HOUSTON, Aug. 10, 2020
/PRNewswire/ -- Today Western Midstream Partners, LP (NYSE:
WES) ("WES" or the "Partnership") announced second-quarter 2020
financial and operating results. Net income (loss) available to
limited partners for the second quarter of 2020 totaled
$267.6 million, or $0.60 per common unit (diluted), with
second-quarter 2020 Adjusted EBITDA(1) totaling
$514.4 million, second-quarter 2020
Cash flows from operating activities totaling $345.7 million, and second-quarter 2020 Free cash
flow(1) totaling $208.6
million.
SECOND-QUARTER HIGHLIGHTS
- Gathered record Delaware Basin
produced-water throughput of 773 MBbls/d, representing an 8-percent
sequential-quarter increase
- Achieved record Delaware oil
throughput of 202 MBbls/d, representing a 5-percent
sequential-quarter increase
- Executed open-market repurchases for $64.5 million of Senior Notes due 2021, 2022, and
2023 for an aggregate repurchase price of $63 million
|
(1)
|
Please see the
definitions of the Partnership's non-GAAP measures at the end of
this release and reconciliation of GAAP to non-GAAP
measures.
|
In July 2020, WES announced its
second-quarter 2020 per-unit distribution of $0.3110, which is unchanged from WES's
first-quarter 2020 per-unit distribution. Second-quarter 2020 Free
cash flow after distributions totaled $67.7
million.
"Less-than-expected producer curtailments, commercial successes,
and realized cost efficiencies underpin our impressive and
above-expectation second-quarter results," said Chief Executive
Officer, Michael Ure. "Although our
sector continues to face significant uncertainty, we are optimistic
that activity will increase into 2021 and confident in our ability
to generate meaningful free cash flow after distributions while
advancing our long-term objectives."
Second-quarter 2020 total natural-gas throughput(1)
averaged 4.4 Bcf/d, representing a 1-percent sequential-quarter
decrease and a 3-percent increase from second-quarter 2019.
Second-quarter 2020 total throughput for crude-oil and NGLs
assets(1) averaged 711 MBbls/d, representing a 6-percent
sequential-quarter decrease and a 19-percent increase from
second-quarter 2019. Second-quarter 2020 total throughput for
produced-water assets averaged 773 MBbls/d, representing an
8-percent sequential-quarter increase and a 50-percent increase
from second-quarter 2019.
Second-quarter 2020 and year-to-date capital
expenditures(2) totaled $69.6
million and $227.6 million,
respectively.
|
(1)
|
Represents total
throughput attributable to WES, which excludes the 25% third-party
interest in Chipeta and the 2.0% Occidental subsidiary-owned
limited partner interest in WES Operating, which collectively
represent WES's noncontrolling interests.
|
(2)
|
Accrual-based,
includes equity investments, and excludes capitalized interest and
capital expenditures associated with the 25% third-party interest
in Chipeta.
|
REVISED 2020 GUIDANCE
Revised 2020 guidance is based
on to-date results and customer-provided production-forecast
information obtained by WES. Updated guidance is as follows:
- Adjusted EBITDA(1) between $1.85 billion and $1.90
billion, which represents a $100
million increase to the midpoint of guidance previously
issued with WES's first-quarter 2020 earnings results ("prior
guidance")
- Total capital expenditures(2) between $400 million and $450
million, which represents a $75
million reduction to the prior-guidance midpoint. Total year
capital expenditures include capital expenditures attributable to
the second Latham train completed during first-quarter 2020 and the
addition of approximately 28,750 horsepower of compression, 65
miles of gathering lines, 90 MBbls/d of Delaware Basin saltwater-disposal capacity,
and two 30 MBbls/d oil-stabilization trains, also in the
Delaware Basin
"Second-quarter commodity-price increases lessened the adverse
impact of production curtailments and current commodity prices
support continued producer activity," said Chief Financial Officer,
Mike Pearl. "We expect incremental
drilling and completion activity to continue into 2021 and beyond
so long as commodity prices remain supportive. Irrespective of
market conditions, we will remain committed to exercising capital
discipline and realizing cost savings to maximize Free cash flow
after distributions, which we will prioritize toward leverage
reduction."
