Good morning. My name is Morgan, and I will be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners third quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star then the number one again. Thank you. I would now like to turn the conference over to Daniel Jenkins, Director of Investor Relations. Please go ahead.

Thank you. Good morning and welcome to Western Midstream's third quarter 2026 conference call. Today's call, the accompanying slide deck, and last night's press release contain important disclosures regarding forward-looking statements and non-GAAP reconciliations. Please reference Western Midstream's most recent Form 10-K and 10-Q and other public filings for a description of risk factors that could cause actual results to differ materially from any forward-looking statements we discussed today. Relevant reference materials are posted on our website. With me today are Oscar Brown, our Chief Executive Officer, Danny Holderman, our Chief Operating Officer, and Kristen Shults, our Chief Financial Officer. I'll now turn the call over to Oscar.

Thank you, Daniel, and good morning, everyone. Before focusing on our third quarter results, I want to take a minute to review some of our greatest achievements over the past several quarters. First, in October of last year, we closed the $2 billion acquisition of Aris Water Solutions. which created one of the largest produced water handlers in the Delaware basin, more than doubled our produced water throughput, increased our recycling capabilities, and added beneficial reuse to our suite of service offerings within our produced water business. When you analyze our performance over the past several quarters, it is clear that the ARIS acquisition has been a home run by completely transforming our produced water business and creating tremendous value for West's unit holders. We also closed the acquisition of Brazos Delaware in June. Adding several new producing customers, numerous gathering facilities, and 460 million cubic feet per day of additional processing capacity in the Delaware Basin. Once these assets are tied into our West Texas complex by mid-December, we will be able to utilize excess processing capacity at the Comanche Processing Plant, reduce third-party offloads, and create incremental value for West unit holders. The asset is performing very well, with customers increasing activity above our underwriting case, which was put together early this year. Since early 2025, we have been keenly focused on reducing both operational and administrative costs to improve our competitiveness in the midstream marketplace. We have now achieved just over $125 million of permanent O&M and G&A cost savings from the legacy business, when excluding ERAS, BRAZOS, and utility costs, which are mostly reimbursable. These cost reductions, when combined with our efforts to also improve capital efficiency, have made West a more nimble midstream enterprise and have increased our partnership's ability to better compete for new business. We have also achieved tremendous success on the commercial front. On our second quarter earnings call, we announced two new gathering and processing agreements with some of the most active producers in the Powder River Basin, adding approximately 270,000 dedicated acres to our asset base, backed by substantial minimum volume commitments. These agreements are expected to drive year-over-year throughput growth in the Powder River Basin in 2027 and are just a sample of the acceleration of our commercial team success across all our basins. When you take these accomplishments and pair them with a strong commodity price backdrop we've experienced year to date, we were able to increase our 2026 financial guidance ranges by 10%, 10% and 20% at the midpoint for adjusted EBITDA, distributable cash flow and free cash flow respectively. The bottom line is that our teams from the field to the front office have executed extremely well Guided by our mission and core values and following our refreshed growth-oriented strategy, which we rolled out only 18 short months ago. Over this time, we have demonstrated that our multiple ways to win strategy delivers industry-leading total returns. We have consummated strategic accretive M&A, achieved organic throughput growth, especially for natural gas and produced water, and we expect these trends to continue as both gas-to-oil and water-to-oil ratios continue to increase and move in the midstream provider's favor. As we look to the future, the North Loving II natural gas processing train, the Pathfinder produced water pipeline, and the Solitude pipeline system all provide avenues for growth in 2027 and beyond. We also recently placed orders for long lead time items for our next natural gas processing plant that we plan to sanction sometime in early 2027. Additionally, we have other catalysts for future growth from beneficial reuse as we make progress towards our first commercial plant and from longer term opportunities such as behind the meter power generation and CO2 Enhanced Oil Recovery opportunities for shale. Finally, by pairing our approximate 8% annual cash yield with our long-term adjusted EBITDA growth target of mid to low single digits percentage growth, WES offers a potential 12 to 14% annual total equity return, which is a very compelling investment