WES Western Midstream Partners LP

• Reported third-quarter 2023 Net income attributable to limited partners of $270.8 million, generating third-quarter Adjusted EBITDA(1) of $510.9 million.
• Reported third-quarter 2023 Cash flows provided by operating activities of $394.8 million, generating third-quarter Free cash flow(1) of $200.4 million.
• Announced a third-quarter Base Distribution of $0.5750 per unit, or $2.30 on an annualized basis, which represents a 2.2-percent increase to the prior-quarter’s Base Distribution.
• Repurchased 5.1 million common units from Occidental Petroleum Corporation (“Oxy”) for $127.5 million, reducing Oxy’s total ownership interest in WES to below 50.0% when taking into account both its limited and general partner units.
• Repurchased $159.1 million of near-term senior notes at approximately 94-percent of par during the month of July.
• Subsequent to quarter end, executed an agreement with a large Delaware Basin customer increasing dedicated acreage to approximately 40,000 acres and extending the initial term through 2035, which dedicates existing volumes and supports expected throughput growth.

Today Western Midstream Partners, LP (NYSE: WES) (“WES” or the “Partnership”) announced third-quarter 2023 financial and operating results. Net income (loss) attributable to limited partners for the third quarter of 2023 totaled $270.8 million, or $0.70 per common unit (diluted), with third-quarter 2023 Adjusted EBITDA(1) totaling $510.9 million. Third-quarter 2023 Cash flows provided by operating activities totaled $394.8 million, and third-quarter 2023 Free cash flow(1) totaled $200.4 million.

RECENT HIGHLIGHTS

• Achieved record Delaware Basin natural-gas throughput of 1.67 Bcf/d for the third quarter, representing a 5-percent sequential-quarter increase.
• Gathered record Delaware Basin crude-oil and NGLs throughput of 220 MBbls/d for the third quarter, representing a 6-percent sequential-quarter increase.
• Gathered record Delaware Basin produced-water throughput of 1,101 MBbls/d for the third quarter, representing a 14-percent sequential-quarter increase.
• Averaged over 1.0 Bcf/d of monthly third-party natural-gas volumes in the Delaware Basin during August and September.
• Issued $600 million of 6.35% senior notes due 2029 and used the proceeds to fund a portion of the purchase price for the previously announced acquisition of Meritage Midstream Services II, LLC (“Meritage”) in the Powder River Basin.
• Subsequent to quarter-end, closed the acquisition of Meritage, transforming WES’s Powder River Basin asset base into the largest gatherer and processor in the basin.

On November 13, 2023, WES will pay its third-quarter 2023 per-unit Base Distribution of $0.5750, representing a 2.2-percent sequential-quarter increase to the Partnership’s second-quarter Base Distribution of $0.5625 per unit. This increase is consistent with prior communication regarding a distribution increase upon the close of the Meritage acquisition. Third-quarter 2023 Free cash flow(1) after distributions totaled $(21.0) million. Third-quarter 2023 and year-to-date capital expenditures(2) totaled $194.9 million and $558.5 million, respectively.

Third-quarter 2023 natural-gas throughput(3) averaged 4.5 Bcf/d, representing a 5-percent sequential-quarter increase. Third-quarter 2023 throughput for crude-oil and NGLs assets(3) averaged 667 MBbls/d, representing a 7-percent sequential-quarter increase. Third-quarter 2023 throughput for produced-water assets(3) averaged 1,079 MBbls/d, representing a 14-percent sequential-quarter increase.

“During the third quarter, total throughput for natural-gas, crude-oil and NGLs, and produced-water increased on a sequential-quarter basis primarily driven by new production coming online, and continued high facility operability in the Delaware Basin,” said Michael Ure, President and Chief Executive Officer. “We remain focused on creating substantial value for our unitholders by efficiently allocating capital for future growth organically and through accretive M&A.”

Mr. Ure continued, “Overall, portfolio-wide throughput growth drove a sequential-quarter increase in our Adjusted EBITDA, which was partially offset by decreased distributions from our equity investments and increased operation and maintenance expense that was mostly driven by higher utility costs. Despite the prolonged heat across West Texas, our assets maintained high operability rates with minimal downtime.”

