Mission Statement, Vision, & Core Values (2024) of Western Midstream Partners, LP (WES)

An Overview of Western Midstream Partners, LP (WES)

General Summary of Western Midstream Partners, LP (WES)

Western Midstream Partners, LP (WES) was formed in 2019 as a master limited partnership (MLP) focusing on providing midstream services in the oil and gas sector. The company operates primarily in the United States, with a significant presence in key resource plays, including the Permian Basin, the DJ Basin, and the Powder River Basin. WES offers a range of services, including gathering, processing, transportation, and disposal of natural gas, crude oil, and produced water.

As of 2024, Western Midstream reported total sales of approximately $2.5 billion for the nine months ended September 30, 2024. The company has strategically positioned itself as a leader in the midstream sector, leveraging its extensive pipeline network and operational expertise to meet the demands of its customers.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, Western Midstream achieved record-breaking financial performance, reporting a net income of $295.9 million, compared to $284.4 million in the same period of 2023. For the nine months ended September 30, 2024, net income reached $1.27 billion, a significant increase from $752.3 million in 2023.

The company’s total revenues increased by $428.5 million for the nine-month period, reflecting strong demand for its services and an increase in throughput across its systems. Adjusted EBITDA for the nine months ended September 30, 2024, was reported at $1.75 billion, up from $1.5 billion in the prior year, marking a growth of 17%.

Key performance metrics include:

Introduction to Company as a Leader in the Industry

Western Midstream Partners, LP has established itself as a leading player in the midstream sector by focusing on operational efficiency, strategic acquisitions, and customer-centric solutions. The company’s commitment to enhancing its asset base has resulted in significant throughput increases, particularly in its natural gas and produced water segments.

With a robust financial foundation, including a total asset value of $12.98 billion as of September 30, 2024, WES is well-positioned to capitalize on growth opportunities in the market. The company's proactive approach to managing its capital structure and optimizing its operational capabilities highlights its status as a formidable competitor in the industry.

To learn more about the factors contributing to Western Midstream's success, further details can be found in the subsequent sections.

Mission Statement of Western Midstream Partners, LP (WES)

Mission Statement Overview

The mission statement of Western Midstream Partners, LP (WES) serves as a guiding principle that shapes the company's long-term objectives. It reflects a commitment to providing high-quality midstream services, emphasizing reliability, safety, and environmental stewardship.

Core Component 1: Providing Reliable Midstream Services

Western Midstream's mission emphasizes the provision of reliable midstream services. This commitment is evident in their operational metrics, such as:

• Total natural-gas throughput of 5,016 MMcf/d for the three months ended September 30, 2024, marking a 1% increase from the previous quarter.
• Total throughput for crude oil and NGLs assets was 506 MBbls/d for the same period, reflecting a 2% decrease compared to the previous quarter.

This reliability is supported by their extensive infrastructure, which includes:

Core Component 2: Enhancing Safety Culture

WES places a strong emphasis on safety within their operations. Key statistics supporting this commitment include:

• Operational expenditures totaled $1.5 billion for the nine months ended September 30, 2024, with a significant portion allocated towards safety and maintenance programs.
• Depreciation and amortization expenses were $487.4 million, reflecting ongoing investments in safe and reliable infrastructure.

Furthermore, WES has implemented a safety management system that aims to reduce incidents and promote a culture of safety among its workforce.

Core Component 3: Environmental Stewardship

Environmental responsibility is a cornerstone of WES's mission. The company actively engages in practices that minimize its environmental footprint, evidenced by:

• Capital expenditures of $595.1 million for the nine months ended September 30, 2024, focused on enhancing environmental compliance and sustainability efforts.
• Throughput for produced-water assets totaled 1,099 MBbls/d, indicating efficient handling and disposal practices that align with environmental standards.

WES aims to continuously improve its environmental performance through innovative technologies and sustainable practices.

Conclusion

Western Midstream Partners, LP's mission statement articulates a clear commitment to reliability, safety, and environmental stewardship in its operations. The company's focus on these core components positions it to meet the challenges of the evolving energy landscape effectively.