opportunity, especially when you compare those potential investment returns to the expected total returns of our midstream peers as well as the S&P 500. Now, turning to our third quarter results, yesterday we reported third quarter adjusted EBITDA of $708 million, a 12% increase compared to the prior year period, along with record produced water and natural gas throughput partnership-wide and in the Delaware Basin. Through the first nine months of the year, our business has outperformed on nearly every front, and we now expect full year 2026 adjusted EBITDA to exceed the midpoint of our recently revised guidance range that we announced with second quarter earnings. Third quarter throughput growth was led by our Delaware Basin natural gas business, where throughput increased 20% sequentially. Roughly one-third of that growth came from our legacy Delaware Basin assets, and roughly two-thirds from a full quarter contribution from Brazos. As noted in yesterday's release, adjusted EBITDA declined modestly on a sequential quarter basis, primarily due to contract mix and pricing dynamics in West Texas, decreased throughput from the DJ Basin, Lower excess natural gas liquids and skim oil volumes in conjunction with lower NGL and skim oil prices, and seasonally higher operation and maintenance expense that is typical of the third quarter, all of which was partially offset by a full quarter of contribution from the Brazos assets. With that said, none of these third quarter items change our view of the year. With a greater number of wells expected to come online in the fourth quarter relative to the third quarter, we expect strong fourth quarter results and a strong finish to what has been an outstanding year for West. The Brazos acquisition is progressing as planned, and we expect the legacy Brazos system to be fully tied into the West system by mid-December. Once connected, we will direct additional volumes to the Comanche Natural Gas Processing Plant, which has more than 100 million cubic feet per day of available capacity, reducing offloads and creating additional value for West unit holders. In August, we announced our participation in the Solitude Pipeline System. a joint venture operated by Whitewater that will construct two 48-inch natural gas pipelines from the Permian Basin to Katy, Texas. We hold a 7.5% equity interest in the joint venture and have secured firm transportation capacity on the system, which is expected to provide initial capacity of approximately 2.25 billion cubic feet per day in late 2029 and an additional 2.25 billion cubic feet per day by the end of 2030. Solitude will provide incremental residue takeaway Enhanced Flow Assurance, and improved netbacks for many of our Delaware Basin customers, while supporting continued Permian Basin natural gas growth and expanding Gulf Coast demand for LNG exports. Looking ahead to the fourth quarter, we expect strong results. Customer activity levels in the Delaware and Powder River Basins should drive throughput growth as we exit the year. We expect this volume growth to deliver higher fourth quarter adjusted EBITDA, particularly if the current commodity price environment holds. and a position west for additional throughput growth across all three product lines in 2027. Turning to guidance, in conjunction with our second quarter earnings release, we raised the midpoint of our full year 2026 adjusted EBITDA, distributable cash flow and free cash flow guidance ranges by 10%, 10% and 20% respectively. We now expect to be above the midpoint of our full year 2026 adjusted EBITDA range of $2.75 billion to $2.95 billion This outlook represents an increase of more than $250 million relative to the $2.6 billion midpoint of the original guidance range we announced in February, or more than $150 million excluding the Brazos acquisition. That is a meaningful step up within a single year, and it reflects the quality of our core operating basins, contracts, and the execution of our teams. On capital, we now expect to be slightly above the high end of our full year 2026 capital expenditure guidance range of $850 million to $1 billion, reflecting our investment in solitude and accelerating producer activity, both of which are investments in future growth. Looking to 2027, we are still working through the budgeting process with our producing customers. However, given the current elevated commodity price environment, increasing customer activity levels in the Delaware and Powder River basins, In the portfolio of sizable organic growth projects, including Solitude and the recent Powder River Basin acreage dedications, we now anticipate 2027 capital expenditure to be relatively in line with 2026. With incremental customer activity, a full year of contribution from Brazos, the start-up of the Pathfinder pipeline, North Loving II coming online, and our new gathering and processing agreements in the Powder River, we are positioned for throughput growth across all three product lines again next year. Relative to our expectations entering the year, it is clear that 2027 will be another growth year for Wes. Kristen will provide additional detail on our 2027 outlook shortly. With that, I will turn the call over to our Chief Operating Officer, Danny Holderman, to discuss our third quarter operational performance. Danny?

