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WES Investors

Western Midstream Announces Third-Quarter 2020 Results
ANNOUNCES PRELIMINARY 2021 GUIDANCE AND $250 MILLION UNIT BUYBACK PROGRAM

HOUSTON, Nov. 9, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced third-quarter 2020 financial and operating results. Net income (loss) available to limited partners for the third quarter of 2020 totaled $241.5 million, or $0.55 per common unit (diluted), with third-quarter 2020 Adjusted EBITDA(1) totaling $518.4 million, third-quarter 2020 Cash flows from operating activities totaling $392.9 million, and third-quarter 2020 Free cash flow(1) totaling $339.2 million.

RECENT HIGHLIGHTS

  • Commenced operations of Loving ROTF Train IV on the DBM oil system, adding 30 MBbls/d of treating capacity; completed project ahead of schedule for approximately 35% less than our previous North Loving Trains
  • Exchanged WES's interest in the $260 million note receivable from Anadarko Petroleum Corporation, a wholly owned subsidiary of Occidental Petroleum Corporation (NYSE: OXY) ("Occidental"), for 27.855 million WES common units owned by Occidental
  • Executed open-market repurchases for $29.0 million of Senior Notes due 2022 and 2023 for an aggregate repurchase price of $27.2 million
  • In October 2020, WES completed the sale of its 14.81% equity interest in Fort Union Gas Gathering, LLC and entered into an option agreement to sell the Partnership's Bison treating facility during the first quarter of 2021 for upfront consideration of $27.0 million

In October 2020, WES announced its third-quarter 2020 per-unit distribution of $0.3110, which is unchanged from WES's second-quarter 2020 per-unit distribution. Third-quarter 2020 Free cash flow after distributions totaled $198.3 million.

 

(1)

Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures.

"As evidenced by our outstanding third-quarter and year-to-date financial and operational results, the WES team continues to surpass expectations as we adapt and respond to market challenges," said President, Chief Executive Officer, and Chief Financial Officer, Michael Ure. "Producer outperformance, the pursuit of operational efficiencies and sustainable cost savings, and continued commercial achievements contributed to the highest quarterly Adjusted EBITDA in WES's history. As a result of the incredible outperformance achieved thus far and anticipated continued success, we expect full-year Adjusted EBITDA above the high-end of our originally issued guidance range of $1.875 billion to $1.975 billion and capital expenditures meaningfully below the low-end of our previously updated 2020 guidance range of $400 million to $450 million."

Ure continued, "The establishment of WES as a stand-alone midstream business has generated improved efficiencies between our commercial, engineering, and operations teams, enabling our organization to maximize the operability of our assets and realize operating and capital savings. Notwithstanding the significant challenges faced this year, we expect to realize approximately $175 million in sustainable annual operating cost and G&A savings compared to our originally issued guidance."

As a result of depressed upstream investment, our third-quarter 2020 volumes declined as expected. Third-quarter 2020 total natural-gas throughput(1) averaged 4.3 Bcf/d, representing a 4-percent sequential-quarter decrease and a 1-percent increase from third-quarter 2019. Third-quarter 2020 total throughput for crude-oil and NGLs assets(1) averaged 689 MBbls/d, representing a 4-percent sequential-quarter decrease and an 11-percent increase from third-quarter 2019. Third-quarter 2020 total throughput for produced-water assets(1) averaged 673 MBbls/d, representing an 11-percent sequential-quarter decrease and an 18-percent increase from third-quarter 2019.

Third-quarter 2020 and year-to-date capital expenditures(2) totaled $36.5 million and $264.1 million, respectively.

 

(1)

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.

(2)

Accrual-based, includes equity investments, and excludes capitalized interest and capital expenditures associated with the 25% third-party interest in Chipeta.