|
(1)
|
A reconciliation of
the Adjusted EBITDA range to net cash provided by operating
activities and net income (loss) is not provided because the items
necessary to estimate such amounts are not reasonably estimable at
this time.
|
(2)
|
Accrual-based,
includes equity investments, and excludes capitalized interest and
capital expenditures associated with the 25% third-party interest
in Chipeta.
|
CONFERENCE CALL TOMORROW AT 1 P.M.
CDT
WES will host a conference call on Tuesday, August 11, 2020, at 1:00 p.m. Central Daylight Time (2:00 p.m. Eastern Daylight Time) to discuss
second-quarter 2020 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 2048166. To access the live audio webcast
of the conference call, please visit the investor relations section
of the Partnership's website at www.westernmidstream.com. A replay
of the conference call also will be available on the website for
two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners,
LP ("WES") is a Delaware master
limited partnership formed to acquire, own, develop, and operate
midstream assets. With midstream assets located in the Rocky
Mountains, North-central Pennsylvania, Texas, and New
Mexico, WES is engaged in the business of gathering,
compressing, treating, processing, and transporting natural gas;
gathering, stabilizing, and transporting condensate, natural-gas
liquids, and crude oil; and gathering and disposing of produced
water for its customers. In its capacity as a natural-gas
processor, WES also buys and sells natural gas, natural-gas
liquids, and condensate on behalf of itself and as an agent for its
customers under certain contracts.
For more information about Western Midstream Partners, LP,
please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's
management believes that its expectations are based on reasonable
assumptions. No assurance, however, can be given that such
expectations will prove correct. A number of factors could cause
actual results to differ materially from the projections,
anticipated results, or other expectations expressed in this news
release. These factors include the ultimate impact of efforts to
fight COVID-19 on the global economy and the timeline for a
recovery in commodity demand and prices; our ability to 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 and Form 10-Q filed with the Securities and
Exchange Commission and other public filings and press releases.
WES undertakes no obligation to publicly update or revise any
forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Kristen S. Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@westernmidstream.com
832.636.6000
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines "Free cash flow" as net cash provided by operating
activities less total capital expenditures and contributions to
equity investments, plus distributions from equity investments in
excess of cumulative earnings. Management considers Free cash flow
an appropriate metric for assessing capital discipline, cost
efficiency, and balance-sheet strength. Although Free cash flow is
the metric used to assess WES's ability to make distributions to
unitholders, this measure should not be viewed as indicative of the
actual amount of cash that is available for distributions or
planned for distributions for a given period. Instead, Free cash
flow should be considered indicative of the amount of cash that is
available for distributions, debt repayments, and other general
partnership purposes.
WES defines Adjusted EBITDA as net income (loss), plus (i)
distributions from equity investments, (ii) non-cash equity-based
compensation expense, (iii) interest expense, (iv) income tax
expense, (v) depreciation and amortization, (vi) impairments, and
(vii) other expense (including lower of cost or market inventory
adjustments recorded in cost of product), less (i) gain (loss) on
divestiture and other, net, (ii) gain (loss) on early
extinguishment of debt, (iii) income from equity investments, (iv)
interest income, (v) income tax benefit, (vi) other income, and
(vii) the noncontrolling interests owners' proportionate share of
revenues and expenses.
WES defines Adjusted gross margin attributable to Western
Midstream Partners, LP ("Adjusted gross margin") as total revenues
and other (less reimbursements for electricity-related expenses
recorded as revenue), less cost of product, plus distributions from
equity investments, and excluding the noncontrolling interests
owners' proportionate share of revenues and cost of product.
