View All News

Western Midstream Announces Third-Quarter 2022 Results
11/02/2022
  • Reported third-quarter 2022 Net income attributable to limited partners of $259.5 million, generating third-quarter Adjusted EBITDA(1) of $524.8 million.
  • Reported third-quarter 2022 Cash flows provided by operating activities of $468.8 million, generating third-quarter Free cash flow(1) of $330.4 million.

HOUSTON--(BUSINESS WIRE)-- Today Western Midstream Partners, LP (NYSE: WES) (“WES” or the “Partnership”) announced third-quarter 2022 financial and operating results. Net income (loss) attributable to limited partners for the third quarter of 2022 totaled $259.5 million, or $0.67 per common unit (diluted), with third-quarter 2022 Adjusted EBITDA(1) totaling $524.8 million, third-quarter 2022 Cash flows provided by operating activities totaling $468.8 million, and third-quarter 2022 Free cash flow(1) totaling $330.4 million.

RECENT HIGHLIGHTS

  • Processed record Delaware Basin natural-gas throughput of 1.54 Bcf/d for the third quarter, representing a 3-percent sequential-quarter increase.
  • Gathered record Delaware Basin produced-water throughput of 895 MBbls/d for the third quarter, representing a 1-percent sequential-quarter increase.
  • After quarter end, executed a long-term amendment to Occidental Petroleum Corporation’s (“Occidental”) oil gathering agreement in the Delaware Basin to provide up to approximately 57 MBbls/d of peak additional firm-treating capacity supported by significant corresponding minimum-volume commitments.
  • After quarter end, executed a long-term amendment to Occidental’s gas-processing agreement in the Delaware Basin to provide up to 250 MMcf/d of peak additional firm-processing capacity supported by significant corresponding minimum-volume commitments.
  • After quarter end, executed several contracts to provide midstream services, including gas gathering, condensate gathering, and condensate stabilization, for new customers in the Maverick Basin of South Texas.
  • After quarter end, sold our 15-percent interest in Cactus II for $265 million.
  • In conjunction with the sale of the equity interest in Cactus II, increased the previously announced $1.0 billion unit repurchase program to $1.25 billion, which runs through December 31, 2024.
  • Acquired the remaining 50-percent interest in Ranch Westex JV for $41.0 million, immediately adding 125 MMcf/d of operated natural-gas processing capacity to our West Texas complex.
  • Repurchased 18,506,215 common units for aggregate consideration of $460.7 million year-to-date through October 28, 2022. The total common units repurchased since September 2020 now represents 13.5% of total unaffected units outstanding.

On November 14, 2022, WES will pay its third-quarter 2022 per-unit distribution of $0.50, which is in line with the prior quarter’s distribution and is consistent with the Partnership’s previously announced annualized regular quarterly distribution (“Base Distribution”) target of $2.00 per unit. Third-quarter 2022 Free cash flow after distributions totaled $132.7 million. Third-quarter 2022 and year-to-date capital expenditures(3) totaled $171.5 million and $382.1 million, respectively.

Third-quarter 2022 total natural-gas throughput(5) averaged 4.3 Bcf/d, remaining flat relative to the prior quarter. Third-quarter 2022 total throughput for crude-oil and NGLs assets(5) averaged 715 MBbls/d, representing a 7-percent sequential-quarter increase. Third-quarter 2022 total throughput for produced-water assets(5) averaged 877 MBbls/d, representing a 2-percent sequential-quarter increase.

“Our well-positioned assets are a competitive advantage that continue to yield results with another record-breaking quarter of natural-gas and produced-water throughput in the Delaware Basin. We expect continued throughput growth in the Delaware Basin into next year as producer activity levels remain strong,” said Michael Ure, President and Chief Executive Officer.

Mr. Ure continued, “Despite volumetric records in the Delaware Basin, our third-quarter Adjusted EBITDA declined on a sequential-quarter basis primarily due to reduced excess natural-gas liquids volumes in combination with lower natural-gas liquids pricing, lower distributions from equity investments, and higher operation and maintenance expense. As expected, our operation and maintenance expense increased sequentially due to higher utility costs, driven by higher natural-gas pricing, and previously disclosed costs from field-level projects associated with our corporate transformation efforts.”

