HOUSTON, Feb. 27, 2020 /PRNewswire/ -- Today Western
Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership")
announced fourth-quarter and full-year 2019 financial and operating
results. Net income (loss) available to limited partners for the
fourth quarter of 2019 totaled $282.1
million, or $0.62 per common
unit (diluted), with fourth-quarter 2019 Adjusted
EBITDA(1) totaling $447.6
million and fourth-quarter 2019 Distributable cash
flow(1) totaling $345.4
million. Net income (loss) available to limited partners for
2019 totaled $662.3 million, or
$1.59 per common unit (diluted), with
full-year 2019 Adjusted EBITDA(1) of $1.719 billion and full-year 2019 Distributable
cash flow(1) of $1.325
billion. Financial and operational results are presented as
if WES owned the assets acquired in February
2019 for all periods reported.
RECENT HIGHLIGHTS
- Processed record DJ Basin Complex gas throughput of 1.30 Bcf/d
for the fourth quarter, representing a 15-percent
sequential-quarter increase as third-quarter downstream constraints
were resolved and did not impact fourth-quarter operations
- Gathered record Delaware Basin
produced-water throughput of 610 MBbls/d for the fourth quarter,
representing a 5-percent sequential-quarter increase
- Achieved record Delaware and
DJ Basin oil throughput of 297 MBbls/d for the fourth quarter,
representing an 8-percent sequential-quarter increase
- Delivered full-year 2019 Adjusted EBITDA(1) of
$1.719 billion, representing a
17-percent increase from 2018
- Realized capital expenditures below low-end 2019 guidance
range
- Finalized service and governance agreements with Occidental
that will position WES to operate as a stand-alone enterprise
- Priced a $3.5 billion
four-tranche senior notes offering that was 6.2x oversubscribed
with each tranche pricing at WES's lowest historical coupon for
like-tenor notes
For the fourth quarter of 2019, WES paid a per-unit quarterly
distribution of $0.6220. The
full-year 2019 per-unit distribution of $2.47 represents a more than 5-percent increase
over the full-year 2018 per-unit distribution of $2.35. This marks WES's 28th
consecutive quarterly distribution increase and achieves WES's 2019
annual distribution-growth guidance range of 5 percent to 6
percent. The fourth-quarter 2019 Coverage ratio(1) was
1.23 times. The full-year 2019 Coverage ratio(1)
was 1.18 times.
"I'm pleased with our fourth-quarter results," said Chief
Executive Officer, Michael Ure. "In
2019, we placed the first Latham train and the second Mentone train into service; grew Adjusted
EBITDA 17-percent year-over-year as a result of increased
throughput across all products; and entered into new service,
operating, and governing agreements at year end that enable us to
operate more fully as an independent midstream company. This was a
productive and successful year for WES, and we are ideally
positioned to deliver strong results in 2020."
Fourth-quarter 2019 total natural-gas throughput(2)
averaged 4.3 Bcf/d, representing a 3-percent sequential-quarter
increase and an 8-percent increase from fourth-quarter 2018.
Fourth-quarter 2019 total throughput for crude-oil, NGLs, and
produced-water assets(2) averaged 1,378 MBbls/d,
representing a 16-percent sequential-quarter increase and a
38-percent increase from fourth-quarter 2018. Full-year 2019 total
natural-gas throughput(2) averaged 4.2 Bcf/d,
representing a 9-percent increase from full-year 2018. Full-year
2019 total throughput for crude-oil, NGLs, and produced-water
assets(2) averaged 1,195 MBbls/d, representing a
57-percent increase from full-year 2018.
|
|
|
(1) Please see the tables at the end
of this release for a reconciliation of GAAP to non-GAAP measures
and calculation of the Coverage ratio.
|
(2) 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 as of December 31, 2019.
|
Fourth-quarter 2019 capital expenditures(1),
including equity investments and excluding capitalized interest,
totaled $242.6 million, with cash
maintenance capital expenditures totaling $29.6 million. For full-year 2019, capital
expenditures(1), including equity
investments(2) and excluding capitalized interest,
totaled $1.249 billion, which is
approximately $100 million below the
2019 guidance midpoint of $1.35
billion. For full-year 2019, cash maintenance capital
expenditures totaled $124.4 million,
which is approximately $11 million
below the 2019 guidance midpoint of $135
million.