Below are reconciliations of (i) net cash provided by operating
activities (GAAP) to Free cash flow (non-GAAP), (ii) net income
(loss) (GAAP) and net cash provided by operating activities (GAAP)
to Adjusted EBITDA (non-GAAP), and (iii) operating income (loss)
(GAAP) to Adjusted gross margin (non-GAAP), as required under
Regulation G of the Securities Exchange Act of 1934. Management
believes that WES's Free cash flow, Adjusted EBITDA, and Adjusted
gross margin are widely accepted financial indicators of WES's
financial performance compared to other publicly traded
partnerships and are useful in assessing WES's ability to incur and
service debt, fund capital expenditures, and make distributions.
Free cash flow, Adjusted EBITDA, and Adjusted gross margin as
defined by WES, may not be comparable to similarly titled measures
used by other companies. Therefore, WES's Free cash flow, Adjusted
EBITDA, and Adjusted gross margin should be considered in
conjunction with net income (loss) attributable to Western
Midstream Partners, LP and other applicable performance measures,
such as operating income (loss) or cash flows from operating
activities.
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
|
|
Free Cash
Flow
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
thousands
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Net cash provided by operating activities to Free cash
flow
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
345,688
|
|
|
$
|
343,458
|
|
|
$
|
738,999
|
|
|
$
|
686,531
|
|
Less:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
140,249
|
|
|
318,281
|
|
|
313,065
|
|
|
704,425
|
|
Contributions to
equity investments
|
|
5,104
|
|
|
40,790
|
|
|
16,064
|
|
|
77,333
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments in excess of cumulative earnings
|
|
8,288
|
|
|
9,260
|
|
|
13,340
|
|
|
17,052
|
|
Free cash
flow
|
|
$
|
208,623
|
|
|
$
|
(6,353)
|
|
|
$
|
423,210
|
|
|
$
|
(78,175)
|
|
Cash flow
information
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
$
|
738,999
|
|
|
$
|
686,531
|
|
Net cash used in
investing activities
|
|
|
|
|
|
(355,001)
|
|
|
(2,865,168)
|
|
Net cash provided by
(used in) financing activities
|
|
|
|
|
|
(424,222)
|
|
|
2,182,290
|
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
|
|
Adjusted
EBITDA
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
thousands
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Net income (loss) to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
281,341
|
|
|
$
|
175,058
|
|
|
$
|
(8,059)
|
|
|
$
|
387,037
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
71,576
|
|
|
70,522
|
|
|
137,496
|
|
|
132,535
|
|
Non-cash equity-based
compensation expense
|
|
5,677
|
|
|
4,343
|
|
|
10,911
|
|
|
6,141
|
|
Interest
expense
|
|
94,654
|
|
|
79,472
|
|
|
183,240
|
|
|
145,348
|
|
Income tax
expense
|
|
5,044
|
|
|
1,278
|
|
|
5,044
|
|
|
11,370
|
|
Depreciation and
amortization
|
|
119,805
|
|
|