“Our recent M&A activity reflects our team’s focus on strategically pursuing and executing transactions that create substantial value for WES. We are pleased to announce the acquisition of the remaining 50-percent interest in our Ranch Westex joint venture, which adds an incremental 125 MMcf/d of operated natural-gas processing capacity to our West Texas complex. This acquisition is in line with our M&A strategy that focuses on adding processing capacity in our core operating basins, allocating capital efficiently, and generating strong returns for our unitholders. Furthermore, our recently executed agreement to divest our interest in our Cactus II equity investment asset will allow us to return additional capital to our unitholders through our increased unit repurchase program.”

“Additionally, we’re excited to further strengthen our relationship with one of the premier producers in the Delaware Basin by executing amendments to Occidental’s oil gathering and natural-gas processing agreements shortly after quarter end. These amendments increase Occidental’s firm capacities and minimum-volume commitments on our infrastructure and position both organizations for future success.”

UNIT BUYBACK PROGRAM

Previously, the Board authorized a buyback program of up to $1.0 billion of the Partnership’s common units through December 31, 2024 (the “Purchase Program”). On November 1, the Board authorized an increase in the Purchase Program to $1.250 billion.

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 Purchase 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.

CONFERENCE CALL TOMORROW AT 1:00 P.M. CT

WES will host a conference call on Thursday, November 3, 2022, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss third-quarter 2022 results. To participate, individuals should dial 888-330-2354 (Domestic) or 240-789-2706 (International) fifteen minutes before the scheduled conference call time and enter participant access code 32054. 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 following the call.

For additional details on WES’s financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.

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 Texas, New Mexico, Colorado, Utah, Wyoming, and Pennsylvania, 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; 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.

______________________________________________________________

 

(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. 

 

(2) 

A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Free cash flow range to net cash provided by operating activities, is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding GAAP equivalent for the Adjusted EBITDA or Free cash flow ranges. 

 

(3) 

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

 

(4) 

Subject to Board review and approval on a quarterly basis based on the needs of the business. 

 

(5) 

Represents total throughput attributable to WES, which excludes (i) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, 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

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues and other

 

 

 

 

 

 

 

 

Service revenues – fee based

 

$

666,555

 

 

$

650,482

 

 

$

1,954,105

 

 

$

1,841,742

 

Service revenues – product based

 

 

91,356

 

 

 

28,812

 

 

 

202,721

 

 

 

88,267

 

Product sales

 

 

79,430

 

 

 

84,298

 

 

 

314,755

 

 

 

227,359

 

Other

 

 

227

 

 

 

248

 

 

 

703

 

 

 

577

 

Total revenues and other

 

 

837,568

 

 

 

763,840

 

 

 

2,472,284

 

 

 

2,157,945

 

Equity income, net – related parties

 

 

41,317

 

 

 

48,506

 

 

 

139,388

 

 

 

159,337

 

Operating expenses

 

 

 

 

 

 

 

 

Cost of product

 

 

106,833

 

 

 

83,232

 

 

 

328,237

 

 

 

250,245

 

Operation and maintenance

 

 

190,514

 

 

 

140,838

 

 

 

487,643

 

 

 

434,198

 

General and administrative

 

 

48,185

 

 

 

50,409

 

 

 

144,635

 

 

 

139,973

 

Property and other taxes

 

 

19,390

 

 

 

13,641

 

 

 

60,494

 

 

 

45,992

 

Depreciation and amortization

 

 

156,837

 

 

 

139,002

 

 

 

430,455

 

 

 

407,404

 

Long-lived asset and other impairments

 

 

4

 

 

 

1,594

 

 

 

94

 

 

 

29,198

 

Total operating expenses

 

 

521,763

 

 

 

428,716

 

 

 

1,451,558

 

 

 

1,307,010

 

Gain (loss) on divestiture and other, net

 

 

(104

)

 

 

(364

)

 

 

(884

)

 

 

278

 

Operating income (loss)

 

 

357,018

 

 

 

383,266

 

 

 

1,159,230

 

 

 

1,010,550

 

Interest expense

 

 

(83,106

)

 

 

(93,257

)

 

 

(249,333

)

 

 

(287,040

)

Gain (loss) on early extinguishment of debt

 

 

 

 

 

(24,655

)

 

 

91

 

 

 

(24,944

)

Other income (expense), net

 

 

56

 

 

 

110

 

 

 

117

 

 

 

(1,013

)

Income (loss) before income taxes

 

 

273,968

 

 

 

265,464

 

 

 

910,105

 

 

 

697,553

 

Income tax expense (benefit)

 

 

387

 

 

 

1,826

 

 

 

3,683

 

 

 

4,403

 

Net income (loss)

 

 

273,581

 

 

 

