- Reported fourth-quarter 2023 Net income attributable to limited
partners of $281.6 million,
generating fourth-quarter Adjusted EBITDA(1) of
$570.7 million.
- Reported full-year 2023 Net income attributable to limited
partners of $998.5 million,
generating full-year Adjusted EBITDA(1) of $2.069 billion, and exceeding the revised
full-year 2023 Adjusted EBITDA range of $1.950 billion to $2.050
billion.
- Reported fourth-quarter 2023 Cash flows provided by operating
activities of $473.3 million,
generating fourth-quarter Free cash flow(1) of
$282.0 million.
- Reported full-year 2023 Cash flows provided by operating
activities of $1.661 billion,
generating full-year Free cash flow(1) of $964.2 million, and falling within the full-year
2023 Free cash flow guidance range of $900.0
million to $1.000
billion.
- Announced a fourth-quarter Base Distribution of $0.575 per unit, which is consistent with the
third-quarter Base Distribution, or $2.30 on an annualized basis.
HOUSTON, Feb. 21,
2024 /PRNewswire/ -- Today Western Midstream
Partners, LP (NYSE: WES) ("WES" or the "Partnership")
announced fourth-quarter and full-year 2023 financial and operating
results. Net income (loss) attributable to limited partners for the
fourth quarter of 2023 totaled $281.6
million, or $0.74 per common
unit (diluted), with fourth-quarter 2023 Adjusted
EBITDA(1) totaling $570.7
million. Fourth-quarter Adjusted EBITDA(1)
includes approximately $20.4 million of positive revenue
recognition adjustments associated with our cost-of-service
agreements in South Texas and on
our DJ Basin oil system. Fourth-quarter 2023 Cash flows provided by
operating activities totaled $473.3
million, and fourth-quarter 2023 Free cash
flow(1) totaled $282.0
million.
Net income (loss) attributable to limited partners for full-year
2023 totaled $998.5 million, or
$2.60 per common unit (diluted), with
full-year 2023 Adjusted EBITDA(1) totaling $2.069 billion. Full-year 2023 Cash flows
provided by operating activities totaled $1.661 billion, and full-year 2023 Free cash
flow(1) totaled $964.2
million.
FOURTH-QUARTER AND FULL-YEAR 2023 HIGHLIGHTS
- Achieved record annual natural-gas throughput of 4.4 Bcf/d,
representing a 5-percent year-over-year increase(2),
in-line with our revised 2023 expectations of mid-single-digits
growth.
- Gathered record annual crude-oil and NGLs throughput of 652
MBbls/d, representing a 7-percent year-over-year
increase(3), exceeding our 2023 expectations of
low-single-digits growth.
- Gathered record annual produced-water throughput of 1,009
MBbls/d, representing a 21-percent year-over-year increase,
exceeding our revised 2023 expectations of upper-teens growth.
- Achieved year-over-year throughput growth across all products
in the Delaware Basin of
11-percent, 8-percent, and 21-percent, for natural gas, crude oil
and NGLs, and produced water, respectively.
- Sanctioned the 250 MMcf/d North Loving processing plant in
May 2023, and materially progressed
construction of the 300 MMcf/d Mentone III processing train, both
of which are underpinned by commercial agreements containing either
acreage dedications or significant minimum-volume commitments.
- Announced and closed the acquisition of Meritage Midstream
Services II, LLC ("Meritage"), expanding WES's position to the
largest gathering and processing footprint in the Powder River
Basin.
- Executed on our capital return framework by returning
$978.4 million in distributions,
inclusive of two Base Distribution increases and the payment of our
first Enhanced Distribution, and $134.6
million in unit repurchases, which represents approximately
15-percent of WES's unaffected common unit count since becoming a
standalone entity in early 2020.
- Obtained full investment-grade ratings in May 2023 and raised $1.350
billion through two bond offerings to partially fund the
Meritage acquisition, refinance existing borrowings, and enhance
the partnership's overall liquidity.
On February 13, 2024, WES paid its fourth-quarter 2023
per-unit Base Distribution of $0.575,
consistent with the Partnership's third-quarter Base Distribution.
Fourth-quarter and full-year 2023 Free cash flow(1)
after distributions totaled $58.6
million and negative $14.2
million, respectively. Fourth-quarter and full-year 2023
capital expenditures(4) totaled $180.7 million and $739.1
million, respectively.
