In 2023, the company actually paid shareholders more than it took in. Shareholders received $978 million in distributions, while the company generated only $926 million in free cash flow. That comes out to a 106% payout ratio. In other words, Western Midstream paid out $1.06 for every $1 it made in free cash flow. This year, though, the payout ratio is forecast to drop to 89%, as the company is projected to pay $1.04 billion in distributions against $1.16 billion in free cash flow. Is that enough of a difference for the company to be able to sustain its payout? Click the button below to let me know your thoughts, and then scroll up to finish reading. |
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