Thank you for standing by. My name is Kayla Baker, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Western Midstream Partners Third Quarter 2023 Earnings 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'd like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you'd like to withdraw your question, again, press star and one. I would now like to turn the call over to Director of Investor Relations, Daniel Jenkins. You may begin. Thank you. I'm glad you could join us today for Western Midstream's Third Quarter 2023 Conference Call. I'd like to remind you that today's call, the accompanying slide deck, and last night's earnings release contain important disclosures regarding forward-looking statements and non-GAAP reconciliations. Please reference Western Midstream's most recent Form 10-Q and other public filings for a description of risk factors that could cause actual results to differ materially from what we discuss today. Relevant reference materials are posted on our website. With me today are Michael Ure, our Chief Executive Officer, and Kristen Shults, our Chief Financial Officer. I'll now turn the call over to Michael. Thank you, Daniel, and good afternoon, everyone. During the third quarter, increased throughput from all operated assets and across all products led to improved Adjusted Gross Margin and Adjusted EBITDA on a sequential quarter basis. Specifically, in the Delaware Basin, our throughput increased across all three products, mostly due to new production coming online and continued high facility operability. In the DJ Basin, both natural gas and crude oil and NGLs throughput increased quarter-over-quarter, a trend we expect to continue into the fourth quarter. And throughput also increased from our other assets, specifically in South Texas, as additional volumes from new customers came online. Focusing on the Delaware Basin, we achieved record natural gas, crude oil and NGLs, and produced water throughput during the third quarter. For the first time in WES's history, we averaged more than a Bcf per day of natural gas gathered from third parties for the months of August and September, demonstrating our focus on growing the entirety of our business. This throughput record is a testament to our team's ability to successfully compete for new business by reducing costs and providing superior customer service. Since 2021, WES has grown its third-party volumes in the Delaware Basin by approximately 65%, which is more than twice the rate of natural gas volume growth from the entire Delaware Basin. I would also like to highlight a new contract extension that WES recently executed with one of our largest producing customers in the Delaware Basin, bringing total dedicated acreage from that producer to roughly 40,000 acres and extending the duration of our agreement by 10 years to 2035. This extended dedication keeps significant natural gas volumes on WES infrastructure over the long term and supports expected volume growth over the coming years. Before I turn the call over to Kristen, I wanted to discuss the Meritage Midstream acquisition we announced in early September, which is the second-largest unaffiliated corporate-level M&A transaction in WES's history and our first significant acquisition since becoming an independent partnership in 2020. We have consistently said that our M&A strategy is focused on accretive deals that optimize the value of our existing asset base and allow us to leverage our operational expertise to generate incremental value for our unitholders. We believe that the Meritage acquisition fits within that strategy for a number of reasons. First, the Meritage deal transforms and significantly expands WES's existing Powder River Basin asset base, adding natural gas gathering and processing facilities and increasing WES's total processing capacity in the region to approximately 440 million cu ft per day. Through the Meritage acquisition, we were able to optimize our previously subscale position to become the largest gathering and processing provider in the basin, which places us in a strong strategic position to compete for additional blocks of undedicated acreage in the basin. Second, this transaction provides meaningful customer diversification by adding several new investment-grade customers, as well as several high-quality, financially strong private customers to WES's customer base. Third, we acquired numerous long-term contracts secured by large acreage dedications or substantial minimum volume commitments that are expected to contribute to WES's earnings and free cash flow over the coming years. Finally, we consummated the deal at an extremely attractive valuation of approximately 5.0x-6.0x 2024 Adjusted EBITDA, not including the synergies we have identified for 2024 and beyond that are expected to reduce the forward acquisition multiple. Overall, the Meritage acquisition enhances WES's future profitability and our free cash flow generation profile, which should in turn increase our ability to return more capital to stakeholders over time. This starts with our third quarter base distribution, which we just increased