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WES Investors

Western Midstream Announces Fourth-Quarter And Full-Year 2019 Results
Announces 2020 Guidance

HOUSTON, Feb. 27, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced fourth-quarter and full-year 2019 financial and operating results. Net income (loss) available to limited partners for the fourth quarter of 2019 totaled $282.1 million, or $0.62 per common unit (diluted), with fourth-quarter 2019 Adjusted EBITDA(1) totaling $447.6 million and fourth-quarter 2019 Distributable cash flow(1) totaling $345.4 million. Net income (loss) available to limited partners for 2019 totaled $662.3 million, or $1.59 per common unit (diluted), with full-year 2019 Adjusted EBITDA(1) of $1.719 billion and full-year 2019 Distributable cash flow(1) of $1.325 billion. Financial and operational results are presented as if WES owned the assets acquired in February 2019 for all periods reported.

RECENT HIGHLIGHTS

  • Processed record DJ Basin Complex gas throughput of 1.30 Bcf/d for the fourth quarter, representing a 15-percent sequential-quarter increase as third-quarter downstream constraints were resolved and did not impact fourth-quarter operations
  • Gathered record Delaware Basin produced-water throughput of 610 MBbls/d for the fourth quarter, representing a 5-percent sequential-quarter increase
  • Achieved record Delaware and DJ Basin oil throughput of 297 MBbls/d for the fourth quarter, representing an 8-percent sequential-quarter increase
  • Delivered full-year 2019 Adjusted EBITDA(1) of $1.719 billion, representing a 17-percent increase from 2018
  • Realized capital expenditures below low-end 2019 guidance range
  • Finalized service and governance agreements with Occidental that will position WES to operate as a stand-alone enterprise
  • Priced a $3.5 billion four-tranche senior notes offering that was 6.2x oversubscribed with each tranche pricing at WES's lowest historical coupon for like-tenor notes

For the fourth quarter of 2019, WES paid a per-unit quarterly distribution of $0.6220. The full-year 2019 per-unit distribution of $2.47 represents a more than 5-percent increase over the full-year 2018 per-unit distribution of $2.35. This marks WES's 28th consecutive quarterly distribution increase and achieves WES's 2019 annual distribution-growth guidance range of 5 percent to 6 percent. The fourth-quarter 2019 Coverage ratio(1) was 1.23 times. The full-year 2019 Coverage ratio(1) was 1.18 times.

"I'm pleased with our fourth-quarter results," said Chief Executive Officer, Michael Ure. "In 2019, we placed the first Latham train and the second Mentone train into service; grew Adjusted EBITDA 17-percent year-over-year as a result of increased throughput across all products; and entered into new service, operating, and governing agreements at year end that enable us to operate more fully as an independent midstream company. This was a productive and successful year for WES, and we are ideally positioned to deliver strong results in 2020."

Fourth-quarter 2019 total natural-gas throughput(2) averaged 4.3 Bcf/d, representing a 3-percent sequential-quarter increase and an 8-percent increase from fourth-quarter 2018. Fourth-quarter 2019 total throughput for crude-oil, NGLs, and produced-water assets(2) averaged 1,378 MBbls/d, representing a 16-percent sequential-quarter increase and a 38-percent increase from fourth-quarter 2018. Full-year 2019 total natural-gas throughput(2) averaged 4.2 Bcf/d, representing a 9-percent increase from full-year 2018. Full-year 2019 total throughput for crude-oil, NGLs, and produced-water assets(2) averaged 1,195 MBbls/d, representing a 57-percent increase from full-year 2018.

     

(1) Please see the tables at the end of this release for a reconciliation of GAAP to non-GAAP measures and calculation of the Coverage ratio.

(2) Represents total throughput attributable to WES, which excludes the 25% third-party interest in Chipeta and the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019.

