- Reported second-quarter 2024 Net income attributable to limited
partners of $369.8 million,
generating second-quarter Adjusted EBITDA(1) of
$578.1 million.
- Reported second-quarter 2024 Cash flows provided by operating
activities of $631.4 million,
generating second-quarter Free cash flow(1) of
$424.8 million.
- Announced a second-quarter Base Distribution of $0.875 per unit, or $3.50 per unit on an annualized basis, which is
in-line with the prior-quarter's Base Distribution.
HOUSTON, Aug. 7, 2024
/PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES)
("WES" or the "Partnership") announced second-quarter 2024
financial and operating results. Net income (loss) attributable to
limited partners for the second quarter of 2024 totaled
$369.8 million, or $0.97 per common unit (diluted), with
second-quarter 2024 Adjusted EBITDA(1) totaling
$578.1 million. Second-quarter 2024
Cash flows provided by operating activities totaled $631.4 million, and second-quarter 2024 Free cash
flow(1) totaled $424.8
million.
RECENT HIGHLIGHTS
- Gathered record natural-gas throughput in the Delaware and DJ Basins of 1.9 Bcf/d and 1.5
Bcf/d, respectively, representing 6-percent sequential-quarter
increases from both basins.
- Gathered record total operated crude-oil and NGLs throughput of
396 MBbls/d, representing a 6-percent sequential-quarter
increase.
- Gathered record Delaware Basin
crude-oil and NGLs throughput of 241 MBbls/d, representing a
7-percent sequential-quarter increase.
- Achieved sequential-quarter throughput growth for crude-oil and
NGLs in the DJ Basin of 5-percent.
- Executed multiple commercial agreements with new and existing
third-party customers for natural-gas and produced-water gathering
in the Delaware Basin.
- Executed an amendment to DCP Midstream's, now Phillips 66's
("P66"), natural-gas processing agreement in the DJ Basin to extend
the original firm-processing capacity of 175 MMcf/d from 2027 to
2029. Additionally, this multi-year amendment provides P66 with an
incremental 200 MMcf/d of firm-processing capacity, primarily
supported by minimum-volume commitments, starting in 2026.
- Subsequent to quarter-end, executed agreements with various
customers supporting The Williams Companies' Mountain West Pipeline
expansion to provide up to 110 MMcf/d of natural-gas
firm-processing capacity at our Chipeta facility in the Uinta
Basin.
- Subsequent to quarter-end, executed a multi-year natural-gas
processing agreement with Kinder
Morgan, Inc. ("Kinder
Morgan") in support of its Altamont Green River Pipeline
project providing for up to 150 MMcf/d of firm-processing capacity
at our Chipeta processing facility in the Uinta Basin.
- As previously announced, closed the sale of the Marcellus
Interest gathering system early in the second-quarter.
- As previously announced, repurchased $134.9 million of senior notes in the open market
during the second quarter, bringing the year-to-date total to
$150.0 million at an average of 96%
of par.
- Reduced total debt by $762.6
million since year-end 2023 with asset sale proceeds, which
helped achieve our long-term net leverage threshold of 3.0x earlier
than expected.
On August 14, 2024, WES will pay its second-quarter 2024
per-unit Base Distribution of $0.875,
which is in-line with the prior quarter's Base Distribution.
Second-quarter 2024 Free cash flow(1) after
distributions totaled $84.0 million.
Second-quarter 2024 capital expenditures(2) totaled
$207.5 million.
Second-quarter 2024 natural-gas throughput(3)
averaged 5.0 Bcf/d, flat quarter-over-quarter due to strong
throughput growth in our core basins offset by the sale of the
Marcellus assets early in the second-quarter. Second-quarter 2024
operated throughput from natural-gas assets averaged 4.6 Bcf/d,
representing a 3-percent sequential-quarter increase.
Second-quarter 2024 throughput for crude-oil and NGLs
assets(3) averaged 515 MBbls/d, representing a 9-percent
sequential-quarter decrease as a result of the equity investments
asset sales which closed throughout the first quarter.
Second-quarter 2024 operated throughput from crude-oil and NGLs
assets averaged 396 MBbls/d, representing a 6-percent
sequential-quarter increase. Second-quarter 2024 throughput for
produced-water assets(3) averaged 1,080 MBbls/d,
representing a 4-percent sequential-quarter decrease.