2020 GUIDANCE
- Adjusted EBITDA between $1.875
billion and $1.975
billion
- Total capital expenditures between $875
million and $950 million,
including costs associated with over 60,000 horsepower of
compression, over 140 miles of gathering, the completion of the
second Latham train during first-quarter 2020, and the addition of
two 30 MBbl/d oil-stabilization trains and approximately 180 MBbl/d
of saltwater disposal capacity in the Delaware Basin by year-end 2020
- Total maintenance capital expenditures between $125 million and $135
million
- Coverage ratio of at least 1.25x with ~1-percent year-over-year
distribution increase from full-year 2019 per-unit distributions of
$2.47 per unit
"Our 2020 guidance demonstrates our continued focus on
capital-efficient organic growth and the strength of our balance
sheet," said Chief Financial Officer, Mike
Pearl. "We are focused on generating long-term value for all
our stakeholders by maintaining our investment-grade credit
profile, delivering exceptional customer service, and driving
operational efficiencies throughout the organization."
|
|
|
(1) Accrual-based and excludes
capital expenditures associated with the 25% third-party interest
in Chipeta.
|
(2) Acquisitions and
contributions.
|
CONFERENCE CALL TOMORROW AT 1 P.M.
CST
WES will host a conference call on Friday, February 28, 2020, at 1:00 p.m. Central Standard Time (2:00 p.m. Eastern Standard Time) to discuss
fourth-quarter and full-year 2019 results. 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 0032829. 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.
WESTERN MIDSTREAM ANNUAL REPORT AVAILABLE
WES has filed its Annual Report on Form 10-K for the fiscal year
ended December 31, 2019, with the
Securities and Exchange Commission. A copy of the report is
available for viewing and downloading on the Western Midstream web
site at www.westernmidstream.com. Unitholders may request hard
copies of the report, which contains WES's audit 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: P.O.
Box 1330, Houston, TX 77251-1330,
Attention: Investor Relations.
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-growth 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 and Form 10-Q filed with the Securities and
Exchange Commission and other public filings and press releases.
Western Midstream Partners, LP undertakes no obligation to publicly
update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Kristen S. Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations
Abby.Dempsey@westernmidstream.com
832.636.6000
Western Midstream Partners,
LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Below are reconciliations of (i) net income (loss) (GAAP) to
WES's Distributable cash flow (non-GAAP), (ii) net income (loss)
(GAAP) and net cash provided by operating activities (GAAP) to
Adjusted EBITDA attributable to Western Midstream Partners, LP
("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss)
(GAAP) to Adjusted gross margin attributable to Western Midstream
Partners, LP ("Adjusted gross margin") (non-GAAP), as required
under Regulation G of the Securities Exchange Act of 1934.
Management believes that WES's Distributable cash flow, Adjusted
EBITDA, Adjusted gross margin, and Coverage ratio 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. Distributable cash flow,
Adjusted EBITDA, Adjusted gross margin, and Coverage ratio, as
defined by WES, may not be comparable to similarly titled measures
used by other companies. Therefore, WES's Distributable cash flow,
Adjusted EBITDA, Adjusted gross margin, and Coverage ratio 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.
WES defines "Distributable cash flow" as Adjusted EBITDA, plus
interest income and the net settlement amounts from the sale and/or
purchase of natural gas, condensate, and NGLs under WES Operating's
commodity-price swap agreements to the extent such amounts are not
recognized as Adjusted EBITDA, less Service revenues – fee based
recognized in Adjusted EBITDA in excess of (less than) customer
billings, net cash paid (or to be paid) for interest expense
(including amortization of deferred debt issuance costs originally
paid in cash and offset by non-cash capitalized interest),
maintenance capital expenditures, WES Operating Series A Preferred
unit distributions, income taxes, and Distributable cash flow
attributable to noncontrolling interests to the extent such amounts
are not excluded from Adjusted EBITDA.
