Western Gas Sees Declining Volumes in This Energy Market


Sep. 23 2016, Published 12:22 p.m. ET

Western Gas’s natural gas volumes

Western Gas Partners’ (WES) natural gas volumes were 3.9 Bcf/d (billion cubic feet per day) in 2Q16 compared to $4.40 Bcf/d in 2Q15, a YoY (year-over-year) fall of 12.0%. At the same time, WES’s crude and NGL (natural gas liquids) volumes rose 2% YoY.

The YoY fall in WES’s natural gas volumes is due to lower drilling activity in some regions, including Eagle Ford and Marcellus. However, the company saw a 2% sequential rise in natural gas volumes driven by strong throughput volume growth at its DJ (Denver-Julesburg), Delaware, and Eagle Ford assets.

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Western Gas is expecting a fall in its Springfield assets by the end of 2016. These recently acquired assets are focused on the Eagle Ford region. At the same time, strong Delaware volumes are expected to drive WES’s processing volumes. This means that a fall in gathering volumes might be partially offset by a rise in processing volumes.


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