"The second quarter was another strong quarter operationally for
WES, with robust system operability contributing to operated
natural-gas and crude-oil and NGLs throughput growth," said
Michael Ure, President and Chief
Executive Officer. "As a result, we experienced several throughput
records during the quarter including record throughput for
natural-gas in both the Delaware
and DJ Basins, record total operated crude-oil and NGLs throughput,
and record Delaware Basin
crude-oil and NGLs throughput. Additionally, we experienced
sequential-quarter throughput growth for both natural-gas and
crude-oil and NGLs from our Powder River Basin assets of 5-percent
and 9-percent, respectively. When taken together, this continued
growth gives us confidence in our increased throughput expectations
for all products for the year."
"As expected, second-quarter Adjusted EBITDA declined 5-percent
sequentially due to lower distributions from equity investments as
a result of the previously announced asset divestitures, higher
seasonally-driven operation and maintenance expense, and more
normalized property and other taxes. We anticipate throughput to
continue to grow throughout the remainder of the year, which will
drive 2024 Adjusted EBITDA and Free cash flow towards the high end
of our previously disclosed guidance ranges."
"During the second quarter, our commercial teams successfully
executed numerous agreements with both new and existing customers
in our most active basins. In the Delaware Basin, we executed several
third-party natural-gas and produced-water gathering agreements,
which will begin to benefit WES in the second half of 2024, and to
a larger extent, in 2025. Additionally, we executed numerous
agreements in both the DJ and Uinta Basins. We are excited to see a
return to growth in these basins, and in fact, if these agreements
are fully utilized, we could potentially see our plants reach full
utilization starting in 2026. In the Powder River Basin, we
continue to experience increased throughput from existing customers
on our system as we fully integrate the Meritage assets, and
customers begin to allocate incremental capital to the basin."
"Focusing on our capital-return framework, since our
January 2020 bond offering, we have
reduced our senior notes on a net basis by $942.6 million, paid out approximately
$3.5 billion to unitholders through
Base and Enhanced Distributions, and bought back over $1.1 billion of our common units, or 15-percent
of the unaffected unit count. Going forward, we will continue to
prudently allocate capital to efficiently grow our business through
expansion-oriented capital spending and accretive M&A. Finally,
we expect to use the Base Distribution, and our Enhanced
Distribution framework, as the primary tools for returning
incremental capital to unitholders. We believe our strong operating
model, prudent capital allocation principles, and our transparent
capital-return framework will further position WES as a leader
within the midstream space," concluded Mr. Ure.
CONFERENCE CALL TOMORROW AT 1:00 P.M.
CT
WES will host a conference call on Thursday, August 8, 2024, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss its
second-quarter 2024 results. 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 small
number of phone lines are available for analysts; individuals
should dial 800-836-8184 (Domestic) or 646-357-8785 (International)
ten to fifteen minutes before the scheduled conference call time. A
replay of the live audio webcast can be accessed on the
Partnership's website at www.westernmidstream.com for one year
after 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.
AUGUST CONFERENCE PARTICIPATION
Members of the WES management and investor relations teams will
participate in the Citi One-on-One Midstream / Energy
Infrastructure Conference in Las Vegas,
Nevada on August 13 – 14,
2024. We will provide information on our conference participation
for the remainder of the third quarter over the coming weeks.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited
partnership formed to develop, acquire, own, and operate midstream
assets. With midstream assets located in Texas, New
Mexico, Colorado,
Utah, and Wyoming, 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 its customers under
certain gas processing contracts. A substantial majority of WES's
cash flows are protected from direct exposure to commodity price
volatility through fee-based contracts.
For more information about WES, 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 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) Accrual-based, includes equity investments, excludes
capitalized interest, and excludes capital expenditures associated
with the 25% third-party interest in Chipeta.
|
|
(3) Represents total throughput attributable to WES,
which excludes (i) the 2.0% limited partner interest in WES
Operating owned by an Occidental subsidiary and (ii) for
natural-gas throughput, the 25% third-party interest in Chipeta,
which collectively represent WES's noncontrolling
interests.