Fourth-quarter 2019 capital expenditures(1), including equity investments and excluding capitalized interest, totaled $242.6 million, with cash maintenance capital expenditures totaling $29.6 million. For full-year 2019, capital expenditures(1), including equity investments(2) and excluding capitalized interest, totaled $1.249 billion, which is approximately $100 million below the 2019 guidance midpoint of $1.35 billion. For full-year 2019, cash maintenance capital expenditures totaled $124.4 million, which is approximately $11 million below the 2019 guidance midpoint of $135 million.

2020 GUIDANCE

  • Adjusted EBITDA between $1.875 billion and $1.975 billion
  • Total capital expenditures between $875 million and $950 million, including costs associated with over 60,000 horsepower of compression, over 140 miles of gathering, the completion of the second Latham train during first-quarter 2020, and the addition of two 30 MBbl/d oil-stabilization trains and approximately 180 MBbl/d of saltwater disposal capacity in the Delaware Basin by year-end 2020
  • Total maintenance capital expenditures between $125 million and $135 million
  • Coverage ratio of at least 1.25x with ~1-percent year-over-year distribution increase from full-year 2019 per-unit distributions of $2.47 per unit

"Our 2020 guidance demonstrates our continued focus on capital-efficient organic growth and the strength of our balance sheet," said Chief Financial Officer, Mike Pearl. "We are focused on generating long-term value for all our stakeholders by maintaining our investment-grade credit profile, delivering exceptional customer service, and driving operational efficiencies throughout the organization."

     

(1) Accrual-based and excludes capital expenditures associated with the 25% third-party interest in Chipeta.

(2) Acquisitions and contributions.

CONFERENCE CALL TOMORROW AT 1 P.M. CST

WES will host a conference call on Friday, February 28, 2020, at 1:00 p.m. Central Standard Time (2:00 p.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2019 results. To participate, individuals should dial 877-883-0383 (Domestic) or 412-902-6506 (International) 15 minutes before the scheduled conference call time and enter participant access code 0032829. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.

ABOUT WESTERN MIDSTREAM

Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed to acquire, own, develop, and operate midstream assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania, Texas, and New Mexico, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts.

WESTERN MIDSTREAM ANNUAL REPORT AVAILABLE

WES has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, with the Securities and Exchange Commission. A copy of the report is available for viewing and downloading on the Western Midstream web site at www.westernmidstream.com. Unitholders may request hard copies of the report, which contains WES's audit financial statements, free of charge, by emailing investors@westernmidstream.com or by submitting a written request to Western Midstream Partners, LP at the following address: P.O. Box 1330, Houston, TX 77251-1330, Attention: Investor Relations.

For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.

This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution-growth expectations; our ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. Western Midstream Partners, LP undertakes no obligation to publicly update or revise any forward-looking statements.

WESTERN MIDSTREAM CONTACTS

Kristen S. Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000

Abby Dempsey
Investor Relations
Abby.Dempsey@westernmidstream.com
832.636.6000

Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES

Below are reconciliations of (i) net income (loss) (GAAP) to WES's Distributable cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Midstream Partners, LP ("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Midstream Partners, LP ("Adjusted gross margin") (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing WES's ability to incur and service debt, fund capital expenditures, and make distributions. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.

WES defines "Distributable cash flow" as Adjusted EBITDA, plus interest income and the net settlement amounts from the sale and/or purchase of natural gas, condensate, and NGLs under WES Operating's commodity-price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less Service revenues – fee based recognized in Adjusted EBITDA in excess of (less than) customer billings, net cash paid (or to be paid) for interest expense (including amortization of deferred debt issuance costs originally paid in cash and offset by non-cash capitalized interest), maintenance capital expenditures, WES Operating Series A Preferred unit distributions, income taxes, and Distributable cash flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA.

WES defines Adjusted EBITDA as net income (loss), plus distributions from equity investments, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairments, and other expense (including lower of cost or market inventory adjustments recorded in cost of product), less gain (loss) on divestiture and other, net, income from equity investments, interest income, income tax benefit, other income, and the noncontrolling interests owners' proportionate share of revenues and expenses.