Thank you, Oscar, and good morning, everyone. Third quarter natural gas throughput increased 8% sequentially to a partnership-wide record of 5.9 billion cubic feet per day, driven by growth from our legacy Delaware Basin assets and a full quarter of contribution from the Brazos acquisition. Together, these resulted in another quarter of record natural gas throughput in the Delaware Basin, up 20% sequentially. Additionally, our crude oil and NGL throughput increased slightly, and produced water throughput increased approximately 2% on a sequential quarter basis to another Delaware Basin record. Third quarter per MCF adjusted gross margin for natural gas assets decreased 10 cents compared to the prior quarter, primarily due to contract mix and product pricing dynamics at our West Texas complex, lower excess natural gas liquids volumes in conjunction with lower crude oil and NGLs pricing, and lower throughput in the DJ basin. We expect fourth quarter per MCF adjusted gross margin to be flat relative to the third quarter due to continued contract mix changes offset by higher commodity price assumptions, but we continue to expect our full year 2026 adjusted gross margin to average approximately $1.30 per MCF. As we look into 2027, we expect our per MCF adjusted gross margin to be slightly lower and most likely average between $1.25 and $1.30 per MCF due to shifting contract mix. Third quarter per barrel adjusted gross margin for crude oil and NGL's assets decreased 28 cents compared to the prior quarter, primarily driven by NGL pipeline imbalance activity that we expect to normalize in the fourth quarter. We expect fourth quarter per barrel adjusted gross margin to be relatively the same as first quarter 2026, and we now expect our full year 2026 adjusted gross margin to range between $3.05 and $3.10 per barrel. As we look into 2027, we expect our per barrel adjusted gross margin to be slightly lower and most likely average between $3.00 and $3.05 per barrel, again due to shifting contract mix. Third quarter per barrel adjusted gross margin for produced water assets decreased 7 cents compared to the prior quarter. Primarily driven by lower skim oil recoveries and lower crude oil pricing. We expect fourth quarter per barrel adjusted gross margin to be in line relative to the third quarter, and we continue to expect our full year 2026 adjusted gross margin to average approximately 91 cents per barrel. As we look into 2027, we expect our per barrel adjusted gross margin to be slightly higher and most likely average between $0.95 and $1 per barrel, driven by the startup of the Pathfinder produced water pipeline. For the remainder of the year, we continue to expect portfolio-wide average year-over-year throughput to increase by mid-single digits for natural gas and by 85% to 90% for produced water, driven by the ARIS acquisition and strong performance from our legacy water business. Additionally, we now expect crude oil and NGL throughput to increase by low single digits, reflecting outperformance through the first nine months of the year. In the Delaware Basin, we now expect average year-over-year throughput growth in the mid-teens for natural gas and in the mid-single digits for crude oil and NGLs, driven by the Brazos acquisition and increased customer activity. In the DJ Basin, despite the expected quarter-over-quarter declines in both natural gas and crude oil and NGLs, Throughput has outperformed year-to-date, driven by strong well performance and higher onloads from other midstream companies. This outperformance has improved our full-year outlook for both products, and we now expect a low single-digit increase for natural gas and a mid-single-digits decline for crude oil and NGLs on an average year-over-year basis. In the Powder River Basin, we continue to expect natural gas throughput to decline by mid to high single digits on an average year-over-year basis, with throughput increasing as we exit 2026 and again in 2027 as customer activity ramps associated with the new acreage dedications we announced last quarter. Finally, we continue to expect mid-single-digit percentage throughput growth in 2026 from our other natural gas assets, notwithstanding the agreement we signed subsequent to quarter end to sell our remaining assets in southwest Wyoming. The transaction is expected to close by the end of the fourth quarter and will remove approximately 215 million cubic feet per day of annual natural gas throughput, most likely beginning in the first quarter of 2027. With that, I will turn the call over to Kristen to discuss our financial performance.