|
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523
Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
thousands except
per-unit amounts
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues and
other
|
|
|
|
|
|
|
|
|
|
Service revenues – fee
based
|
|
$
793,785
|
|
$ 661,506
|
|
$
1,575,047
|
|
$
1,309,373
|
|
Service revenues –
product based
|
|
61,466
|
|
46,956
|
|
128,206
|
|
93,766
|
|
Product
sales
|
|
50,111
|
|
29,659
|
|
89,403
|
|
68,684
|
|
Other
|
|
267
|
|
152
|
|
702
|
|
432
|
|
Total revenues and
other
|
|
905,629
|
|
738,273
|
|
1,793,358
|
|
1,472,255
|
|
Equity income, net –
related parties
|
|
27,431
|
|
42,324
|
|
60,250
|
|
81,345
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
54,010
|
|
44,746
|
|
100,089
|
|
96,205
|
|
Operation and
maintenance
|
|
223,319
|
|
183,431
|
|
418,258
|
|
357,670
|
|
General and
administrative
|
|
62,933
|
|
53,405
|
|
130,772
|
|
104,522
|
|
Property and other
taxes
|
|
17,429
|
|
18,547
|
|
31,349
|
|
25,378
|
|
Depreciation and
amortization
|
|
163,432
|
|
143,492
|
|
321,423
|
|
288,118
|
|
Long-lived asset and
other impairments
|
|
1,530
|
|
234
|
|
1,553
|
|
52,635
|
|
Total operating
expenses
|
|
522,653
|
|
443,855
|
|
1,003,444
|
|
924,528
|
|
Gain (loss) on
divestiture and other, net
|
|
59,342
|
|
(70)
|
|
298,959
|
|
(2,188)
|
|
Operating income
(loss)
|
|
469,749
|
|
336,672
|
|
1,149,123
|
|
626,884
|
|
Interest
expense
|
|
(90,522)
|
|
(86,182)
|
|
(185,028)
|
|
(167,852)
|
|
Gain (loss) on early
extinguishment of debt
|
|
4,879
|
|
6,813
|
|
5,403
|
|
6,813
|
|
Other income (expense),
net
|
|
4,213
|
|
2,872
|
|
6,559
|
|
4,087
|
|
Income (loss) before
income taxes
|
|
388,319
|
|
260,175
|
|
976,057
|
|
469,932
|
|
Income tax expense
(benefit)
|
|
755
|
|
659
|
|
2,277
|
|
2,075
|
|
Net income
(loss)
|
|
387,564
|
|
259,516
|
|
973,780
|
|
467,857
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
8,916
|
|
6,595
|
|
22,302
|
|
11,291
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
378,648
|
|
$ 252,921
|
|
$
951,478
|
|
$ 456,566
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
378,648
|
|
$ 252,921
|
|
$
951,478
|
|
$ 456,566
|
|
General partner
interest in net (income) loss
|
|
(8,807)
|
|
(5,821)
|
|
(22,137)
|
|
(10,507)
|
|
Limited partners'
interest in net income (loss)
|
|
$
369,841
|
|
$
247,100
|
|
$
929,341
|
|
$
446,059
|
|
Net income (loss)
per common unit – basic
|
|
$
0.97
|
|
$
0.64
|
|
$
2.44
|
|
$
1.16
|
|
Net income (loss)
per common unit – diluted
|
|
$
0.97
|
|
$
0.64
|
|
$
2.43
|
|
$
1.16
|
|
Weighted-average
common units outstanding – basic
|
|
380,491
|
|
384,614
|
|
380,258
|
|
384,542
|
|
Weighted-average
common units outstanding – diluted
|
|
382,253
|
|
385,510
|
|
381,933
|
|
385,665
|
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
thousands except
number of units
|
|
June 30,
2024
|
|
December 31,
2023
|
|
Total current
assets
|
|
$
1,068,290
|
|
$
992,410
|
|
Net property, plant,
and equipment
|
|
9,644,413
|
|
9,655,016
|
|
Other assets
|
|
1,467,798
|
|
1,824,181
|
|
Total
assets
|
|
$
12,180,501
|
|
$ 12,471,607
|
|
Total current
liabilities
|
|
$
634,120
|
|
$
1,304,056
|
|
Long-term
debt
|
|
7,138,092
|
|
7,283,556
|
|
Asset retirement
obligations
|
|
371,501
|
|
359,185
|
|
Other
liabilities
|
|
612,779
|
|
495,680
|
|
Total
liabilities
|
|
8,756,492
|
|
9,442,477
|
|
Equity and partners'
capital
|
|
|
|
|
|
Common units
(380,491,374 and 379,519,983 units issued and outstanding at
June 30, 2024,
and December 31, 2023,
respectively)
|
|
3,271,033
|
|
2,894,231
|
|
General partner units
(9,060,641 units issued and outstanding at June 30, 2024,
and
December 31, 2023)
|
|
12,192
|
|
3,193
|
|
Noncontrolling
interests
|
|
140,784
|
|
131,706
|
|
Total liabilities,
equity, and partners' capital
|
|
$
12,180,501
|
|
$ 12,471,607
|
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Six Months Ended June 30,