WES defines Adjusted gross margin as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interests owners' proportionate share of revenues and cost of product.

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

 

Distributable Cash Flow

 
   

Three Months Ended 
 December 31,

 

Year Ended 
 December 31,

thousands except Coverage ratio

 

2019

 

2018

 

2019

 

2018

Reconciliation of Net income (loss) to Distributable cash flow and calculation of the Coverage ratio

               

Net income (loss)

 

$

295,440

   

$

183,917

   

$

807,700

   

$

630,654

 

Add:

               

Distributions from equity investments

 

61,288

   

71,327

   

264,828

   

216,977

 

Non-cash equity-based compensation expense

 

4,114

   

1,544

   

14,392

   

7,310

 

Non-cash settled interest expense, net

 

19

   

   

39

   

 

Income tax (benefit) expense

 

793

   

22,741

   

13,472

   

58,934

 

Depreciation and amortization

 

120,278

   

118,407

   

483,255

   

389,164

 

Impairments

 

1,985

   

75,298

   

6,279

   

230,584

 

Above-market component of swap agreements with Anadarko

 

   

10,896

   

7,407

   

51,618

 

Other expense

 

   

8,080

   

161,813

   

8,264

 

Less:

               

Recognized Service revenues – fee based in excess of (less than) customer billings

 

(6,534)

   

53,527

   

(28,764)

   

62,498

 

Gain (loss) on divestiture and other, net

 

(3)

   

961

   

(1,406)

   

1,312

 

Equity income, net – affiliates

 

62,035

   

61,595

   

237,518

   

195,469

 

Cash paid for maintenance capital expenditures

 

29,660

   

39,328

   

124,548

   

120,865

 

Capitalized interest

 

6,047

   

7,196

   

26,980

   

32,479

 

Cash paid for (reimbursement of) income taxes

 

   

2,495

   

96

   

2,408

 

Other income

 

37,792

   

   

37,792

   

2,749

 

Distributable cash flow attributable to noncontrolling interests (1)

 

9,512

   

9,000

   

36,976

   

36,138

 

Distributable cash flow (2)

 

$

345,408

   

$

318,108

   

$

1,325,445

   

$

1,139,587

 

Distributions declared

               

Distributions from WES Operating

 

$

284,505

       

$

1,128,309

     

Less: Cash reserve for the proper conduct of WES's business

 

2,719

       

9,360

     

Distributions to WES unitholders (3)

 

$

281,786

       

$

1,118,949

     

Coverage ratio

 

1.23

 

x

   

1.18

 

x

 
   

(1) 

For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019.

(2) 

For the three months and year ended December 31, 2019, excludes cash payments of $107.7 million related to the settlement of interest-rate swap agreements.

(3) 

Reflects cash distributions of $0.62200 and $2.47000 per unit declared for the three months and year ended December 31, 2019, respectively.

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

 

Adjusted EBITDA

 
   

Three Months Ended 
 December 31,

 

Year Ended 
 December 31,

thousands

 

2019

 

2018

 

2019

 

2018

Reconciliation of Net income (loss) to Adjusted EBITDA

               

Net income (loss)

 

$

295,440

   

$

183,917

   

$

807,700

   

$

630,654

 

Add:

               

Distributions from equity investments

 

61,288

   

71,327

   

264,828

   

216,977

 

Non-cash equity-based compensation expense

 

4,114

   

1,544

   

14,392

   

7,310

 

Interest expense

 

79,414

   

54,702

   

303,286

   

183,831

 

Income tax expense

 

793

   

22,741

   

13,472

   

58,934

 

Depreciation and amortization

 

120,278

   

118,407

   

483,255

   

389,164

 

Impairments

 

1,985

   

75,298

   

6,279

   

230,584

 

Other expense

 

   

8,080

   

161,813

   

8,264

 

Less:

               

Gain (loss) on divestiture and other, net

 