121,117
|
|
|
252,124
|
|
|
235,063
|
|
Impairments
(1)
|
|
10,150
|
|
|
797
|
|
|
606,952
|
|
|
1,187
|
|
Other
expense
|
|
(2,098)
|
|
|
58,639
|
|
|
1,950
|
|
|
93,852
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,843)
|
|
|
(1,061)
|
|
|
(2,883)
|
|
|
(1,651)
|
|
Gain (loss) on early
extinguishment of debt
|
|
1,395
|
|
|
—
|
|
|
8,740
|
|
|
—
|
|
Equity income, net –
related parties
|
|
54,415
|
|
|
63,598
|
|
|
115,762
|
|
|
121,590
|
|
Interest income –
Anadarko note receivable
|
|
4,225
|
|
|
4,225
|
|
|
8,450
|
|
|
8,450
|
|
Other
income
|
|
1,652
|
|
|
—
|
|
|
1,652
|
|
|
—
|
|
Income tax
benefit
|
|
—
|
|
|
—
|
|
|
4,280
|
|
|
—
|
|
Adjusted EBITDA
attributable to noncontrolling interests (2)
|
|
12,864
|
|
|
11,544
|
|
|
25,629
|
|
|
22,894
|
|
Adjusted
EBITDA
|
|
$
|
514,441
|
|
|
$
|
432,920
|
|
|
$
|
1,028,028
|
|
|
$
|
861,250
|
|
Reconciliation of
Net cash provided by operating activities to Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
345,688
|
|
|
$
|
343,458
|
|
|
$
|
738,999
|
|
|
$
|
686,531
|
|
Interest (income)
expense, net
|
|
90,429
|
|
|
75,247
|
|
|
174,790
|
|
|
136,898
|
|
Uncontributed
cash-based compensation awards
|
|
—
|
|
|
1,218
|
|
|
—
|
|
|
648
|
|
Accretion and
amortization of long-term obligations, net
|
|
(2,197)
|
|
|
(1,337)
|
|
|
(4,297)
|
|
|
(2,848)
|
|
Current income tax
expense (benefit)
|
|
2,077
|
|
|
458
|
|
|
(35)
|
|
|
6,485
|
|
Other (income)
expense, net (3)
|
|
(2,173)
|
|
|
(470)
|
|
|
(412)
|
|
|
(902)
|
|
Cash paid to settle
interest-rate swaps
|
|
12,763
|
|
|
—
|
|
|
12,763
|
|
|
—
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
8,288
|
|
|
9,260
|
|
|
13,340
|
|
|
17,052
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
207,838
|
|
|
6,818
|
|
|
200,136
|
|
|
(2,668)
|
|
Accounts and imbalance
payables and accrued liabilities, net
|
|
(101,247)
|
|
|
25,669
|
|
|
(72,323)
|
|
|
81,198
|
|
Other items,
net
|
|
(34,161)
|
|
|
(15,857)
|
|
|
(9,304)
|
|
|
(38,250)
|
|
Adjusted EBITDA
attributable to noncontrolling interests (2)
|
|
(12,864)
|
|
|
(11,544)
|
|
|
(25,629)
|
|
|
(22,894)
|
|
Adjusted
EBITDA
|
|
$
|
514,441
|
|
|
$
|
432,920
|
|
|
$
|
1,028,028
|
|
|
$
|
861,250
|
|
Cash flow
information
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
$
|
738,999
|
|
|
$
|
686,531
|
|
Net cash used in
investing activities
|
|
|
|
|
|
(355,001)
|
|
|
(2,865,168)
|
|
Net cash provided by
(used in) financing activities
|
|
|
|
|
|
(424,222)
|
|
|
2,182,290
|
|
|
|
(1)
|
Includes goodwill
impairment for the six months ended June 30, 2020.
|
(2)
|
For all periods
presented, includes (i) the 25% third-party interest in Chipeta and
(ii) the 2.0% Occidental subsidiary-owned limited partner interest
in WES Operating, which collectively represent WES's noncontrolling
interests.
|
(3)
|
Excludes non-cash
losses on interest-rate swaps of $59.0 million and
$94.6 million for the three and six months ended June 30,
2019, respectively.
