- Reported third-quarter 2024 Net income attributable to limited
partners of $281.8 million,
generating third-quarter Adjusted EBITDA(1) of
$566.9 million.
- Reported third-quarter 2024 Cash flows provided by operating
activities of $551.3 million,
generating third-quarter Free cash flow(1) of
$365.1 million.
- Announced a third-quarter Base Distribution of $0.875 per unit, or $3.50 per unit on an annualized basis, which is
in-line with the prior-quarter's Base Distribution.
HOUSTON,
Nov. 6,
2024 /PRNewswire/ -- Today Western Midstream
Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced
third-quarter 2024 financial and operating results. Net income
(loss) attributable to limited partners for the third quarter of
2024 totaled $281.8 million, or
$0.74 per common unit (diluted), with
third-quarter 2024 Adjusted EBITDA(1) totaling
$566.9 million. Third-quarter 2024
Cash flows provided by operating activities totaled $551.3 million, and third-quarter 2024 Free cash
flow(1) totaled $365.1
million.
RECENT HIGHLIGHTS
- Gathered record natural-gas and crude-oil and NGLs throughput
in the Delaware Basin of 1.9 Bcf/d
and 246 MBbls/d, respectively, each representing a 2-percent
sequential-quarter increase.
- Gathered record natural-gas and crude-oil and NGLs throughput
in the Powder River Basin of 505 MMcf/d and 26 MBbls/d,
respectively, representing sequential-quarter increases of
19-percent and 4-percent, respectively.
- Achieved increased produced-water throughput in the
Delaware Basin of 1,121 MBbls/d,
representing a 2-percent sequential-quarter increase.
- Issued $800.0 million of 5.450%
senior notes due 2034, the proceeds from which will be used to
repay a portion of the Partnership's senior notes due in 2025, and
for general partnership purposes.
- Maintained strong operational performance and continued flow
assurance for our customers, with system operability above
98-percent, despite multiple plant turnarounds in several of our
core operating basins.
- Subsequent to quarter-end, executed agreements to realign the
commercial structure of the Mi Vida joint venture, which will
provide WES with 100 MMcf/d of dedicated natural-gas processing
capacity in the Delaware Basin
beginning in mid-2025.
On November 14, 2024, WES will pay its
third-quarter 2024 per-unit Base Distribution of $0.875, which is in-line with the prior quarter's
Base Distribution. Third-quarter 2024 Free cash flow(1)
after distributions totaled $24.3
million. Third-quarter 2024 capital
expenditures(2) totaled $198.1
million.
Third-quarter 2024 natural-gas
throughput(3) averaged 5.0 Bcf/d, representing a
1-percent sequential quarter increase. Third-quarter 2024
throughput for crude-oil and NGLs assets(3) averaged 506
MBbls/d, representing a 2-percent sequential-quarter decrease.
Third-quarter 2024 throughput for produced-water
assets(3) averaged 1,099 MBbls/d, representing a
2-percent sequential-quarter increase.
"We achieved another quarter of record
natural-gas and crude-oil and NGLs throughput in the Delaware Basin and experienced continued
strong throughput growth in the Powder River Basin as the Meritage
Midstream acquisition continues to exceed our expectations," said
Oscar Brown, President and Chief
Executive Officer. "However, our profitability declined slightly
quarter-over-quarter, primarily due to lower natural-gas liquids
recoveries and lower commodity prices in the Delaware Basin, lower distributions from our
equity investments, and higher operation and maintenance expense,
which is typical in the third quarter."
Mr. Brown continued, "Looking to the fourth
quarter, we estimate increased Adjusted EBITDA primarily driven by
continued steady throughput growth from our core operating basins
and lower operation and maintenance expense. While we still expect
Adjusted EBITDA to be towards the high end of our previously
announced $2.2 billion to
$2.4 billion guidance range for the
year, we are reducing our average year-over-year crude-oil and NGLs
and produced-water throughput growth expectations."
"In August, we issued $800.0 million of new senior notes in a
highly successful offering that resulted in the best 10-year credit
spread in WES's history. Our trailing-twelve-month net leverage
ratio has comfortably reached our year-end 2024 threshold of 3.0
times, and we will continue to look for the most efficient ways to
allocate capital to generate the best returns for our unitholders.