PRELIMINARY 2021 GUIDANCE

Based on current production-forecast information from our customers, WES is providing preliminary 2021 guidance as follows:

  • Adjusted EBITDA(1) between $1.825 billion and $1.925 billion
  • Total capital expenditures(2) between $275 million and $375 million, which represents a $100 million reduction from the midpoint of our previously updated 2020 guidance
  • Debt to Trailing Twelve Month ("TTM") Adjusted EBITDA at or below 4.0 times at year-end 2021
  • Full-year 2021 distributions of at least $1.24 per unit(3)
  • Repay 2021 debt maturity with free cash flow

$250 MILLION UNIT BUYBACK PROGRAM

The board of directors of the Partnership's general partner has authorized the Partnership to commence a buyback program of up to $250 million of the Partnership's common units through December 31, 2021 (the "Purchase Program").

The common units may be purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. The timing and amount of purchases under the program will be determined based on ongoing assessments of capital needs, WES's financial performance, the market price of the common units and other factors, including organic growth and acquisition opportunities and general market conditions. The Purchase Program does not obligate the Partnership to purchase any specific dollar amount or number of units and may be suspended or discontinued at any time.

"Over the last year, we have reexamined each aspect of our operations and discovered ways to operate in a more cost-effective manner to generate incremental free cash flow and increase stakeholder value," said Michael Ure. "This year, following our third-quarter distribution, we will have returned over $1.15 billion, approximately 10% of our enterprise value, to stakeholders through debt repurchases, cash distributions, and units acquired through the Anadarko note exchange. Additionally, by prioritizing leverage reduction with Debt-to-TTM Adjusted EBITDA currently at 4.0 times, we have already exceeded our year-end 2020 target of at or below 4.5 times and met our year-end 2021 target of at or below 4.0 times. We expect to achieve strong 2021 financial results with minimal capital by further refining and enhancing our business model while continuing to operate safely, deliver exceptional customer service, and return cash to stakeholders."

 

(1)

A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss) is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time.

(2)

Accrual-based, includes equity investments, and excludes capitalized interest and capital expenditures associated with the 25% third-party interest in Chipeta.

(3)

The Board of Directors will continue to evaluate the distribution on a quarterly basis.

CONFERENCE CALL TOMORROW AT 1 P.M. CST

WES will host a conference call on Tuesday, November 10, 2020, at 1:00 p.m. Central Standard Time (2:00 p.m. Eastern Standard Time) to discuss third-quarter 2020 results and preliminary 2021 guidance. 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 7476557. 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.

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 expectations; the ultimate impact of efforts to fight COVID-19 on the global economy and the timeline for a recovery in commodity demand and prices; 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. WES undertakes no obligation to publicly update or revise any forward-looking statements.

WESTERN MIDSTREAM CONTACTS

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

Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@WesternMidstream.com
832.636.6000

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

WES defines "Free cash flow" as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings. Management considers Free cash flow an appropriate metric for assessing capital discipline, cost efficiency, and balance-sheet strength. Although Free cash flow is the metric used to assess WES's ability to make distributions to unitholders, this measure should not be viewed as indicative of the actual amount of cash that is available for distributions or planned for distributions for a given period. Instead, Free cash flow should be considered indicative of the amount of cash that is available for distributions, debt repayments, and other general partnership purposes.

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

WES defines Adjusted gross margin attributable to Western Midstream Partners, LP ("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.

Below are reconciliations of (i) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Free cash flow, Adjusted EBITDA, and Adjusted gross margin 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. Free cash flow, Adjusted EBITDA, and Adjusted gross margin as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Free cash flow, Adjusted EBITDA, and Adjusted gross margin 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.

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

 

Free Cash Flow

 
   

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

thousands

 

2020

 

2019

 

2020

 

2019

Reconciliation of Net cash provided by operating activities to Free 
     cash flow

               

Net cash provided by operating activities

 

$

392,894

   

$

340,154

   

$

1,131,893

   

$

1,026,685

 

Less:

               

Capital expenditures

 

59,197

   

242,841

   

372,262

   

947,266

 

Contributions to equity investments

 

2,953

   

30,785

   

19,017

   

108,118

 

Add:

               

Distributions from equity investments in excess of cumulative
earnings

 

8,410

   

4,151

   

21,750

   

21,203

 

Free cash flow

 

$

339,154

   

$

70,679

   

$

762,364

   

$

(7,496)

 

Cash flow information

               

Net cash provided by operating activities

         

