HOUSTON, Feb. 23, 2021 /PRNewswire/ -- Today Western
Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership")
announced fourth-quarter and full-year 2020 financial and operating
results. Net income (loss) available to limited partners for the
fourth quarter of 2020 totaled $258.2
million, or $0.62 per common
unit (diluted), with fourth-quarter 2020 Adjusted
EBITDA(1) totaling $484.0
million, fourth-quarter 2020 Cash flows from operating
activities totaling $505.5 million,
and fourth-quarter 2020 Free cash flow(1) totaling
$464.7 million. Net income (loss)
available to limited partners for 2020 totaled $515.9 million, or $1.18 per common unit (diluted), with full-year
2020 Adjusted EBITDA(1) totaling $2.0 billion, full-year 2020 Cash flows from
operating activities totaling $1.6
billion, and full-year 2020 Free cash flow(1)
totaling $1.2 billion.
RECENT HIGHLIGHTS
- Strengthened operational performance by maintaining system
availability above 99-percent for full-year 2020
- Repurchased 2,368,711 common units for aggregate consideration
of $32.5 million during the fourth
quarter as part of the recently announced buyback program of up to
$250 million of the Partnership's
common units through December 31,
2021
- Executed open-market repurchases for $24.5 million of Senior Note due 2023 during the
fourth quarter for an aggregate repurchase price of $23.5 million; full-year 2020 repurchases totaled
$218.0 million of Senior Notes due
2021, 2022, and 2023 for an aggregate repurchase price of
$203.9 million
- Completed the sale of WES's 14.81-percent equity interest in
Fort Union Gas Gathering, LLC, with an option agreement to sell
WES's Bison treating facility for upfront consideration of
$27.0 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 February 2021, WES paid its
fourth-quarter 2020 per-unit distribution of $0.3110, which was unchanged from WES's
third-quarter 2020 per-unit distribution. Fourth-quarter and
full-year 2020 Free cash flow after distributions totaled
$332.4 million and $531.3 million, respectively.
"Despite the unprecedented challenges brought on by the global
pandemic and reduced producer activity, Western Midstream
significantly outperformed all expectations in 2020 in our first
full year as a stand-alone midstream operator," said President,
Chief Executive Officer, and Chief Financial Officer, Michael Ure. "This year, we undertook the
significant effort of transferring an employee base, separating our
systems and processes into a standalone structure, and creating an
entrepreneurial culture unique to WES. The organization's ability
to achieve operational efficiencies and sustainable cost savings of
approximately $175 million while
keenly focusing on our customers enabled us to exceed the high end
of our pre-COVID full-year Adjusted EBITDA range of $1.975 billion, while reducing capital
expenditures to $322 million, which
was nearly 50 percent of our originally issued full-year guidance
range."
Mr. Ure continued, "I'm incredibly proud of our employees'
ability to deliver this level of outperformance despite
organizational changes, the ongoing COVID-19 pandemic, and the
challenged commodity environment. These results demonstrate the
resiliency of our people, quality of our industry-leading assets,
and strength and durability of our contract portfolio."
As a result of depressed upstream investment in 2020, our
fourth-quarter 2020 volumes declined as expected. Fourth-quarter
2020 total natural-gas throughput(1) averaged 4.0 Bcf/d,
representing a 7-percent sequential-quarter decrease and an
8-percent decrease from fourth-quarter 2019. Fourth-quarter 2020
total throughput for crude-oil and NGLs assets(1)
averaged 619 MBbls/d, representing a 10-percent sequential-quarter
decrease and a 21-percent decrease from fourth-quarter 2019.
Fourth-quarter 2020 total throughput for produced-water
assets(1) averaged 657 MBbls/d, representing a 2-percent
sequential-quarter decrease and a 10-percent increase from
fourth-quarter 2019.
Full-year 2020 total natural-gas throughput(1)
averaged 4.3 Bcf/d, representing a 1-percent increase from
full-year 2019. Full-year 2020 total throughput for crude-oil and
NGLs assets(1) averaged 698 MBbls/d, representing a
7-percent increase from full-year 2019. Full-year 2020 total
throughput for produced-water assets(1) averaged 698
MBbls/d, representing a 28-percent increase from full-year
2019.
|
_________________________________________________
|
|
(1)
|
Represents total
throughput attributable to WES, which excludes (i) the 2.0%
Occidental subsidiary-owned limited partner interest in WES
Operating and (ii) for natural-gas throughput, the 25% third-party
interest in Chipeta, which collectively represent WES's
noncontrolling interests.
|
Fourth-quarter and full-year 2020 capital
expenditures(1) totaled $58.0
million and $322.1 million,
respectively, with full-year capital meaningfully below the low-end
of our previously updated 2020 guidance range of $400 million to $450
million.
