Why Units of Western Midstream Are Sinking Today
Units of Western Midstream (NYSE: WES) declined more than 12% by 10:45 a.m. EDT on Wednesday. Driving the MLP's slump were its second-quarter results and outlook for 2019.
Western Midstream's second-quarter report looked good on the surface. The MLP generated $432 million of adjusted EBITDA during the period, or 39% above the year-ago level. Distributable cash flow, meanwhile, surged 35% to $335.5 million, which was enough to cover its high-yielding distribution by a comfortable 1.2 times.
However, the main factor fueling that growth was the acquisition of more than $4 billion of midstream assets from its parent, Anadarko Petroleum (NYSE: APC). Still, the company's legacy assets did perform well, highlighted by record-setting volumes in both its West Texas and DJ Basin complexes during the quarter.
Quelle Fool.com