WES defines Adjusted EBITDA as net income (loss), plus
distributions from equity investments, non-cash equity-based
compensation expense, interest expense, income tax expense,
depreciation and amortization, impairments, and other expense
(including lower of cost or market inventory adjustments recorded
in cost of product), less gain (loss) on divestiture and other,
net, income from equity investments, interest income, income tax
benefit, other income, and the noncontrolling interests owners'
proportionate share of revenues and expenses.
WES defines 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.
Western Midstream
Partners, LP
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
|
|
Distributable Cash
Flow
|
|
|
|
Three Months
Ended December 31,
|
|
Year
Ended December 31,
|
thousands except
Coverage ratio
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Reconciliation of
Net income (loss) to Distributable cash flow and calculation of the
Coverage ratio
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
295,440
|
|
|
$
|
183,917
|
|
|
$
|
807,700
|
|
|
$
|
630,654
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
61,288
|
|
|
71,327
|
|
|
264,828
|
|
|
216,977
|
|
Non-cash equity-based
compensation expense
|
|
4,114
|
|
|
1,544
|
|
|
14,392
|
|
|
7,310
|
|
Non-cash settled
interest expense, net
|
|
19
|
|
|
—
|
|
|
39
|
|
|
—
|
|
Income tax (benefit)
expense
|
|
793
|
|
|
22,741
|
|
|
13,472
|
|
|
58,934
|
|
Depreciation and
amortization
|
|
120,278
|
|
|
118,407
|
|
|
483,255
|
|
|
389,164
|
|
Impairments
|
|
1,985
|
|
|
75,298
|
|
|
6,279
|
|
|
230,584
|
|
Above-market
component of swap agreements with Anadarko
|
|
—
|
|
|
10,896
|
|
|
7,407
|
|
|
51,618
|
|
Other
expense
|
|
—
|
|
|
8,080
|
|
|
161,813
|
|
|
8,264
|
|
Less:
|
|
|
|
|
|
|
|
|
Recognized Service
revenues – fee based in excess of (less than) customer
billings
|
|
(6,534)
|
|
|
53,527
|
|
|
(28,764)
|
|
|
62,498
|
|
Gain (loss) on
divestiture and other, net
|
|
(3)
|
|
|
961
|
|
|
(1,406)
|
|
|
1,312
|
|
Equity income, net –
affiliates
|
|
62,035
|
|
|
61,595
|
|
|
237,518
|
|
|
195,469
|
|
Cash paid for
maintenance capital expenditures
|
|
29,660
|
|
|
39,328
|
|
|
124,548
|
|
|
120,865
|
|
Capitalized
interest
|
|
6,047
|
|
|
7,196
|
|
|
26,980
|
|
|
32,479
|
|
Cash paid for
(reimbursement of) income taxes
|
|
—
|
|
|
2,495
|
|
|
96
|
|
|
2,408
|
|
Other
income
|
|
37,792
|
|
|
—
|
|
|
37,792
|
|
|
2,749
|
|
Distributable cash
flow attributable to noncontrolling interests
(1)
|
|
9,512
|
|
|
9,000
|
|
|
36,976
|
|
|
36,138
|
|
Distributable cash
flow (2)
|
|
$
|
345,408
|
|
|
$
|
318,108
|
|
|
$
|
1,325,445
|
|
|
$
|
1,139,587
|
|
Distributions
declared
|
|
|
|
|
|
|
|
|
Distributions from
WES Operating
|
|
$
|
284,505
|
|
|
|
|
$
|
1,128,309
|
|
|
|
Less: Cash reserve
for the proper conduct of WES's business
|
|
2,719
|
|
|
|
|
9,360
|
|
|
|
Distributions to WES
unitholders (3)
|
|
$
|
281,786
|
|
|
|
|
$
|
1,118,949
|
|
|
|
Coverage
ratio
|
|
1.23
|
|
x
|
|
|
1.18
|
|
x
|
|
|
|
(1)
|
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 as of December 31, 2019.