2021 GUIDANCE
While we are still evaluating the full financial impact of the
recent winter storm, our 2021 guidance is unchanged:
- Adjusted EBITDA(2) between $1.825 billion and $1.925
billion
- Total capital expenditures(1) between $275 million and $375
million
- Debt to Trailing Twelve Month ("TTM") Adjusted EBITDA at or
below 4.0 times at year-end 2021
- Full-year 2021 distributions of at least $1.24 per unit(3)
"The organizational and operational changes made during 2020
have become a part of who we are as a company and will continue to
generate value for our stakeholders for the foreseeable future,"
said Michael Ure. "By successfully
creating a stand-alone midstream enterprise, we have generated
significant momentum leading into 2021 and will continue to focus
and refine our approach around realizing further sustainable cost
efficiencies, safely delivering superior customer service, and
returning value to stakeholders."
Ure continued, "During 2020, we returned over $1.2 billion to stakeholders through debt
repurchases, cash distributions, unit buybacks, and units acquired
through the Anadarko note exchange. We remain steadfast in
our commitment to responsibly manage our balance sheet by
maintaining leverage at or below 4.0 times at year-end 2021 and
repaying our 2021 maturities using free cash flow, and based upon
today's assessment, we intend to be at or below 3.5 times at
year-end 2022. Furthermore, we intend to continue executing our
$250 million common unit repurchase
program, as market opportunities present themselves. By
continuously evaluating and improving our operations, we will
ensure our ability to meet these financial goals and further
solidify our reputation as a premier midstream operator."
|
________________________________________________
|
|
(1)
|
Accrual-based,
includes equity investments, excludes capitalized interest, and
excludes capital expenditures associated with the 25% third-party
interest in Chipeta.
|
|
(2)
|
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.
|
|
(3)
|
The Board of
Directors will continue to evaluate the distribution on a quarterly
basis.
|
CONFERENCE CALL TOMORROW AT 1:00 P.M.
CST
WES will host a conference call on Wednesday, February 24, 2021, at 1:00 p.m. Central Standard Time (2:00 p.m. Eastern Standard Time) to discuss
fourth-quarter and full-year 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 7882576. To access the live
audio webcast of the conference call, please visit the investor
relations section of the Partnership's website at
www.westernmidstream.com. A replay of the conference call also will
be available on the website following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed to
acquire, own, develop, and operate midstream assets. With midstream
assets located in Texas,
New Mexico, Colorado, Utah, Wyoming, and Pennsylvania, WES is engaged in the business
of gathering, compressing, treating, processing, and transporting
natural gas; gathering, stabilizing, and transporting condensate,
natural-gas liquids, and crude oil; and gathering and disposing of
produced water for its customers. In its capacity as a natural-gas
processor, WES also buys and sells natural gas, natural-gas
liquids, and condensate on behalf of itself and 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 our ability to meet financial
guidance or distribution expectations and any impact on such
guidance and expectations that may result from disruptions caused
by the recent cold-weather events; 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 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.