“In early September, we announced the acquisition of Meritage in the Powder River Basin in Wyoming for $885 million in cash consideration. The Meritage acquisition transforms WES into the largest gathering and processing operator in the Powder River Basin. Additionally, the transaction further diversifies our customer base and adds numerous long-term contracts to our portfolio, secured by large acreage dedications or substantial minimum-volume commitments. We have also identified numerous cost synergies that we expect to realize over the coming quarters, which should reduce the acquisition multiple and drive additional unitholder value.”

“Finally, in October, we formally announced our second Base Distribution increase for the year of 2.2% to $0.5750 per unit on a quarterly basis, or $2.30 per unit annualized, in connection with the closing of the Meritage acquisition. Our commitment to improving the strength of our balance sheet over the past three years provided WES the opportunity to undertake this accretive transaction, which we expect will contribute to WES’s profitability and Free cash flow for years to come.”

“When considering the growth we experienced in the third quarter, combined with over two months of expected contribution from the Meritage assets, we now anticipate 2023 Adjusted EBITDA(4) to be towards the high end of our previously announced guidance range of $1.950 billion to $2.050 billion,” concluded Mr. Ure.

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

WES will host a conference call on Thursday, November 2, 2023, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss its third-quarter 2023 results. To participate, individuals should dial 888-770-7129 (Domestic) or 929-203-2109 (International) ten to fifteen minutes before the scheduled conference call time and enter the participant access code 2187921. 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 its customers under certain contracts.

For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com, and for more information on our sustainability efforts, please visit www.westernmidstream.com/sustainability.

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.

(4)

 

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. 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.

 

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

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues and other

 

 

 

 

 

 

 

 

Service revenues – fee based

 

$

695,547

 

 

$

666,555

 

 

$

2,004,920

 

 

$

1,954,105

 

Service revenues – product based

 

 

48,446

 

 

 

91,356

 

 

 

142,212

 

 

 

202,721

 

Product sales

 

 

31,652

 

 

 

79,430

 

 

 

100,336

 

 

 

314,755

 

Other

 

 

368

 

 

 

227

 

 

 

800

 

 

 

703

 

Total revenues and other

 

 

776,013

 

 

 

837,568

 

 

 

2,248,268

 

 

 

2,472,284

 

Equity income, net – related parties

 

 

35,494

 

 

 

41,317

 

 

 

116,839

 

 

 

139,388

 

Operating expenses

 

 

 

 

 

 

 

 

Cost of product

 

 

27,590

 

 

 

106,833

 

 

 

123,795

 

 

 

328,237

 

Operation and maintenance

 

 

204,434

 

 

 

190,514

 

 

 

562,104

 

 

 

487,643

 

General and administrative

 

 

55,050

 

 

 

48,185

 

 

 

159,572

 

 

 

144,635

 

Property and other taxes

 

 

14,583

 

 

 

19,390

 

 

 

39,961

 

 

 

60,494

 

Depreciation and amortization

 

 

147,363

 

 

 

156,837

 

 

 

435,481

 

 

 

430,455

 

Long-lived asset and other impairments

 

 

245

 

 

 

4

 

 

 

52,880

 

 

 

94

 

Total operating expenses

 

 

449,265

 

 

 

521,763

 

 

 

1,373,793

 

 

 

1,451,558

 

Gain (loss) on divestiture and other, net

 

 

(1,480

)

 

 

(104

)

 

 

(3,668

)

 

 

(884

)

Operating income (loss)

 

 

360,762

 

 

 

357,018

 

 

 

987,646

 

 

 

1,159,230

 

Interest expense

 

 

(82,754

)

 

 

(83,106

)

 

 

(250,606

)

 

 

(249,333

)

Gain (loss) on early extinguishment of debt

 

 

8,565

 

 

 

—

 

 

 

15,378

 

 

 

91

 

Other income (expense), net

 

 

(1,270

)

 

 

56

 

 

 

2,817

 

 

 

117

 

Income (loss) before income taxes

 

 

285,303

 

 

 

273,968

 

 

 

755,235

 

 

 

910,105

 

Income tax expense (benefit)

 

 

905

 

 

 

387

 

 

 

2,980

 

 

 

3,683

 

Net income (loss)

 

 

284,398

 

 

 

273,581

 

 

 

752,255

 

 

 

906,422

 

