Western Midstream Partners, LP (NYSE:WES) Q4 2023 Earnings Conference Call February 22, 2024 2:00 PM ET

Company Participants

Daniel Jenkins - Director of Investor Relations

Michael Ure - Chief Executive Officer

Kristen Shults - Chief Financial Officer

Conference Call Participants

Spiro Dounis - Citi

Jeremy Tonet - JP Morgan

Brian Reynolds - UBS

Zack Van Everen - TPH

Keith Stanley - Wolfe Research

Selman Akyol - Stifel.

Ned Baramov - Wells Fargo

Neel Mitra - Bank of America

Operator

Good afternoon. My name is Shiloh [ph] and I'll be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners Fourth Quarter and Full Year 2023 Earnings Conference 2023 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remark, there will be a question-and-answer session.

[Operator Instructions]

I would now like to turn the conference over to Daniel Jenkins, Director of Investor Relations. Please go ahead.

Daniel Jenkins

Thank you. I'm glad you could join us today for Western Midstream's fourth 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-K 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.

Additionally, I'm pleased to inform you that the Western Midstream Partners K1 will be available via our website beginning March 8. Hard copies will be mailed out the following week.

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. Before we discuss our fourth quarter and full year 2023 operational and financial results, I'm excited to announce that we recently executed a series of agreements to divest of WES's remaining interest in several non-core, non-operated assets for $790 million. This includes WES's interest in the Whitethorn, Panola and Saddlehorn Pipelines, the Mont Belvieu joint venture and the Marcellus gathering system in Pennsylvania.

The proceeds from these transactions, which in the aggregate represent an attractive accretive multiple of approximately 9.6x our 2023 adjusted EBITDA will provide liquidity to further strengthen our balance sheet and accelerate the return of capital to our unitholders in 2024. For the past few years, we have successfully executed our strategy of divesting legacy non-core assets and reallocating capital into our core asset base with the goal of generating incremental business and accelerating capital return to our unitholders.