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
|
|
Adjusted Gross
Margin
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
thousands
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Operating income (loss) to Adjusted gross margin
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
373,766
|
|
|
$
|
310,060
|
|
|
$
|
158,863
|
|
|
$
|
628,988
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
71,576
|
|
|
70,522
|
|
|
137,496
|
|
|
132,535
|
|
Operation and
maintenance
|
|
145,186
|
|
|
148,431
|
|
|
304,377
|
|
|
291,260
|
|
General and
administrative
|
|
36,423
|
|
|
30,027
|
|
|
76,888
|
|
|
52,871
|
|
Property and other
taxes
|
|
19,395
|
|
|
14,282
|
|
|
37,871
|
|
|
30,567
|
|
Depreciation and
amortization
|
|
119,805
|
|
|
121,117
|
|
|
252,124
|
|
|
235,063
|
|
Impairments
(1)
|
|
10,150
|
|
|
797
|
|
|
606,952
|
|
|
1,187
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,843)
|
|
|
(1,061)
|
|
|
(2,883)
|
|
|
(1,651)
|
|
Equity income, net –
related parties
|
|
54,415
|
|
|
63,598
|
|
|
115,762
|
|
|
121,590
|
|
Reimbursed
electricity-related charges recorded as revenues
|
|
21,605
|
|
|
20,189
|
|
|
40,828
|
|
|
36,778
|
|
Adjusted gross margin
attributable to noncontrolling interests (2)
|
|
16,167
|
|
|
16,034
|
|
|
32,592
|
|
|
31,584
|
|
Adjusted gross
margin
|
|
$
|
686,957
|
|
|
$
|
596,476
|
|
|
$
|
1,388,272
|
|
|
$
|
1,184,170
|
|
Adjusted gross margin
for natural-gas assets
|
|
$
|
454,476
|
|
|
$
|
412,494
|
|
|
$
|
925,842
|
|
|
$
|
824,922
|
|
Adjusted gross margin
for crude-oil and NGLs assets
|
|
165,767
|
|
|
137,716
|
|
|
333,595
|
|
|
269,086
|
|
Adjusted gross margin
for produced-water assets
|
|
66,714
|
|
|
46,266
|
|
|
128,835
|
|
|
90,162
|
|
|
|
(1)
|
Includes goodwill
impairment for the six months ended June 30, 2020.
|
(2)
|
For all periods
presented, includes (i) the 25% third-party interest in Chipeta and
(ii) the 2.0% Occidental subsidiary-owned limited partner interest
in WES Operating, which collectively represent WES's noncontrolling
interests.
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
thousands except
per-unit amounts
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues and
other
|
|
|
|
|
|
|
|
|
Service revenues –
fee based
|
|
$
|
642,628
|
|
|
$
|
593,544
|
|
|
$
|
1,344,024
|
|
|
$
|
1,173,518
|
|
Service revenues –
product based
|
|
7,000
|
|
|
16,675
|
|
|
22,921
|
|
|
36,054
|
|
Product
sales
|
|
21,736
|
|
|
74,469
|
|
|
78,385
|
|
|
146,602
|
|
Other
|
|
391
|
|
|
366
|
|
|
738
|
|
|
763
|
|
Total revenues and
other
|
|
671,755
|
|
|
685,054
|
|
|
1,446,068
|
|
|
1,356,937
|
|
Equity income, net
– related parties
|
|
54,415
|
|
|
63,598
|
|
|
115,762
|
|
|
121,590
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
18,602
|
|
|
122,877
|
|
|
121,872
|
|
|
236,940
|
|
Operation and
maintenance
|
|
145,186
|
|
|
148,431
|
|
|
304,377
|
|
|
291,260
|
|
General and
administrative
|
|
36,423
|
|
|
30,027
|
|
|
76,888
|
|
|
52,871
|
|
Property and other
taxes
|
|
19,395
|
|
|
14,282
|
|
|
37,871
|
|
|
30,567
|
|
Depreciation and
amortization
|
|
119,805
|
|
|
121,117
|
|
|
252,124
|
|
|
235,063
|
|
Long-lived asset
impairments
|
|
10,150
|
|
|
797
|
|
|
165,935
|
|
|
1,187
|
|
Goodwill
impairment
|
|
—
|
|
|
—
|
|
|
441,017
|
|
|
—
|
|
Total operating
expenses
|
|
349,561
|
|
|
437,531
|
|
|
1,400,084
|
|
|
847,888
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,843)
|
|
|
(1,061)
|
|
|
(2,883)
|
|
|
(1,651)
|
|
Operating income
(loss)
|
|
373,766
|
|
|
310,060
|
|
|
158,863
|
|
|
628,988
|
|
Interest income –
Anadarko note receivable