263,638

 

 

 

906,422

 

 

 

693,150

 

Net income (loss) attributable to noncontrolling interests

 

 

7,836

 

 

 

7,913

 

 

 

25,643

 

 

 

20,375

 

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

 

$

265,745

 

 

$

255,725

 

 

$

880,779

 

 

$

672,775

 

Limited partners’ interest in net income (loss):

 

 

 

 

 

 

 

 

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

 

$

265,745

 

 

$

255,725

 

 

$

880,779

 

 

$

672,775

 

General partner interest in net (income) loss

 

 

(6,244

)

 

 

(5,527

)

 

 

(19,794

)

 

 

(14,484

)

Limited partners’ interest in net income (loss)

 

$

259,501

 

 

$

250,198

 

 

$

860,985

 

 

$

658,291

 

Net income (loss) per common unit – basic

 

$

0.67

 

 

$

0.61

 

 

$

2.16

 

 

$

1.60

 

Net income (loss) per common unit – diluted

 

$

0.66

 

 

$

0.61

 

 

$

2.15

 

 

$

1.59

 

Weighted-average common units outstanding – basic

 

 

388,906

 

 

 

411,909

 

 

 

398,343

 

 

 

412,690

 

Weighted-average common units outstanding – diluted

 

 

390,318

 

 

 

412,714

 

 

 

399,545

 

 

 

413,150

 

                                   

 

 

 

 

 

 

Western Midstream Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 

 

thousands except number of units

 

September 30,

2 022

 

December 31,

2 021

Total current assets

 

$

896,300

 

 

$

684,764

 

Net property, plant, and equipment

 

 

8,539,683

 

 

 

8,512,907

 

Other assets

 

 

2,036,599

 

 

 

2,075,408

 

Total assets

 

$

11,472,582

 

 

$

11,273,079

 

Total current liabilities

 

$

745,923

 

 

$

1,140,197

 

Long-term debt

 

 

7,027,361

 

 

 

6,400,616

 

Asset retirement obligations

 

 

310,500

 

 

 

298,275

 

Other liabilities

 

 

383,112

 

 

 

338,231

 

Total liabilities

 

 

8,466,896

 

 

 

8,177,319

 

Equity and partners’ capital

 

 

 

 

Common units (385,586,841 and 402,993,919 units issued and outstanding at September 30, 2022, and December 31, 2021, respectively)

 

 

2,868,665

 

 

 

2,966,955

 

General partner units (9,060,641 units issued and outstanding at September 30, 2022, and December 31, 2021)

 

 

(1,112

)

 

 

(8,882

)

Noncontrolling interests

 

 

138,133

 

 

 

137,687

 

Total liabilities, equity, and partners’ capital

 

$

11,472,582

 

 

$

11,273,079

 

 

 

 

 

 

Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 

 

 

Nine Months Ended

September 30,

thousands

 

 

2022

 

 

 

2021

 

Cash flows from operating activities

 

 

 

 

Net income (loss)

 

$

906,422

 

 

$

693,150

 

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

 

 

 

 

Depreciation and amortization

 

 

430,455

 

 

 

407,404

 

Long-lived asset and other impairments

 

 

94

 

 

 

29,198

 

(Gain) loss on divestiture and other, net

 

 

884

 

 

 

(278

)

(Gain) loss on early extinguishment of debt

 

 

(91

)

 

 

24,944

 

Change in other items, net

 

 

(125,557

)

 

 

(49,424

)

Net cash provided by operating activities

 

$

1,212,207

 

 

$

1,104,994

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

$

(341,505

)

 

$

(219,757

)

Acquisitions from third parties

 

 

(41,018

)

 

 

 

Contributions to equity investments - related parties

 

 

(8,899

)

 

 

(3,683

)

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

 

 

41,058

 

 

 

30,075

 

Proceeds from the sale of assets to third parties

 

 

1,111

 

 

 

8,002

 

(Increase) decrease in materials and supplies inventory and other

 

 

(6,999

)

 

 

(1,924

)

Net cash used in investing activities

 

$

(356,252

)

 

$

(187,287

)

Cash flows from financing activities

 

 

 

 

Borrowings, net of debt issuance costs

 

$

1,389,010

 

 

$

400,000

 

Repayments of debt

 

 

(1,268,548

)

 

 

(1,132,966

)

Increase (decrease) in outstanding checks

 

 

1,459

 

 

 

(11,757

)

Distributions to Partnership unitholders

 

 

(538,690

)

 

 

(398,896

)