Those options continue to include organic growth opportunities to
prudently expand the business, accretive M&A similar to the
Meritage Midstream acquisition, and increasing the Base
Distribution in-line with the growth of the business. Our strong
operating model, improved balance sheet, and transparent
capital-return framework, all provide WES with a solid foundation
that is well positioned for future success," concluded Mr.
Brown.
CONFERENCE CALL TOMORROW AT 1:00 P.M. CT
WES will host a conference call on Thursday, November 7, 2024, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss its
third-quarter 2024 results. To access the live audio webcast of the
conference call, please visit the investor relations section of the
Partnership's website at www.westernmidstream.com. A small number
of phone lines are available for analysts; individuals should dial
800-836-8184 (Domestic) or 646-357-8785 (International) ten to
fifteen minutes before the scheduled conference call time. A replay
of the live audio webcast can be accessed on the Partnership's
website at www.westernmidstream.com for one year after the
call.
For additional details on WES's financial and
operational performance, please refer to the earnings slides and
updated investor presentation available at
www.westernmidstream.com.
2023 SUSTAINABILITY REPORT
Today WES released its annual sustainability
report focused on environmental, social, and governance (ESG)
issues. The report details the Partnership's continued focus on the
three core pillars of its ESG approach: supporting sustainable
environments, focusing on people, and operating responsibly. To
download and read the full report, please click on the
Sustainability section of our website at
www.westernmidstream.com.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a
master limited partnership formed to develop, acquire, own, and
operate midstream assets. With midstream assets located in
Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of
gathering, compressing, treating, processing, and transporting
natural gas; gathering, stabilizing, and transporting condensate,
natural-gas liquids, and crude oil; and gathering and disposing of
produced water for its customers. In its capacity as a natural-gas
processor, WES also buys and sells natural gas, natural-gas
liquids, and condensate on behalf of itself and its customers under
certain gas processing contracts. A substantial majority of WES's
cash flows are protected from direct exposure to commodity price
volatility through fee-based contracts.
For more information about WES, please visit
www.westernmidstream.com.
This news release contains forward-looking
statements. WES's management believes that its expectations are
based on reasonable assumptions. No assurance, however, can be
given that such expectations will prove correct. A number of
factors could cause actual results to differ materially from the
projections, anticipated results, or other expectations expressed
in this news release. These factors include our ability to meet
financial guidance or distribution expectations; our ability to
safely and efficiently operate WES's assets; the supply of, demand
for, and price of oil, natural gas, NGLs, and related products or
services; our ability to meet projected in-service dates for
capital-growth projects; construction costs or capital expenditures
exceeding estimated or budgeted costs or expenditures; and the
other factors described in the "Risk Factors" section of WES's
most-recent Form 10-K filed with the Securities and Exchange
Commission and other public filings and press releases. WES
undertakes no obligation to publicly update or revise any
forward-looking statements.
______________________________________________________________
|
(1)
|
Please see the
definitions of the Partnership's non-GAAP measures at the end of
this release and reconciliation of GAAP to non-GAAP
measures.
|
|
(2)
|
Accrual-based, includes
equity investments, excludes capitalized interest, and excludes
capital expenditures associated with the 25% third-party interest
in Chipeta.
|
|
(3)
|
Represents total
throughput attributable to WES, which excludes (i) the 2.0% limited
partner interest in WES Operating owned by an Occidental subsidiary
and (ii) for natural-gas throughput, the 25% third-party interest
in Chipeta, which collectively represent WES's noncontrolling
interests.