|
(2)
|
For the three months
and year ended December 31, 2019, excludes cash payments of
$107.7 million related to the settlement of interest-rate swap
agreements.
|
(3)
|
Reflects cash
distributions of $0.62200 and $2.47000 per unit declared for the
three months and year ended December 31, 2019,
respectively.
|
Western Midstream
Partners, LP
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
|
|
Adjusted
EBITDA
|
|
|
|
Three Months
Ended December 31,
|
|
Year
Ended December 31,
|
thousands
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Reconciliation of
Net income (loss) to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
295,440
|
|
|
$
|
183,917
|
|
|
$
|
807,700
|
|
|
$
|
630,654
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
61,288
|
|
|
71,327
|
|
|
264,828
|
|
|
216,977
|
|
Non-cash equity-based
compensation expense
|
|
4,114
|
|
|
1,544
|
|
|
14,392
|
|
|
7,310
|
|
Interest
expense
|
|
79,414
|
|
|
54,702
|
|
|
303,286
|
|
|
183,831
|
|
Income tax
expense
|
|
793
|
|
|
22,741
|
|
|
13,472
|
|
|
58,934
|
|
Depreciation and
amortization
|
|
120,278
|
|
|
118,407
|
|
|
483,255
|
|
|
389,164
|
|
Impairments
|
|
1,985
|
|
|
75,298
|
|
|
6,279
|
|
|
230,584
|
|
Other
expense
|
|
—
|
|
|
8,080
|
|
|
161,813
|
|
|
8,264
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(3)
|
|
|
961
|
|
|
(1,406)
|
|
|
1,312
|
|
Equity income, net –
affiliates
|
|
62,035
|
|
|
61,595
|
|
|
237,518
|
|
|
195,469
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
16,900
|
|
|
16,900
|
|
Other
income
|
|
37,792
|
|
|
—
|
|
|
37,792
|
|
|
2,749
|
|
Adjusted EBITDA
attributable to noncontrolling interests (1)
|
|
11,636
|
|
|
11,893
|
|
|
45,131
|
|
|
42,843
|
|
Adjusted
EBITDA
|
|
$
|
447,627
|
|
|
$
|
457,342
|
|
|
$
|
1,719,090
|
|
|
$
|
1,466,445
|
|
Reconciliation of
Net cash provided by operating activities to Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
297,415
|
|
|
$
|
382,980
|
|
|
$
|
1,324,100
|
|
|
$
|
1,348,175
|
|
Interest (income)
expense, net
|
|
75,189
|
|
|
50,477
|
|
|
286,386
|
|
|
166,931
|
|
Uncontributed
cash-based compensation awards
|
|
(1,891)
|
|
|
(53)
|
|
|
(1,102)
|
|
|
879
|
|
Accretion and
amortization of long-term obligations, net
|
|
(1,942)
|
|
|
(1,284)
|
|
|
(8,441)
|
|
|
(5,943)
|
|
Current income tax
(benefit) expense
|
|
(215)
|
|
|
(33,012)
|
|
|
5,863
|
|
|
(80,114)
|
|
Other (income)
expense, net (2)
|
|
107,533
|
|
|
(460)
|
|
|
106,136
|
|
|
(3,209)
|
|
Distributions from
equity investments in excess of cumulative earnings –
affiliates
|
|
9,053
|
|
|
9,769
|
|
|
30,256
|
|
|
29,585
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
35,283
|
|
|
(4,351)
|
|
|
45,033
|
|
|
60,502
|
|
Accounts and
imbalance payables and accrued liabilities, net
|
|
(38,524)
|
|
|
15,476
|
|
|
30,866
|
|
|
(45,605)
|
|
Other items,
net
|
|
(22,638)
|
|
|
49,693
|
|
|
(54,876)
|
|
|
38,087
|
|
Adjusted EBITDA
attributable to noncontrolling interests (1)
|
|
(11,636)
|
|
|
(11,893)
|
|
|
(45,131)
|
|
|
(42,843)
|
|
Adjusted
EBITDA
|
|
$
|
447,627
|
|
|
$
|
457,342
|
|
|
$
|
1,719,090
|
|
|
$
|
1,466,445
|
|
Cash flow
information
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
$
|
1,324,100
|
|
|
$
|
1,348,175
|
|
Net cash used in
investing activities
|
|
|
|
|
|
(3,387,853)
|
|
|
(2,210,813)
|
|
Net cash provided by
(used in) financing activities
|
|
|
|
|
|
2,071,573
|
|
|
875,192
|
|
|
|
(1)
|
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 as of December 31, 2019.
