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
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-third-quarter-2020-results-301168957.html
SOURCE Western Midstream Partners, LP