Fourth-quarter 2023 natural-gas throughput(5)
averaged 4.9 Bcf/d, representing a 9-percent sequential-quarter
increase(2). Fourth-quarter 2023 throughput for
crude-oil and NGLs assets(5) averaged 702 MBbls/d,
representing a 5-percent sequential-quarter increase(3).
Fourth-quarter 2023 throughput for produced-water
assets(5) averaged 1,054 MBbls/d, representing a
2-percent sequential-quarter decrease.
Full-year 2023 natural-gas throughput(5) averaged 4.4
Bcf/d, representing a 5-percent year-over-year
increase(2). Full-year 2023 throughput for crude-oil and
NGLs assets(5) averaged 652 MBbls/d, representing a
7-percent year-over-year increase(3). Full-year 2023
throughput for produced-water assets(5) averaged 1,009
MBbls/d, representing a 21-percent year-over-year increase.
"2023 was a successful, pivotal year for WES as we achieved
operated throughput growth of approximately 7-percent, 5-percent,
and 21-percent for natural gas, crude-oil and NGLs, and produced
water, respectively. We also continued to diversify our asset and
customer base through accretive M&A in the Powder River Basin,
all while returning $1.113 billion to
unitholders through our capital-return framework. Our ability to
successfully capture significant Delaware Basin throughput growth, efficiently
expand our asset footprint, and maintain cost and capital
discipline, positions WES to enter 2024 on solid financial footing
with significant operational tailwinds," said Michael Ure, President and Chief Executive
Officer.
"Focusing on the Delaware
Basin, this was an extremely successful year for WES as throughput
increased across all three products resulting in record annual
throughput from the basin for our partnership. We also extended the
duration of our agreements and our firm-processing commitments with
Occidental through 2035 and continued to diversify our customer
base in the basin by adding 12 new third-party customers across our
natural-gas and produced-water businesses. These accomplishments
have resulted in meaningful growth and have helped WES grow its
natural-gas volumes at a rate more than double the rate of
throughput growth in the basin since early 2021. Our commercial
successes were the primary drivers behind the sanctioning of both
Mentone III and the North Loving plant, which together will
increase our total operated processing capacity in the basin by
34-percent compared to year-end 2023 and maintain WES's position as
one of the top natural-gas processors in the Delaware Basin. In addition to advancing our
strong Delaware Basin position, we
remained focused on growing the entirety of our business. Our
expansion in the Powder River Basin and volume growth expectations
in the DJ Basin place our partnership in a position of strength as
we enter 2024," Mr. Ure continued.
"Additionally, concurrent with this release, we are announcing
that we have entered into a series of agreements to sell WES's
equity interests in multiple non-core assets for aggregate proceeds
of $790.0 million and for an
aggregate multiple of approximately 9.6 times 2023 Adjusted EBITDA.
These divestitures are in line with our strategy of divesting
non-core, non-operated assets and redeploying that capital into our
operated asset base with the goal of driving operational
efficiencies alongside throughput growth and creating incremental
value for our unitholders," concluded Mr. Ure.
CONFERENCE CALL TOMORROW AT 1:00 P.M.
CT
WES will host a conference call on Thursday, February 22,
2024, at 1:00 p.m. Central Time
(2:00 p.m. Eastern Time) to discuss
its fourth-quarter and full-year 2023 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 888-390-0546
(Domestic) or 617-892-4906 (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.
FILING OF ANNUAL REPORT ON FORM 10-K
Today WES announced the filing of its Annual Report on Form 10-K
for the fiscal year ended December 31,
2023, with the Securities and Exchange Commission. A copy of
the report is available for viewing and downloading on the Western
Midstream website at www.westernmidstream.com. Unitholders may
request hard copies of the report, which contains WES's
audited financial statements, free of charge, by emailing
investors@westernmidstream.com, or by submitting a written request
to Western Midstream Partners, LP at the following address:
9950 Woodloch Forest Drive, Suite 2800, The Woodlands, TX 77380, Attention: Western
Midstream Investor Relations.
