Western Midstream reports Q3 EPS 74c, consensus 83c

Reports Q3 revenue $883.36M, consensus $933.8M. Q3 natural-gas throughput averaged 5.0 Bcf/d, a 1% sequential quarter increase. Q3 throughput for crude-oil and NGLs assets averaged 506 MBbls/d, a 2% sequential-quarter decrease. Q3 throughput for produced-water assets averaged 1,099 MBbls/d, a 2% sequential-quarter increase. “We achieved another quarter of record natural-gas and crude-oil and NGLs throughput in the Delaware Basin and experienced continued strong throughput growth in the Powder River Basin as the Meritage Midstream acquisition continues to exceed our expectations,” said CEO Oscar Brown. “However, our profitability declined slightly quarter-over-quarter, primarily due to lower natural-gas liquids recoveries and lower commodity prices in the Delaware Basin, lower distributions from our equity investments, and higher operation and maintenance expense, which is typical in Q3. Looking to Q4, we estimate increased Adjusted EBITDA primarily driven by continued steady throughput growth from our core operating basins and lower operation and maintenance expense. While we still expect Adjusted EBITDA to be towards the high end of our previously announced $2.2B-$2.4B guidance range for the year, we are reducing our average year-over-year crude-oil and NGLs and produced-water throughput growth expectations.”