Net income (loss) attributable to noncontrolling interests

 

 

7,102

 

 

 

7,836

 

 

 

18,393

 

 

 

25,643

 

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

 

$

277,296

 

 

$

265,745

 

 

$

733,862

 

 

$

880,779

 

Limited partners’ interest in net income (loss):

 

 

 

 

 

 

 

 

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

 

$

277,296

 

 

$

265,745

 

 

$

733,862

 

 

$

880,779

 

General partner interest in net (income) loss

 

 

(6,453

)

 

 

(6,244

)

 

 

(16,960

)

 

 

(19,794

)

Limited partners’ interest in net income (loss)

 

$

270,843

 

 

$

259,501

 

 

$

716,902

 

 

$

860,985

 

Net income (loss) per common unit – basic

 

$

0.71

 

 

$

0.67

 

 

$

1.87

 

 

$

2.16

 

Net income (loss) per common unit – diluted

 

$

0.70

 

 

$

0.66

 

 

$

1.86

 

 

$

2.15

 

Weighted-average common units outstanding – basic

 

 

383,561

 

 

 

388,906

 

 

 

384,211

 

 

 

398,343

 

Weighted-average common units outstanding – diluted

 

 

384,772

 

 

 

390,318

 

 

 

385,344

 

 

 

399,545

 

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

thousands except number of units

 

September 30, 2023

 

December 31, 2022

Total current assets

 

$

1,135,806

 

$

900,425

Net property, plant, and equipment

 

 

8,664,402

 

 

8,541,600

Other assets

 

 

1,826,346

 

 

1,829,603

Total assets

 

$

11,626,554

 

$

11,271,628

Total current liabilities

 

$

635,900

 

$

903,857

Long-term debt

 

 

7,260,051

 

 

6,569,582

Asset retirement obligations

 

 

307,945

 

 

290,021

Other liabilities

 

 

467,566

 

 

400,053

Total liabilities

 

 

8,671,462

 

 

8,163,513

Equity and partners’ capital

 

 

 

 

Common units (379,516,369 and 384,070,984 units issued and outstanding at September 30, 2023, and December 31, 2022, respectively)

 

 

2,821,958

 

 

2,969,604

General partner units (9,060,641 units issued and outstanding at September 30, 2023, and December 31, 2022)

 

 

1,678

 

 

2,105

Noncontrolling interests

 

 

131,456

 

 

136,406

Total liabilities, equity, and partners’ capital

 

$

11,626,554

 

$

11,271,628

 

Western Midstream Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended

September 30,

thousands

 

 

2023

 

 

 

2022

 

Cash flows from operating activities

 

 

 

 

Net income (loss)

 

$

752,255

 

 

$

906,422

 

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

 

 

 

 

Depreciation and amortization

 

 

435,481

 

 

 

430,455

 

Long-lived asset and other impairments

 

 

52,880

 

 

 

94

 

(Gain) loss on divestiture and other, net

 

 

3,668

 

 

 

884

 

(Gain) loss on early extinguishment of debt

 

 

(15,378

)

 

 

(91

)

Change in other items, net

 

 

(40,872

)

 

 

(125,557

)

Net cash provided by operating activities

 

$

1,188,034

 

 

$

1,212,207

 

Cash flows from investing activities

 

 

 

 

Capital expenditures

 

$

(536,427

)

 

$

(341,505

)

Acquisitions from third parties

 

 

—

 

 

 

(41,018

)

Contributions to equity investments - related parties

 

 

(1,153

)

 

 

(8,899

)

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

 

 

31,715

 

 

 

41,058

 

Proceeds from the sale of assets to third parties

 

 

(60

)

 

 

1,111

 

(Increase) decrease in materials and supplies inventory and other

 

 

(32,659

)

 

 

(6,999

)

Net cash used in investing activities

 

$

(538,584

)

 

$

(356,252

)

Cash flows from financing activities

 

 

 

 

Borrowings, net of debt issuance costs

 

$

1,801,011

 

 

$

1,389,010

 

Repayments of debt

 

 

(1,317,928

)

 

 

(1,268,548

)

Increase (decrease) in outstanding checks

 

 

(241

)

 

 

1,459

 

Distributions to Partnership unitholders

 

 

(754,998

)

 

 

