Western Midstream Partners LP
For the period ended Mar 31, 2024. Filed May 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 8, 2024
WES$39.850.0%Stored close · as of Nov 6, 2026
Contents
Item 1. Financial Statements
| Western Midstream Partners, LP | |||
|---|---|---|---|
| Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 | 6 | ||
| Consolidated Balance Sheets as of March 31, 2024, and December 31, 2023 | 7 | ||
| Consolidated Statements of Equity and Partners’ Capital for the three months ended March 31, 2024 and 2023 | 8 | ||
| Consolidated Statements of Cash Flows for three months ended March 31, 2024 and 2023 | 9 | ||
| Western Midstream Operating, LP | |||
| Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 | 10 | ||
| Consolidated Balance Sheets as of March 31, 2024, and December 31, 2023 | 11 | ||
| Consolidated Statements of Equity and Partners’ Capital for the three months ended March 31, 2024 and 2023 | 12 | ||
| Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 | 13 | ||
| Notes to Consolidated Financial Statements | 14 | ||
| Note 1. Description of Business and Basis of Presentation | 14 | ||
| Note 2. Revenue from Contracts with Customers | 17 | ||
| Note 3. Acquisitions and Divestitures | 19 | ||
| Note 4. Partnership Distributions | 20 | ||
| Note 5. Equity and Partners’ Capital | 22 | ||
| Note 6. Related-Party Transactions | 23 | ||
| Note 7. Equity Investments | 26 | ||
| Note 8. Property, Plant, and Equipment | 27 | ||
| Note 9. Selected Components of Working Capital | 28 | ||
| Note 10. Debt and Interest Expense | 29 | ||
| Note 11. Commitments and Contingencies | 31 | ||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 32 | |
| Cautionary Note Regarding Forward-Looking Statements | 32 | ||
| Executive Summary | 34 | ||
| Outlook | 36 | ||
| Acquisitions and Divestitures | 37 | ||
| Results of Operations | 38 | ||
| Operating Results | 38 | ||
| Reconciliation of Non-GAAP Financial Measures | 45 | ||
| Key Performance Metrics | 50 | ||
| Liquidity and Capital Resources | 52 | ||
| Items Affecting the Comparability of Financial Results with WES Operating | 56 | ||
| Critical Accounting Estimates | 57 | ||
| Recent Accounting Developments | 57 | ||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 57 | |
| Item 4. | Controls and Procedures | 58 | |
| PART II | OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 58 | |
| Item 1A. | Risk Factors | 58 | |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 58 | |
| Item 5. | Other Information | 59 | |
| Item 6. | Exhibits | 60 | |
COMMONLY USED ABBREVIATIONS AND TERMS
References to “we,” “us,” “our,” “WES,” “the Partnership,” or “Western Midstream Partners, LP” refer to Western Midstream Partners, LP (formerly Western Gas Equity Partners, LP) and its subsidiaries. The following list of abbreviations and terms are used in this document:
| Defined Term | Definition |
|---|---|
| Anadarko | Anadarko Petroleum Corporation and its subsidiaries, excluding our general partner, which became a wholly owned subsidiary of Occidental upon closing of the Occidental Merger on August 8, 2019. |
| Barrel, Bbl, Bbls/d, MBbls/d | 42 U.S. gallons measured at 60 degrees Fahrenheit, barrels per day, thousand barrels per day. |
| Board | The board of directors of WES’s general partner. |
| Chipeta | Chipeta Processing, LLC, in which we are the managing member of and own a 75% interest. |
| Condensate | A natural-gas liquid with a low vapor pressure compared to drip condensate, mainly composed of propane, butane, pentane, and heavier hydrocarbon fractions. |
| DBM water systems | Produced-water gathering and disposal systems in West Texas. |
| DJ Basin complex | The Platte Valley, Fort Lupton, Wattenberg, Lancaster, and Latham processing plants, and the Wattenberg gathering system. |
| EBITDA | Earnings before interest, taxes, depreciation, and amortization. For a definition of “Adjusted EBITDA,” see Reconciliation of Non-GAAP Financial Measures under Part I, Item 2 of this Form 10-Q. |
| Exchange Act | The Securities Exchange Act of 1934, as amended. |
| FRP | Front Range Pipeline LLC, in which we own a 33.33% interest. |
| GAAP | Generally accepted accounting principles in the United States. |
| General partner | Western Midstream Holdings, LLC, the general partner of the Partnership. |