by $0.0125 per unit or $0.05 per unit on an annualized basis. The Meritage acquisition was funded with cash, including amounts received from our recent issuance of $600 million of five-year senior notes and from borrowings on a revolving credit facility. As a result, our trailing Net Leverage Ratio will increase in the near term, but we expect to return to pre-Meritage leverage levels by year-end 2024 as we grow Adjusted EBITDA and capture cost synergies. Additionally, our focus over the past several years on strengthening our balance sheet by reducing costs, capturing operational efficiencies, and growing Adjusted EBITDA paired with meaningful debt reduction, put our partnership in a position of strength to execute an all-cash transaction such as Meritage. Finally, it is important to note that while we meaningfully strengthened our legacy asset base in the Powder River Basin, our other core basins continued to experience increased producer activity levels.... In 2024, the Delaware Basin will continue to be the main driver of throughput growth, and we continue to invest meaningfully amounts of capital towards meeting growing customer demand with the expansion of Mentone and the construction of our greenfield plant at North Loving. In the DJ Basin, which generates roughly 50% of our free cash flow, we reached the trough of the throughput decline, and we expect to see producers gradually grow volumes over the coming quarters. The Powder River Basin has favorable producer activity levels and acreage with competitive economics, and when paired with our existing core basins, will support WES's long-term growth strategy for years to come. With that, I will turn the call over to Kristen to discuss our operational and financial performance. Thank you, Michael, and good afternoon, everyone. Our third quarter natural gas throughput increased by 5% on a sequential quarter basis, primarily due to increased throughput in the Delaware Basin from new production coming online from our other assets, specifically in South Texas and from our equity investments. Additionally, we achieved increased throughput in the DJ Basin due to increased completion activity from both affiliated and third-party producers. Our crude oil NGLs throughput increased by 7% on a sequential quarter basis, primarily due to increased throughput from our equity investments in Delaware Basin oil system. Of note, we saw our first sequential quarter increase in crude oil and NGLs throughput from the DJ Basin since the fourth quarter of 2021. Produced water throughput increased by 14% on a sequential quarter basis due to increased completion activity and high facility operability in the Delaware Basin. Our per Mcf Adjusted Gross Margin for our natural gas assets was flat compared to the prior quarter. Higher throughput from our South Texas assets, which have a lower than average per Mcf margin as compared to our other natural gas assets, and lower distributions from our natural gas equity investments, had a dilutive impact on our per Mcf Adjusted Gross Margin, which was offset by increased throughput from both the Delaware Basin and DJ Basin. Excluding any potential impact from Cost of Service, we expect our fourth quarter natural gas per Mcf Adjusted Gross Margin to increase slightly, primarily due to the addition of volumes from the Meritage acquisition. Our per barrel Adjusted Gross Margin for our crude oil and NGL assets decreased by $0.31 compared to the prior quarter, primarily due to a decrease in distributions, coupled with an increase in throughput from our equity investments, which have a lower than average per barrel margin as compared to our other crude oil and NGL assets. Excluding any potential impact from cost of service, we expect our per barrel Adjusted Gross Margin in the fourth quarter to increase slightly, primarily due to a lower throughput expectation from our equity investments. Our per barrel Adjusted Gross Margin for our produced water assets increased by $0.01 compared to the prior quarter, mostly due to contract mix. We expect our per barrel Adjusted Gross Margin in the fourth quarter to be in line with our third quarter results. During the third quarter, we generated net income attributable to limited partners of $271 million. Adjusted EBITDA in the third quarter totaled $511 million, a quarter-over-quarter increase of 5%. Relative to the second quarter, our Adjusted Gross Margin increased by $35 million. This was mostly due to increased throughput across all three products in the Delaware Basin, paired with increased natural gas throughput in the DJ Basin. As expected, we experienced a sequential quarter-over-quarter increase in our operations and maintenance expense, primarily due to increased utilities and asset maintenance and repair expenses. The sequential increase in utility costs was driven by higher electricity prices as well as higher utility usage, which is typical during the hotter summer months of the third quarter. Keep in mind that approximately 25% of our overall utility expense impacts our Adjusted EBITDA, as the remainder is reimbursed through either cash