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;
the successful closing of the divestitures noted above; 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)
|
For the quarter- and
year-ended December 31, 2023, includes an average of 331 MMcf/d and
83 MMcf/d, respectively, of throughput associated with the Meritage
acquisition in the fourth quarter of 2023.
|
|
|
|
(3)
|
For the quarter- and
year-ended December 31, 2022, excludes an average of 27 MBbls/d and
65 MBbls/d, respectively, of throughput associated with the sale of
Cactus II in the fourth quarter of 2022. For the quarter and
year-ended December 31, 2023, includes an average of 20 MBbls/d and
5 MBbls/d, respectively, of throughput associated with the Meritage
acquisition in the fourth quarter of 2023.
|
|
|
|
(4)
|
Accrual-based, includes
equity investments, excludes capitalized interest, and excludes
capital expenditures associated with the 25% third-party interest
in Chipeta.
|
|
|
|
(5)
|
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 December
31,
|
|
Year
Ended December
31,
|
thousands except
per-unit amounts
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues and
other
|
|
|
|
|
|
|
|
|
Service revenues – fee
based
|
$
|
763,837
|
$
|
647,948
|
$
|
2,768,757
|
$
|
2,602,053
|
Service revenues –
product based
|
|
49,515
|
|
46,971
|
|
191,727
|
|
249,692
|
Product
sales
|
|
44,688
|
|
84,268
|
|
145,024
|
|
399,023
|
Other
|
|
168
|
|
250
|
|
968
|
|
953
|
Total revenues and
other
|
|
858,208
|
|
779,437
|
|
3,106,476
|
|
3,251,721
|
Equity income, net –
related parties
|
|
36,120
|
|
44,095
|
|
152,959
|
|
183,483
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
40,803
|
|
92,663
|
|
164,598
|
|
420,900
|
Operation and
maintenance
|
|
200,426
|
|
166,923
|
|
762,530
|
|
654,566
|
General and
administrative
|
|
73,060
|
|
49,382
|
|
232,632
|
|
194,017
|
Property and other
taxes
|
|
16,497
|
|
18,065
|
|
56,458
|
|
78,559
|
Depreciation and
amortization
|
|
165,187
|
|
151,910
|
|
600,668
|
|
582,365
|
Long-lived asset and
other impairments
|
|
4
|
|
20,491
|
|
52,884
|
|
20,585
|
Total operating
expenses
|
|
495,977
|
|
499,434
|
|
1,869,770
|
|
1,950,992
|
Gain (loss) on
divestiture and other, net
|
|
(6,434)
|
|
104,560
|
|
(10,102)
|
|
103,676
|
Operating income
(loss)
|
|
391,917
|
|
428,658
|
|
1,379,563
|
|
1,587,888
|
Interest
expense
|
|
(97,622)
|
|
(84,606)
|
|
(348,228)
|
|
(333,939)
|
Gain (loss) on early
extinguishment of debt
|
|
—
|
|
—
|
|
15,378
|
|
91
|
Other income (expense),
net
|
|
2,862
|
|
1,486
|
|
5,679
|
|
1,603
|
Income (loss) before
income taxes
|
|
297,157
|
|
345,538
|
|
1,052,392
|
|
1,255,643
|
Income tax expense
(benefit)
|
|
1,405
|
|
504
|
|
4,385
|
|
4,187
|
Net income
(loss)
|
|
295,752
|
|
345,034
|
|
1,048,007
|
|
1,251,456
|
Net income (loss)
attributable to noncontrolling interests
|
|
7,398
|
|
8,710
|
|
25,791
|
|
34,353
|
Net income (loss)
attributable to Western Midstream Partners,
LP
|
$
|
288,354
|
$
|
336,324
|
$
|
1,022,216
|
$
|
1,217,103
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
$
|
288,354
|
$
|
336,324
|
$
|
1,022,216
|
$
|
1,217,103
|
General partner
interest in net (income) loss
|
|
(6,724)
|
|
(7,747)
|
|
(23,684)
|
|
(27,541)
|
Limited partners'
interest in net income (loss)
|
$
|
281,630
|
$
|
328,577
|
$
|
998,532
|
$
|
1,189,562
|
Net income (loss)
per common unit – basic
|
$
|
0.74