$

1,131,893

   

$

1,026,685

 

Net cash used in investing activities

         

(426,670)

   

(3,134,643)

 

Net cash provided by (used in) financing activities

         

(667,140)

   

2,133,246

 

 

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

 

Adjusted EBITDA

 
   

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

thousands

 

2020

 

2019

 

2020

 

2019

Reconciliation of Net income (loss) to Adjusted EBITDA

               

Net income (loss)

 

$

254,135

   

$

125,223

   

$

246,076

   

$

512,260

 

Add:

               

Distributions from equity investments

 

72,070

   

71,005

   

209,566

   

203,540

 

Non-cash equity-based compensation expense

 

5,616

   

4,137

   

16,527

   

10,278

 

Interest expense

 

95,571

   

78,524

   

278,811

   

223,872

 

Income tax expense

 

3,028

   

1,309

   

8,072

   

12,679

 

Depreciation and amortization

 

132,564

   

127,914

   

384,688

   

362,977

 

Impairments (1)

 

34,640

   

3,107

   

641,592

   

4,294

 

Other expense

 

3

   

67,961

   

1,953

   

161,813

 

Less:

               

Gain (loss) on divestiture and other, net

 

(768)

   

248

   

(3,651)

   

(1,403)

 

Gain (loss) on early extinguishment of debt

 

1,632

   

   

10,372

   

 

Equity income, net – related parties

 

61,026

   

53,893

   

176,788

   

175,483

 

Interest income – Anadarko note receivable

 

3,286

   

4,225

   

11,736

   

12,675

 

Other income

 

721

   

   

2,373

   

 

Income tax benefit

 

   

   

4,280

   

 

Adjusted EBITDA attributable to noncontrolling interests (2)

 

13,372

   

10,601

   

39,001

   

33,495

 

Adjusted EBITDA

 

$

518,358

   

$

410,213

   

$

1,546,386

   

$

1,271,463

 

Reconciliation of Net cash provided by operating activities to 
     Adjusted EBITDA

               

Net cash provided by operating activities

 

$

392,894

   

$

340,154

   

$

1,131,893

   

$

1,026,685

 

Interest (income) expense, net

 

92,285

   

74,299

   

267,075

   

211,197

 

Uncontributed cash-based compensation awards

 

   

141

   

   

789

 

Accretion and amortization of long-term obligations, net

 

(2,185)

   

(3,651)

   

(6,482)

   

(6,499)

 

Current income tax expense (benefit)

 

1,434

   

(407)

   

1,399

   

6,078

 

Other (income) expense, net (3)

 

(200)

   

(495)

   

(612)

   

(1,397)

 

Cash paid to settle interest-rate swaps

 

6,418

   

   

19,181

   

 

Distributions from equity investments in excess of cumulative earnings 
     – related parties

 

8,410

   

4,151

   

21,750

   

21,203

 

Changes in assets and liabilities:

               

Accounts receivable, net

 

(7,798)

   

12,418

   

192,338

   

9,750

 

Accounts and imbalance payables and accrued liabilities, net

 

34,509

   

(11,808)

   

(37,814)

   

69,390

 

Other items, net

 

5,963

   

6,012

   

(3,341)

   

(32,238)

 

Adjusted EBITDA attributable to noncontrolling interests (2)

 

(13,372)

   

(10,601)

   

(39,001)

   

(33,495)

 

Adjusted EBITDA

 

$

518,358

   

$

410,213

   

$

1,546,386

   

$

1,271,463

 

Cash flow information

               

Net cash provided by operating activities

         

$

1,131,893

   

$

1,026,685

 

Net cash used in investing activities

         

(426,670)

   

(3,134,643)

 

Net cash provided by (used in) financing activities

         

(667,140)

   

2,133,246

 

(1)  Includes goodwill impairment for the nine months ended September 30, 2020.

(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.

(3)  Excludes non-cash losses on interest-rate swaps of $68.3 million and $162.9 million for the three and nine months ended September 30, 2019, respectively.