Thank you, Danny, and good morning, everyone. During the third quarter, we generated net income attributable to limited partners of $325 million, adjusted EBITDA of $708 million, and distributable cash flow of $512 million. Relative to the second quarter of 2026, adjusted gross margin decreased by $35 million. driven primarily by contract mix and commodity pricing dynamics at our West Texas complex, lower excess natural gas liquids volumes in conjunction with lower crude oil and NGL pricing, and decreased throughput in the DJ Basin, all of which was partially offset by a full quarter contribution from the Brazos assets. Operation and maintenance expense increased approximately 2% quarter-over-quarter, primarily driven by a full quarter of the BRASIS acquisition and increased personnel costs associated with field-level personnel, all of which was partially offset by lower land fees associated with our produced water business. Inclusive of the legacy ARIS and BRASIS assets, we continue to expect full-year 2026 operation and maintenance expense to increase approximately 25% year-over-year which is still a meaningful reduction on a combined company basis as we execute on synergy capture and operational cost reduction efforts. Pro forma for the Brazos acquisition, we still estimate that approximately 60% of our portfolio-wide utility costs are reimbursed by our customers. On a reported basis, General and administrative expense increased 2% sequentially, primarily due to higher incentive compensation expense reflecting year-to-date adjusted EBITDA outperformance, partially offset by lower BRASA's transaction costs relative to the second quarter. Excluding acquisition-related costs and equity-based compensation expense, we now expect 2026 cash G&A expense to increase at a low to mid-teens percentage rate compared to 2025. This outlook fully incorporates higher year-to-date incentive compensation expense A full year of the retained functions from ARIS and the integration of the BRASIS assets, net of cost energies. As Danny mentioned, subsequent to quarter end, we signed an agreement to sell our remaining assets in Southwest Wyoming for approximately $75 million with closing expected by the end of the fourth quarter, subject to customary regulatory approvals. Upon close, we expect to recognize a non-cash gain in excess of $100 million from the sale. However, the divestiture will have a minimal impact on adjusted EBITDA post-close, as these were high-cost, non-core assets that did not compete for capital within our portfolio. Separately, in the fourth quarter, we acquired a small, privately held Delaware Basin Produce Water Gathering and Disposal Company for approximately $98 million. This system was already interconnected with ours at two locations and will create a fully continuous network in Eddy County while providing additional disposal capacity to support growing customer demand. Turning to cash flow, third quarter cash flow from operating activities totaled $568 million, an increase of $33 million over the second quarter of 2026. Free cash flow totaled $244 million, and free cash flow after the second quarter 2026 distribution paid on August 14th was a use of cash of approximately $149 million. Turning to the balance sheet, we ended the quarter with approximately $1.8 billion of total liquidity and a trailing 12-month net leverage ratio pro forma for a full-year BRASIS contribution of approximately 3.2 times. On October 19th, we declared a quarterly distribution of $0.93 per unit, unchanged from the prior quarter, payable on November 13th to unit holders of record as of November 2nd. Turning to guidance, and as Oscar mentioned, we now expect to exceed the midpoint of our full year 2026 adjusted EBITDA guidance range of $2.75 billion to $2.95 billion, a range we already raised in conjunction with our second quarter earnings release. This outlook reflects the contribution from the Brazos acquisition, the strong commodity price environment, year-to-date outperformance in the DJ Basin, and increased customer activity levels throughout the second half of the year in the Delaware and PRB. Following a softer third quarter, commodity prices have recently strengthened, and our revised outlook assumes an average oil price of approximately $85 per barrel for the second half of the year. On capital, we now expect to be slightly above the high end of our 2026 capital expenditure guidance range of $850 million to $1 billion. Primarily driven by increased customer activity and associated expansion opportunities in the Delaware and Powder River Basins and together with our investment in the Solitude Pipeline System. More than half of our 2026 capital program remains directed toward the construction of the Pathfinder Produced Water Pipeline and the North Loving II Natural Gas Processing Train. which we now expect to commence startup late in the fourth quarter of 2026 and late in the first quarter of 2027 respectively. As Oscar mentioned, we currently expect 2027 capital expenditures to be in line with 2026 with approximately 80% directed towards the Delaware Basin, our largest growth driver, including our investment in Solitude and completion of North Loving II. The vast majority of the remaining capital will be directed towards the Powder River Basin to support the two new gathering and processing agreements with significant acreage dedications and minimum volume commitments that we announced last quarter. Finally, our guidance ranges for distributable cash flow of $2.05 billion to $2.25 billion and free cash flow of $1.1 billion to $1.3 billion Both remain unchanged. With the third quarter distribution, we will have achieved our distribution guidance of at least $3.70 per unit paid in calendar year 2026. Our annualized run rate of $3.72 reflects the increased distribution rate of 93 cents per unit that commenced with the first quarter 2026 distribution. With that, I will now turn the call over to Oscar for closing comments.

