Western Midstream Partners, LP (NYSE:WES) Q1 2023 Earnings Call Transcript

Michael Ure: Yes. No, it’s a great question Gabe. The 3.2% is again a target as we look at what that threshold might yield in terms of a potential enhanced distribution. We’ve always held overall though that we’re intending to be opportunistic around both capital projects some of which again we’ve talked about on this call as well as unit repurchases and really only at the end of the year if we’ve met that leverage threshold and there’s still incremental free cash flow available to us. In other words, we haven’t been able to use that capital in other means whether it’s on the unit repurchase or project side then we would pay the enhanced distribution. And so we would — we will still definitely look for opportunities on the unit repurchase program irrespective of that leverage threshold.

And if we’re able to utilize the buyback program and it takes us above that all that means is that we wouldn’t then be paying out an enhanced distribution. So, we still have the flexibility to do all of the capital projects and unit repurchases that we think are going to be enhancing overall to our stakeholders throughout the year.

Gabe Moreen: Fair enough. Thanks Michael.

Michael Ure: Thanks Gabe.

Operator: There are no further questions at this time. Mr. Ure I turn the call back over to you.

Michael Ure: Thank you everyone for joining. Excited about the first start of the year and about the future quarters for the year. We look forward to speaking to everyone next quarter. Thank you very much.

Operator: This concludes today’s conference call. Thank you for attending. You may now disconnect.