WESTERN MIDSTREAM CONTACTS
Kristen 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) other income, (vi) income tax benefit, 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
December 31,
|
|
Year
Ended
December 31,
|
|
thousands
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Reconciliation of
Net cash provided by operating activities to Free cash
flow
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
505,525
|
|
|
$
|
297,415
|
|
|
$
|
1,637,418
|
|
|
$
|
1,324,100
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
50,829
|
|
|
241,563
|
|
|
423,091
|
|
|
1,188,829
|
|
|
Contributions to
equity investments – related parties
|
371
|
|
|
20,275
|
|
|
19,388
|
|
|
128,393
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
10,410
|
|
|
9,053
|
|
|
32,160
|
|
|
30,256
|
|
|
Free cash
flow
|
$
|
464,735
|
|
|
$
|
44,630
|
|
|
$
|
1,227,099
|
|
|
$
|
37,134
|
|
|
Cash flow
information
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
$
|
1,637,418
|
|
|
$
|
1,324,100
|
|
|
Net cash used in
investing activities
|
|
|
|
|
(448,254)
|
|
|
(3,387,853)
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
|
|
(844,204)
|
|
|
2,071,573
|
|
|
Western Midstream
Partners, LP
|
|
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
|
|
|
Adjusted
EBITDA
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
thousands
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Reconciliation of
Net income (loss) to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
270,776
|
|
|
$
|
295,440
|
|
|
$
|
516,852
|
|
|
$
|
807,700
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
69,231
|
|
|
61,288
|
|
|
278,797
|
|
|
264,828
|
|
|
Non-cash equity-based
compensation expense
|
5,935
|
|
|
4,114
|
|
|
22,462
|
|
|
14,392
|
|
|
Interest
expense
|
101,247
|
|
|
79,414
|
|
|
380,058
|
|
|
303,286
|
|
|
Income tax
expense
|
2,206
|
|
|
793
|
|
|
10,278
|
|
|
13,472
|
|
|
Depreciation and
amortization
|
106,398
|
|
|
120,278
|
|
|
491,086
|
|
|
483,255
|
|
|
Impairments
(1)
|
3,314
|
|
|
1,985
|
|
|
644,906
|
|
|
6,279
|
|
|
Other
expense
|
—
|
|
|
—
|
|
|
1,953
|
|
|
161,813
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
12,285
|
|
|
(3)
|
|
|
8,634
|
|
|
(1,406)
|
|
|
Gain (loss) on early
extinguishment of debt
|
862
|
|
|
—
|
|
|
11,234
|
|
|
—
|
|
|
Equity income, net –
related parties
|
49,962
|
|
|
62,035
|
|
|
226,750
|
|
|
237,518
|
|
|
Interest income –
Anadarko note receivable
|
—
|
|
|
4,225
|
|
|
11,736
|
|
|
16,900
|
|
|
Other
income
|
412
|
|
|
37,792
|
|
|
2,785
|
|
|
37,792
|
|
|
Income tax
benefit
|
—
|
|
|
—
|
|
|
4,280
|
|
|
—
|
|
|
Adjusted EBITDA
attributable to noncontrolling interests (2)
|
11,606
|
|
|
11,636
|
|
|
50,607
|
|
|
45,131
|
|
|
Adjusted
EBITDA
|
$
|
483,980
|
|
|
$
|
447,627
|
|
|
$
|
2,030,366
|
|
|
$
|
1,719,090
|
|
|
Reconciliation of
Net cash provided by operating activities to Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
505,525
|
|
|
$
|
297,415
|
|
|
$
|
1,637,418
|
|
|
$
|
1,324,100
|
|
|
Interest (income)
expense, net
|
101,247
|
|
|
75,189
|
|
|
368,322
|
|
|
286,386
|
|
|
Uncontributed
cash-based compensation awards
|
—
|
|
|
(1,891)
|
|
|
—
|
|
|
(1,102)
|
|
|
Accretion and
amortization of long-term obligations, net
|
(2,172)
|
|
|
(1,942)
|
|
|
(8,654)
|
|
|
(8,441)
|
|
|
Current income tax
expense (benefit)
|
1,303
|
|
|
(215)
|
|
|
2,702
|
|
|
5,863
|
|
|
Other (income)
expense, net (3)
|
(413)
|
|
|
(152)
|
|
|
(1,025)
|
|
|
(1,549)
|
|
|
Cash paid to settle
interest-rate swaps
|
6,440
|
|
|
107,685
|
|
|
25,621
|
|
|
107,685
|
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
10,410
|
|
|
9,053
|
|
|
32,160
|
|
|
30,256
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
1,350
|
|
|
35,283
|
|
|
193,688
|
|
|
45,033
|
|
|
Accounts and imbalance
payables and accrued liabilities, net
|
(106,623)
|
|
|
(38,524)
|
|
|
(144,437)
|
|
|
30,866
|
|
|
Other items,
net
|
(21,481)
|
|
|
(22,638)
|
|
|
(24,822)
|
|
|
(54,876)
|
|
|
Adjusted EBITDA
attributable to noncontrolling interests (2)
|
(11,606)
|
|
|
(11,636)
|
|
|
(50,607)
|
|
|
(45,131)
|
|
|
Adjusted
EBITDA
|
$
|
483,980
|
|
|
$
|
447,627
|
|
|
$
|
2,030,366
|
|
|
$
|
1,719,090
|
|
|
Cash flow
information
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
$
|
1,637,418
|
|
|
$
|
1,324,100
|
|
|
Net cash used in
investing activities
|
|
|
|
|
(448,254)
|
|
|
(3,387,853)
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
|
|
(844,204)
|
|
|
2,071,573
|
|
|
|
|
(1)
|
Includes goodwill
impairment for the year ended December 31, 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 $25.6 million, paid in 2020, for
the three months and year ended December 31, 2019.