|
|
|
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523
Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
thousands except
per-unit amounts
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues and
other
|
|
|
|
|
|
|
|
|
|
Service revenues – fee
based
|
|
$
814,319
|
|
$ 695,547
|
|
$
2,389,366
|
|
$
2,004,920
|
|
Service revenues –
product based
|
|
49,115
|
|
48,446
|
|
177,321
|
|
142,212
|
|
Product
sales
|
|
19,673
|
|
31,652
|
|
109,076
|
|
100,336
|
|
Other
|
|
255
|
|
368
|
|
957
|
|
800
|
|
Total revenues and
other
|
|
883,362
|
|
776,013
|
|
2,676,720
|
|
2,248,268
|
|
Equity income, net –
related parties
|
|
23,977
|
|
35,494
|
|
84,227
|
|
116,839
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
32,847
|
|
27,590
|
|
132,936
|
|
123,795
|
|
Operation and
maintenance
|
|
231,066
|
|
204,434
|
|
649,324
|
|
562,104
|
|
General and
administrative
|
|
64,726
|
|
55,050
|
|
195,498
|
|
159,572
|
|
Property and other
taxes
|
|
12,635
|
|
14,583
|
|
43,984
|
|
39,961
|
|
Depreciation and
amortization
|
|
166,015
|
|
147,363
|
|
487,438
|
|
435,481
|
|
Long-lived asset and
other impairments
|
|
4,651
|
|
245
|
|
6,204
|
|
52,880
|
|
Total operating
expenses
|
|
511,940
|
|
449,265
|
|
1,515,384
|
|
1,373,793
|
|
Gain (loss) on
divestiture and other, net
|
|
467
|
|
(1,480)
|
|
299,426
|
|
(3,668)
|
|
Operating income
(loss)
|
|
395,866
|
|
360,762
|
|
1,544,989
|
|
987,646
|
|
Interest
expense
|
|
(94,149)
|
|
(82,754)
|
|
(279,177)
|
|
(250,606)
|
|
Gain (loss) on early
extinguishment of debt
|
|
—
|
|
8,565
|
|
5,403
|
|
15,378
|
|
Other income (expense),
net
|
|
9,565
|
|
(1,270)
|
|
16,124
|
|
2,817
|
|
Income (loss) before
income taxes
|
|
311,282
|
|
285,303
|
|
1,287,339
|
|
755,235
|
|
Income tax expense
(benefit)
|
|
15,390
|
|
905
|
|
17,667
|
|
2,980
|
|
Net income
(loss)
|
|
295,892
|
|
284,398
|
|
1,269,672
|
|
752,255
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
7,412
|
|
7,102
|
|
29,714
|
|
18,393
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
288,480
|
|
$ 277,296
|
|
$
1,239,958
|
|
$ 733,862
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
288,480
|
|
$ 277,296
|
|
$
1,239,958
|
|
$ 733,862
|
|
General partner
interest in net (income) loss
|
|
(6,708)
|
|
(6,453)
|
|
(28,845)
|
|
(16,960)
|
|
Limited partners'
interest in net income (loss)
|
|
$
281,772
|
|
$ 270,843
|
|
$
1,211,113
|
|
$ 716,902
|
|
Net income (loss)
per common unit – basic
|
|
$
0.74
|
|
$
0.71
|
|
$
3.18
|
|
$
1.87
|
|
Net income (loss)
per common unit – diluted
|
|
$
0.74
|
|
$
0.70
|
|
$
3.17
|
|
$
1.86
|
|
Weighted-average
common units outstanding – basic
|
|
380,513
|
|
383,561
|
|
380,343
|
|
384,211
|
|
Weighted-average
common units outstanding – diluted
|
|
382,620
|
|
384,772
|
|
382,189
|
|
385,344
|
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
thousands except
number of units
|
|
September
30,
2024
|
|
December 31,
2023
|
|
Total current
assets
|
|
$
1,832,688
|
|
$
992,410
|
|
Net property, plant,
and equipment
|
|
9,695,591
|
|
9,655,016
|
|
Other assets
|
|
1,452,945
|
|
1,824,181
|
|
Total
assets
|
|
$
12,981,224
|
|
$ 12,471,607
|
|
Total current
liabilities
|
|
$
1,646,195
|
|
$
1,304,056
|
|
Long-term
debt
|
|
6,929,212
|
|
7,283,556
|
|
Asset retirement
obligations
|
|
374,646
|
|
359,185
|
|
Other
liabilities
|
|
653,654
|
|
495,680
|
|
Total
liabilities
|
|
9,603,707
|
|
9,442,477
|
|
Equity and partners'
capital
|
|
|
|
|
|
Common units
(380,555,427 and 379,519,983 units issued and outstanding at
September 30,
2024, and December 31, 2023, respectively)
|
|
3,225,855
|
|
2,894,231
|
|
General partner units
(9,060,641 units issued and outstanding at September 30, 2024,
and
December 31, 2023)
|
|
10,972
|
|
3,193
|
|
