Western Midstream Partners LP Files Q3 2024 10-Q

TL;DR

WES Q3 2024 10-Q filed. Financials and ops details out.

AI Summary

Western Midstream Partners, LP filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operational updates. Key financial metrics and business developments are presented for the third quarter of 2024.

Why It Matters

This filing provides investors and analysts with crucial financial and operational data for Western Midstream Partners, LP, impacting investment decisions and market analysis.

Risk Assessment

Risk Level: medium — As a publicly traded partnership in the energy sector, Western Midstream Partners, LP is subject to market volatility, commodity price fluctuations, and regulatory changes.

Key Players & Entities

• Western Midstream Partners, LP (company) — Filer of the 10-Q
• Western Midstream Operating, LP (company) — Related entity
• 20240930 (date) — End of reporting period
• 20241106 (date) — Filing date

FAQ

Key Financial Figures

• $2.0 billion — d gas reservoirs. RCF WES Operating's $2.0 billion senior unsecured revolving credit facil
• $1.25 billion — facilities, owned by Whitethorn LLC. $1.25 billion Purchase Program The $1.25 billion buyb

Filing Documents

• wes-20240930.htm (10-Q) — 2677KB
• wes2024q3-ex311.htm (EX-31.1) — 10KB
• wes2024q3-ex312.htm (EX-31.2) — 10KB
• wes2024q3-ex313.htm (EX-31.3) — 10KB
• wes2024q3-ex314.htm (EX-31.4) — 10KB
• wes2024q3-ex321.htm (EX-32.1) — 9KB
• wes2024q3-ex322.htm (EX-32.2) — 9KB
• 0001423902-24-000079.txt ( ) — 11020KB
• wes-20240930.xsd (EX-101.SCH) — 55KB
• wes-20240930_cal.xml (EX-101.CAL) — 73KB
• wes-20240930_def.xml (EX-101.DEF) — 459KB
• wes-20240930_lab.xml (EX-101.LAB) — 624KB
• wes-20240930_pre.xml (EX-101.PRE) — 623KB
• wes-20240930_htm.xml (XML) — 1747KB

FINANCIAL INFORMATION (UNAUDITED)

PART I FINANCIAL INFORMATION (UNAUDITED)

Financial Statements

Item 1. Financial Statements Western Midstream Partners, LP Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 6 Consolidated Balance Sheets as of September 30, 2024, and December 31, 2023 7 Consolidated Statements of Equity and Partners' Capital for the three and nine months ended Se ptember 30, 2024 and 2023 8 Consolidated Statements of Cash Flows for the nine months ended Sept ember 30, 2024 and 2023 10 Western Midstream Operating, LP Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 11 Consolidated Balance Sheets as of September 30, 2024, and December 31, 2023 12 Consolidated Statements of Equity and Partners' Capital for the three and nine months ended Septe mber 30, 2024 and 2023 13 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 14

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 15 Note 1. Description of Business and Basis of Presentation 15 Note 2. Revenue from Contracts with Customers 18 Note 3. Acquisitions and Divestitures 20 Note 4. Partnership Distributions 21 Note 5. Equity and Partners' Capital 23 Note 6. Related-Party Transactions 24 Note 7. Equity Investments 27 Note 8. Property, Plant, and Equipment 28 Note 9. Selected Components of Working Capital 29 Note 10. Debt and Interest Expense 30 Note 11. Commitments and Contingencies 33

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Cautionary Note Regarding Forward-Looking Statements 34 Executive Summary 36 Outlook 38 Acquisitions and Divestitures 39 Results of Operations 40 Operating Results 40 Reconciliation of Non-GAAP Financial Measures 47 Key Performance Metrics 52 Liquidity and Capital Resources 54 Items Affecting the Comparability of Financial Results with WES Operating 58 Critical Accounting Estimates 59 Recent Accounting Developments 59

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 59

Controls and Procedures

Item 4. Controls and Procedures 60

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 60

Risk Factors

Item 1A. Risk Factors 60

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 60

Other Information

Item 5. Other Information 61

Exhibits

Item 6. Exhibits 61 3 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

FINANCIAL INFORMATION (UNAUDITED)

PART I. FINANCIAL INFORMATION (UNAUDITED)

Financial Statements

Item 1. Financial Statements WESTERN MIDSTREAM PARTNERS, LP CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, thousands except per-unit amounts 2024 2023 2024 2023 Revenues and other Service revenues – fee based $ 814,319 $ 695,547 $ 2,389,366 $ 2,004,920 Service revenues – product based 49,115 48,446 177,321 142,212 Product sales 19,673 31,652 109,076 100,336 Other 255 368 957 800 Total revenues and other (1) 883,362 776,013 2,676,720 2,248,268 Equity income, net – related parties 23,977 35,494 84,227 116,839 Operating expenses Cost of product 32,847 27,590 132,936 123,795 Operation and maintenance 231,066 204,434 649,324 562,104 General and administrative 64,726 55,050 195,498 159,572 Property and other taxes 12,635 14,583 43,984 39,961 Depreciation and amortization 166,015 147,363 487,438 435,481 Long - lived asset and other impairments (2) 4,651 245 6,204 52,880 Total operating expenses (3) 511,940 449,265 1,515,384 1,373,793 Gain (loss) on divestiture and other, net 467 ( 1,480 ) 299,426 ( 3,668 ) Operating income (loss) 395,866 360,762 1,544,989 987,646 Interest expense ( 94,149 ) ( 82,754 ) ( 279,177 ) ( 250,606 ) Gain (loss) on early extinguishment of debt — 8,565 5,403 15,378 Other income (expense), net 9,565 ( 1,270 ) 16,124 2,817 Income (loss) before income taxes 311,282 285,303 1,287,339 755,235 Income tax expense (benefit) 15,390 905 17,667 2,980 Net income (loss) 295,892 284,398 1,269,672 752,255 Net income (loss) attributable to noncontrolling interests 7,412 7,102 29,714 18,393 Net income (loss) attributable to Western Midstream Partners, LP $ 288,480 $ 277,296 $ 1,239,958 $ 733,862 Limited partners' interest in net income (loss): Net income (loss) attributable to Western Midstream Partners, LP $ 288,480 $ 277,296 $ 1,239,958 $ 733,862 General partner interest in net (income) loss ( 6,708 ) ( 6,453 ) ( 28,845 ) ( 16,960 ) Limited partners' in

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