|
|
4,225
|
|
|
4,225
|
|
|
8,450
|
|
|
8,450
|
|
Interest
expense
|
|
(94,654)
|
|
|
(79,472)
|
|
|
(183,240)
|
|
|
(145,348)
|
|
Gain (loss) on early
extinguishment of debt
|
|
1,395
|
|
|
—
|
|
|
8,740
|
|
|
—
|
|
Other income
(expense), net (1)
|
|
1,653
|
|
|
(58,477)
|
|
|
(108)
|
|
|
(93,683)
|
|
Income (loss)
before income taxes
|
|
286,385
|
|
|
176,336
|
|
|
(7,295)
|
|
|
398,407
|
|
Income tax expense
(benefit)
|
|
5,044
|
|
|
1,278
|
|
|
764
|
|
|
11,370
|
|
Net income
(loss)
|
|
281,341
|
|
|
175,058
|
|
|
(8,059)
|
|
|
387,037
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
8,304
|
|
|
5,464
|
|
|
(24,569)
|
|
|
98,783
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
|
273,037
|
|
|
$
|
169,594
|
|
|
$
|
16,510
|
|
|
$
|
288,254
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
|
273,037
|
|
|
$
|
169,594
|
|
|
$
|
16,510
|
|
|
$
|
288,254
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
|
—
|
|
|
(163)
|
|
|
—
|
|
|
(29,279)
|
|
General partner
interest in net (income) loss
|
|
(5,461)
|
|
|
—
|
|
|
(330)
|
|
|
—
|
|
Limited partners'
interest in net income (loss)
|
|
$
|
267,576
|
|
|
$
|
169,431
|
|
|
$
|
16,180
|
|
|
$
|
258,975
|
|
Net income (loss)
per common unit – basic and diluted
|
|
$
|
0.60
|
|
|
$
|
0.37
|
|
|
$
|
0.04
|
|
|
$
|
0.69
|
|
Weighted-average
common units outstanding – basic and diluted
|
|
443,973
|
|
|
453,000
|
|
|
443,972
|
|
|
376,702
|
|
|
|
(1)
|
Includes losses
associated with the interest-rate swap agreements for the three and
six months ended June 30, 2019.
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
thousands except
number of units
|
|
June 30,
2020
|
|
December
31,
2019
|
Total current
assets
|
|
$
|
559,163
|
|
|
$
|
402,412
|
|
Anadarko note
receivable
|
|
259,481
|
|
|
260,000
|
|
Net property, plant,
and equipment
|
|
8,914,716
|
|
|
9,064,931
|
|
Other
assets
|
|
2,219,883
|
|
|
2,619,110
|
|
Total
assets
|
|
$
|
11,953,243
|
|
|
$
|
12,346,453
|
|
Total current
liabilities
|
|
$
|
891,046
|
|
|
$
|
485,954
|
|
Long-term
debt
|
|
7,544,396
|
|
|
7,951,565
|
|
Asset retirement
obligations
|
|
327,971
|
|
|
336,396
|
|
Other
liabilities
|
|
254,313
|
|
|
227,245
|
|
Total
liabilities
|
|
9,017,726
|
|
|
9,001,160
|
|
Equity and
partners' capital
|
|
|
|
|
Common units
(443,992,499 and 443,971,409 units issued and outstanding at June
30, 2020, and December 31, 2019, respectively)
|
|
2,820,327
|
|
|
3,209,947
|
|
General partner units
(9,060,641 units issued and outstanding at June 30, 2020, and
December 31, 2019)
|
|
(22,347)
|
|
|
(14,224)
|
|
Noncontrolling
interests
|
|
137,537
|
|
|
149,570
|
|
Total liabilities,
equity, and partners' capital
|
|
$
|
11,953,243
|
|
|
$
|
12,346,453
|
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Six Months
Ended
June 30,
|
thousands
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
(8,059)
|
|
|
$
|
387,037
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and changes in assets and liabilities:
|
|
|
|
|
Depreciation and
amortization
|
|
252,124
|
|
|
235,063
|
|
Long-lived asset
impairments
|
|
165,935
|
|
|
1,187
|
|
Goodwill
impairment
|
|
441,017
|
|
|
—
|
|
(Gain) loss on
divestiture and other, net
|
|
2,883
|
|
|
1,651
|
|
(Gain) loss on early
extinguishment of debt
|
|
(8,740)
|
|
|
—
|
|
(Gain) loss on
interest-rate swaps
|
|
—
|
|
|
94,585
|
|
Cash paid to settle
interest-rate swaps
|
|
(12,763)
|
|
|
—
|
|
Change in other items,
net
|
|
(93,398)
|
|
|
(32,992)
|
|
Net cash provided by
operating activities
|
|
$
|
738,999
|
|
|
$
|
686,531
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