|
$
|
0.85
|
$
|
2.61
|
$
|
3.01
|
Net income (loss)
per common unit – diluted
|
$
|
0.74
|
$
|
0.85
|
$
|
2.60
|
$
|
3.00
|
Weighted-average
common units outstanding – basic
|
|
379,517
|
|
384,885
|
|
383,028
|
|
394,951
|
Weighted-average
common units outstanding – diluted
|
|
381,140
|
|
386,482
|
|
384,408
|
|
396,236
|
Western Midstream
Partners, LP CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
|
|
|
|
December
31,
|
thousands except
number of units
|
|
2023
|
|
2022
|
Total current
assets
|
$
|
992,410
|
$
|
900,425
|
Net property, plant,
and equipment
|
|
9,655,016
|
|
8,541,600
|
Other assets
|
|
1,824,181
|
|
1,829,603
|
Total
assets
|
$
|
12,471,607
|
$
|
11,271,628
|
Total current
liabilities
|
$
|
1,304,056
|
$
|
903,857
|
Long-term
debt
|
|
7,283,556
|
|
6,569,582
|
Asset retirement
obligations
|
|
359,185
|
|
290,021
|
Other
liabilities
|
|
495,680
|
|
400,053
|
Total
liabilities
|
|
9,442,477
|
|
8,163,513
|
Equity and partners'
capital
|
|
|
|
|
Common units
(379,519,983 and 384,070,984 units issued and outstanding at
December 31,
2023 and 2022, respectively)
|
|
2,894,231
|
|
2,969,604
|
General partner units
(9,060,641 units issued and outstanding at December 31, 2023
and
2022)
|
|
3,193
|
|
2,105
|
Noncontrolling
interests
|
|
131,706
|
|
136,406
|
Total liabilities,
equity, and partners' capital
|
$
|
12,471,607
|
$
|
11,271,628
|
Western Midstream
Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited)
|
|
|
|
Year
Ended December
31,
|
thousands
|
|
2023
|
|
2022
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
|
1,048,007
|
$
|
1,251,456
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and
changes in assets and liabilities:
|
|
|
|
|
Depreciation and
amortization
|
|
600,668
|
|
582,365
|
Long-lived asset and
other impairments
|
|
52,884
|
|
20,585
|
(Gain) loss on
divestiture and other, net
|
|
10,102
|
|
(103,676)
|
(Gain) loss on early
extinguishment of debt
|
|
(15,378)
|
|
(91)
|
Change in other items,
net
|
|
(34,949)
|
|
(49,213)
|
Net cash provided by
operating activities
|
$
|
1,661,334
|
$
|
1,701,426
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
$
|
(735,080)
|
$
|
(487,228)
|
Acquisitions from third
parties
|
|
(877,746)
|
|
(40,127)
|
Contributions to equity
investments - related parties
|
|
(1,153)
|
|
(9,632)
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
39,104
|
|
63,897
|
Proceeds from the sale
of assets to related parties
|
|
—
|
|
200
|
Proceeds from the sale
of assets to third parties
|
|
(87)
|
|
264,121
|
(Increase) decrease in
materials and supplies inventory and other
|
|
(32,329)
|
|
(9,468)
|
Net cash used in
investing activities
|
$
|
(1,607,291)
|
$
|
(218,237)
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of debt
issuance costs
|
$
|
2,448,733
|
$
|
1,389,010
|
Repayments of
debt
|
|
(1,967,928)
|
|
(1,518,548)
|
Commercial paper
borrowings (repayments), net
|
|
609,916
|
|
—
|
Increase (decrease) in
outstanding checks
|
|
3,516
|
|
2,206
|
Distributions to
Partnership unitholders
|
|
(978,430)
|
|
(735,755)
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(7,641)
|
|
(10,736)
|
Distributions to
noncontrolling interest owner of WES Operating
|
|
(22,850)
|
|
(24,898)
|
Net contributions from
(distributions to) related parties
|
|
—
|
|
1,423
|
Unit
repurchases
|
|
(134,602)
|
|
(487,590)
|
Other
|
|
(18,626)
|
|
(13,644)
|
Net cash provided by