Distributions to Chipeta noncontrolling interest owner

 

 

(5,020

)

 

 

(2,734

)

Distributions to noncontrolling interest owner of WES Operating

 

 

(20,177

)

 

 

(9,934

)

Net contributions from (distributions to) related parties

 

 

1,161

 

 

 

6,673

 

Unit repurchases

 

 

(447,075

)

 

 

(104,366

)

Other

 

 

(10,981

)

 

 

(8,787

)

Net cash provided by (used in) financing activities

 

$

(898,861

)

 

$

(1,262,767

)

Net increase (decrease) in cash and cash equivalents

 

$

(42,906

)

 

$

(345,060

)

Cash and cash equivalents at beginning of period

 

 

201,999

 

 

 

444,922

 

Cash and cash equivalents at end of period

 

$

159,093

 

 

$

99,862

 

 

 

 

 

 

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

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 interest owners’ proportionate share of revenues and cost of product.

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) income tax benefit, (vi) other income, and (vii) the noncontrolling interest owners’ proportionate share of revenues and expenses.

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.

Below are reconciliations of (i) gross margin (GAAP) to Adjusted gross margin (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that Adjusted gross margin, Adjusted EBITDA, and Free cash flow 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. Adjusted gross margin, Adjusted EBITDA, and Free cash flow as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES’s Adjusted gross margin, Adjusted EBITDA, and Free cash flow should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as gross margin or cash flows provided by operating activities.

 

 

 

 

 

Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
 

 

Adjusted Gross Margin 

 

 

Three Months Ended

thousands

 

September 30,

2 022

 

June 30,

2 022

Reconciliation of Gross margin to Adjusted gross margin

Total revenues and other

 

$

837,568

 

$

876,419

Less:

 

 

 

 

Cost of product

 

 

106,833

 

 

148,556

Depreciation and amortization

 

 

156,837

 

 

139,036

Gross margin

 

 

573,898

 

 

588,827

Add:

 

 

 

 

Distributions from equity investments

 

 

58,957

 

 

66,016

Depreciation and amortization

 

 

156,837

 

 

139,036

Less:

 

 

 

 

Reimbursed electricity-related charges recorded as revenues

 

 

20,741

 

 

19,042

Adjusted gross margin attributable to noncontrolling interests (1)

 

 

18,886

 

 

19,166

Adjusted gross margin

 

$

750,065

 

$

755,671

Adjusted gross margin for natural-gas assets

 

$

521,117

 

$

528,983

Adjusted gross margin for crude-oil and NGLs assets

 

 

153,225

 

 

155,686

Adjusted gross margin for produced-water assets

 

 

75,723

 

 

71,002

(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. 

 

               

 

 

 

 

 

 

Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
 

 

Adjusted EBITDA 

 

 

Three Months Ended

thousands

 

September 30,

2 022

 

June 30,

2 022

Reconciliation of Net income (loss) to Adjusted EBITDA

Net income (loss)

 

$

273,581

 

 

$

315,171

 

Add:

 

 

 

 

Distributions from equity investments

 

 

58,957

 

 

 

66,016

 

Non-cash equity-based compensation expense

 

 

6,464

 

 

 

7,038

 

Interest expense

 

 

83,106

 

 

 

80,772

 

Income tax expense

 

 

387

 

 

 

1,491

 

Depreciation and amortization

 

 

156,837

 

 

 

139,036

 

Impairments

 

 

4

 

 

 

90

 

Other expense

 

 

165

 

 

 

181

 

Less:

 

 

 

 

Gain (loss) on divestiture and other, net

 

 

(104

)

 

 

(1,150

)

Gain (loss) on early extinguishment of debt

 

 

 

 

 

91

 

Equity income, net – related parties

 

 

41,317

 

 

 

48,464

 

Other income

 

 

58

 

 

 

 

Adjusted EBITDA attributable to noncontrolling interests (1)

 

 

13,406

 

 

 

14,072

 

Adjusted EBITDA

 

$

524,824

 

 

$

548,318

 

Reconciliation of Net cash provided by operating activities to Adjusted EBITDA

Net cash provided by operating activities

 

$

468,768

 

 

$

466,981

 

Interest (income) expense, net

 

 

83,106

 

 

 

80,772

 

Accretion and amortization of long-term obligations, net

 

 

(1,773

)

 

 

(1,804

)

Current income tax expense (benefit)

 

 

550

 

 

 

703

 

Other (income) expense, net

 

 

(56

)

 

 

45

 

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

 