|
|
thousands
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
(loss)
|
|
$
973,780
|
|
$
467,857
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and
changes in assets and liabilities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
321,423
|
|
288,118
|
|
Long-lived asset and
other impairments
|
|
1,553
|
|
52,635
|
|
(Gain) loss on
divestiture and other, net
|
|
(298,959)
|
|
2,188
|
|
(Gain) loss on early
extinguishment of debt
|
|
(5,403)
|
|
(6,813)
|
|
Change in other items,
net
|
|
38,732
|
|
(10,738)
|
|
Net cash provided by
operating activities
|
|
$
1,031,126
|
|
$
793,247
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Capital
expenditures
|
|
$ (405,653)
|
|
$ (334,570)
|
|
Acquisitions from third
parties
|
|
(443)
|
|
—
|
|
Contributions to equity
investments - related parties
|
|
—
|
|
(132)
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
24,303
|
|
23,179
|
|
Proceeds from the sale
of assets to third parties
|
|
788,941
|
|
—
|
|
(Increase) decrease in
materials and supplies inventory and other
|
|
(25,294)
|
|
(19,145)
|
|
Net cash provided by
(used in) investing activities
|
|
$
381,854
|
|
$ (330,668)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Borrowings, net of debt
issuance costs
|
|
$
(1,206)
|
|
$
956,225
|
|
Repayments of
debt
|
|
(143,852)
|
|
(918,332)
|
|
Commercial paper
borrowings (repayments), net
|
|
(610,312)
|
|
—
|
|
Increase (decrease) in
outstanding checks
|
|
14,172
|
|
(2,951)
|
|
Distributions to
Partnership unitholders
|
|
(564,296)
|
|
(533,556)
|
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(1,678)
|
|
(3,470)
|
|
Distributions to
noncontrolling interest owner of WES Operating
|
|
(11,546)
|
|
(11,131)
|
|
Unit
repurchases
|
|
—
|
|
(7,102)
|
|
Other
|
|
(22,930)
|
|
(14,965)
|
|
Net cash provided by
(used in) financing activities
|
|
$
(1,341,648)
|
|
$ (535,282)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
71,332
|
|
$
(72,703)
|
|
Cash and cash
equivalents at beginning of period
|
|
272,787
|
|
286,656
|
|
Cash and cash
equivalents at end of period
|
|
$
344,119
|
|
$
213,953
|
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 attributable to Western Midstream
Partners, LP ("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.
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
|
|
June 30,
2024
|
|
March 31,
2024
|
|
Reconciliation of
Gross margin to Adjusted gross margin
|
|
|
|
|
|
Total revenues and
other
|
|
$
905,629
|
|
$
887,729
|
|
Less:
|
|
|
|
|
|
Cost of
product
|
|
54,010
|
|
46,079
|
|
Depreciation and
amortization
|
|
163,432
|
|
157,991
|
|
Gross margin
|
|
688,187
|
|
683,659
|
|
Add:
|
|
|
|
|
|
Distributions from
equity investments
|
|
32,970
|
|
48,337
|
|
Depreciation and
amortization
|
|
163,432
|
|
157,991
|
|
Less:
|
|
|
|
|
|
Reimbursed
electricity-related charges recorded as revenues
|
|
28,998
|
|
24,695
|
|
Adjusted gross margin
attributable to noncontrolling interests (1)
|
|
19,741
|
|
20,240
|
|
Adjusted gross
margin
|
|
$
835,850
|
|
$
845,052
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
Gross margin for
natural-gas assets (2)
|
|
$
516,253
|
|
$
511,584
|
|
Gross margin for
crude-oil and NGLs assets (2)
|
|
96,786
|
|
93,578
|
|
Gross margin for
produced-water assets (2)
|
|
82,346
|
|
85,041
|
|
Adjusted gross
margin
|
|
|
|
|
|
Adjusted gross margin
for natural-gas assets
|
|
$
601,443
|
|
$
597,163
|
|
Adjusted gross margin
for crude-oil and NGLs assets
|
|
138,894
|
|
150,269
|
|
Adjusted gross margin
for produced-water assets
|
|
95,513
|
|
97,620
|
|
|
|
(1) Includes (i) the 25% third-party interest in Chipeta
and (ii) the 2.0% limited partner interest in WES Operating owned
by an Occidental subsidiary, which collectively represent WES's
noncontrolling interests.
|
|
(2) Excludes corporate-level depreciation and
amortization.