Noncontrolling
interests
|
|
140,690
|
|
131,706
|
|
Total liabilities,
equity, and partners' capital
|
|
$
12,981,224
|
|
$ 12,471,607
|
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Nine Months
Ended
September
30,
|
|
thousands
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
(loss)
|
|
$
1,269,672
|
|
$
752,255
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and
changes in assets and liabilities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
487,438
|
|
435,481
|
|
Long-lived asset and
other impairments
|
|
6,204
|
|
52,880
|
|
(Gain) loss on
divestiture and other, net
|
|
(299,426)
|
|
3,668
|
|
(Gain) loss on early
extinguishment of debt
|
|
(5,403)
|
|
(15,378)
|
|
Change in other items,
net
|
|
123,929
|
|
(40,872)
|
|
Net cash provided by
operating activities
|
|
$
1,582,414
|
|
$
1,188,034
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Capital
expenditures
|
|
$
(595,087)
|
|
$ (536,427)
|
|
Acquisitions from third
parties
|
|
(443)
|
|
—
|
|
Contributions to equity
investments - related parties
|
|
—
|
|
(1,153)
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
27,560
|
|
31,715
|
|
Proceeds from the sale
of assets to third parties
|
|
792,241
|
|
(60)
|
|
(Increase) decrease in
materials and supplies inventory and other
|
|
(33,118)
|
|
(32,659)
|
|
Net cash provided by
(used in) investing activities
|
|
$
191,153
|
|
$ (538,584)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Borrowings, net of debt
issuance costs
|
|
$
789,193
|
|
$
1,801,011
|
|
Repayments of
debt
|
|
(143,852)
|
|
(1,317,928)
|
|
Commercial paper
borrowings (repayments), net
|
|
(610,312)
|
|
—
|
|
Increase (decrease) in
outstanding checks
|
|
(2,282)
|
|
(241)
|
|
Distributions to
Partnership unitholders
|
|
(905,155)
|
|
(754,998)
|
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(2,228)
|
|
(5,083)
|
|
Distributions to
noncontrolling interest owner of WES Operating
|
|
(18,502)
|
|
(18,260)
|
|
Unit
repurchases
|
|
—
|
|
(134,602)
|
|
Other
|
|
(28,479)
|
|
(16,511)
|
|
Net cash provided by
(used in) financing activities
|
|
$
(921,617)
|
|
$
(446,612)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
851,950
|
|
$
202,838
|
|
Cash and cash
equivalents at beginning of period
|
|
272,787
|
|
286,656
|
|
Cash and cash
equivalents at end of period
|
|
$
1,124,737
|
|
$
489,494
|
Western Midstream Partners,
LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines Adjusted gross margin attributable to
Western Midstream Partners, LP ("Adjusted gross margin") as total
revenues and other (less reimbursements for electricity-related
expenses recorded as revenue), less cost of product, plus
distributions from equity investments, and excluding the
noncontrolling interest owners' proportionate share of revenues and
cost of product.
WES defines Adjusted EBITDA attributable to
Western Midstream Partners, LP ("Adjusted EBITDA") as net income
(loss), plus (i) distributions from equity investments, (ii)
non-cash equity-based compensation expense, (iii) interest expense,
(iv) income tax expense, (v) depreciation and amortization, (vi)
impairments, and (vii) other expense (including lower of cost or
market inventory adjustments recorded in cost of product), less (i)
gain (loss) on divestiture and other, net, (ii) gain (loss) on
early extinguishment of debt, (iii) income from equity investments,
(iv) interest income, (v) income tax benefit, (vi) other income,
and (vii) the noncontrolling interest owners' proportionate share
of revenues and expenses.
WES defines Free cash flow as net cash provided
by operating activities less total capital expenditures and
contributions to equity investments, plus distributions from equity
investments in excess of cumulative earnings.