$
|
(313,065)
|
|
|
$
|
(704,425)
|
|
Acquisitions from
related parties
|
|
—
|
|
|
(2,007,501)
|
|
Acquisitions from
third parties
|
|
—
|
|
|
(93,303)
|
|
Contributions to
equity investments - related parties
|
|
(16,064)
|
|
|
(77,333)
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
13,340
|
|
|
17,052
|
|
Proceeds from the
sale of assets to third parties
|
|
—
|
|
|
342
|
|
Other
|
|
(39,212)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
$
|
(355,001)
|
|
|
$
|
(2,865,168)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
|
$
|
3,586,173
|
|
|
$
|
2,710,750
|
|
Repayments of
debt
|
|
(3,583,149)
|
|
|
(467,595)
|
|
Increase (decrease)
in outstanding checks
|
|
(4,686)
|
|
|
(5,662)
|
|
Registration expenses
related to the issuance of Partnership common units
|
|
—
|
|
|
(855)
|
|
Distributions to
Partnership unitholders
|
|
(422,679)
|
|
|
(408,234)
|
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(2,775)
|
|
|
(3,793)
|
|
Distributions to
noncontrolling interest owners of WES Operating
|
|
(8,676)
|
|
|
(106,666)
|
|
Net contributions
from (distributions to) related parties
|
|
21,832
|
|
|
456,938
|
|
Above-market
component of swap agreements with Anadarko
|
|
—
|
|
|
7,407
|
|
Finance lease
payments
|
|
(10,262)
|
|
|
—
|
|
Net cash provided by
(used in) financing activities
|
|
$
|
(424,222)
|
|
|
$
|
2,182,290
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
(40,224)
|
|
|
$
|
3,653
|
|
Cash and cash
equivalents at beginning of period
|
|
99,962
|
|
|
92,142
|
|
Cash and cash
equivalents at end of period
|
|
$
|
59,738
|
|
|
$
|
95,795
|
|
Western Midstream
Partners, LP
OPERATING
STATISTICS
(Unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Throughput for
natural-gas assets (MMcf/d)
|
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
|
554
|
|
|
528
|
|
|
547
|
|
|
527
|
|
Processing
|
|
3,563
|
|
|
3,524
|
|
|
3,605
|
|
|
3,498
|
|
Equity investments
(1)
|
|
458
|
|
|
402
|
|
|
451
|
|
|
390
|
|
Total
throughput
|
|
4,575
|
|
|
4,454
|
|
|
4,603
|
|
|
4,415
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
162
|
|
|
178
|
|
|
164
|
|
|
177
|
|
Total throughput
attributable to WES for natural-gas assets
|
|
4,413
|
|
|
4,276
|
|
|
4,439
|
|
|
4,238
|
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
|
359
|
|
|
302
|
|
|
360
|
|
|
303
|
|
Equity investments
(3)
|
|
367
|
|
|
311
|
|
|
391
|
|
|
308
|
|
Total
throughput
|
|
726
|
|
|
613
|
|
|
751
|
|
|
611
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
15
|
|
|
13
|
|
|
15
|
|
|
13
|
|
Total throughput
attributable to WES for crude-oil and NGLs assets
|
|
711
|
|
|
600
|
|
|
736
|
|
|
598
|
|
Throughput for
produced-water assets (MBbls/d)
|
|
|
|
|
|
|
|
|
Gathering and
disposal
|
|
773
|
|
|
515
|
|
|
745
|
|
|
516
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
15
|
|
|
10
|
|
|
15
|
|
|
10
|
|
Total throughput
attributable to WES for produced-water assets
|
|
758
|
|
|
505
|
|
|
730
|
|
|
506
|
|
Per-Mcf Adjusted
gross margin for natural-gas assets (4)
|
|
$
|
1.13
|
|
|
$
|
1.06
|
|
|
$
|
1.15
|
|
|
$
|
1.08
|
|
Per-Bbl Adjusted
gross margin for crude-oil and NGLs assets
(5)
|
|
2.56
|
|
|
2.52
|
|
|
2.49
|
|
|
2.49
|
|
Per-Bbl Adjusted
gross margin for produced-water assets (6)
|
|
0.97
|
|
|
1.01
|
|
|
0.97
|
|
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents the 14.81%
share of average Fort Union throughput, 22% share of average
Rendezvous throughput, 50% share of average Mi Vida and Ranch
Westex throughput, and 30% share of average Red Bluff Express
throughput.