Thanks, Kristen. Before we open the call up for questions, I'll leave you with a few closing thoughts. Continued producer investment in the country's most active basins has us on track for just over 15% adjusted EBITDA growth in 2026, with Brazos, Pathfinder, Lawrence Loving II, and recent commercial successes supporting further growth in 2027. Natural gas and produced water now drive our profitability and position us for rising gas-to-oil and water-to-oil ratios and emerging power and data center demand, while our investment-grade balance sheet funds growth, capital returns, and per unit accretive acquisitions like Eris, Brazos and Meritage. Together that delivers one of the most compelling total return profiles in midstream. A 12 to 14% potential annual equity return derived from a 7 to 9% cash yield and a 4 to 5% long-term growth rate with opportunities for upside where we have taken proactive steps to capture the benefits of environments like the current one. I also want to thank our entire Western Midstream workforce for their continued hard work, engagement, and dedication to our partnership. We lead with our core values of partnership, customer focus, resourcefulness, and performance to deliver on our mission of improving lives through safe, sustainable, and efficient energy delivery. With that, we'll open the call up for questions.

At this time, I would like to remind everyone, in order to ask a question, press star, then the number one, We'll pause for a moment to compile the Q&A roster. Your first question comes from Keith Stanley with Wolf Research. Your line is open.

Hi, good morning. I wanted to start on Solitude. Can you talk a little more to your strategic rationale for investing in gas pipelines and then any color you can give on how contracted the pipeline is on the initial four and a half BCF a day?

Yeah, thanks Keith. It's Oscar. Our strategic rationale for Solitude, like everything we do, is blow assurance and then getting really the best opportunity for pricing for our customers. So this just gives us Another option, we had customers with capacity who didn't have exposure to the Gulf Coast, and we can certainly stand in and manage a portfolio of customers for a long-term commitment on a pipeline. The ownership piece is important because if you can combine the commitment and that customer service with ownership, you just get a really great return on a project. Whitewater is the operator. I don't believe they've released any information on the level of commitment, so I really can't comment there.

Okay, thanks. Second one, you referenced in the remarks some contract exchanges in gas and oil in 2027 said margins would be down a little bit year over year. Can you talk a little more to what's driving that overall in those businesses?

Yeah, I think that relates to different customer activity. Obviously, we have a range of portfolio contracts at different pricing and different terms. And so depending on the activity of different customers, that mix changes. So that's a chunk of it. Kristen, anything else?

No, I think that's totally fair. We now move 5.5 BCS a day of gas, and so that's going into that equation on gross margin per unit on the gas side. I think on the oil side, the commentary is more around fourth quarter will be closer to what you saw in Q1. Q2 was a little higher from a gross margin per barrel standpoint on oil because of some imbalances and then Q3 was a little bit lower so there really was just noise between Q2 and Q3 from a gross margin per unit but as I was mentioning like Q4 and then going into 2027 closer to what you saw in Q1 at 2026. Thank you.

Your next question comes from Great Than Ready with J.P. Morgan. Your line is open.

Hey, good morning, guys. I wanted to pick up on the commentary around Southwest Wyoming assets sale and the Delaware acquisition. As you think about the portfolio today, how do you view both sides of that, the opportunities for additional portfolio pruning or M&A, whether that be small-scale or large-scale?

Yeah, I mean, the coming in and going out of both these transactions was under 100 million each. So that's pretty low, obviously. And we, I think, got a great multiple on the sell side and a different multiple on the buying side. So it's all good. So creative, but very small. But really, that's just normal sort of portfolio review on the sell side there. That asset was very small, a very small number of folks, sort of a bit stranded relative to our system. and just we didn't really have a way to grow it very well. And so it will do great and people will do great there in somebody else's hands. And then similar on this buy side, again, very small but a nice puzzle piece addition to our water business. Again, it was already connected, so it was a pretty straightforward sort of transaction. So it put that in the category of just expanding the system and, you know, It's really simple. It could have been a commercial deal for that matter. So as it relates to the broader portfolio, I wouldn't read too much into it. I think all of our major assets contribute in different ways, with the Permian being our highest growth, the Powder also a long-term growth play, the DJ very high cash margins and a great cash producer. So everything contributes well, and we're pretty happy where we are. So I wouldn't overdo it. It's just some nice cleanup. and opportunity that we took advantage of.

That's clear. And then the remarks kind of highlighted acceleration, some of the producer growth. I'm curious if the views around the pace of processing additions has changed from maybe points in the past and how you frame that today.