|
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
|
|
Adjusted
EBITDA
|
|
|
Three Months
Ended
|
|
thousands
|
|
June 30,
2024
|
|
March 31,
2024
|
|
Reconciliation of
Net income (loss) to Adjusted EBITDA
|
|
|
|
|
|
Net income
(loss)
|
|
$
387,564
|
|
$
586,216
|
|
Add:
|
|
|
|
|
|
Distributions from
equity investments
|
|
32,970
|
|
48,337
|
|
Non-cash equity-based
compensation expense
|
|
10,391
|
|
9,423
|
|
Interest
expense
|
|
90,522
|
|
94,506
|
|
Income tax
expense
|
|
755
|
|
1,522
|
|
Depreciation and
amortization
|
|
163,432
|
|
157,991
|
|
Impairments
|
|
1,530
|
|
23
|
|
Other
expense
|
|
37
|
|
112
|
|
Less:
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
59,342
|
|
239,617
|
|
Gain (loss) on early
extinguishment of debt
|
|
4,879
|
|
524
|
|
Equity income, net –
related parties
|
|
27,431
|
|
32,819
|
|
Other
income
|
|
4,213
|
|
2,346
|
|
Adjusted EBITDA
attributable to noncontrolling interests (1)
|
|
13,276
|
|
14,415
|
|
Adjusted
EBITDA
|
|
$
578,060
|
|
$
608,409
|
|
Reconciliation of
Net cash provided by operating activities to Adjusted
EBITDA
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
631,418
|
|
$
399,708
|
|
Interest (income)
expense, net
|
|
90,522
|
|
94,506
|
|
Accretion and
amortization of long-term obligations, net
|
|
(2,473)
|
|
(2,190)
|
|
Current income tax
expense (benefit)
|
|
726
|
|
1,292
|
|
Other (income) expense,
net
|
|
(4,213)
|
|
(2,346)
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
5,270
|
|
19,033
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
Accounts receivable,
net
|
|
(28,436)
|
|
53,714
|
|
Accounts and imbalance
payables and accrued liabilities, net
|
|
(13,338)
|
|
100,383
|
|
Other items,
net
|
|
(88,140)
|
|
(41,276)
|
|
Adjusted EBITDA
attributable to noncontrolling interests (1)
|
|
(13,276)
|
|
(14,415)
|
|
Adjusted
EBITDA
|
|
$
578,060
|
|
$
608,409
|
|
Cash flow
information
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
631,418
|
|
$
399,708
|
|
Net cash provided by
(used in) investing activities
|
|
(14,995)
|
|
396,849
|
|
Net cash provided by
(used in) financing activities
|
|
(567,550)
|
|
(774,098)
|
|
|
|
(1) Includes (i) the 25% third-party interest in Chipeta
and (ii) the 2.0% limited partner interest in WES Operating owned
by an Occidental subsidiary, 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
|
|
June 30,
2024
|
|
March 31,
2024
|
|
Reconciliation of
Net cash provided by operating activities to Free cash
flow
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
631,418
|
|
$
399,708
|
|
Less:
|
|
|
|
|
|
Capital
expenditures
|
|
211,864
|
|
193,789
|
|
Add:
|
|
|
|
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
5,270
|
|
19,033
|
|
Free cash
flow
|
|
$
424,824
|
|
$
224,952
|
|
Cash flow
information
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
631,418
|
|
$
399,708
|
|
Net cash provided by
(used in) investing activities
|
|
(14,995)
|
|
396,849
|
|
Net cash provided by
(used in) financing activities
|
|
(567,550)
|
|
(774,098)
|
|
Western Midstream
Partners, LP
OPERATING
STATISTICS
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
June 30,
2024
|
|
March 31,
2024
|
|
Inc/
(Dec)
|
|
Throughput for
natural-gas assets (MMcf/d)
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
|
438
|
|
606
|
|
(28) %
|
|
Processing
|
|
4,209
|
|
4,050
|
|
4 %
|
|
Equity investments
(1)
|
|
508
|
|
508
|
|
— %
|
|
Total
throughput
|
|
5,155
|
|
5,164
|
|
— %
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
167
|
|
174
|
|
(4) %
|
|
Total throughput
attributable to WES for natural-gas assets
|
|
4,988
|
|
4,990
|
|
— %
|
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
|
396
|
|
374
|
|
6 %
|
|