(used in) financing activities
|
$
|
(67,912)
|
$
|
(1,398,532)
|
Net increase
(decrease) in cash and cash equivalents
|
$
|
(13,869)
|
$
|
84,657
|
Cash and cash
equivalents at beginning of period
|
|
286,656
|
|
201,999
|
Cash and cash
equivalents at end of period
|
$
|
272,787
|
$
|
286,656
|
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
|
|
Year
Ended
|
thousands
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2023
|
|
December 31,
2022
|
Reconciliation of
Gross margin to Adjusted gross
margin
|
|
|
|
|
|
|
|
|
Total revenues and
other
|
|
$
858,208
|
|
$
776,013
|
|
$
3,106,476
|
|
$
3,251,721
|
Less:
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
40,803
|
|
27,590
|
|
164,598
|
|
420,900
|
Depreciation and
amortization
|
|
165,187
|
|
147,363
|
|
600,668
|
|
582,365
|
Gross margin
|
|
652,218
|
|
601,060
|
|
2,341,210
|
|
2,248,456
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
46,661
|
|
41,562
|
|
194,273
|
|
250,050
|
Depreciation and
amortization
|
|
165,187
|
|
147,363
|
|
600,668
|
|
582,365
|
Less:
|
|
|
|
|
|
|
|
|
Reimbursed
electricity-related charges recorded as
revenues
|
|
25,273
|
|
29,981
|
|
102,109
|
|
81,764
|
Adjusted gross margin
attributable to noncontrolling
interests (1)
|
|
19,412
|
|
18,095
|
|
70,195
|
|
73,632
|
Adjusted gross
margin
|
|
$
819,381
|
|
$
741,909
|
|
$
2,963,847
|
|
$
2,925,475
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
Gross margin for
natural-gas assets (2)
|
|
$
484,688
|
|
$
450,130
|
|
$
1,738,125
|
|
$
1,676,732
|
Gross margin for
crude-oil and NGLs assets (2)
|
|
103,228
|
|
87,911
|
|
368,444
|
|
346,406
|
Gross margin for
produced-water assets (2)
|
|
70,509
|
|
70,353
|
|
259,541
|
|
245,274
|
Adjusted gross
margin
|
|
|
|
|
|
|
|
|
Adjusted gross margin
for natural-gas assets
|
|
$
579,278
|
|
$
518,765
|
|
$
2,067,528
|
|
$
2,031,600
|
Adjusted gross margin
for crude-oil and NGLs assets
|
|
157,048
|
|
139,430
|
|
589,091
|
|
607,769
|
Adjusted gross margin
for produced-water assets
|
|
83,055
|
|
83,714
|
|
307,228
|
|
286,106
|
(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
|
|
Year
Ended
|
thousands
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2023
|
|
December 31,
2022
|
Reconciliation of
Net income (loss) to Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
295,752
|
|
$
284,398
|
|
$
1,048,007
|
|
$
1,251,456
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
46,661
|
|
41,562
|
|
194,273
|
|
250,050
|
Non-cash equity-based
compensation expense
|
|
9,970
|
|
7,171
|
|
32,005
|
|
27,783
|
Interest
expense
|
|
97,622
|
|
82,754
|
|
348,228
|
|
333,939
|
Income tax
expense
|
|
1,405
|
|
905
|
|
4,385
|
|
4,187
|
Depreciation and
amortization
|
|
165,187
|
|
147,363
|
|
600,668
|
|
582,365
|
Impairments
|
|
4
|
|
245
|
|
52,884
|
|
20,585
|
Other
expense
|
|
71
|
|
1,269
|
|
1,739
|
|
555
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(6,434)
|
|
(1,480)
|
|
(10,102)
|
|
103,676
|
Gain (loss) on early
extinguishment of debt
|
|
—
|
|
8,565
|
|
15,378
|
|
91
|
Equity income, net –
related parties
|
|
36,120
|
|
35,494
|
|
152,959
|
|
183,483
|
Other
income
|
|
2,862
|
|
27
|
|
6,976
|
|
1,648
|
Adjusted EBITDA
attributable to noncontrolling
interests (1)
|
|
13,459
|
|
12,134
|
|
48,345
|
|
54,049
|
Adjusted
EBITDA
|
|
$
570,665
|
|
$
510,927
|
|
$
2,068,633
|
|
$
2,127,973
|
Reconciliation of
Net cash provided by operating