Yeah, no, I think our customer mix, of course, has been changing with Eros and Brazos. we've added a lot of kind of mid-size and smaller and private producers to the mix and they've tended to be in this environment a little more aggressive and ramping up and leaning a bit forward a bit more relative to some of the very large and a very large public or integrated producer so I think that's some of the dynamic we're seeing you know right now I think people you know sort of the general press has been you know there's restraint I think that does apply to the very large public companies. For some of the smaller ones that are more specifically Permian-focused, again, I think we're just seeing a real acceleration of activity, particularly in our Brazos footprint. We've seen, you know, that was one where I don't think we billed that as a high-growth asset. It was just sort of a very nice, very good asset with sort of modest growth, but it looks like in this environment it's going to be a pretty strong grower. So that's a pleasant surprise relative to our underwriting case and sort of what we were referring to.

Your next question comes from Spiro Dunas with Citi. Your line is open.

Hey, operator. Morning, team. I want to start with Pathfinder. Great to see that coming online soon. I was curious if you could provide more color on how you see those volumes ramping once it does come online. And then when it comes to achieving that higher sort of targeted return on that asset, how do you think about the pathway to layer in more volumes there?

Yeah, thanks for that, Spiro. We're really excited about this asset coming online. I mean, I don't think in terms of our sort of shift to increasing and, frankly, keep

generating an integrated water business over the last couple of years.

I don't think we could have been more pleased in sort of the turn of events, both in public policy, sort of the environment and all the opportunities have really played to the water handlers sort of benefit. So we are really well positioned with sort of the best and largest footprint in the Delaware Basin around that. We touched the water molecule, you know, sort of six times with six opportunities to earn sort of a return there. With Pathfinder, it's a critical piece of infrastructure down really right down the center of the combined New Mexico and Texas systems. So our original vision was more like a very long haul big gas pipeline where we'd have two or three or four large contracts on the line. We have obviously the large NBC related commitment from Oxy that's in that traditional format. But what we think today is what it looks like is it's allowing us to bring additional business and more business than we could have otherwise all across our system where we would have been potentially constrained by local disposal issues. And so we will be able to use this pipe to provide like full solutions across the chain and really also we have a handful of customers now and more growing every day that want to know specifically where the barrels are going, where they're being disposed and ask us to put them in separate places and we're happy to do that and we'll use Pathfinder to do it. So I think the key thing to watch on Pathfinder is just the overall volumes on the pipe as it relates to sort of the return on the asset as opposed to watching for chunky incremental contracts We do charge piece by piece for all our six services in the water business. So that volume will be a great indicator on how that's going. So right now, with the anchor commitment, it's around a 10% return asset. As you know, we've supersized it. We have four more times the capacity of that on it. And so as you see that volume creep up over the next year or two, we'll creep our way towards hopefully a 20% plus return on that asset. Simplest way probably from here on out is sort of watching the volumes on it.

That's a great color. Maybe sticking with water, but pivoting a little bit to beneficial reuse. Really just looking for an update on that front. How much capital is being spent there in 27, if any, and just how to think about when that business could really start to contribute to EBIT. I suspect probably still a few years out, but just curious what's new there.

Yeah, I think you're right, Spira. I think you're still a little bit out from a contribution to EBITDA perspective. The team has been working really hard, talking to a few producers in particular about a first commercial plant, hoping to sanction that, I'd say, within the next six months, maybe a year, but six months is the goal there. From a capital perspective, we haven't included anything in our 2027 capital budget related to that first commercial plant, but it'll be smaller, so it won't be something that's a meaningful, large, chunky capital project. It'll be a smaller plant as we kind of build up scale-wise into something much larger one day.

Got it. Great to hear. I'll leave it there. Thank you, team.

Thank you. Your next question comes from Zach Van Evren with TPH and Company. Your line is open.

Hi all, thanks for taking my question. Maybe on the 2027 capital front, I understand it's Whitewater's project, but just trying to parse out the spend, you know, with most of it in the Delaware and North Loving wrapping up, We're getting to a $300 to $400 million contribution on Solitude. Is that the right way to think about it, or am I missing some additional capex on the Delaware GMP side?

You're missing some additional capex that we would be spending in the Delaware. Seeing the Delaware business growing in 2027, we'll have to spend capital on the water side, on the oil and on the gas side there. There's There's incremental growth capex outside of solitude when we're talking about spending 80% of the capital budget in the Delaware Basin next year.

Okay, got it. That makes sense. And then maybe moving to the powder, you mentioned MVCs on those two new agreements. Do those ramp up over time or do they come on once the contract starts?

You'll see a ramp both in capital and volumes during the course of next year, so it's actually a pretty even ramp. You'll see some good production come online early, but otherwise a pretty steady ramp through the year.