|
(2)
|
Excludes
interest-rate swap losses of $25.6 million that will be paid in
2020 for the three months and year ended December 31, 2019,
and $8.0 million for the three months and year ended
December 31, 2018.
|
Western Midstream
Partners, LP
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
|
|
Adjusted Gross
Margin
|
|
|
|
Three Months
Ended December 31,
|
|
Year
Ended December 31,
|
thousands
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Reconciliation of
Operating income (loss) to Adjusted gross margin
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
333,630
|
|
|
$
|
264,647
|
|
|
$
|
1,231,343
|
|
|
$
|
861,282
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
61,288
|
|
|
71,327
|
|
|
264,828
|
|
|
216,977
|
|
Operation and
maintenance
|
|
173,387
|
|
|
142,235
|
|
|
641,219
|
|
|
480,861
|
|
General and
administrative
|
|
30,951
|
|
|
19,747
|
|
|
114,591
|
|
|
67,195
|
|
Property and other
taxes
|
|
15,504
|
|
|
10,352
|
|
|
61,352
|
|
|
51,848
|
|
Depreciation and
amortization
|
|
120,278
|
|
|
118,407
|
|
|
483,255
|
|
|
389,164
|
|
Impairments
|
|
1,985
|
|
|
75,298
|
|
|
6,279
|
|
|
230,584
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(3)
|
|
|
961
|
|
|
(1,406)
|
|
|
1,312
|
|
Equity income, net –
affiliates
|
|
62,035
|
|
|
61,595
|
|
|
237,518
|
|
|
195,469
|
|
Reimbursed
electricity-related charges recorded as revenues
|
|
13,882
|
|
|
16,474
|
|
|
74,629
|
|
|
66,678
|
|
Adjusted gross margin
attributable to noncontrolling interests (1)
|
|
16,846
|
|
|
15,913
|
|
|
64,049
|
|
|
56,247
|
|
Adjusted gross
margin
|
|
$
|
644,263
|
|
|
$
|
607,070
|
|
|
$
|
2,428,077
|
|
|
$
|
1,978,205
|
|
Adjusted gross margin
for natural-gas assets
|
|
$
|
429,739
|
|
|
$
|
395,281
|
|
|
$
|
1,656,041
|
|
|
$
|
1,443,466
|
|
Adjusted gross margin
for crude-oil, NGLs, and produced-water assets
|
|
214,524
|
|
|
211,789
|
|
|
772,036
|
|
|
534,739
|
|
|
|
(1)
|
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 as of December 31, 2019.