 

 

Western Midstream Partners, LP

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)

 

Adjusted Gross Margin

 
   

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

thousands

 

2020

 

2019

 

2020

 

2019

Reconciliation of Operating income (loss) to Adjusted gross margin

               

Operating income (loss)

 

$

347,096

   

$

268,725

   

$

505,959

   

$

897,713

 

Add:

               

Distributions from equity investments

 

72,070

   

71,005

   

209,566

   

203,540

 

Operation and maintenance

 

132,293

   

176,572

   

436,670

   

467,832

 

General and administrative

 

41,578

   

30,769

   

118,466

   

83,640

 

Property and other taxes

 

19,392

   

15,281

   

57,263

   

45,848

 

Depreciation and amortization

 

132,564

   

127,914

   

384,688

   

362,977

 

Impairments (1)

 

34,640

   

3,107

   

641,592

   

4,294

 

Less:

               

Gain (loss) on divestiture and other, net

 

(768)

   

248

   

(3,651)

   

(1,403)

 

Equity income, net – related parties

 

61,026

   

53,893

   

176,788

   

175,483

 

Reimbursed electricity-related charges recorded as revenues

 

20,272

   

23,969

   

61,100

   

60,747

 

Adjusted gross margin attributable to noncontrolling interests (2)

 

17,574

   

15,619

   

50,166

   

47,203

 

Adjusted gross margin

 

$

681,529

   

$

599,644

   

$

2,069,801

   

$

1,783,814

 

Adjusted gross margin for natural-gas assets

 

$

458,790

   

$

401,380

   

$

1,384,632

   

$

1,226,302

 

Adjusted gross margin for crude-oil and NGLs assets

 

160,886

   

147,818

   

494,481

   

416,904

 

Adjusted gross margin for produced-water assets

 

61,853

   

50,446

   

190,688

   

140,608

 

(1)  Includes goodwill impairment for the nine months ended September 30, 2020.

(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.

 

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
   

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

thousands except per-unit amounts

 

2020

 

2019

 

2020

 

2019

Revenues and other

               

Service revenues – fee based

 

$

636,522

   

$

587,965

   

$

1,980,546

   

$

1,761,483

 

Service revenues – product based

 

12,316

   

9,476

   

35,237

   

45,530

 

Product sales

 

30,106

   

68,248

   

108,491

   

214,850

 

Other

 

100

   

338

   

838

   

1,101

 

Total revenues and other

 

679,044

   

666,027

   

2,125,112

   

2,022,964

 

Equity income, net – related parties

 

61,026

   

53,893

   

176,788

   

175,483

 

Operating expenses

               

Cost of product

 

31,739

   

97,800

   

153,611

   

334,740

 

Operation and maintenance

 

132,293

   

176,572

   

436,670

   

467,832

 

General and administrative

 

41,578

   

30,769

   

118,466

   

83,640

 

Property and other taxes

 

19,392

   

15,281

   

57,263

   

45,848

 

Depreciation and amortization

 

132,564

   

127,914

   

384,688

   

362,977

 

Long-lived asset and other impairments

 

34,640

   

3,107

   

200,575

   

4,294

 

Goodwill impairment

 

   

   

441,017

   

 

Total operating expenses

 

392,206

   

451,443

   

1,792,290

   

1,299,331

 

Gain (loss) on divestiture and other, net

 

(768)

   

248

   

(3,651)

   

(1,403)

 

Operating income (loss)

 

347,096

   

268,725

   

505,959

   

897,713

 

Interest income – Anadarko note receivable

 

3,286

   

4,225

   

11,736

   

12,675

 

Interest expense

 

(95,571)

   

(78,524)

   

(278,811)

   

(223,872)

 

Gain (loss) on early extinguishment of debt

 

1,632

   

   

10,372

   

 

Other income (expense), net (1)

 

720

   

(67,894)

   

612

   

(161,577)

 

Income (loss) before income taxes

 

257,163

   

126,532

   

249,868

   

524,939

 

Income tax expense (benefit)

 

3,028

   

1,309

   

3,792

   

12,679

 

Net income (loss)

 

254,135

   

125,223

   

246,076

   

512,260

 

Net income (loss) attributable to noncontrolling interests

 

7,524

   

4,006

   

(17,045)