(3)

   

961

   

(1,406)

   

1,312

 

Equity income, net – affiliates

 

62,035

   

61,595

   

237,518

   

195,469

 

Interest income – affiliates

 

4,225

   

4,225

   

16,900

   

16,900

 

Other income

 

37,792

   

   

37,792

   

2,749

 

Adjusted EBITDA attributable to noncontrolling interests (1)

 

11,636

   

11,893

   

45,131

   

42,843

 

Adjusted EBITDA

 

$

447,627

   

$

457,342

   

$

1,719,090

   

$

1,466,445

 

Reconciliation of Net cash provided by operating activities to Adjusted EBITDA

               

Net cash provided by operating activities

 

$

297,415

   

$

382,980

   

$

1,324,100

   

$

1,348,175

 

Interest (income) expense, net

 

75,189

   

50,477

   

286,386

   

166,931

 

Uncontributed cash-based compensation awards

 

(1,891)

   

(53)

   

(1,102)

   

879

 

Accretion and amortization of long-term obligations, net

 

(1,942)

   

(1,284)

   

(8,441)

   

(5,943)

 

Current income tax (benefit) expense

 

(215)

   

(33,012)

   

5,863

   

(80,114)

 

Other (income) expense, net (2)

 

107,533

   

(460)

   

106,136

   

(3,209)

 

Distributions from equity investments in excess of cumulative earnings – affiliates

 

9,053

   

9,769

   

30,256

   

29,585

 

Changes in assets and liabilities:

               

Accounts receivable, net

 

35,283

   

(4,351)

   

45,033

   

60,502

 

Accounts and imbalance payables and accrued liabilities, net

 

(38,524)

   

15,476

   

30,866

   

(45,605)

 

Other items, net

 

(22,638)

   

49,693

   

(54,876)

   

38,087

 

Adjusted EBITDA attributable to noncontrolling interests (1)

 

(11,636)

   

(11,893)

   

(45,131)

   

(42,843)

 

Adjusted EBITDA

 

$

447,627

   

$

457,342

   

$

1,719,090

   

$

1,466,445

 

Cash flow information

               

Net cash provided by operating activities

         

$

1,324,100

   

$

1,348,175

 

Net cash used in investing activities

         

(3,387,853)

   

(2,210,813)

 

Net cash provided by (used in) financing activities

         

2,071,573

   

875,192

 
   

(1) 

For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019.

(2) 

Excludes interest-rate swap losses of $25.6 million that will be paid in 2020 for the three months and year ended December 31, 2019, and $8.0 million for the three months and year ended December 31, 2018.

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

 

Adjusted Gross Margin

 
   

Three Months Ended 
 December 31,

 

Year Ended 
 December 31,

thousands

 

2019

 

2018

 

2019

 

2018

Reconciliation of Operating income (loss) to Adjusted gross margin

               

Operating income (loss)

 

$

333,630

   

$

264,647

   

$

1,231,343

   

$

861,282

 

Add:

               

Distributions from equity investments

 

61,288

   

71,327

   

264,828

   

216,977

 

Operation and maintenance

 

173,387

   

142,235

   

641,219

   

480,861

 

General and administrative

 

30,951

   

19,747

   

114,591

   

67,195

 

Property and other taxes

 

15,504

   

10,352

   

61,352

   

51,848

 

Depreciation and amortization

 

120,278

   

118,407

   

483,255

   

389,164

 

Impairments

 

1,985

   

75,298

   

6,279

   

230,584

 

Less:

               

Gain (loss) on divestiture and other, net

 

(3)

   

961

   

(1,406)

   

1,312

 

Equity income, net – affiliates

 

62,035

   

61,595

   

237,518

   

195,469

 

Reimbursed electricity-related charges recorded as revenues

 

13,882

   

16,474

   

74,629

   

66,678

 

Adjusted gross margin attributable to noncontrolling interests (1)

 

16,846

   

15,913

   

64,049

   

56,247

 

Adjusted gross margin

 

$

644,263

   

$

607,070

   

$

2,428,077

   

$

1,978,205

 

Adjusted gross margin for natural-gas assets

 

$

429,739

   

$

395,281

   

$

1,656,041

   

$

1,443,466

 

Adjusted gross margin for crude-oil, NGLs, and produced-water assets

 

214,524

   

211,789

   

772,036

   

534,739

 
   

(1) 

For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019.