reimbursements of electricity costs or contribution of fuel gas for reimbursement of electricity equivalent costs. We expect our operation and maintenance expense in the fourth quarter to be in line with our third quarter results, as lower utility costs are partially offset by the inclusion of 2.5 months of contribution from Meritage. Our property and other tax expense decreased on a sequential quarter basis from a reduction in the ad valorem property tax accrual related to the finalization of rates in West Texas and lower property values in Colorado. Turning to cash flow, our third quarter cash flow from operations totaled $395 million, generating Free Cash Flow of $200 million. Free cash flow after our second quarter distribution payment in August was a use of cash of $21 million. From a capital markets perspective, at the end of the third quarter, we accessed the debt capital markets for the second time this year, issuing $600 million of five-year senior notes with a 6.35% coupon, the proceeds of which were used to fund a portion of the Meritage acquisition. We were pleased with how well the issuance was received by the market, with an order book more than 4.0x oversubscribed and a deal that ultimately priced at 170 basis points above the five-year Treasury rate. Since we expanded our unit buyback program to $1.25 billion in November of 2022, we have repurchased approximately 50% of the total aggregate consideration allocated towards our unit buyback program, or just over $622 million. This includes 5.1 million common units purchased from Occidental in the third quarter for total aggregate consideration of $128 million, and for an average price of $25 per unit. Focusing on the base distribution, in October, we declared a distribution of $0.5750 per unit, an increase of just over 2% compared to the prior quarter's distribution, payable on November 13th to unit holders as of November 1st. We remain committed to our capital allocation framework, and we will continue to maintain a balanced approach of retiring debt, buying back units opportunistically, and increasing our base distribution over time. We will continue to be good stewards of our unit holders' investment by efficiently allocating growth capital that will create the greatest value for our unit holders, with the ultimate goal of prudently growing Adjusted EBITDA and Free Cash Flow. Moving to annual throughput growth rates, with 2.5 months of contribution from the Meritage assets, we now expect average year-over-year natural gas throughput growth to be in the mid-single-digit range for 2023. We continue to anticipate low single-digit growth for crude oil and NGLs throughput and upper-teens throughput growth for produced water. Keep in mind that our crude oil and NGLs growth expectations for 2023 exclude the impact of Cactus II from our 2022 throughput actuals. Focusing on basin-specific activity, we still expect the Delaware Basin to be the main driver of throughput growth, and we continue to expect average year-over-year throughput growth across all three products in the basin as we exit this year. Although we believe the throughput declines in the DJ Basin have subsided, we still expect average year-over-year throughput to decrease for both natural gas and crude oil and NGLs relative to 2022. Steady onshore activity and increased producer activity levels that resulted in additional wells coming online contributed to the end of this decline and should provide continued modest growth for both products during the fourth quarter. These projected changes in natural gas and crude oil and NGLs throughput in the DJ Basin are expected to have a minimal impact on our Adjusted EBITDA in the near term due to the current structure of demand and deficiency fee revenues. Pivoting to our financial guidance, we now expect to be at the high end of our previously revised Adjusted EBITDA guidance range of $1.95 billion-$2.05 billion. This is based on our third quarter financial performance and the expected Adjusted EBITDA contribution from Meritage in the fourth quarter. With that said, we are maintaining the following 2023 guidance ranges from the prior quarter: Total capital expenditures of $700 million-$800 million. This includes additional growth capital for Meritage, as well as capital for both Mentone Train Three and our North Loving Plant. While we expect some Mentone and North Loving Plant capital to push out of 2023 and into 2024, based on construction timelines, we still expect the plants to be operational by the end of the first quarter of 2024 and the first quarter of 2025, respectively. Free cash flow of $900 million-$1 billion, which includes the incorporation of the Meritage capital expenditure plan for the remainder of 2023. Based on our most recent increase to the base distribution, in conjunction with the closing of the Meritage acquisition, we've grown the base distribution to approximately $2.21 per unit for 2023, slightly exceeding our base distribution guidance range of at least $2.1875 per unit. We will continue to evaluate the base distribution on a quarterly basis and will consider recommending