Below are reconciliations of (i) gross margin
(GAAP) to Adjusted gross margin (non-GAAP), (ii) net income (loss)
(GAAP) and net cash provided by operating activities (GAAP) to
Adjusted EBITDA (non-GAAP), and (iii) net cash provided by
operating activities (GAAP) to Free cash flow (non-GAAP), as
required under Regulation G of the Securities Exchange Act of 1934.
Management believes that Adjusted gross margin, Adjusted EBITDA,
and Free cash flow are widely accepted financial indicators of
WES's financial performance compared to other publicly traded
partnerships and are useful in assessing WES's ability to incur and
service debt, fund capital expenditures, and make distributions.
Adjusted gross margin, Adjusted EBITDA, and Free cash flow as
defined by WES, may not be comparable to similarly titled measures
used by other companies. Therefore, WES's Adjusted gross margin,
Adjusted EBITDA, and Free cash flow should be considered in
conjunction with net income (loss) attributable to Western
Midstream Partners, LP and other applicable performance measures,
such as gross margin or cash flows provided by operating
activities.
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
|
|
|
Adjusted Gross
Margin
|
|
|
|
Three Months
Ended
|
|
thousands
|
|
September
30,
2024
|
|
June 30,
2024
|
|
Reconciliation of
Gross margin to Adjusted gross margin
|
|
|
|
|
|
Total revenues and
other
|
|
$
883,362
|
|
$
905,629
|
|
Less:
|
|
|
|
|
|
Cost of
product
|
|
32,847
|
|
54,010
|
|
Depreciation and
amortization
|
|
166,015
|
|
163,432
|
|
Gross margin
|
|
684,500
|
|
688,187
|
|
Add:
|
|
|
|
|
|
Distributions from
equity investments
|
|
29,344
|
|
32,970
|
|
Depreciation and
amortization
|
|
166,015
|
|
163,432
|
|
Less:
|
|
|
|
|
|
Reimbursed
electricity-related charges recorded as revenues
|
|
32,379
|
|
28,998
|
|
Adjusted gross margin
attributable to noncontrolling interests (1)
|
|
19,986
|
|
19,741
|
|
Adjusted gross
margin
|
|
$
827,494
|
|
$
835,850
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
Gross margin for
natural-gas assets (2)
|
|
$
511,244
|
|
$
516,253
|
|
Gross margin for
crude-oil and NGLs assets (2)
|
|
97,263
|
|
96,786
|
|
Gross margin for
produced-water assets (2)
|
|
83,178
|
|
82,346
|
|
Adjusted gross
margin
|
|
|
|
|
|
Adjusted gross margin
for natural-gas assets
|
|
$
596,459
|
|
$
601,443
|
|
Adjusted gross margin
for crude-oil and NGLs assets
|
|
134,253
|
|
138,894
|
|
Adjusted gross margin
for produced-water assets
|
|
96,782
|
|
95,513
|
|
|
|
(1)
|
Includes (i) the 25%
third-party interest in Chipeta and (ii) the 2.0% limited partner
interest in WES Operating owned by an Occidental subsidiary, which
collectively represent WES's noncontrolling interests.
|
|
(2)
|
Excludes
corporate-level depreciation and amortization.
