Operator fluency on fresh ground

Western Midstream Partners, LP (WES) — this company's answers

The model's full reasoning — Q3 2018 call → NOWe need to determine if the transcript shows the dynamic described. The question asks about a recently emerged positive element of the business, whose meaningful contribution began only within roughly the last few quarters. Analysts probe it, and management responds with unhesitating, granular operational command, answering follow-up questions with specific, present-tense working detail, while conveying that the element's contribution is still early. We need to identify what element is being probed. The transcript mentions several things: Delaware Basin growth, Ramsey facility, water services, Whitethorn, produced water gathering and disposal, Mentone facility, etc. The question says "recently emerged positive element" and "meaningful contribution began only within roughly the last few quarters." In the prepared remarks, Ben Fink says: "Our natural gas throughput was driven by strong growth in the Delaware Basin, which was supported by critical midstream infrastructure coming on line in the second and third quarters, as well as our large customers' pro-activity in securing takeaway out of the basin. Our Ramsey facility is currently running above nameplate capacity and we continue to see strong demand for our water services." Also: "The growth in our crude, NGL and produced water throughput was driven by a full quarter contribution from Whitethorn, as well as the ongoing volumetric ramp in our produced water gathering and disposal business." So produced water gathering and disposal seems to be a recently emerged element. Also Whitethorn is a full quarter contribution. Analysts ask about various things. Let's see if any analyst specifically probes a recently emerged element with follow-up questions. The first analyst Jeremy Tonet asks about 2019 guidance and then about Eagle Ford (Springfield) which is not recently emerged. Then Spiro Dounis asks about CapEx and Mentone delays. Then Jerren Holder asks about Colorado election and distribution growth. Then Colton Bean asks about 2019 outlook and Delaware, and then about Powder River. Then Sharon Lui asks about Cactus II payments and impairment. Then Mirek Zak asks about Powder River and ability to follow Anadarko. Then Kyle May asks about 2019 CapEx and then about crude, NGL and water segment margin, and specifically about water percentage. Then Dennis Coleman asks about Prop 112 and options.

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