an increase in the base distribution to our board as the underlying fundamentals of our business support additional adjustments. We also remain committed to our enhanced distribution framework with a net leverage threshold of 3.2x for year-end 2023. With that said, we remain committed to the concept of returning excess free cash flow to unit holders if we can't find a better use for that capital during the year. As Michael said earlier, we see a path to pre-Meritage leverage levels by year-end 2024. Finally, focusing on 2024, even though we have not yet provided official guidance, we expect our average year-over-year throughput for our operated assets to increase relative to 2023. In the Delaware Basin, producer activity levels remain strong, and we expect more wells to come to market year- over- year. In the DJ Basin, we reached the trough of the decline in the third quarter. Going forward, we expect modest increases in total volumes over the coming quarters and more noticeable growth in the back half of 2024, especially for natural gas volumes. But crude oil and NGL volumes will be at a slower, more moderate pace. Increased throughput in the DJ Basin in 2024 will have a minimal impact on our Adjusted EBITDA due to demand and deficiency fee revenue we collect associated with minimum volume commitments. We also expect healthy natural gas throughput growth in the Powder River Basin associated with the addition of Meritage assets. Turning to capital expenditures, we are seeing some of our capital needs push into 2024 due to updated plant construction timelines, certain capital expansion projects moving into next year, and select producers pushing well connects into early 2024. As such, we expect some of the capital costs for Mentone and almost all of the costs for North Loving Plant to come in 2024 as we look to bring those facilities online in early 2024 and early 2025, respectively. Additionally, now that the transaction is closed, we continue to evaluate the capital needs for the new Meritage assets. We expect 2024 to be a slightly heavier capital year for these assets in order to complete certain expansion projects needed for increasing throughput in both 2024 and 2025. With that, I will now turn the call back over to Michael. Thank you, Kristen. Before we open it up for Q&A, I would like to highlight a few key points and reiterate why WES is in a strong position as we exit this year and transition into 2024. WES is very well positioned for throughput and Adjusted EBITDA growth in 2024 relative to 2023. We expect to benefit from capital-efficient organic projects such as Mentone Train Three by the end of the first quarter of 2024, and we are on track to complete the North Loving Plant by the end of first quarter 2025. Keep in mind, these capital expansion projects are supported by significant minimum volume commitments, and we continue to expect that the plants will be full once they come online. These plant expansions will put us in a strong position to capture more value for our partnership through increased natural gas processing capacity. The Meritage acquisition was consummated at an extremely attractive valuation, which should result in approximately $155 million-$175 million of incremental Adjusted EBITDA, based on the 5.0x-6.0x pre-synergy multiple we highlighted when we announced the transaction. Additionally, we continue to be focused on returning capital to stakeholders, which is demonstrated in our leading total capital return yield amongst midstream companies. Our view is that M&A opportunities, like Meritage, enhance capital return opportunities over time, with expanded Adjusted EBITDA and increased free cash flow generation. We remain committed to a balanced approach to capital return, as seen with the additional increase in the base distribution upon closing of the Meritage transaction and our opportunistic unit buyback from Occidental in September. Finally, WES continues to screen favorably relative to midstream companies and members of the Russell 3000 Index. When comparing the midstream sector relative to the Russell 3000 Index, West is now the leading midstream investment opportunity with an investment-grade credit rating and a trailing twelve-month distribution yield of nearly 9%. I would like to close the call by thanking the entire West workforce for all of their hard work and dedication to our organization. I would also like to extend additional thanks to all of our employees that have been part of the Meritage acquisition. Your efforts enabled us to close the transaction quickly and begin moving forward with integration. Whether it's working on strategic acquisitions or enhancing our daily operations, our employees' contributions continue to yield substantial results that are creating additional value for our stakeholders. I look forward to finishing the year on a strong footing and updating you on additional progress as we transition to 2024 on our fourth quarter call in February. With that, we'll open the line for questions. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. Your first question comes from the line of Spiro Dounis with Citi. Your line is open. Thanks, operator. Afternoon, team. Maybe starting with Meritage, if we could. Michael, as you said in your prepared remarks, M&A really hasn't been part of the, the strategy historically, so this is kind of new. So just curious, is this a, a shift in strategy or just seeing a more conducive M&A environment? And if you can, maybe just provide a little more context on, on how Meritage came together. Yeah, thanks, Spiro. Definitely not a shift in strategy. Our strategy has always been that we would be opportunistically looking for M&A opportunities. This is a acquisition opportunity. As we looked at our existing footprint out there, you know, from our perspective, it was either, you know, we needed to, you know, potentially exit the area or get larger. As we looked at this particular opportunity and at the area as a whole, we got really excited about what this might be able to become for us and for the company overall. And so it's a company and an opportunity that we've actually been following for quite some time. And then the timing just made a lot of sense post our transformation, for us to be able to feel confident that we could tuck in these assets and be able to achieve, you know, greater synergies and potential opportunities for growth on the heels of the work that we've been doing in order to get more efficient across the board in our operations. So definitely not a shift in strategy, just executing opportunistically as we'd indicated, and that opportunity really found a home as we executed that transaction in the third quarter. Got it. Got it. Helpful. And switching gears a bit to CapEx. Kristen, it sounds like in your remarks there, a few factors coming together that maybe keep CapEx a little bit elevated next year. Sounds like Delaware, obviously, those two processing plants, your biggest spend, which makes sense. But in looking at the DJ and Meritage, once again, kind of a two-part question here. DJ growing again, should we expect more capital to be allocated there as a result, or do you kind of have a long run rate of sort of available capacity? And then with Meritage, you also mentioned higher capital needs next year. Just maybe a sense of what is the nature of that spending. Is that well-contained CapEx or something more substantial? Yeah. So on the DJ, you're right, Spiro. We've got extra capacity in the DJ right now, so I'd say any capital that we're spending there will be relatively minimal, kind of what you've seen in 2023, just as we're, you know, connecting new pads, so forth and so on. For Meritage, yes, there's a little bit more growth capital next year for Meritage, and so well connects, compression, things of that nature, that I would expect to hit the 2024 budget. Got it. Helpful color. Thanks for the time, guys. Thanks, Spiro. Your next question comes from the line of Brian Reynolds with UBS. Your line is open. Hi, good afternoon, everyone. Maybe to follow up on Spiro's CapEx question. Kristen, I think you mentioned that you expect the processing plants to effectively open full. So how should we be thinking about the next processing plant, just given that, you know, it seems like West is gaining more and more acreage dedications on the Delaware? Thanks. Yeah, Brian, thanks. It's a great question. Yeah, the way that we've managed that is, you know, we've offloaded volumes in order to bridge the timing between when it is that we receive the commitments from our customers as to when those commitments kicked in to take, you know, sort of the interruptible volumes. You know, we've offloaded in order to bridge that timing to when that plant comes online. And so that's our expectation of when those plants come online, that they're ultimately full. As we sit here today, you know, first we expanded the North Loving area in a new greenfield area with the opportunity for us to expand more of that footprint should the need arise. But as we sit here today, we don't currently see the need in order to offer up additional expansions on North Loving. Great. Thank you. Appreciate that. And then looking ahead to 2024, sounds like there'll be some growth. Clearly, the Delaware is growing and the processing plants are running full, but is there any way to sensitize how many volumes are currently being offloaded and potentially the impacts that'll have on margin as that comes back onto your system? And then as it relates to DJ, you know, some tailwinds there with the first quarter of growth. ... you know, when should we expect to be above those MVCs at this point? Is it second half of 2024 or early 2025 at this juncture? Thanks. Yeah. So on the growth side of things, as Michael was saying, we're offloading volumes today, and so as we're bringing Mentone three online, that the capacity of that train, right, you would expect that to get on our system and decrease those offloads. So quite a bit that's being offloaded today, obviously, when we're saying that we expect Mentone three to be full on day one. And then, sorry, sir, can you repeat your last question that you asked? Just as it relates to margin, I mean, could