(538,690

)

Distributions to Chipeta noncontrolling interest owner

 

 

(5,083

)

 

 

(5,020

)

Distributions to noncontrolling interest owner of WES Operating

 

 

(18,260

)

 

 

(20,177

)

Net contributions from (distributions to) related parties

 

 

—

 

 

 

1,161

 

Unit repurchases

 

 

(134,602

)

 

 

(447,075

)

Other

 

 

(16,511

)

 

 

(10,981

)

Net cash provided by (used in) financing activities

 

$

(446,612

)

 

$

(898,861

)

Net increase (decrease) in cash and cash equivalents

 

$

202,838

 

 

$

(42,906

)

Cash and cash equivalents at beginning of period

 

 

286,656

 

 

 

201,999

 

Cash and cash equivalents at end of period

 

$

489,494

 

 

$

159,093

 

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, 2023

 

June 30, 2023

Reconciliation of Gross margin to Adjusted gross margin

 

 

 

 

Total revenues and other

 

$

776,013

 

$

738,273

Less:

 

 

 

 

Cost of product

 

 

27,590

 

 

44,746

Depreciation and amortization

 

 

147,363

 

 

143,492

Gross margin

 

 

601,060

 

 

550,035

Add:

 

 

 

 

Distributions from equity investments

 

 

41,562

 

 

54,075

Depreciation and amortization

 

 

147,363

 

 

143,492

Less:

 

 

 

 

Reimbursed electricity-related charges recorded as revenues

 

 

29,981

 

 

23,286

Adjusted gross margin attributable to noncontrolling interests (1)

 

 

18,095

 

 

16,914

Adjusted gross margin

 

$

741,909

 

$

707,402

 

 

 

 

 

Gross margin

 

 

 

 

Gross margin for natural-gas assets (2)

 

$

450,130

 

$

409,634

Gross margin for crude-oil and NGLs assets (2)

 

 

87,911

 

 

88,024

Gross margin for produced-water assets (2)

 

 

70,353

 

 

59,130

Adjusted gross margin

 

 

 

 

Adjusted gross margin for natural-gas assets

 

$

518,765

 

$

489,476

Adjusted gross margin for crude-oil and NGLs assets

 

 

139,430

 

 

147,036

Adjusted gross margin for produced-water assets

 

 

83,714

 

 

70,890

(1)

 

For all periods presented, 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

 

September 30, 2023

 

June 30, 2023

Reconciliation of Net income (loss) to Adjusted EBITDA

 

 

 

 

Net income (loss)

 

$

284,398

 

 

$

259,516

 

Add:

 

 

 

 

Distributions from equity investments

 

 

41,562

 

 

 

54,075

 

Non-cash equity-based compensation expense

 

 

7,171

 

 

 

7,665

 

Interest expense

 

 

82,754

 

 

 

86,182

 

Income tax expense

 

 

905

 

 

 

659

 

Depreciation and amortization

 

 

147,363

 

 

 

143,492

 

Impairments

 

 

245

 

 

 

234

 

Other expense

 

 

1,269

 

 

 

199

 

Less:

 

 

 

 

Gain (loss) on divestiture and other, net

 

 

(1,480

)

 

 

(70

)

Gain (loss) on early extinguishment of debt

 

 

8,565

 

 

 

6,813

 

Equity income, net – related parties

 

 

35,494

 

 

 

42,324

 

Other income

 

 

27

 

 

 

2,872

 

Adjusted EBITDA attributable to noncontrolling interests (1)

 

 

12,134

 

 

 

11,737

 

Adjusted EBITDA

 

$

510,927

 

 

$

488,346

 

Reconciliation of Net cash provided by operating activities to Adjusted EBITDA

 

 

 

 

Net cash provided by operating activities

 

$

394,787

 

 

$

490,823

 

Interest (income) expense, net

 

 

82,754

 

 

 

86,182

 

Accretion and amortization of long-term obligations, net

 

 

(1,882

)

 

 

(2,403

)

Current income tax expense (benefit)

 

 

806

 

 

 

728

 

Other (income) expense, net

 

 

1,270

 

 

 

(2,872

)

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

 

 

8,536

 

 

 

10,813

 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable, net

 

 

60,614

 

 

 

(4,078

)