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
   

Three Months Ended 
 December 31,

 

Year Ended 
 December 31,

thousands except per-unit amounts

 

2019

 

2018

 

2019

 

2018

Revenues and other

               

Service revenues – fee based

 

$

626,708

   

$

593,765

   

$

2,388,191

   

$

1,905,728

 

Service revenues – product based

 

24,597

   

19,364

   

70,127

   

88,785

 

Product sales

 

71,538

   

79,081

   

286,388

   

303,020

 

Other

 

367

   

416

   

1,468

   

2,125

 

Total revenues and other

 

723,210

   

692,626

   

2,746,174

   

2,299,658

 

Equity income, net – affiliates

 

62,035

   

61,595

   

237,518

   

195,469

 

Operating expenses

               

Cost of product

 

109,507

   

124,496

   

444,247

   

415,505

 

Operation and maintenance

 

173,387

   

142,235

   

641,219

   

480,861

 

General and administrative

 

30,951

   

19,747

   

114,591

   

67,195

 

Property and other taxes

 

15,504

   

10,352

   

61,352

   

51,848

 

Depreciation and amortization

 

120,278

   

118,407

   

483,255

   

389,164

 

Impairments

 

1,985

   

75,298

   

6,279

   

230,584

 

Total operating expenses

 

451,612

   

490,535

   

1,750,943

   

1,635,157

 

Gain (loss) on divestiture and other, net

 

(3)

   

961

   

(1,406)

   

1,312

 

Operating income (loss)

 

333,630

   

264,647

   

1,231,343

   

861,282

 

Interest income – affiliates

 

4,225

   

4,225

   

16,900

   

16,900

 

Interest expense

 

(79,414)

   

(54,702)

   

(303,286)

   

(183,831)

 

Other income (expense), net (1)

 

37,792

   

(7,512)

   

(123,785)

   

(4,763)

 

Income (loss) before income taxes

 

296,233

   

206,658

   

821,172

   

689,588

 

Income tax expense (benefit)

 

793

   

22,741

   

13,472

   

58,934

 

Net income (loss)

 

295,440

   

183,917

   

807,700

   

630,654

 

Net income (loss) attributable to noncontrolling interests

 

7,670

   

15,414

   

110,459

   

79,083

 

Net income (loss) attributable to Western Midstream Partners, LP

 

$

287,770

   

$

168,503

   

$

697,241

   

$

551,571

 

Limited partners' interest in net income (loss):

               

Net income (loss) attributable to Western Midstream Partners, LP

 

$

287,770

   

$

168,503

   

$

697,241

   

$

551,571

 

Pre-acquisition net (income) loss allocated to Anadarko

 

   

(75,133)

   

(29,279)

   

(182,142)

 

General partner interest in net income (loss)

 

(5,637)

   

   

(5,637)

   

 

Limited partners' interest in net income (loss)

 

$

282,133

   

$

93,370

   

$

662,325

   

$

369,429

 

Net income (loss) per common unit – basic and diluted

 

$

0.62

   

$

0.43

   

$

1.59

   

$

1.69

 

Weighted-average common units outstanding – basic and diluted

 

452,934

   

218,938

   

415,794

   

218,936

 
   

(1) 

Includes net gains (losses) on interest-rate swaps of $37.6 million and ($125.3) million for the three months and year ended December 31, 2019, respectively, and ($8.0) million for the three months and year ended December 31, 2018.