|
|
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
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Reconciliation of
Operating income (loss) to Adjusted gross margin
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
372,954
|
|
|
$
|
333,630
|
|
|
$
|
878,913
|
|
|
$
|
1,231,343
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
69,231
|
|
|
61,288
|
|
|
278,797
|
|
|
264,828
|
|
|
Operation and
maintenance
|
144,204
|
|
|
173,387
|
|
|
580,874
|
|
|
641,219
|
|
|
General and
administrative
|
37,303
|
|
|
30,951
|
|
|
155,769
|
|
|
114,591
|
|
|
Property and other
taxes
|
11,077
|
|
|
15,504
|
|
|
68,340
|
|
|
61,352
|
|
|
Depreciation and
amortization
|
106,398
|
|
|
120,278
|
|
|
491,086
|
|
|
483,255
|
|
|
Impairments
(1)
|
3,314
|
|
|
1,985
|
|
|
644,906
|
|
|
6,279
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
12,285
|
|
|
(3)
|
|
|
8,634
|
|
|
(1,406)
|
|
|
Equity income, net –
related parties
|
49,962
|
|
|
62,035
|
|
|
226,750
|
|
|
237,518
|
|
|
Reimbursed
electricity-related charges recorded as revenues
|
18,161
|
|
|
13,882
|
|
|
79,261
|
|
|
74,629
|
|
|
Adjusted gross margin
attributable to noncontrolling interests (2)
|
15,669
|
|
|
16,846
|
|
|
65,835
|
|
|
64,049
|
|
|
Adjusted gross
margin
|
$
|
648,404
|
|
|
$
|
644,263
|
|
|
$
|
2,718,205
|
|
|
$
|
2,428,077
|
|
|
Adjusted gross margin
for natural-gas assets
|
$
|
436,294
|
|
|
$
|
429,739
|
|
|
$
|
1,820,926
|
|
|
$
|
1,656,041
|
|
|
Adjusted gross margin
for crude-oil and NGLs assets
|
152,909
|
|
|
161,196
|
|
|
647,390
|
|
|
578,100
|
|
|
Adjusted gross margin
for produced-water assets
|
59,201
|
|
|
53,328
|
|
|
249,889
|
|
|
193,936
|
|
|
|
|
(1)
|
Includes goodwill
impairment for the year ended December 31, 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
December 31,
|
|
Year
Ended
December 31,
|
|
thousands except
per-unit amounts
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Revenues and
other
|
|
|
|
|
|
|
|
|
Service revenues –
fee based
|
$
|
603,777
|
|
|
$
|
626,708
|
|
|
$
|
2,584,323
|
|
|
$
|
2,388,191
|
|
|
Service revenues –
product based
|
13,132
|
|
|
24,597
|
|
|
48,369
|
|
|
70,127
|
|
|
Product
sales
|
30,068
|
|
|
71,538
|
|
|
138,559
|
|
|
286,388
|
|
|
Other
|
503
|
|
|
367
|
|
|
1,341
|
|
|
1,468
|
|
|
Total revenues and
other
|
647,480
|
|
|
723,210
|
|
|
2,772,592
|
|
|
2,746,174
|
|
|
Equity income, net
– related parties
|
49,962
|
|
|
62,035
|
|
|
226,750
|
|
|