|
Western Midstream
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Three Months
Ended December 31,
|
|
Year
Ended December 31,
|
thousands except
per-unit amounts
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues and
other
|
|
|
|
|
|
|
|
|
Service revenues –
fee based
|
|
$
|
626,708
|
|
|
$
|
593,765
|
|
|
$
|
2,388,191
|
|
|
$
|
1,905,728
|
|
Service revenues –
product based
|
|
24,597
|
|
|
19,364
|
|
|
70,127
|
|
|
88,785
|
|
Product
sales
|
|
71,538
|
|
|
79,081
|
|
|
286,388
|
|
|
303,020
|
|
Other
|
|
367
|
|
|
416
|
|
|
1,468
|
|
|
2,125
|
|
Total revenues and
other
|
|
723,210
|
|
|
692,626
|
|
|
2,746,174
|
|
|
2,299,658
|
|
Equity income, net
– affiliates
|
|
62,035
|
|
|
61,595
|
|
|
237,518
|
|
|
195,469
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
109,507
|
|
|
124,496
|
|
|
444,247
|
|
|
415,505
|
|
Operation and
maintenance
|
|
173,387
|
|
|
142,235
|
|
|
641,219
|
|
|
480,861
|
|
General and
administrative
|
|
30,951
|
|
|
19,747
|
|
|
114,591
|
|
|
67,195
|
|
Property and other
taxes
|
|
15,504
|
|
|
10,352
|
|
|
61,352
|
|
|
51,848
|
|
Depreciation and
amortization
|
|
120,278
|
|
|
118,407
|
|
|
483,255
|
|
|
389,164
|
|
Impairments
|
|
1,985
|
|
|
75,298
|
|
|
6,279
|
|
|
230,584
|
|
Total operating
expenses
|
|
451,612
|
|
|
490,535
|
|
|
1,750,943
|
|
|
1,635,157
|
|
Gain (loss) on
divestiture and other, net
|
|
(3)
|
|
|
961
|
|
|
(1,406)
|
|
|
1,312
|
|
Operating income
(loss)
|
|
333,630
|
|
|
264,647
|
|
|
1,231,343
|
|
|
861,282
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
16,900
|
|
|
16,900
|
|
Interest
expense
|
|
(79,414)
|
|
|
(54,702)
|
|
|
(303,286)
|
|
|
(183,831)
|
|
Other income
(expense), net (1)
|
|
37,792
|
|
|
(7,512)
|
|
|
(123,785)
|
|
|
(4,763)
|
|
Income (loss)
before income taxes
|
|
296,233
|
|
|
206,658
|
|
|
821,172
|
|
|
689,588
|
|
Income tax expense
(benefit)
|
|
793
|
|
|
22,741
|
|
|
13,472
|
|
|
58,934
|
|
Net income
(loss)
|
|
295,440
|
|
|
183,917
|
|
|
807,700
|
|
|
630,654
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
7,670
|
|
|
15,414
|
|
|
110,459
|
|
|
79,083
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
|
287,770
|
|
|
$
|
168,503
|
|
|
$
|
697,241
|
|
|
$
|
551,571
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
|
287,770
|
|
|
$
|
168,503
|
|
|
$
|
697,241
|
|
|
$
|
551,571
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
|
—
|
|
|
(75,133)
|
|
|
(29,279)
|
|
|
(182,142)
|
|
General partner
interest in net income (loss)
|
|
(5,637)
|
|
|
—
|
|
|
(5,637)
|
|
|
—
|
|
Limited partners'
interest in net income (loss)
|
|
$
|
282,133
|
|
|
$
|
93,370
|
|
|
$
|
662,325
|
|
|
$
|
369,429
|
|
Net income (loss)
per common unit – basic and diluted
|
|
$
|
0.62
|
|
|
$
|
0.43
|
|
|
$
|
1.59
|
|
|
$
|
1.69
|
|
Weighted-average
common units outstanding – basic and diluted
|
|
452,934
|
|
|
218,938
|
|
|
415,794
|
|
|
218,936
|
|
|
|
(1)
|
Includes net gains
(losses) on interest-rate swaps of $37.6 million and ($125.3)
million for the three months and year ended December 31, 2019,
respectively, and ($8.0) million for the three months and year
ended December 31, 2018.