Accounts and imbalance payables and accrued liabilities, net

 

 

(12,535

)

 

 

(36,885

)

Other items, net

 

 

(11,289

)

 

 

(42,225

)

Adjusted EBITDA attributable to noncontrolling interests (1)

 

 

(12,134

)

 

 

(11,737

)

Adjusted EBITDA

 

$

510,927

 

 

$

488,346

 

Cash flow information

 

 

 

 

Net cash provided by operating activities

 

$

394,787

 

 

$

490,823

 

Net cash used in investing activities

 

 

(207,916

)

 

 

(151,490

)

Net cash provided by (used in) financing activities

 

 

88,670

 

 

 

(238,025

)

(1)

 

For all periods presented, 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

 

September 30, 2023

 

June 30, 2023

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

 

 

 

 

Net cash provided by operating activities

 

$

394,787

 

 

$

490,823

 

Less:

 

 

 

 

Capital expenditures

 

 

201,857

 

 

 

161,482

 

Contributions to equity investments – related parties

 

 

1,021

 

 

 

22

 

Add:

 

 

 

 

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

 

 

8,536

 

 

 

10,813

 

Free cash flow

 

$

200,445

 

 

$

340,132

 

Cash flow information

 

 

 

 

Net cash provided by operating activities

 

$

394,787

 

 

$

490,823

 

Net cash used in investing activities

 

 

(207,916

)

 

 

(151,490

)

Net cash provided by (used in) financing activities

 

 

88,670

 

 

 

(238,025

)

 

Western Midstream Partners, LP

OPERATING STATISTICS

(Unaudited)

 

 

 

Three Months Ended

 

 

September 30, 2023

 

June 30, 2023

Throughput for natural-gas assets (MMcf/d)

 

 

 

 

Gathering, treating, and transportation

 

 

457

 

 

395

Processing

 

 

3,699

 

 

3,567

Equity investments (1)

 

 

495

 

 

454

Total throughput

 

 

4,651

 

 

4,416

Throughput attributable to noncontrolling interests (2)

 

 

167

 

 

162

Total throughput attributable to WES for natural-gas assets

 

 

4,484

 

 

4,254

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

 

 

 

 

Gathering, treating, and transportation

 

 

334

 

 

316

Equity investments (1)

 

 

347

 

 

323

Total throughput

 

 

681

 

 

639

Throughput attributable to noncontrolling interests (2)

 

 

14

 

 

13

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

 

 

667

 

 

626

Throughput for produced-water assets (MBbls/d)

 

 

 

 

Gathering and disposal

 

 

1,101

 

 

963

Throughput attributable to noncontrolling interests (2)

 

 

22

 

 

20

Total throughput attributable to WES for produced-water assets

 

 

1,079

 

 

943

Per-Mcf Gross margin for natural-gas assets (3)

 

$

1.05

 

$

1.02

Per-Bbl Gross margin for crude-oil and NGLs assets (3)

 

 

1.40

 

 

1.51

Per-Bbl Gross margin for produced-water assets (3)

 

 

0.69

 

 

0.68

 

 

 

 

 

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

 

$

1.26

 

$

1.26

Per-Bbl Adjusted gross margin for crude-oil and NGLs assets (4)

 

 

2.27

 

 

2.58

Per-Bbl Adjusted gross margin for produced-water assets (4)

 

 

0.84

 

 

0.83

(1) 

  Represents our share of average throughput for investments accounted for under the equity method of accounting.

(2)

  For all periods presented, 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

 

 

September 30, 2023

 

June 30, 2023

Throughput for natural-gas assets (MMcf/d)

 

 

 

 

Delaware Basin

 

1,674

 

1,592

DJ Basin

 

1,331

 

1,309

Equity investments

 

495

 

454

Other

 

1,151

 

1,061

Total throughput for natural-gas assets

 

4,651

 

4,416

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

 

 

 

 

Delaware Basin

 

220

 

208

DJ Basin

 

68

 

66

Equity investments

 

347

 

323

Other

 

46

 

42

Total throughput for crude-oil and NGLs assets

 

681

 

639

Throughput for produced-water assets (MBbls/d)

 

 

 

 

Delaware Basin

 

1,101

 

963

Total throughput for produced-water assets

 

1,101

 

963

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231031991056/en/

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