we see some margin benefits just given that you're no longer offloading the volumes and it's still integrated? Yes, we definitely will. We expect to see a little bit of margin benefit incremental every month from that. So higher OpEx on our side, as we're obviously running that plant, and we've got the people to run that plant, maintenance as well on that. But yes, would expect to see some Adjusted Gross Margin benefit as the offload fees are reduced. And then, Brian, to answer your question on the DJ, we currently would still expect that there would be minimum volume commitments received primarily on the oil side throughout 2024, as it sits here today. Great. All makes sense. I'll leave it there. Enjoy the rest of your afternoon. Thanks, Brian. Your next question comes from the line of Jeremy Tonet with JP Morgan. Your line is open. Hi, good afternoon. Hey, Jeremy. Just wanted to take a step back and think about, you know, your portfolio as it stands right now, your base business. And if you think about just the organic growth that's possible, how, you know, how do you think about that right now in general, as far as the low single digit, mid-single digit, otherwise? Just wondering how you think about organic growth. Obviously, not giving 2024 guide, but just trying to get a sense for how you think about the business at this point. Yeah. So I would, I’d call your attention to slide nine in the deck, where we talk about, you know, our estimated growth rates for 2023. And, you know, as we look into 2024, expectation that that will actually grow on top of 2023. And so, you know, we’re seeing, you know, positive tailwinds, frankly, pretty much throughout our operated portfolio, which are contributing, you know, overall to an expected growth in 2024 over 2023. Got it. And from an EBITDA perspective, any color that you could share there? No color just yet. We haven't actually put out our 2024 guidance, but definitely look forward on the next quarter call to walk through our expectations for 2024. We're still in the process of receiving full information from a lot of our producers in terms of what their drilling plans and expectations are for the back half of this year and into the first part of next year. That will be the primary drivers for what our expectations might be on volumetric growth for 2024. So, as we gather that information and then are able to share that with the market on our call in the first quarter of next year, then we'll definitely be able to walk through what our expectations might be on EBITDA growth. Got it. That's helpful there. And, just wanted to shift to the DJ for a minute, if I could, and see that Williams kind of, you know, got a bit bigger in the basin. I think they're now the number three processor. Just wondering if this changes the competitive dynamics in any way or any other thoughts that you could share with us on the DJ at this point? Yeah, it's a great question. Definitely, don't foresee that, you know, having a meaningful impact on us in terms of the competitive dynamics. You know, Williams is a great company, and so, the fact that they're, you know, investing as much as they are on the DJ, obviously, you know, is a very positive sign from our perspective, corroborates, you know, our view of the basin as a whole and the highly prolific nature of that basin. But, certainly wouldn't expect that it would have a meaningful impact on us. Got it. And if I could just sneak one last one in for the Meritage acquisition. Just wondering, on a per unit basis, is this accretive or dilutive to per Mcf or per barrel fee? And just how do you see the trajectory from this business over time? So it would be accretive on a per Mcf basis. So I actually expect in Q4 to see our gross margin per Mcf increase just a little bit as we add those Meritage volumes into our throughput numbers. Got it. That's helpful. I'll get back in the queue. Thanks. Thanks, Jeremy. As a reminder, if you would like to ask a question, please press star and one on your telephone keypad. Our next question comes from the line of Neel Mitra with Bank of America. Your line is open. Hi, thanks for taking my question. I just wanted to understand maybe the rationale going forward underpinning distribution increases now that Meritage is in the mix, and debt is a little bit higher. Wanted to understand the priorities with capital allocation, and when you look at distribution increases, do you have a formula where you look at payout ratios or a percentage of CFO? Just wanted to understand, you know, the background behind that and how you're looking at that going forward. ... Yeah, that's a great question, Neel. So, our primary driver is that we want to be able to set the base distribution at a level that we believe is sustainable, over time. And so the reason for actually now the multiple increases in the base distribution that we've had this year were, primarily for the first one, the fact that we had received close to Bcf of incremental commitments, you know, overall, since we had established that primary base distribution level, and, the fact that we're spending as much growth