| Imbalance | Imbalances result from (i) differences between gas and NGLs volumes nominated by customers and gas and NGLs volumes received from those customers and (ii) differences between gas and NGLs volumes received from customers and gas and NGLs volumes delivered to those customers. |
| Marcellus Interest | The 33.75% interest in the Larry’s Creek, Seely, and Warrensville gas-gathering systems and related facilities located in northern Pennsylvania that we sold in April 2024 (see Note 3—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q). |
| Mcf, MMcf, MMcf/d | Thousand cubic feet, million cubic feet, million cubic feet per day. |
| Meritage | Meritage Midstream Services II, LLC, which was acquired by the Partnership on October 13, 2023. |
| Mi Vida | Mi Vida JV LLC, in which we own a 50% interest. |
| MLP | Master limited partnership. |
| Mont Belvieu JV | Enterprise EF78 LLC, in which we owned a 25% interest that we sold in February 2024 (see Note 3—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q). |
| Natural-gas liquid(s) or NGL(s) | The combination of ethane, propane, normal butane, isobutane, and natural gasolines that, when removed from natural gas, become liquid under various levels of pressure and temperature. |
| Occidental | Occidental Petroleum Corporation and, as the context requires, its subsidiaries, excluding our general partner. |
| Panola | Panola Pipeline Company, LLC, in which we owned a 15% interest that we sold in March 2024 (see Note 3—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q). |
| Powder River Basin complex | The Hilight system and assets acquired from Meritage, which includes a gathering system, processing plants, and the Thunder Creek NGL pipeline (see Note 3—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q). |
| Produced water | Byproduct associated with the production of crude oil and natural gas that often contains a number of dissolved solids and other materials found in oil and gas reservoirs. |
| RCF | WES Operating’s $2.0 billion senior unsecured revolving credit facility. |
| Red Bluff Express | Red Bluff Express Pipeline, LLC, in which we own a 30% interest. |
| Related parties | Occidental, the Partnership’s equity interests (see Note 7—Equity Investments in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q), and the Partnership and WES Operating for transactions that eliminate upon consolidation. |
| Rendezvous | Rendezvous Gas Services, LLC, in which we own a 22% interest. |
| Defined Term | Definition |
|---|---|
| Residue | The natural gas remaining after the unprocessed natural-gas stream has been processed or treated. |
| Saddlehorn | Saddlehorn Pipeline Company, LLC, in which we owned a 20% interest that we sold in March 2024 (see Note 3—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q). |
| SEC | U.S. Securities and Exchange Commission. |
| Services Agreement | That certain amended and restated Services, Secondment, and Employee Transfer Agreement, dated as of December 31, 2019, by and among Occidental, Anadarko, and WES Operating GP. |
| Skim oil | A crude-oil byproduct that is recovered during the produced-water gathering and disposal process. |
| Springfield system | The Springfield gas-gathering system and Springfield oil-gathering system. |
| TEG | Texas Express Gathering LLC, in which we own a 20% interest. |
| TEP | Texas Express Pipeline LLC, in which we own a 20% interest. |
| WES Operating | Western Midstream Operating, LP, formerly known as Western Gas Partners, LP, and its subsidiaries. |
| WES Operating GP | Western Midstream Operating GP, LLC, the general partner of WES Operating. |
| West Texas complex | The Delaware Basin Midstream complex and DBJV and Haley systems. |
| WGRAH | WGR Asset Holding Company LLC, a subsidiary of Occidental. |
| White Cliffs | White Cliffs Pipeline, LLC, in which we own a 10% interest. |
| Whitethorn LLC | Whitethorn Pipeline Company LLC, in which we owned a 20% interest that we sold in February 2024 (see Note 3—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q). |
| Whitethorn | A crude-oil and condensate pipeline, and related storage facilities, owned by Whitethorn LLC. |
| $1.25 billion Purchase Program | The $1.25 billion buyback program ending December 31, 2024. The common units may be purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. |
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