237,518
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
34,477
|
|
|
109,507
|
|
|
188,088
|
|
|
444,247
|
|
|
Operation and
maintenance
|
144,204
|
|
|
173,387
|
|
|
580,874
|
|
|
641,219
|
|
|
General and
administrative
|
37,303
|
|
|
30,951
|
|
|
155,769
|
|
|
114,591
|
|
|
Property and other
taxes
|
11,077
|
|
|
15,504
|
|
|
68,340
|
|
|
61,352
|
|
|
Depreciation and
amortization
|
106,398
|
|
|
120,278
|
|
|
491,086
|
|
|
483,255
|
|
|
Long-lived asset and
other impairments
|
3,314
|
|
|
1,985
|
|
|
203,889
|
|
|
6,279
|
|
|
Goodwill
impairment
|
—
|
|
|
—
|
|
|
441,017
|
|
|
—
|
|
|
Total operating
expenses
|
336,773
|
|
|
451,612
|
|
|
2,129,063
|
|
|
1,750,943
|
|
|
Gain (loss) on
divestiture and other, net
|
12,285
|
|
|
(3)
|
|
|
8,634
|
|
|
(1,406)
|
|
|
Operating income
(loss)
|
372,954
|
|
|
333,630
|
|
|
878,913
|
|
|
1,231,343
|
|
|
Interest income –
Anadarko note receivable
|
—
|
|
|
4,225
|
|
|
11,736
|
|
|
16,900
|
|
|
Interest
expense
|
(101,247)
|
|
|
(79,414)
|
|
|
(380,058)
|
|
|
(303,286)
|
|
|
Gain (loss) on early
extinguishment of debt
|
862
|
|
|
—
|
|
|
11,234
|
|
|
—
|
|
|
Other income
(expense), net (1)
|
413
|
|
|
37,792
|
|
|
1,025
|
|
|
(123,785)
|
|
|
Income (loss)
before income taxes
|
272,982
|
|
|
296,233
|
|
|
522,850
|
|
|
821,172
|
|
|
Income tax expense
(benefit)
|
2,206
|
|
|
793
|
|
|
5,998
|
|
|
13,472
|
|
|
Net income
(loss)
|
270,776
|
|
|
295,440
|
|
|
516,852
|
|
|
807,700
|
|
|
Net income (loss)
attributable to noncontrolling interests
|
6,885
|
|
|
7,670
|
|
|
(10,160)
|
|
|
110,459
|
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
$
|
263,891
|
|
|
$
|
287,770
|
|
|
$
|
527,012
|
|
|
$
|
697,241
|
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
$
|
263,891
|
|
|
$
|
287,770
|
|
|
$
|
527,012
|
|
|
$
|
697,241
|
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,279)
|
|
|
General partner
interest in net (income) loss
|
(5,642)
|
|
|
(5,637)
|
|
|
(11,104)
|
|
|
(5,637)
|
|
|
Limited partners'
interest in net income (loss)
|
$
|
258,249
|
|
|
$
|
282,133
|
|
|
$
|
515,908
|
|
|
$
|
662,325
|
|
|
Net income (loss)
per common unit – basic and diluted
|
$
|
0.62
|
|
|
$
|
0.62
|
|
|
$
|
1.18
|
|
|
$
|
1.59
|
|
|
Weighted-average
common units outstanding – basic and diluted
|
415,597
|
|
|
452,934
|
|
|
435,554
|
|
|
415,794
|
|
|
|
|
(1)
|
Includes losses
associated with the interest-rate swap agreements for the year
ended December 31, 2019.
