Western Midstream to recommend a 4% increase in base distribution

Western Midstream (WES) CFO Kristen Shults stated, “Taking into consideration our expectations of year-over-year Adjusted EBITDA growth and our projected capital expenditure needs, we estimate our Free Cash Flow will increase by approximately 4-percent at the midpoint, which positions WES to continue returning capital to stakeholders. As such, we intend to recommend a Base Distribution increase of $0.035 per unit to $0.910 per unit, or $3.64 per unit on an annualized basis, starting with our Q1 2025 Base Distribution to be paid in May. This represents a 13% year-over-year increase in Base Distributions to be paid in 2025 relative to Base Distributions paid in the prior calendar year. Going forward, we will be targeting a mid-to-low single-digits annual percentage distribution growth rate, which will be supported by growth in the underlying business and incremental Free Cash Flow generation.”