 

15,651

 

 

 

15,482

 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

(66,875

)

 

 

114,696

 

Accounts and imbalance payables and accrued liabilities, net

 

 

17,840

 

 

 

(97,201

)

Other items, net

 

 

21,019

 

 

 

(17,284

)

Adjusted EBITDA attributable to noncontrolling interests (1)

 

 

(13,406

)

 

 

(14,072

)

Adjusted EBITDA

 

$

524,824

 

 

$

548,318

 

Cash flow information

 

 

 

 

Net cash provided by operating activities

 

$

468,768

 

 

$

466,981

 

Net cash used in investing activities

 

 

(185,305

)

 

 

(99,330

)

Net cash provided by (used in) financing activities

 

 

(221,804

)

 

 

(518,466

)

(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. 

 

                   

 

 

 

 

 

 

Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)

 

Free Cash Flow

 

 

Three Months Ended

thousands

 

September 30,

2 022

 

June 30,

2 022

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

Net cash provided by operating activities

 

$

468,768

 

 

$

466,981

 

Less:

 

 

 

 

Capital expenditures

 

 

150,148

 

 

 

107,386

 

Contributions to equity investments – related parties

 

 

3,859

 

 

 

2,970

 

Add:

 

 

 

 

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

 

 

15,651

 

 

 

15,482

 

Free cash flow

 

$

330,412

 

 

$

372,107

 

Cash flow information

 

 

 

 

Net cash provided by operating activities

 

$

468,768

 

 

$

466,981

 

Net cash used in investing activities

 

 

(185,305

)

 

 

(99,330

)

Net cash provided by (used in) financing activities

 

 

(221,804

)

 

 

(518,466

)

 

 

 

 

 

Western Midstream Partners, LP
OPERATING STATISTICS
(Unaudited)

 

 

 

Three Months Ended

 

 

September 30,

2 022

 

June 30,

2 022

Throughput for natural-gas assets (MMcf/d)

 

 

 

 

Gathering, treating, and transportation

 

 

418

 

 

410

Processing

 

 

3,544

 

 

3,501

Equity investments (1)

 

 

473

 

 

516

Total throughput

 

 

4,435

 

 

4,427

Throughput attributable to noncontrolling interests (2)

 

 

161

 

 

157

Total throughput attributable to WES for natural-gas assets

 

 

4,274

 

 

4,270

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

 

 

 

 

Gathering, treating, and transportation

 

 

319

 

 

320

Equity investments (3)

 

 

411

 

 

360

Total throughput

 

 

730

 

 

680

Throughput attributable to noncontrolling interests (2)

 

 

15

 

 

14

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

 

 

715

 

 

666

Throughput for produced-water assets (MBbls/d)

 

 

 

 

Gathering and disposal

 

 

895

 

 

882

Throughput attributable to noncontrolling interests (2)

 

 

18

 

 

18

Total throughput attributable to WES for produced-water assets

 

 

877

 

 

864

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

 

$

1.33

 

$

1.36

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

 

 

2.33

 

 

2.57

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

 

 

0.94

 

 

0.90

                     

 

(1)

Represents the 22% share of average Rendezvous throughput, 50% share of average Mi Vida throughput, 50% share of average Ranch Westex throughput through August 2022, and 30% share of average Red Bluff Express throughput. 

 

(2) 

For all periods presented, includes (i) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating and (ii) for natural-gas assets, the 25% third-party interest in Chipeta, 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,

2 022

 

June 30,

2 022

Throughput for natural-gas assets (MMcf/d)

 

 

 

 

Delaware Basin

 

1,536

 

1,493

DJ Basin

 

1,326

 

1,336

Equity investments

 

473

 

516

Other

 

1,100

 

1,082

Total throughput for natural-gas assets

 

4,435

 

4,427

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

 

 

 

 

Delaware Basin

 

199

 

198

DJ Basin

 

81

 

83

Equity investments

 

411

 

360

Other

 

39

 

39

Total throughput for crude-oil and NGLs assets

 

730

 

680

Throughput for produced-water assets (MBbls/d)

 

 

 

 

Delaware Basin

 

895

 

882

Total throughput for produced-water assets

 

895

 

882

       

 

       

 

 

Daniel Jenkins
Director, Investor Relations
Daniel.Jenkins@westernmidstream.com
832.636.1009

Shelby Keltner
Manager, Investor Relations
Shelby.Keltner@westernmidstream.com
832.636.1009

Source: Western Midstream Partners, LP.

View All News