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 
   

December 31,

thousands except number of units

 

2019

 

2018

Total current assets

 

$

402,412

   

$

344,764

 

Note receivable – Anadarko

 

260,000

   

260,000

 

Net property, plant, and equipment

 

9,064,931

   

8,410,353

 

Other assets

 

2,619,110

   

2,442,088

 

Total assets

 

$

12,346,453

   

$

11,457,205

 

Total current liabilities

 

$

485,954

   

$

637,477

 

Long-term debt

 

7,951,565

   

4,787,381

 

APCWH Note Payable

 

   

427,493

 

Asset retirement obligations

 

336,396

   

300,024

 

Other liabilities

 

227,245

   

412,147

 

Total liabilities

 

9,001,160

   

6,564,522

 

Equity and partners' capital

       

Common units (443,971,409 and 218,937,797 units issued and outstanding at December 31, 2019 and 2018, respectively)

 

3,209,947

   

951,888

 

General partner units (9,060,641 and zero units issued and outstanding at December 31, 2019 and 2018, respectively)

 

(14,224)

   

 

Net investment by Anadarko

 

   

1,388,018

 

Noncontrolling interests

 

149,570

   

2,552,777

 

Total liabilities, equity and partners' capital

 

$

12,346,453

   

$

11,457,205

 

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 
   

Year Ended 
 December 31,

thousands

 

2019

 

2018

Cash flows from operating activities

       

Net income (loss)

 

$

807,700

   

$

630,654

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:

       

Depreciation and amortization

 

483,255

   

389,164

 

Impairments

 

6,279

   

230,584

 

(Gain) loss on divestiture and other, net

 

1,406

   

(1,312)

 

(Gain) loss on interest-rate swaps

 

125,334

   

7,972

 

Cash paid to settle interest-rate swaps

 

(107,685)

   

 

Change in other items, net

 

7,811

   

91,113

 

Net cash provided by operating activities

 

$

1,324,100

   

$

1,348,175

 

Cash flows from investing activities

       

Capital expenditures

 

$

(1,188,829)

   

$

(1,948,595)

 

Acquisitions from affiliates

 

(2,007,926)

   

(254)

 

Acquisitions from third parties

 

(93,303)

   

(161,858)

 

Investments in equity affiliates

 

(128,393)

   

(133,629)

 

Distributions from equity investments in excess of cumulative earnings – affiliates

 

30,256

   

29,585

 

Proceeds from the sale of assets to third parties

 

342

   

3,938

 

Net cash used in investing activities

 

$

(3,387,853)

   

$

(2,210,813)

 

Cash flows from financing activities

       

Borrowings, net of debt issuance costs

 

$

4,169,695

   

$

2,671,337

 

Repayments of debt

 

(1,467,595)

   

(1,040,000)

 

Increase (decrease) in outstanding checks

 

1,571

   

(3,206)

 

Registration expenses related to the issuance of Partnership common units

 

(855)

   

 

Distributions to Partnership unitholders

 

(969,073)

   

(502,457)

 

Distributions to Chipeta noncontrolling interest owner

 

(9,663)

   

(13,529)

 

Distributions to noncontrolling interest owners of WES Operating

 

(118,225)

   

(386,326)

 

Net contributions from (distributions to) Anadarko

 

458,819

   

97,755

 

Above-market component of swap agreements with Anadarko

 

7,407

   

51,618

 

Finance lease payments – affiliates

 

(508)

   

 

Net cash provided by (used in) financing activities

 

$

2,071,573

   

$

875,192

 

Net increase (decrease) in cash and cash equivalents

 

$

7,820

   

$

12,554

 

Cash and cash equivalents at beginning of period

 

92,142

   

79,588

 

Cash and cash equivalents at end of period

 

$

99,962

   

$

92,142

 

 

Western Midstream Partners, LP

OPERATING STATISTICS

(Unaudited)

 
   

Three Months Ended 
 December 31,

 

Year Ended 
 December 31,

   

2019

 

2018

 