Equity investments
(1)
|
|
130
|
|
202
|
|
(36) %
|
|
Total
throughput
|
|
526
|
|
576
|
|
(9) %
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
11
|
|
11
|
|
— %
|
|
Total throughput
attributable to WES for crude-oil and NGLs assets
|
|
515
|
|
565
|
|
(9) %
|
|
Throughput for
produced-water assets (MBbls/d)
|
|
|
|
|
|
|
|
Gathering and
disposal
|
|
1,102
|
|
1,149
|
|
(4) %
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
22
|
|
23
|
|
(4) %
|
|
Total throughput
attributable to WES for produced-water assets
|
|
1,080
|
|
1,126
|
|
(4) %
|
|
Per-Mcf Gross
margin for natural-gas assets (3)
|
|
$
1.10
|
|
$
1.09
|
|
1 %
|
|
Per-Bbl Gross
margin for crude-oil and NGLs assets
(3)
|
|
2.02
|
|
1.78
|
|
13 %
|
|
Per-Bbl Gross
margin for produced-water assets (3)
|
|
0.82
|
|
0.81
|
|
1 %
|
|
|
|
|
|
|
|
|
Per-Mcf Adjusted gross
margin for natural-gas assets (4)
|
|
$
1.33
|
|
$
1.32
|
|
1 %
|
|
Per-Bbl Adjusted gross
margin for crude-oil and NGLs assets (4)
|
|
2.96
|
|
2.92
|
|
1 %
|
|
Per-Bbl Adjusted gross
margin for produced-water assets (4)
|
|
0.97
|
|
0.95
|
|
2 %
|
|
|
|
(1) Represents our share of average throughput for
investments accounted for under the equity method of
accounting.
|
|
(2) Includes (i) the 2.0% limited partner interest in WES
Operating owned by an Occidental subsidiary and (ii) for
natural-gas assets, the 25% third-party interest in Chipeta, which
collectively represent WES's noncontrolling
interests.
|
|
(3) Average for period. Calculated as Gross margin for
natural-gas assets, crude-oil and NGLs assets, or
produced-water assets, divided by the respective total
throughput (MMcf or MBbls) for natural-gas assets,
crude-oil and NGLs assets, or produced-water
assets.
|
|
(4) Average for period. Calculated as Adjusted gross
margin for natural-gas assets, crude-oil and NGLs
assets, or produced-water assets, divided by the respective
total throughput (MMcf or MBbls) attributable to WES for
natural-gas assets, crude-oil and NGLs assets, or
produced-water assets.
|
|
Western Midstream
Partners, LP
OPERATING STATISTICS
(CONTINUED)
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
June 30,
2024
|
|
March 31,
2024
|
|
Inc/
(Dec)
|
|
Throughput for
natural-gas assets (MMcf/d)
|
|
Operated
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
1,858
|
|
1,761
|
|
6 %
|
|
DJ Basin
|
|
1,452
|
|
1,372
|
|
6 %
|
|
Powder River
Basin
|
|
426
|
|
406
|
|
5 %
|
|
Other
|
|
898
|
|
978
|
|
(8) %
|
|
Total operated
throughput for natural-gas assets
|
|
4,634
|
|
4,517
|
|
3 %
|
|
Non-operated
|
|
|
|
|
|
|
|
Equity
investments
|
|
508
|
|
508
|
|
— %
|
|
Other
|
|
13
|
|
139
|
|
(91) %
|
|
Total non-operated
throughput for natural-gas assets
|
|
521
|
|
647
|
|
(19) %
|
|
Total throughput for
natural-gas assets
|
|
5,155
|
|
5,164
|
|
— %
|
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
Operated
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
241
|
|
225
|
|
7 %
|
|
DJ Basin
|
|
91
|
|
87
|
|
5 %
|
|
Powder River
Basin
|
|
25
|
|
23
|
|
9 %
|
|
Other
|
|
39
|
|
39
|
|
— %
|
|
Total operated
throughput for crude-oil and NGLs assets
|
|
396
|
|
374
|
|
6 %
|
|
Non-operated
|
|
|
|
|
|
|
|
Equity
investments
|
|
130
|
|
202
|
|
(36) %
|
|
Total non-operated
throughput for crude-oil and NGLs assets
|
|
130
|
|
202
|
|
(36) %
|
|
Total throughput for
crude-oil and NGLs assets
|
|
526
|
|
576
|
|
(9) %
|
|
Throughput for
produced-water assets (MBbls/d)
|
|
Operated
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
1,102
|
|
1,149
|
|
(4) %
|
|
Total operated
throughput for produced-water assets
|
|
1,102
|
|
1,149
|
|
(4) %
|
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SOURCE Western Midstream Partners, LP