|
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
|
|
|
Adjusted
EBITDA
|
|
|
|
Three Months
Ended
|
|
thousands
|
|
September
30,
2024
|
|
June 30,
2024
|
|
Reconciliation of
Net income (loss) to Adjusted EBITDA
|
|
|
|
|
|
Net income
(loss)
|
|
$
295,892
|
|
$
387,564
|
|
Add:
|
|
|
|
|
|
Distributions from
equity investments
|
|
29,344
|
|
32,970
|
|
Non-cash equity-based
compensation expense
|
|
8,759
|
|
10,391
|
|
Interest
expense
|
|
94,149
|
|
90,522
|
|
Income tax
expense
|
|
15,390
|
|
755
|
|
Depreciation and
amortization
|
|
166,015
|
|
163,432
|
|
Impairments
|
|
4,651
|
|
1,530
|
|
Other
expense
|
|
90
|
|
37
|
|
Less:
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
467
|
|
59,342
|
|
Gain (loss) on early
extinguishment of debt
|
|
—
|
|
4,879
|
|
Equity income, net –
related parties
|
|
23,977
|
|
27,431
|
|
Other
income
|
|
9,565
|
|
4,213
|
|
Adjusted EBITDA
attributable to noncontrolling interests (1)
|
|
13,411
|
|
13,276
|
|
Adjusted
EBITDA
|
|
$
566,870
|
|
$
578,060
|
|
Reconciliation of
Net cash provided by operating activities to Adjusted
EBITDA
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
551,288
|
|
$
631,418
|
|
Interest (income)
expense, net
|
|
94,149
|
|
90,522
|
|
Accretion and
amortization of long-term obligations, net
|
|
(2,221)
|
|
(2,473)
|
|
Current income tax
expense (benefit)
|
|
1,471
|
|
726
|
|
Other (income) expense,
net
|
|
(9,565)
|
|
(4,213)
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
3,257
|
|
5,270
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
Accounts receivable,
net
|
|
(12,683)
|
|
(28,436)
|
|
Accounts and imbalance
payables and accrued liabilities, net
|
|
(8,161)
|
|
(13,338)
|
|
Other items,
net
|
|
(37,254)
|
|
(88,140)
|
|
Adjusted EBITDA
attributable to noncontrolling interests (1)
|
|
(13,411)
|
|
(13,276)
|
|
Adjusted
EBITDA
|
|
$
566,870
|
|
$
578,060
|
|
Cash flow
information
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
551,288
|
|
$
631,418
|
|
Net cash provided by
(used in) investing activities
|
|
(190,701)
|
|
(14,995)
|
|
Net cash provided by
(used in) financing activities
|
|
420,031
|
|
(567,550)
|
|
|
|
(1)
|
Includes (i) the 25%
third-party interest in Chipeta and (ii) the 2.0% limited partner
interest in WES Operating owned by an Occidental subsidiary, which
collectively represent WES's noncontrolling interests.
|
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
|
|
|
Free Cash
Flow
|
|
|
|
Three Months
Ended
|
|
thousands
|
|
September
30,
2024
|
|
June 30,
2024
|
|
Reconciliation of
Net cash provided by operating activities to Free cash
flow
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
551,288
|
|
$
631,418
|
|
Less:
|
|
|
|
|
|
Capital
expenditures
|
|
189,434
|
|
211,864
|
|
Add:
|
|
|
|
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
3,257
|
|
5,270
|
|
Free cash
flow
|
|
$
365,111
|
|
$
424,824
|
|
Cash flow
information
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
551,288
|
|
$
631,418
|
|
Net cash provided by
(used in) investing activities
|
|
(190,701)
|
|
(14,995)
|
|
Net cash provided by
(used in) financing activities
|
|
420,031
|
|
(567,550)
|
|
Western Midstream
Partners, LP
OPERATING
STATISTICS
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
September
30,
2024
|
|
June 30,
2024
|
|
Inc/
(Dec)
|
|
Throughput for
natural-gas assets (MMcf/d)
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
|
388
|
|
438
|
|
(11) %
|
|
Processing
|
|
4,298
|
|
4,209
|
|
2 %
|
|
Equity investments
(1)
|
|
503
|
|
508
|
|
(1) %
|
|
Total
throughput
|
|
5,189
|
|
5,155
|
|
1 %
|
|
Throughput attributable to noncontrolling interests
(2)
|
|
173
|
|
167
|
|
4 %
|
|
Total throughput
attributable to WES for natural-gas assets
|
|
5,016
|
|
4,988
|
|
1 %
|
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
|
393
|
|
396
|
|
(1) %
|
|
Equity investments
(1)
|
|
124
|
|
130
|
|
(5) %
|
|
Total
throughput
|
|
517
|
|
526
|
|
(2) %
|
|
Throughput attributable to noncontrolling interests
(2)
|
|
11
|
|
11
|
|
— %
|
|
Total throughput
attributable to WES for crude-oil and NGLs assets
|
|
506
|
|
515
|
|
(2) %
|
|
Throughput for
produced-water assets (MBbls/d)
|
|
|
|
|
|
|
|
Gathering and
disposal
|
|
1,121
|
|
1,102
|
|
2 %
|
|
Throughput attributable to noncontrolling interests
(2)
|
|
22
|
|
22
|
|
— %
|
|
Total throughput
attributable to WES for produced-water assets
|
|
1,099
|
|
1,080
|
|
2 %
|
|
Per-Mcf Gross
margin for natural-gas assets (3)
|
|
$
1.07
|
|
$
1.10
|
|
(3) %
|
|
Per-Bbl Gross
margin for crude-oil and NGLs assets
(3)
|
|
2.05
|
|
2.02
|
|
1 %
|
|
Per-Bbl Gross
margin for produced-water assets (3)
|
|
0.81
|
|
0.82
|
|
(1) %
|
|
|
|
|
|
|
|
|
Per-Mcf Adjusted gross
margin for natural-gas assets (4)
|
|
$
1.29
|
|
$
1.33
|
|
(3) %
|
|
Per-Bbl Adjusted gross
margin for crude-oil and NGLs assets (4)
|
|
2.88
|
|
2.96
|
|
(3) %
|
|
Per-Bbl Adjusted gross
margin for produced-water assets (4)
|
|
0.96
|
|
0.97
|
|
(1) %
|
|
|
|
(1)
|
Represents our share of
average throughput for investments accounted for under the equity
method of accounting.