|
|
Western Midstream
Partners, LP
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
thousands except
number of units
|
December
31,
2020
|
|
December
31,
2019
|
|
Total current
assets
|
$
|
943,064
|
|
|
$
|
402,412
|
|
|
Anadarko note
receivable
|
—
|
|
|
260,000
|
|
|
Net property, plant,
and equipment
|
8,709,945
|
|
|
9,064,931
|
|
|
Other
assets
|
2,177,018
|
|
|
2,619,110
|
|
|
Total
assets
|
$
|
11,830,027
|
|
|
$
|
12,346,453
|
|
|
Total current
liabilities
|
$
|
960,935
|
|
|
$
|
485,954
|
|
|
Long-term
debt
|
7,415,832
|
|
|
7,951,565
|
|
|
Asset retirement
obligations
|
260,283
|
|
|
336,396
|
|
|
Other
liabilities
|
297,765
|
|
|
227,245
|
|
|
Total
liabilities
|
8,934,815
|
|
|
9,001,160
|
|
|
Equity and
partners' capital
|
|
|
|
|
Common units
(413,839,863 and 443,971,409 units issued and outstanding at
December 31, 2020 and 2019, respectively)
|
2,778,339
|
|
|
3,209,947
|
|
|
General partner units
(9,060,641 units issued and outstanding at December 31, 2020 and
2019)
|
(17,208)
|
|
|
(14,224)
|
|
|
Noncontrolling
interests
|
134,081
|
|
|
149,570
|
|
|
Total liabilities,
equity, and partners' capital
|
$
|
11,830,027
|
|
|
$
|
12,346,453
|
|
|
Western Midstream
Partners, LP
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
Year
Ended
December 31,
|
|
thousands
|
2020
|
|
2019
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
$
|
516,852
|
|
|
$
|
807,700
|
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and changes in assets and liabilities:
|
|
|
|
|
Depreciation and
amortization
|
491,086
|
|
|
483,255
|
|
|
Long-lived asset and
other impairments
|
203,889
|
|
|
6,279
|
|
|
Goodwill
impairment
|
441,017
|
|
|
—
|
|
|
(Gain) loss on
divestiture and other, net
|
(8,634)
|
|
|
1,406
|
|
|
(Gain) loss on early
extinguishment of debt
|
(11,234)
|
|
|
—
|
|
|
(Gain) loss on
interest-rate swaps
|
—
|
|
|
125,334
|
|
|
Cash paid to settle
interest-rate swaps
|
(25,621)
|
|
|
(107,685)
|
|
|
Change in other items,
net
|
30,063
|
|
|
7,811
|
|
|
Net cash provided by
operating activities
|
$
|
1,637,418
|
|
|
$
|
1,324,100
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
$
|
(423,091)
|
|
|
$
|
(1,188,829)
|
|
|
Acquisitions from
related parties
|
—
|
|
|
(2,007,926)
|
|
|
Acquisitions from
third parties
|
(511)
|
|
|
(93,303)
|
|
|
Contributions to
equity investments - related parties
|
(19,388)
|
|
|
(128,393)
|
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
32,160
|
|
|
30,256
|
|
|
Proceeds from the
sale of assets to third parties
|
20,333
|
|
|
342
|
|
|
Additions to
materials and supplies inventory and other
|
(57,757)
|
|
|
—
|
|
|
Net cash used in
investing activities
|
$
|
(448,254)
|
|
|
$
|
(3,387,853)
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
$
|
3,681,173
|
|
|
$
|
4,169,695
|
|
|
Repayments of
debt
|
(3,803,888)
|
|
|
(1,467,595)
|
|
|
Increase (decrease)
in outstanding checks
|
20,699
|
|
|
1,571
|
|
|
Registration expenses
related to the issuance of Partnership common units
|
—
|
|
|
(855)
|
|
|
Distributions to
Partnership unitholders
|
(695,834)
|
|
|
(969,073)
|
|
|
Distributions to
Chipeta noncontrolling interest owner
|
(8,644)
|
|
|
(9,663)
|
|
|
Distributions to
noncontrolling interest owners of WES Operating
|
(15,434)
|
|
|
(118,225)
|
|
|
Net contributions
from (distributions to) related parties
|
24,466
|
|
|
458,819
|
|
|
Above-market
component of swap agreements with Anadarko
|
—
|
|
|
7,407
|
|
|
Finance lease
payments
|
(14,207)
|
|
|
(508)
|
|
|
Unit
repurchases
|
(32,535)
|
|
|
—
|
|
|
Net cash provided by
(used in) financing activities
|
$
|
(844,204)
|
|
|
$
|
2,071,573
