2023-05-22 09:42:15 ET
Western Midstream Partners ( NYSE: WES ) said Monday it sanctioned a new 250M cf/day cryogenic processing plant in the North Loving area of its West Texas complex, with an expected in-service date at year-end 2024.
Western Midstream ( WES ) said the recent amendment to Occidental Petroleum's ( OXY ) natural gas processing agreement to provide up to 300M cf/day of additional firm-processing capacity provides greater certainty for Western's future profitability and underpins the decision to sanction an additional plant.
Including Mentone Train III and the North Loving Plant, Western Midstream ( WES ) expects processing capacity at the West Texas complex will grow from 1.54B cf/day currently to 2.09B cf/day by year-end 2024.
Concurrent with the project sanctioning, Western Midstream ( WES ) updates full-year guidance for total capital spending of $700M-$800M, a $125M increase at the midpoint, and free cash flow of $1B-$1.1B, a $125M decrease at the midpoint of previous guidance.
The partnership maintained guidance for FY 2023 adjusted EBITDA of $2.05B-$2.15B and for base distribution of at least $2.00/unit, excluding the impact of any potential enhanced distribution.
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Western Midstream OK's new cryogenic plant, reaffirms full-year EBITDA guidance