|
|
(2)
|
Includes (i) the 2.0%
limited partner interest in WES Operating owned by an Occidental
subsidiary and (ii) for natural-gas assets, the 25% third-party
interest in Chipeta, which collectively represent WES's
noncontrolling interests.
|
|
(3)
|
Average for period.
Calculated as Gross margin for natural-gas assets,
crude-oil and NGLs assets, or produced-water assets,
divided by the respective total throughput (MMcf or MBbls) for
natural-gas assets, crude-oil and NGLs assets, or
produced-water assets.
|
|
(4)
|
Average for period.
Calculated as Adjusted gross margin for natural-gas assets,
crude-oil and NGLs assets, or produced-water assets,
divided by the respective total throughput (MMcf or MBbls)
attributable to WES for natural-gas assets, crude-oil
and NGLs assets, or produced-water assets.
|
|
Western Midstream
Partners, LP
OPERATING
STATISTICS (CONTINUED)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
September
30,
2024
|
|
June 30,
2024
|
|
Inc/
(Dec)
|
|
Throughput for
natural-gas assets (MMcf/d)
|
|
Operated
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
1,889
|
|
1,858
|
|
2 %
|
|
DJ Basin
|
|
1,418
|
|
1,452
|
|
(2) %
|
|
Powder River
Basin
|
|
505
|
|
426
|
|
19 %
|
|
Other
|
|
874
|
|
898
|
|
(3) %
|
|
Total operated
throughput for natural-gas assets
|
|
4,686
|
|
4,634
|
|
1 %
|
|
Non-operated
|
|
|
|
|
|
|
|
Equity
investments
|
|
503
|
|
508
|
|
(1) %
|
|
Other
|
|
—
|
|
13
|
|
(100) %
|
|
Total non-operated
throughput for natural-gas assets
|
|
503
|
|
521
|
|
(3) %
|
|
Total throughput for
natural-gas assets
|
|
5,189
|
|
5,155
|
|
1 %
|
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
Operated
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
246
|
|
241
|
|
2 %
|
|
DJ Basin
|
|
87
|
|
91
|
|
(4) %
|
|
Powder River
Basin
|
|
26
|
|
25
|
|
4 %
|
|
Other
|
|
34
|
|
39
|
|
(13) %
|
|
Total operated
throughput for crude-oil and NGLs assets
|
|
393
|
|
396
|
|
(1) %
|
|
Non-operated
|
|
|
|
|
|
|
|
Equity
investments
|
|
124
|
|
130
|
|
(5) %
|
|
Total non-operated
throughput for crude-oil and NGLs assets
|
|
124
|
|
130
|
|
(5) %
|
|
Total throughput for
crude-oil and NGLs assets
|
|
517
|
|
526
|
|
(2) %
|
|
Throughput for
produced-water assets (MBbls/d)
|
|
Operated
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
1,121
|
|
1,102
|
|
2 %
|
|
Total operated
throughput for produced-water assets
|
|
1,121
|
|
1,102
|
|
2 %
|
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SOURCE Western Midstream Partners, LP