   

102,789

 

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

 

$

246,611

   

$

121,217

   

$

263,121

   

$

409,471

 

Limited partners' interest in net income (loss):

               

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

 

$

246,611

   

$

121,217

   

$

263,121

   

$

409,471

 

Pre-acquisition net (income) loss allocated to Anadarko

 

   

   

   

(29,279)

 

General partner interest in net (income) loss

 

(5,132)

   

   

(5,462)

   

 

Limited partners' interest in net income (loss)

 

$

241,479

   

$

121,217

   

$

257,659

   

$

380,192

 

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

 

$

0.55

   

$

0.27

   

$

0.58

   

$

0.94

 

Weighted-average common units outstanding – basic and 
     diluted

 

438,857

   

453,021

   

442,255

   

402,421

 

(1)  Includes losses associated with the interest-rate swap agreements for the three and nine months ended September 30, 2019.

 

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

thousands except number of units

 

September 30,
2020

 

December 31,
2019

Total current assets

 

$

643,933

   

$

402,412

 

Anadarko note receivable

 

   

260,000

 

Net property, plant, and equipment

 

8,825,139

   

9,064,931

 

Other assets

 

2,220,603

   

2,619,110

 

Total assets

 

$

11,689,675

   

$

12,346,453

 

Total current liabilities

 

$

837,429

   

$

485,954

 

Long-term debt

 

7,440,394

   

7,951,565

 

Asset retirement obligations

 

327,285

   

336,396

 

Other liabilities

 

294,111

   

227,245

 

Total liabilities

 

8,899,219

   

9,001,160

 

Equity and partners' capital

       

Common units (416,196,092 and 443,971,409 units issued and outstanding at September 30, 
     2020, and December 31, 2019, respectively)

 

2,674,682

   

3,209,947

 

General partner units (9,060,641 units issued and outstanding at September 30, 2020, and 
     December 31, 2019)

 

(20,032)

   

(14,224)

 

Noncontrolling interests

 

135,806

   

149,570

 

Total liabilities, equity, and partners' capital

 

$

11,689,675

   

$

12,346,453

 

 

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 
   

Nine Months Ended 
September 30,

thousands

 

2020

 

2019

Cash flows from operating activities

       

Net income (loss)

 

$

246,076

   

$

512,260

 

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

       

Depreciation and amortization

 

384,688

   

362,977

 

Long-lived asset and other impairments

 

200,575

   

4,294

 

Goodwill impairment

 

441,017

   

 

(Gain) loss on divestiture and other, net

 

3,651

   

1,403

 

(Gain) loss on early extinguishment of debt

 

(10,372)

   

 

(Gain) loss on interest-rate swaps

 

   

162,974

 

Cash paid to settle interest-rate swaps

 

(19,181)

   

 

Change in other items, net

 

(114,561)

   

(17,223)

 

Net cash provided by operating activities

 

$

1,131,893

   

$

1,026,685

 

Cash flows from investing activities

       

Capital expenditures

 

$

(372,262)

   

$

(947,266)

 

Acquisitions from related parties

 

   

(2,007,501)

 

Acquisitions from third parties

 

   

(93,303)

 

Contributions to equity investments - related parties

 

(19,017)

   

(108,118)

 

Distributions from equity investments in excess of cumulative earnings – related parties

 

21,750

   

21,203

 

Proceeds from the sale of assets to third parties

 

   

342

 

Additions to materials and supplies inventory and other

 

(57,141)

   

 

Net cash used in investing activities

 

$

(426,670)

   

$

(3,134,643)

 

Cash flows from financing activities

       

Borrowings, net of debt issuance costs

 

$

3,681,173

   

$

3,950,750

 

Repayments of debt

 

(3,780,390)

   

(1,467,595)

 

Increase (decrease) in outstanding checks

 

691

   

(9,204)

 

Registration expenses related to the issuance of Partnership common units

 

   

(855)

 

Distributions to Partnership unitholders

 

(563,579)

   

(688,193)

 

Distributions to Chipeta noncontrolling interest owner

 

(3,923)

   

(5,200)

 

Distributions to noncontrolling interest owners of WES Operating

 