capital as we are, which, you know, would indicate, stronger sustainability, from a free cash flow perspective as we, as we go over time. With the most recent increase in the distribution, it was the fact that we're bringing on incremental free cash flow through the Meritage acquisition, so therefore, our expectation of a sustainable level increased in light of that new free cash flow that was coming online with that transaction. And so when we look at it on a quarterly basis, we're looking at what we believe is actually a sustainable base distribution level going forward. We haven't actually made any changes at all in terms of our prioritization of return of capital. For the remaining free cash flow that we have on an annual basis, we're always looking at opportunistic ways that we can deploy that capital. So for example, if in, you know, a particular period, we think it's of greater benefit to pay down debt, then we'll pay down debt. If there's greater opportunities on the unit repurchase side, then we'll do that. And obviously this year, you've actually seen pretty much both of those things through debt repurchases, unit repurchases, as well as the addition of Meritage into the company. And so that's going to continue to be our, you know, levers that we pull. And as we have potentially continued progress in terms of our expectations of sustainability of that base distribution going forward, then we'll look at it on a quarterly basis with the board and determine whether or not we think it warrants an increase overall. If we have superior, you know, year-on-year performance relative to expectations, and that puts us in a place to be able to pay an enhanced distribution as we meet those criteria that we've highlighted in our slides, then that's where the base distribution comes in to pay out that incremental value relative to our expectations for that, for that period. So I hope, Neel, that answers your question. Yeah, that's very helpful. I appreciate it. And just as a follow-up, I know you can't answer where you know the numbers shake out, but maybe you could just kind of outline the factors that go into cost of service for the calculation next year. I know you know the wells were turned in line later than expected, some lower commodity prices, but as I understand it, it's backward-looking and forward-looking, and there are some other components. So are there any general themes that we should look at going into next year? Yeah, it's a great question, Neel. So, the way that that calculation works is that it takes the previous period, so in this instance, it would be 2023, relative to our expectations of free cash flow under those contracts for 2023, and combines that with the expectations of the free cash flow out through the end of the period of those contracts, and then determines, you know, in accordance with what the predetermined rate would be, what the fees would ultimately need in order to generate that rate of return. So in a scenario where there's underperformance on the volumes, if all expectations were held flat, the same as they were before into future periods, you would expect that those rates would have to go up in order to generate the same expected rate of return that was expected, you know, as of the previous year when that rate was determined. So, does that hopefully give you a little bit of context to how that works? As we sit here today, we don't know quite yet what those long-term forecasts would be in order to generate that rate, and then what the costs would be in order to bring those volumes onto the system to generate that return. That will occur throughout the end of this year into the first part of next, wherein we'll be able to give a little bit more information on our expectations for 2024, EBITDA and capital. Okay, got it. That's very helpful. Thank you. Thank you, Neel. The next question comes from the line of Gabe Moreen with Mizuho. Your line is open. Hey, good afternoon, everyone. Maybe I could just start with a quick clarification on the CapEx spend next year, where Kristen talked about it being a heavier year. Is that just heavier compared to 2023? Just wanted to clarify that. Yeah, that's, that's right, Gabe. So heavier compared to what, you know, Meritage was spending in 2023. I think when we looked at, you know, doing the due diligence on that, and historically, you're looking around $50 million, kind of a run rate CapEx spend for an asset like that, and so heavier relative to that, just slightly. Got it. Okay, and then maybe if I can ask, it's been a couple of quarters here when you talked about South Texas volumes being up. I know you don't talk about that very much considering the other basins that you've got. But can you just talk a little bit about what's going on there? Let's assess competitive position, are you spending any capital out there? That'd be helpful. Yeah. So actually that's, that's frankly a, a reflection of the incredible job the team's doing down there in establishing, new relationships, and with those, new relationships, garnering, you know, increased confidence in, you know, those, counterparties