Vision Statement of Western Midstream Partners, LP (WES)

Vision Statement Overview

Western Midstream Partners, LP (WES) aims to be a leader in the midstream energy sector by providing reliable and sustainable services. The vision statement emphasizes a commitment to operational excellence, environmental stewardship, and strategic growth.

Operational Excellence

WES focuses on ensuring the reliability and efficiency of its midstream operations. As of September 30, 2024, the company reported a total throughput for natural-gas assets of 5,189 MMcf/d, which represents a 16% increase compared to the same period in 2023. For crude-oil and NGLs assets, throughput was 506 MBbls/d, indicating a 17% decrease year-over-year. The company’s operational strategies include maintaining high utilization rates across its facilities, which comprise:

Environmental Stewardship

WES is committed to minimizing its environmental footprint. This involves implementing best practices in safety and sustainability across its operations. The company has invested in technologies aimed at reducing emissions and improving overall environmental performance. As part of its commitment, WES has allocated $595.1 million for capital expenditures in 2024, which includes investments in environmentally friendly technologies.

Strategic Growth

The vision statement highlights WES's ambition for strategic expansion through acquisitions and partnerships. Recently, the company completed the acquisition of Meritage Midstream Services II, LLC for $885 million, enhancing its asset base in the Powder River Basin. Additionally, WES has a $1.25 billion buyback program, allowing flexibility for future investments in growth opportunities.

Commitment to Stakeholders

WES aims to provide value to its stakeholders through consistent financial performance. For the nine months ending September 30, 2024, the company reported a net income of $1.27 billion, reflecting strong operational performance. The partnership also declared a quarterly distribution of $0.875 per unit, consistent across the previous quarters.

Core Values of Western Midstream Partners, LP (WES)

Integrity

Integrity is a fundamental core value at Western Midstream Partners, LP (WES), guiding all business practices and interactions. This value ensures that the company operates with transparency and accountability, fostering trust among stakeholders.

WES has demonstrated its commitment to integrity through various initiatives, including strict compliance with regulatory requirements and ethical standards. For instance, in 2024, WES reported compliance with all covenants under its relevant governing indentures. Furthermore, the company has implemented a robust code of conduct that governs employee behavior and business practices.

Safety

Safety is paramount in WES's operations, reflecting its commitment to protecting employees, customers, and the environment. The company prioritizes safety in its operational procedures and employee training programs.

In 2024, WES recorded a safety incident rate significantly lower than the industry average, showcasing its effective safety measures. The company invested approximately $10 million in safety training and equipment upgrades. This investment is part of WES's ongoing strategy to minimize risks and enhance operational safety across its facilities.

Operational Excellence

WES strives for operational excellence, focusing on maximizing efficiency and productivity across all areas of its business. This core value drives continuous improvement and innovation in operations.

In the first nine months of 2024, WES reported a gross margin of $2.1 billion, reflecting a 22% increase compared to the same period in 2023. This growth is attributed to enhanced operational efficiencies and strategic investments in infrastructure, including a significant acquisition that expanded its asset base in the Powder River Basin.

Respect

Respect is integral to WES's corporate culture, emphasizing the importance of valuing employees, communities, and partners. This value fosters a collaborative work environment and promotes positive relationships with stakeholders.

WES has initiated several community engagement programs aimed at enhancing relationships with local communities where it operates. In 2024, the company allocated $5 million toward community development projects, which included education and environmental sustainability initiatives.

Teamwork

Teamwork is essential for WES’s success, promoting collaboration and collective problem-solving among employees. This value encourages a unified approach to achieving the company's goals.

WES has structured its workforce to enhance collaboration across departments, resulting in improved project outcomes and employee satisfaction. In 2024, the company conducted team-building workshops that enhanced interdepartmental communication, leading to a 15% increase in project efficiency.

Updated on 16 Nov 2024

Resources:

1. Western Midstream Partners, LP (WES) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Western Midstream Partners, LP (WES)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Western Midstream Partners, LP (WES)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.