Western Midstream Partners LP

We are a midstream energy company organized as a publicly traded partnership, engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, NGLs, and crude oil; and gathering and disposing of produced water. In our capacity as a natural-gas processor, we also buy and sell natural gas, NGLs, and condensate on behalf of ourselves and our customers under certain contracts. To provide superior midstream service, we focus on ensuring the reliability and performance of our systems, creating sustainable cost efficiencies, enhancing our safety culture, and protecting the environment. We own or have investments in assets located in Texas, New Mexico, the Rocky Mountains (Colorado, Utah, and Wyoming), and North-central Pennsylvania. As of December 31, 2023, our assets and investments consisted of the following:

Significant financial and operational events during the year ended December 31, 2023, included the following:

•On October 13, 2023, we closed on the acquisition of Meritage for $885.0 million (subject to certain customary post-closing adjustments). See Items Affecting the Comparability of Our Financial Results within this Item 7 for additional information.

•WES Operating completed the public offering of $600.0 million in aggregate principal amount of 6.350% Senior Notes due 2029. Net proceeds from the offering were used to fund a portion of the aggregate purchase price for the Meritage acquisition, to pay related costs and expenses, and for general partnership purposes. See Liquidity and Capital Resources within this Item 7 for additional information.

•WES Operating completed the public offering of $750.0 million in aggregate principal amount of 6.150% Senior Notes due 2033. Net proceeds from this offering were used to repay borrowings under the RCF and for general partnership purposes. See Liquidity and Capital Resources within this Item 7 for additional information.

•WES Operating redeemed the $213.1 million total principal amount outstanding of the Floating-Rate Senior Notes due 2023 at par value with cash on hand.

•WES Operating purchased and retired $276.7 million of certain of its senior notes via open-market repurchases.

•In November 2023, WES operating entered into an unsecured commercial paper program under which it may issue (and have outstanding at any one time) an aggregate principal amount up to $2.0 billion. See Liquidity and Capital Resources within this Item 7 for additional information.

•Our fourth-quarter 2023 per-unit distribution is unchanged from the third-quarter 2023 per-unit distribution of $0.575.

•The Board approved an Enhanced Distribution of $0.356 per unit, or $140.1 million, related to our 2022 performance. This Enhanced Distribution was paid, along with our regular first-quarter 2023 distribution, on May 15, 2023, to our unitholders of record at the close of business on May 1, 2023.

•We repurchased 5,387,322 common units, which includes 5,100,000 common units repurchased from Occidental, for an aggregate purchase price of $134.6 million.

•Natural-gas throughput attributable to WES totaled 4,432 MMcf/d for the year ended December 31, 2023, representing a 5% increase compared to the year ended December 31, 2022.

•Crude-oil and NGLs throughput attributable to WES totaled 652 MBbls/d for the year ended December 31, 2023, representing a 4% decrease compared to the year ended December 31, 2022.

•Produced-water throughput attributable to WES totaled 1,009 MBbls/d for the year ended December 31, 2023, representing a 21% increase compared to the year ended December 31, 2022.

•Gross margin was $2,341.2 million for the year ended December 31, 2023, representing a 4% increase compared to the year ended December 31, 2022. See Reconciliation of Non-GAAP Financial Measures within this Item 7.

•Adjusted gross margin for natural-gas assets (as defined under the caption Reconciliation of Non-GAAP Financial Measures within this Item 7) averaged $1.28 per Mcf for the year ended December 31, 2023, representing a 3% decrease compared to the year ended December 31, 2022.

•Adjusted gross margin for crude-oil and NGLs assets (as defined under the caption Reconciliation of Non-GAAP Financial Measures within this Item 7) averaged $2.48 per Bbl for the year ended December 31, 2023, representing a 1% increase compared to the year ended December 31, 2022.

•Adjusted gross margin for produced-water assets (as defined under the caption Reconciliation of Non-GAAP Financial Measures within this Item 7) averaged $0.83 per Bbl for the year ended December 31, 2023, representing a 12% decrease compared to the year ended December 31, 2022.

The following table provides additional information on throughput for the periods presented below:

NM—Not meaningful