(11,545)

   

(112,430)

 

Net contributions from (distributions to) related parties

 

22,674

   

458,819

 

Above-market component of swap agreements with Anadarko

 

   

7,407

 

Finance lease payments

 

(12,241)

   

(253)

 

Net cash provided by (used in) financing activities

 

$

(667,140)

   

$

2,133,246

 

Net increase (decrease) in cash and cash equivalents

 

$

38,083

   

$

25,288

 

Cash and cash equivalents at beginning of period

 

99,962

   

92,142

 

Cash and cash equivalents at end of period

 

$

138,045

   

$

117,430

 

 

 

Western Midstream Partners, LP

OPERATING STATISTICS

(Unaudited)

 
   

Three Months Ended 
September 30,

 

Nine Months Ended 
September 30,

   

2020

 

2019

 

2020

 

2019

Throughput for natural-gas assets (MMcf/d)

               

Gathering, treating, and transportation

 

558

   

523

   

551

   

526

 

Processing

 

3,404

   

3,458

   

3,537

   

3,484

 

Equity investments (1)

 

450

   

390

   

451

   

390

 

Total throughput

 

4,412

   

4,371

   

4,539

   

4,400

 

Throughput attributable to noncontrolling interests (2)

 

159

   

172

   

162

   

175

 

Total throughput attributable to WES for natural-gas assets

 

4,253

   

4,199

   

4,377

   

4,225

 

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

               

Gathering, treating, and transportation

 

310

   

328

   

343

   

311

 

Equity investments (3)

 

393

   

307

   

395

   

308

 

Total throughput

 

703

   

635

   

738

   

619

 

Throughput attributable to noncontrolling interests (2)

 

14

   

12

   

15

   

12

 

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

 

689

   

623

   

723

   

607

 

Throughput for produced-water assets (MBbls/d)

               

Gathering and disposal

 

687

   

580

   

726

   

538

 

Throughput attributable to noncontrolling interests (2)

 

14

   

12

   

15

   

11

 

Total throughput attributable to WES for produced-water assets

 

673

   

568

   

711

   

527

 

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

 

$

1.17

   

$

1.04

   

$

1.15

   

$

1.06

 

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

 

2.54

   

2.58

   

2.50

   

2.52

 

Per-Bbl Adjusted gross margin for produced-water assets (6)

 

1.00

   

0.97

   

0.98

   

0.98

 

(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.

(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 and NGLs assets, divided by total throughput (MBbls/d) attributable to WES 
     for crude-oil and NGLs assets.

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

 

 

Western Midstream Partners, LP

OPERATING STATISTICS (CONTINUED)

(Unaudited)

 
   

Three Months Ended September 30,

   

2020

 

2019

 

2020

 

2019

 

2020

 

2019

   

Natural gas

(MMcf/d)

 

Crude oil & NGLs

(MBbls/d)

 

Produced water

(MBbls/d)

Delaware Basin

 

1,294

   

1,272

   

183

   

147

   

687

   

580

 

DJ Basin

 

1,290

   

1,124

   

86

   

128

   

   

 

Equity investments

 

450

   

390

   

393

   

307

   

   

 

Other

 

1,378

   

1,585

   

41

   

53

   

   

 

Total throughput

 

4,412

   

4,371

   

703

   

635

   

687

   

580

 
 
 
   

Nine Months Ended September 30,

   

2020

 

2019

 

2020

 

2019

 

2020

 

2019

   

Natural gas

(MMcf/d)

 

Crude oil & NGLs

(MBbls/d)

 

Produced water

(MBbls/d)

Delaware Basin

 

1,330

   

1,210

   

192

   

144

   

726

   

538

 

DJ Basin

 

1,342

   

1,216

   

109

   

114

   

   

 

Equity investments

 

451

   

390

   

395

   

308

   

   

 

Other

 

1,416

   

1,584

   

42

   

53

   

   

 

Total throughput

 

4,539

   

4,400

   

738

   

619

   

726

   

538

 

 

(PRNewsfoto/Western Midstream Partners, LP)

 

SOURCE Western Midstream Partners, LP


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