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
$
|
344,960
|
|
|
$
|
7,820
|
|
|
Cash and cash
equivalents at beginning of period
|
99,962
|
|
|
92,142
|
|
|
Cash and cash
equivalents at end of period
|
$
|
444,922
|
|
|
$
|
99,962
|
|
|
Western Midstream
Partners, LP
|
|
OPERATING
STATISTICS
|
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Throughput for
natural-gas assets (MMcf/d)
|
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
521
|
|
|
534
|
|
|
543
|
|
|
528
|
|
|
Processing
|
3,170
|
|
|
3,532
|
|
|
3,445
|
|
|
3,497
|
|
|
Equity investments
(1)
|
429
|
|
|
423
|
|
|
445
|
|
|
398
|
|
|
Total
throughput
|
4,120
|
|
|
4,489
|
|
|
4,433
|
|
|
4,423
|
|
|
Throughput
attributable to noncontrolling interests (2)
|
149
|
|
|
174
|
|
|
159
|
|
|
175
|
|
|
Total throughput
attributable to WES for natural-gas assets
|
3,971
|
|
|
4,315
|
|
|
4,274
|
|
|
4,248
|
|
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
|
|
|
|
|
|
|
Gathering, treating,
and transportation
|
292
|
|
|
347
|
|
|
331
|
|
|
320
|
|
|
Equity investments
(3)
|
339
|
|
|
449
|
|
|
381
|
|
|
343
|
|
|
Total
throughput
|
631
|
|
|
796
|
|
|
712
|
|
|
663
|
|
|
Throughput
attributable to noncontrolling interests (2)
|
12
|
|
|
16
|
|
|
14
|
|
|
13
|
|
|
Total throughput
attributable to WES for crude-oil and NGLs assets
|
619
|
|
|
780
|
|
|
698
|
|
|
650
|
|
|
Throughput for
produced-water assets (MBbls/d)
|
|
|
|
|
|
|
|
|
Gathering and
disposal
|
670
|
|
|
610
|
|
|
712
|
|
|
556
|
|
|
Throughput
attributable to noncontrolling interests (2)
|
13
|
|
|
12
|
|
|
14
|
|
|
11
|
|
|
Total throughput
attributable to WES for produced-water assets
|
657
|
|
|
598
|
|
|
698
|
|
|
545
|
|
|
Per-Mcf Adjusted
gross margin for natural-gas assets (4)
|
$
|
1.19
|
|
|
$
|
1.08
|
|
|
$
|
1.16
|
|
|
$
|
1.07
|
|
|
Per-Bbl Adjusted
gross margin for crude-oil and NGLs assets
(5)
|
2.69
|
|
|
2.27
|
|
|
2.54
|
|
|
2.44
|
|
|
Per-Bbl Adjusted
gross margin for produced-water assets (6)
|
0.98
|
|
|
0.97
|
|
|
0.98
|
|
|
0.97
|
|
|
|
|
(1)
|
Represents the 14.81%
share of average Fort Union throughput (until divested in October
2020), 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 2.0% Occidental subsidiary-owned
limited partner interest in WES Operating and (ii) for natural-gas
assets, the 25% third-party interest in Chipeta, 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
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Natural
gas
(MMcf/d)
|
|
Crude oil &
NGLs
(MBbls/d)
|
|
Produced
water
(MBbls/d)
|
|
Delaware
Basin
|
1,196
|
|
|
1,274
|
|
|
178
|
|
|
168
|
|
|
670
|
|
|
610
|
|
|
DJ Basin
|
1,197
|
|
|
1,295
|
|
|
78
|
|
|
129
|
|
|
—
|
|
|
—
|
|
|
Equity
investments
|
429
|
|
|
423
|
|
|
339
|
|
|
449
|
|
|
—
|
|
|
—
|
|
|
Other
|
1,298
|
|
|
1,497
|
|
|
36
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
Total
throughput
|
4,120
|
|
|
4,489
|
|
|
631
|
|
|
796
|
|
|
670
|
|
|
610
|
|
|
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Natural
gas
(MMcf/d)
|
|
Crude oil &
NGLs
(MBbls/d)
|
|
Produced
water
(MBbls/d)
|
|
Delaware
Basin
|
1,297
|
|
|
1,226
|
|
|
189
|
|
|
150
|
|
|
712
|
|
|
556
|
|
|
DJ Basin
|
1,305
|
|
|
1,236
|
|
|
101
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
Equity
investments
|
445
|
|
|
398
|
|
|
381
|
|
|
343
|
|
|
—
|
|
|
—
|
|
|
Other
|
1,386
|
|
|
1,563
|
|
|
41
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
Total
throughput
|
4,433
|
|
|
4,423
|
|
|
712
|
|
|
663
|
|
|
712
|
|
|
556
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-fourth-quarter-and-full-year-2020-results-301233932.html
SOURCE Western Midstream Partners, LP