|
Western Midstream
Partners, LP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
December
31,
|
thousands except
number of units
|
|
2019
|
|
2018
|
Total current
assets
|
|
$
|
402,412
|
|
|
$
|
344,764
|
|
Note receivable –
Anadarko
|
|
260,000
|
|
|
260,000
|
|
Net property, plant,
and equipment
|
|
9,064,931
|
|
|
8,410,353
|
|
Other
assets
|
|
2,619,110
|
|
|
2,442,088
|
|
Total
assets
|
|
$
|
12,346,453
|
|
|
$
|
11,457,205
|
|
Total current
liabilities
|
|
$
|
485,954
|
|
|
$
|
637,477
|
|
Long-term
debt
|
|
7,951,565
|
|
|
4,787,381
|
|
APCWH Note
Payable
|
|
—
|
|
|
427,493
|
|
Asset retirement
obligations
|
|
336,396
|
|
|
300,024
|
|
Other
liabilities
|
|
227,245
|
|
|
412,147
|
|
Total
liabilities
|
|
9,001,160
|
|
|
6,564,522
|
|
Equity and
partners' capital
|
|
|
|
|
Common units
(443,971,409 and 218,937,797 units issued and outstanding at
December 31, 2019 and 2018, respectively)
|
|
3,209,947
|
|
|
951,888
|
|
General partner units
(9,060,641 and zero units issued and outstanding at December 31,
2019 and 2018, respectively)
|
|
(14,224)
|
|
|
—
|
|
Net investment by
Anadarko
|
|
—
|
|
|
1,388,018
|
|
Noncontrolling
interests
|
|
149,570
|
|
|
2,552,777
|
|
Total liabilities,
equity and partners' capital
|
|
$
|
12,346,453
|
|
|
$
|
11,457,205
|
|
Western Midstream
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Year
Ended December 31,
|
thousands
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
807,700
|
|
|
$
|
630,654
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and changes in assets and liabilities:
|
|
|
|
|
Depreciation and
amortization
|
|
483,255
|
|
|
389,164
|
|
Impairments
|
|
6,279
|
|
|
230,584
|
|
(Gain) loss on
divestiture and other, net
|
|
1,406
|
|
|
(1,312)
|
|
(Gain) loss on
interest-rate swaps
|
|
125,334
|
|
|
7,972
|
|
Cash paid to settle
interest-rate swaps
|
|
(107,685)
|
|
|
—
|
|
Change in other
items, net
|
|
7,811
|
|
|
91,113
|
|
Net cash provided by
operating activities
|
|
$
|
1,324,100
|
|
|
$
|
1,348,175
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
$
|
(1,188,829)
|
|
|
$
|
(1,948,595)
|
|
Acquisitions from
affiliates
|
|
(2,007,926)
|
|
|
(254)
|
|
Acquisitions from
third parties
|
|
(93,303)
|
|
|
(161,858)
|
|
Investments in equity
affiliates
|
|
(128,393)
|
|
|
(133,629)
|
|
Distributions from
equity investments in excess of cumulative earnings –
affiliates
|
|
30,256
|
|
|
29,585
|
|
Proceeds from the
sale of assets to third parties
|
|
342
|
|
|
3,938
|
|
Net cash used in
investing activities
|
|
$
|
(3,387,853)
|
|
|
$
|
(2,210,813)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
|
$
|
4,169,695
|
|
|
$
|
2,671,337
|
|
Repayments of
debt
|
|
(1,467,595)
|
|
|
(1,040,000)
|
|
Increase (decrease)
in outstanding checks
|
|
1,571
|
|
|
(3,206)
|
|
Registration expenses
related to the issuance of Partnership common units
|
|
(855)
|
|
|
—
|
|
Distributions to
Partnership unitholders
|
|
(969,073)
|
|
|
(502,457)
|
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(9,663)
|
|
|
(13,529)
|
|
Distributions to
noncontrolling interest owners of WES Operating
|
|
(118,225)
|
|
|
(386,326)
|
|
Net contributions
from (distributions to) Anadarko
|
|
458,819
|
|
|
97,755
|
|
Above-market
component of swap agreements with Anadarko
|
|
7,407
|
|
|