activities to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
473,300
|
|
$
394,787
|
|
$
1,661,334
|
|
$
1,701,426
|
Interest (income)
expense, net
|
|
97,622
|
|
82,754
|
|
348,228
|
|
333,939
|
Accretion and
amortization of long-term obligations, net
|
|
(2,174)
|
|
(1,882)
|
|
(8,151)
|
|
(7,142)
|
Current income tax
expense (benefit)
|
|
1,315
|
|
806
|
|
3,341
|
|
2,188
|
Other (income) expense,
net
|
|
(2,862)
|
|
1,270
|
|
(5,679)
|
|
(1,603)
|
Distributions from
equity investments in excess of
cumulative earnings – related
parties
|
|
7,389
|
|
8,536
|
|
39,104
|
|
63,897
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
17,773
|
|
60,614
|
|
78,346
|
|
116,296
|
Accounts and imbalance
payables and accrued
liabilities, net
|
|
(19,021)
|
|
(12,535)
|
|
68,019
|
|
7,812
|
Other items,
net
|
|
10,782
|
|
(11,289)
|
|
(67,564)
|
|
(34,791)
|
Adjusted EBITDA
attributable to noncontrolling
interests (1)
|
|
(13,459)
|
|
(12,134)
|
|
(48,345)
|
|
(54,049)
|
Adjusted
EBITDA
|
|
$
570,665
|
|
$
510,927
|
|
$
2,068,633
|
|
$
2,127,973
|
Cash flow
information
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
473,300
|
|
$
394,787
|
|
$
1,661,334
|
|
$
1,701,426
|
Net cash used in
investing activities
|
|
(1,068,707)
|
|
(207,916)
|
|
(1,607,291)
|
|
(218,237)
|
Net cash provided by
(used in) financing activities
|
|
378,700
|
|
88,670
|
|
(67,912)
|
|
(1,398,532)
|
(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
|
|
Year
Ended
|
thousands
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2023
|
|
December 31,
2022
|
Reconciliation of
Net cash provided by operating
activities to Free cash flow
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
473,300
|
|
$
394,787
|
|
$
1,661,334
|
|
$
1,701,426
|
Less:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
198,653
|
|
201,857
|
|
735,080
|
|
487,228
|
Contributions to
equity investments – related parties
|
|
—
|
|
1,021
|
|
1,153
|
|
9,632
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments in excess of
cumulative earnings – related
parties
|
|
7,389
|
|
8,536
|
|
39,104
|
|
63,897
|
Free cash
flow
|
|
$
282,036
|
|
$
200,445
|
|
$
964,205
|
|
$
1,268,463
|
Cash flow
information
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
473,300
|
|
$
394,787
|
|
$
1,661,334
|
|
$
1,701,426
|
Net cash used in
investing activities
|
|
(1,068,707)
|
|
(207,916)
|
|
(1,607,291)
|
|
(218,237)
|
Net cash provided by
(used in) financing activities
|
|
378,700
|
|
88,670
|
|
(67,912)
|
|
(1,398,532)
|
Western Midstream
Partners, LP OPERATING
STATISTICS (Unaudited)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2023
|
|
December 31,
2022
|
Throughput for
natural-gas assets (MMcf/d)
|
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
|
516
|
|
457
|
|
435
|
|
409
|
Processing
|
|
4,043
|
|
3,699
|
|
3,692
|
|
3,474
|
Equity investments
(1)
|
|
489
|
|
495
|
|
466
|
|
483
|
Total
throughput
|
|
5,048
|
|
4,651
|
|
4,593
|
|
4,366
|
Throughput
attributable to noncontrolling interests (2)
|
|
172
|
|
167
|
|
161
|
|
156
|
Total throughput
attributable to WES for natural-gas
assets
|
|
4,876
|
|
4,484
|
|
4,432
|
|
4,210
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
|
368
|
|
334
|
|
332
|
|
317
|
Equity investments
(1)
|
|
347
|
|
347
|
|
333
|
|
373
|
Total
throughput
|
|
715
|
|
681
|
|
665
|
|
690
|
Throughput
attributable to noncontrolling interests (2)
