and up to 220 MBbls/d of firm disposal capacity with minimum-volume commitments.
Western Midstream also announced an increase in its quarterly cash distribution, intending to recommend a Base Distribution increase of $0.035 per unit to $0.910 per unit, or $3.64 on an annualized basis, starting with the first quarter 2025 distribution. This represents a 13-percent year-over-year increase in Base Distributions paid in 2025. The partnership is targeting a mid-to-low single-digits annual percentage distribution growth rate going forward and has retired the Enhanced Distribution concept to simplify its capital allocation framework, prioritizing organic growth projects and synergistic bolt-on acquisitions.
The partnership achieved its year-end leverage target of 3.0 times during the third quarter of 2024. Management highlighted the successful integration of Meritage Midstream, which strengthened its Powder River Basin presence, and the start-up of Mentone Train III, solidifying its position as a top natural-gas processor in the Delaware Basin. Additionally, an amendment with Phillips 66 extended their agreement and added firm processing capacity in the DJ Basin, providing near-term volume stability.
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