|
(2)
|
For all periods
presented, includes (i) the 25% third-party interest in Chipeta and
(ii) the 2.0% Occidental subsidiary-owned limited partner interest
in WES Operating, which collectively represent WES's noncontrolling
interests.
|
(3)
|
Represents the 10%
share of average White Cliffs throughput; 25% share of average Mont
Belvieu JV throughput; 20% share of average TEG, TEP, Whitethorn,
and Saddlehorn throughput; 33.33% share of average FRP throughput;
and 15% share of average Panola and Cactus II
throughput.
|
(4)
|
Average for period.
Calculated as Adjusted gross margin for natural-gas assets, divided
by total throughput (MMcf/d) attributable to WES for natural-gas
assets.
|
(5)
|
Average for period.
Calculated as Adjusted gross margin for crude-oil and NGLs assets,
divided by total throughput (MBbls/d) attributable to WES for
crude-oil and NGLs assets.
|
(6)
|
Average for period.
Calculated as Adjusted gross margin for produced-water assets,
divided by total throughput (MBbls/d) attributable to WES for
produced-water assets.
|
Western Midstream
Partners, LP
OPERATING
STATISTICS (CONTINUED)
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
Natural
gas
(MMcf/d)
|
|
Crude oil &
NGLs
(MBbls/d)
|
|
Produced
water
(MBbls/d)
|
Delaware
Basin
|
|
1,309
|
|
|
1,179
|
|
|
202
|
|
|
141
|
|
|
773
|
|
|
515
|
|
DJ Basin
|
|
1,329
|
|
|
1,266
|
|
|
113
|
|
|
112
|
|
|
—
|
|
|
—
|
|
Equity
investments
|
|
458
|
|
|
402
|
|
|
367
|
|
|
311
|
|
|
—
|
|
|
—
|
|
Other
|
|
1,479
|
|
|
1,607
|
|
|
44
|
|
|
49
|
|
|
—
|
|
|
—
|
|
Total
throughput
|
|
4,575
|
|
|
4,454
|
|
|
726
|
|
|
613
|
|
|
773
|
|
|
515
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
Natural
gas
(MMcf/d)
|
|
Crude oil &
NGLs
(MBbls/d)
|
|
Produced
water
(MBbls/d)
|
Delaware
Basin
|
|
1,349
|
|
|
1,178
|
|
|
197
|
|
|
143
|
|
|
745
|
|
|
516
|
|
DJ Basin
|
|
1,368
|
|
|
1,262
|
|
|
120
|
|
|
107
|
|
|
—
|
|
|
—
|
|
Equity
investments
|
|
451
|
|
|
390
|
|
|
391
|
|
|
308
|
|
|
—
|
|
|
—
|
|
Other
|
|
1,435
|
|
|
1,585
|
|
|
43
|
|
|
53
|
|
|
—
|
|
|
—
|
|
Total
throughput
|
|
4,603
|
|
|
4,415
|
|
|
751
|
|
|
611
|
|
|
745
|
|
|
516
|
|
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multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-second-quarter-2020-results-301109207.html
SOURCE Western Midstream Partners, LP