Perfect. Appreciate the time. Thanks, all.

And as a reminder, if you would like to ask a question, please press star, the number one, on your telephone keypad. Our next question comes from Ned Barimov with Wells Fargo. Your line is open.

Hi, good morning. Thanks for taking the question. It's one on capital allocation and given your elevated spending expected next year, could you maybe touch on any preliminary discussions you may have had on distribution growth?

Oh, sorry, yeah, it was a little hard to hear you.

Got it, on the distribution growth. No, it's too preliminary. Obviously, it's a decision for the board, and it's typically, we typically do that in sort of February timeframe. But no, we're, again, the strategy and the mission has been to deliver the strong yield that we have, continue to build distribution coverage, and then sort of grow the distribution a bit behind EBITDA growth while we're building up that coverage. I think we're at roughly 1.4 or something like that right now, which is pretty good, but I think there's some room there to continue to grow that. We'll also, frankly, just keep an eye on the stock. You know, our yield today is something like 8.75%, which seems a little peppy given sort of the strong outlook in the business. So we'll watch that as well. But, again, these kind of things are really – typically dealt with once we get our producer forecast in and have set the budget and then work with the board to figure out where we go from here.

Understood. And then with activity in the Delaware ramping up, it seems that you've already placed an order for some of the long lead time items in your next processing plant. Could you maybe provide a little bit more details on the capacity, the cost, the location of this next project?

yeah again we look at we look at these things on a very long-term basis and so relative to our overall gas thesis in the basin and you know the customers that we worked with for a long time and really thinking about how to continue to build our processing stack so it did seem like the right time particularly given all the activity to put in some long lead time items so they're still working towards The potential FID and where it would go exactly and all that. But when we look at our stack long term, we feel pretty good about making that move. We typically or historically we've built trains around the 300 million a day kind of size. And so that's likely where we'd be heading with this one.

Thank you. That's all I had.

Thank you.

You're next. Next question comes from Gabriel Maureen with Mizuho. Your line is open.

Good morning, everyone. Just two quick ones. One, can you just talk about hedging commodity sensitivity for next year given the rise in the forward curve, I guess, up until really recently? And then second would just be prospects for continuing to flatten the curve, I think, in terms of DJ declines, in terms of what you're just seeing out there from producers of late. Thank you.

Thanks, Gabe. Yeah, on hedging, just remember, we don't have that much exposure, right? So we did adjust our oil price sensitivity to $50 million for every $10 of WTI change. It's still very nominal for natural gas. So to the extent we would look at hedging activity, it's really around some of our equity barrels and then skim oil, which is, again, new to us. from about a year and a half ago. So we look at that all the time. It's, you know, it's not been material. So it's sort of, you know, but it's something we would watch. I'm sorry, I forget the second question. Second question is just on the DJ.

Yeah, thanks, Oscar.

Yeah, yeah, on the DJ. So again, it's, you know, we have hedging programs. We look at that, but again, it's just hasn't been material. So on the DJ, yeah, I mean, I think, Right now we're expecting sort of the trend that started here probably around in July, which was a little later than we thought, sort of some volume declines coming from the DJ to continue. I would say in terms of the political environment in Colorado, there was really no change. One of the few places where there's nothing unexpected in Colorado. So kind of business as usual there, which is to mean a lot of regulatory changes. both at the local and state level sort of challenges. But so far we haven't seen anything from our customers that would say there's a shift from that sort of decline continuing. We do mitigate that the best we can. We've been a great success with processing onloads. So you might see volumes sort of hang in there, but the mix will sort of shift. as that becomes more processing as opposed to gathering and processing very slowly over time. That's about it. I wish I could say there was something exciting that was going to pivot the DJ. We just haven't seen what that is yet.

Got it. Thanks, Oscar. Appreciate it. See you, Ben.

There are no further questions at this time. Mr. Oscar Brown, I turn the call back over to you.

Thanks again. Thanks to everybody for your interest and participation, and to really all our stakeholders for the support of Western Midstream and our mission. I really do want to say we're grateful for our customers who entrust us with their energy flow insurance, and for our employees and teammates whose engagement and daily demonstration of our core values allow us to safely deliver on our mission, which is so critical to America's quality of life. We look forward to seeing everybody in the investment community at upcoming conferences, hopefully very soon. With that we'll conclude the call.

This concludes today's call. Thank you for your participation. You may now disconnect and have a wonderful rest of your day.