|
|
13
|
|
14
|
|
13
|
|
14
|
Total throughput
attributable to WES for crude-oil and
NGLs assets
|
|
702
|
|
667
|
|
652
|
|
676
|
Throughput for
produced-water assets (MBbls/d)
|
|
|
|
|
|
|
|
|
Gathering and
disposal
|
|
1,076
|
|
1,101
|
|
1,029
|
|
853
|
Throughput
attributable to noncontrolling interests (2)
|
|
22
|
|
22
|
|
20
|
|
17
|
Total throughput
attributable to WES for produced-
water assets
|
|
1,054
|
|
1,079
|
|
1,009
|
|
836
|
Per-Mcf Gross
margin for natural-gas assets (3)
|
|
$
1.04
|
|
$
1.05
|
|
$
1.04
|
|
$
1.05
|
Per-Bbl Gross
margin for crude-oil and NGLs assets
(3)
|
|
1.57
|
|
1.40
|
|
1.52
|
|
1.38
|
Per-Bbl Gross
margin for produced-water assets (3)
|
|
0.71
|
|
0.69
|
|
0.69
|
|
0.79
|
|
|
|
|
|
|
|
|
|
Per-Mcf Adjusted gross
margin for natural-gas assets (4)
|
|
$
1.29
|
|
$
1.26
|
|
$
1.28
|
|
$
1.32
|
Per-Bbl Adjusted gross
margin for crude-oil and NGLs
assets (4)
|
|
2.43
|
|
2.27
|
|
2.48
|
|
2.46
|
Per-Bbl Adjusted gross
margin for produced-water assets
(4)
|
|
0.86
|
|
0.84
|
|
0.83
|
|
0.94
|
(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
|
|
Year
Ended
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
Inc/
(Dec)
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Inc/
(Dec)
|
Throughput for
natural-gas assets (MMcf/d)
|
Operated
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
1,704
|
|
1,674
|
|
2 %
|
|
1,635
|
|
1,470
|
|
11 %
|
DJ Basin
|
|
1,341
|
|
1,331
|
|
1 %
|
|
1,322
|
|
1,331
|
|
(1) %
|
Powder River
Basin
|
|
369
|
|
40
|
|
NM
|
|
120
|
|
33
|
|
NM
|
Other
|
|
998
|
|
990
|
|
1 %
|
|
930
|
|
914
|
|
2 %
|
Total operated
throughput for natural-
gas assets
|
|
4,412
|
|
4,035
|
|
9 %
|
|
4,007
|
|
3,748
|
|
7 %
|
Non-operated
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
investments
|
|
489
|
|
495
|
|
(1) %
|
|
466
|
|
483
|
|
(4) %
|
Other
|
|
147
|
|
121
|
|
21 %
|
|
120
|
|
135
|
|
(11) %
|
Total non-operated
throughput for
natural-gas assets
|
|
636
|
|
616
|
|
3 %
|
|
586
|
|
618
|
|
(5) %
|
Total throughput for
natural-gas assets
|
|
5,048
|
|
4,651
|
|
9 %
|
|
4,593
|
|
4,366
|
|
5 %
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
Operated
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
225
|
|
220
|
|
2 %
|
|
214
|
|
198
|
|
8 %
|
DJ Basin
|
|
81
|
|
68
|
|
19 %
|
|
71
|
|
82
|
|
(13) %
|
Powder River
Basin
|
|
20
|
|
—
|
|
100 %
|
|
5
|
|
—
|
|
100 %
|
Other
|
|
42
|
|
46
|
|
(9) %
|
|
42
|
|
37
|
|
14 %
|
Total operated
throughput for crude-
oil and NGLs assets
|
|
368
|
|
334
|
|
10 %
|
|
332
|
|
317
|
|
5 %
|
Non-operated
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
investments
|
|
347
|
|
347
|
|
— %
|
|
333
|
|
373
|
|
(11) %
|
Total non-operated
throughput for crude-
oil and NGLs assets
|
|
347
|
|
347
|
|
— %
|
|
333
|
|
373
|
|
(11) %
|
Total throughput for
crude-oil and NGLs assets
|
|
715
|
|
681
|
|
5 %
|
|
665
|
|
690
|
|
(4) %
|
Throughput for
produced-water assets (MBbls/d)
|
Operated
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
1,076
|
|
1,101
|
|
(2) %
|
|
1,029
|
|
853
|
|
21 %
|
Total operated
throughput for
produced-water assets
|
|
1,076
|
|
1,101
|
|
(2) %
|
|
1,029
|
|
853
|
|
21 %
|
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multimedia:https://www.prnewswire.com/news-releases/western-midstream-announces-fourth-quarter-and-full-year-2023-results-302067895.html
SOURCE Western Midstream Partners, LP