51,618
|
|
Finance lease
payments – affiliates
|
|
(508)
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
|
$
|
2,071,573
|
|
|
$
|
875,192
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
7,820
|
|
|
$
|
12,554
|
|
Cash and cash
equivalents at beginning of period
|
|
92,142
|
|
|
79,588
|
|
Cash and cash
equivalents at end of period
|
|
$
|
99,962
|
|
|
$
|
92,142
|
|
Western Midstream
Partners, LP
|
OPERATING
STATISTICS
|
(Unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Throughput for
natural-gas assets (MMcf/d)
|
Gathering, treating,
and transportation
|
|
534
|
|
|
589
|
|
|
528
|
|
|
546
|
|
Processing
|
|
3,532
|
|
|
3,307
|
|
|
3,497
|
|
|
3,231
|
|
Equity investment
(1)
|
|
423
|
|
|
272
|
|
|
398
|
|
|
291
|
|
Total
throughput
|
|
4,489
|
|
|
4,168
|
|
|
4,423
|
|
|
4,068
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
174
|
|
|
166
|
|
|
175
|
|
|
170
|
|
Total throughput
attributable to WES for natural-gas assets
|
|
4,315
|
|
|
4,002
|
|
|
4,248
|
|
|
3,898
|
|
Throughput for
crude-oil, NGLs, and produced-water assets (MBbls/d)
|
Gathering, treating,
transportation, and disposal
|
|
957
|
|
|
723
|
|
|
876
|
|
|
534
|
|
Equity investment
(3)
|
|
449
|
|
|
298
|
|
|
343
|
|
|
241
|
|
Total
throughput
|
|
1,406
|
|
|
1,021
|
|
|
1,219
|
|
|
775
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
28
|
|
|
20
|
|
|
24
|
|
|
15
|
|
Total throughput
attributable to WES for crude-oil, NGLs, and produced-water
assets
|
|
1,378
|
|
|
1,001
|
|
|
1,195
|
|
|
760
|
|
Per-Mcf Adjusted
gross margin for natural-gas assets (4)
|
|
$
|
1.08
|
|
|
$
|
1.07
|
|
|
$
|
1.07
|
|
|
$
|
1.01
|
|
Per-Bbl Adjusted
gross margin for crude-oil, NGLs, and produced-water assets
(5)
|
|
1.69
|
|
|
2.30
|
|
|
1.77
|
|
|
1.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 as of December 31, 2019.
|
(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, NGLs, and
produced-water assets, divided by total throughput (MBbls/d)
attributable to WES for crude-oil, NGLs, and produced-water
assets.
|
Western Midstream
Partners, LP
|
OPERATING
STATISTICS (CONTINUED)
|
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
Natural
gas
(MMcf/d)
|
|
Crude oil &
NGLs
(MBbls/d)
|
|
Produced
water
(MBbls/d)
|
Delaware
Basin
|
|
1,274
|
|
|
1,101
|
|
|
168
|
|
|
148
|
|
|
610
|
|
|
413
|
|
DJ Basin
|
|
1,295
|
|
|
1,185
|
|
|
129
|
|
|
107
|
|
|
—
|
|
|
—
|
|
Equity
investments
|
|
423
|
|
|
272
|
|
|
449
|
|
|
298
|
|
|
—
|
|
|
—
|
|
Other
|
|
1,497
|
|
|
1,610
|
|
|
50
|
|
|
55
|
|
|
—
|
|
|
—
|
|
Total
throughput
|
|
4,489
|
|
|
4,168
|
|
|
796
|
|
|
608
|
|
|
610
|
|
|
413
|
|
|
|
Year Ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
Natural
gas
(MMcf/d)
|
|
Crude oil &
NGLs
(MBbls/d)
|
|
Produced
water
(MBbls/d)
|
Delaware
Basin
|
|
1,226
|
|
|
1,041
|
|
|
150
|
|
|
132
|
|
|
556
|
|
|
239
|
|
DJ Basin
|
|
1,236
|
|
|
1,133
|
|
|
118
|
|
|
105
|
|
|
—
|
|
|
—
|
|
Equity
investments
|
|
398
|
|
|
291
|
|
|
343
|
|
|
241
|
|
|
—
|
|
|
—
|
|
Other
|
|
1,563
|
|
|
1,603
|
|
|
52
|
|
|
58
|
|
|
—
|
|
|
—
|
|
Total
throughput
|
|
4,423
|
|
|
4,068
|
|
|
663
|
|
|
536
|
|
|
556
|
|
|
239
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-fourth-quarter-and-full-year-2019-results-301012940.html
SOURCE Western Midstream Partners, LP