2019

 

2018

Throughput for natural-gas assets (MMcf/d)

Gathering, treating, and transportation

 

534

   

589

   

528

   

546

 

Processing

 

3,532

   

3,307

   

3,497

   

3,231

 

Equity investment (1)

 

423

   

272

   

398

   

291

 

Total throughput

 

4,489

   

4,168

   

4,423

   

4,068

 

Throughput attributable to noncontrolling interests (2)

 

174

   

166

   

175

   

170

 

Total throughput attributable to WES for natural-gas assets

 

4,315

   

4,002

   

4,248

   

3,898

 

Throughput for crude-oil, NGLs, and produced-water assets (MBbls/d)

Gathering, treating, transportation, and disposal

 

957

   

723

   

876

   

534

 

Equity investment (3)

 

449

   

298

   

343

   

241

 

Total throughput

 

1,406

   

1,021

   

1,219

   

775

 

Throughput attributable to noncontrolling interests (2)

 

28

   

20

   

24

   

15

 

Total throughput attributable to WES for crude-oil, NGLs, and produced-water assets

 

1,378

   

1,001

   

1,195

   

760

 

Per-Mcf Adjusted gross margin for natural-gas assets (4)

 

$

1.08

   

$

1.07

   

$

1.07

   

$

1.01

 

Per-Bbl Adjusted gross margin for crude-oil, NGLs, and produced-water assets (5)

 

1.69

   

2.30

   

1.77

   

1.93

 
                                 

(1) 

Represents the 14.81% share of average Fort Union throughput, 22% share of average Rendezvous throughput, 50% share of average Mi Vida and Ranch Westex throughput, and 30% share of average Red Bluff Express throughput.

(2) 

For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019.

(3) 

Represents the 10% share of average White Cliffs throughput; 25% share of average Mont Belvieu JV throughput; 20% share of average TEG, TEP, Whitethorn, and Saddlehorn throughput; 33.33% share of average FRP throughput; and 15% share of average Panola and Cactus II throughput.

(4) 

Average for period. Calculated as Adjusted gross margin for natural-gas assets, divided by total throughput (MMcf/d) attributable to WES for natural-gas assets.

(5) 

Average for period. Calculated as Adjusted gross margin for crude-oil, NGLs, and produced-water assets, divided by total throughput (MBbls/d) attributable to WES for crude-oil, NGLs, and produced-water assets.

 

Western Midstream Partners, LP

OPERATING STATISTICS (CONTINUED)

(Unaudited)

 
   

Three Months Ended December 31,

   

2019

 

2018

 

2019

 

2018

 

2019

 

2018

   

Natural gas

(MMcf/d)

 

Crude oil & NGLs

(MBbls/d)

 

Produced water

(MBbls/d)

Delaware Basin

 

1,274

   

1,101

   

168

   

148

   

610

   

413

 

DJ Basin

 

1,295

   

1,185

   

129

   

107

   

   

 

Equity investments

 

423

   

272

   

449

   

298

   

   

 

Other

 

1,497

   

1,610

   

50

   

55

   

   

 

Total throughput

 

4,489

   

4,168

   

796

   

608

   

610

   

413

 
   

Year Ended December 31,

   

2019

 

2018

 

2019

 

2018

 

2019

 

2018

   

Natural gas

(MMcf/d)

 

Crude oil & NGLs

(MBbls/d)

 

Produced water

(MBbls/d)

Delaware Basin

 

1,226

   

1,041

   

150

   

132

   

556

   

239

 

DJ Basin

 

1,236

   

1,133

   

118

   

105

   

   

 

Equity investments

 

398

   

291

   

343

   

241

   

   

 

Other

 

1,563

   

1,603

   

52

   

58

   

   

 

Total throughput

 

4,423

   

4,068

   

663

   

536

   

556

   

239

 

 

(PRNewsfoto/Western Midstream Partners, LP)

 

 

SOURCE Western Midstream Partners, LP


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