actually bringing more volumes onto our system. So actually, you know, not a meaningful amount of capital. It's really more of a reflection of the team's excellent job, you know, gaining confidence, from, you know, new customers coming into the area. So we believe we're definitely competitively positioned there. But as much as anything speaks to the strong customer service element of, the way that we think about the business and the high touch nature with our, customers, that is resulting in increased volumes coming onto our system. Thanks, Michael. And maybe if I can just stay in that third-party customer vein. You know, earlier you mentioned the milestone that you kind of crossed in third-party volumes overall. But as it pertains to getting more third-party volumes, particularly in the Delaware Basin, can you just talk about WES's positioning in terms of being a little bit less integrated than peers in terms of your downstream assets? Are you viewing that as a hindrance because you don't have that integration, that you might need it? Or is it really the shoe on the other foot, because everyone's looking to add downstream capacity to your third-party producer, customers can kind of pick and choose between different options? Yeah, it's a great question. Actually, the way that, that we look at it is, you know, obviously we can provide an integrated solution for our customers by combining all of the, the marketing needs and then, you know, creating flow assurance through the marketing process that we do at no cost to us. It's all, it's all passed back. But we actually, you know, view it as a positive that, you know, we can then differentiate ourselves through the high touch nature of our customer service operations and through our ability to be so concentrated on making sure that those volumes that are coming from their customers are cared for properly, and that, you know, we are focusing exclusively on making sure that they're optimizing their throughput, you know, coming through the system overall, as opposed to, you know, necessarily providing, you know, some arbitrage, you know, through the system, down to the water. And so for us, it's inherent in making sure that we provide a superior customer service product, making sure that our operability, which incidentally has increased every quarter this year. That our operability is, you know, high and sustained, such that our customer base knows that, you know, we're going to be strong stewards of the relationship that we have, overall with them. So frankly, we view it as, you know, a great opportunity for us to differentiate ourselves. And what you're seeing by virtue of that third-party growth as well as those, you know, increased commitments from our customers, is that it's ringing true in terms of our new customer acquisition and retention. Got it. Thanks, Michael. Your next question comes from the line of Ned Baramov with Wells Fargo. Your line is open. Hi, good afternoon. Thanks for taking the question. You've had the Meritage asset for several weeks now. Could you maybe talk about the integration progress and any early findings on the magnitude of potential synergies? Yeah. So, thanks for the question. Actually, what we found is a great excitement, you know, overall, between the two companies. We've as far as an integration perspective, it's literally like hand in glove, you know, at the field level. The teams are working very well together overall. You know, the team is very excited about, you know, being a part of a franchise like Western Midstream, and we're obviously very excited to have them, you know, into our organization. So, it's still a little early to be able to determine what our expectations might be from a synergies perspective, because we're trying to make sure that we're diligent in finding all opportunities that we can potentially drive, you know, greater EBITDA growth, you know, out there. But I would say overall, that the integration is going very positively, and the teams are really excited to work well together. Thanks for that, Mike. And then on the new customer contract, are the economics of the extended agreement comparable to what you had in place with this customer before the amendment? So it's, you know, it is an extension, you know, from this existing customer that we would say are done at, you know, very competitive rates overall. So it's an addition of incremental acres into the system and an extension of an existing agreement at competitive rates. So it's a customer that we have had a long-standing relationship with, an incredible rapport. We have the highest amount of respect for them, and obviously, it appears as if they do the same for us. So we're really excited about, you know, being able to continue that relationship long into the future. Thanks. That's all I had. I will now turn the call back over to Michael Ure. Thank you, everyone, for joining, for the third quarter call. I would like to wish everyone an early happy holidays and look forward to speaking again in the first quarter of next year. This concludes today's conference call. You may now disconnect.