Western Midstream Partners, LP (NYSE:WES) Q3 2023 Earnings Conference Call November 2, 2023 2:00 AM ET

Company Participants

Daniel Jenkins - Director of Investor Relations

Michael Ure - President and Chief Executive Officer

Kristen Shults - Senior Vice President and Chief Financial Officer

Conference Call Participants

Spiro Dounis - Citi

Brian Reynolds - UBS

Jeremy Tonet - JP Morgan

Neel Mitra - Bank of America

Gabriel Moreen - Mizuho Securities

Ned Baramov - Wells Fargo Securities

Operator

Thank you for standing by. My name is Keyo Baker [ph] and I will be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners Third Quarter 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the call over to Director of Investor Relations, Daniel Jenkins. You may begin.

Daniel Jenkins

Thank you. I'm glad you could join us today for Western Midstream's Third Quarter 2023 Conference Call.

I'd like to remind you that today's call, the accompanying slide deck and last night's earnings release contain important disclosures regarding forward-looking statements and non-GAAP reconciliations. Please reference Western Midstream's most recent Form 10-Q and other public filings for a description of risk factors that could cause actual results to differ materially from what we discuss today. Relevant reference materials are posted on our website.

With me today are Michael Ure, our Chief Executive Officer and Kristen Shults, our Chief Financial Officer.

I will now turn the call over to Michael.

Michael Ure

Thank you, Daniel and good afternoon everyone. During the third quarter increased throughput from all operated assets and across all products led to improved adjusted gross margin and adjusted EBITDA on a sequential quarter basis. Specifically, in the Delaware Basin our throughput increased across all three products mostly due to new production coming online and continued high facility operability.

In the DJ Basin, both natural gas and crude oil and NGLs throughput increased quarter-over-quarter, a trend we expect to continue into the fourth quarter and throughput also increased from our other assets, specifically in South Texas as additional volumes from new customers came online.

Focusing on the Delaware Basin, we achieved record natural gas, crude oil and NGLs and produced water throughput during the third quarter. For the first time in WES's history we averaged more than a Bcf/d of natural gas gathered from third parties for the months of August and September, demonstrating our focus on growing the entirety of our business.