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| 8-K - 8-K - Western Midstream Partners, LP | wes2019ye8-kxer.htm |
EXHIBIT 99.1
WESTERN MIDSTREAM ANNOUNCES
FOURTH-QUARTER AND FULL-YEAR 2019 RESULTS
ANNOUNCES 2020 GUIDANCE
HOUSTON—(PRNEWSWIRE)—February 27, 2020 – Today Western Midstream Partners, LP (NYSE: WES) (“WES” or the “Partnership”) announced fourth-quarter and full-year 2019 financial and operating results. Net income (loss) available to limited partners for the fourth quarter of 2019 totaled $282.1 million, or $0.62 per common unit (diluted), with fourth-quarter 2019 Adjusted EBITDA(1) totaling $447.6 million and fourth-quarter 2019 Distributable cash flow(1) totaling $345.4 million. Net income (loss) available to limited partners for 2019 totaled $662.3 million, or $1.59 per common unit (diluted), with full-year 2019 Adjusted EBITDA(1) of $1.719 billion and full-year 2019 Distributable cash flow(1) of $1.325 billion. Financial and operational results are presented as if WES owned the assets acquired in February 2019 for all periods reported.
RECENT HIGHLIGHTS
• | Processed record DJ Basin Complex gas throughput of 1.30 Bcf/d for the fourth quarter, representing a 15-percent sequential-quarter increase as third-quarter downstream constraints were resolved and did not impact fourth-quarter operations |
• | Gathered record Delaware Basin produced-water throughput of 610 MBbls/d for the fourth quarter, representing a 5-percent sequential-quarter increase |
• | Achieved record Delaware and DJ Basin oil throughput of 297 MBbls/d for the fourth quarter, representing an 8-percent sequential-quarter increase |
• | Delivered full-year 2019 Adjusted EBITDA(1) of $1.719 billion, representing a 17-percent increase from 2018 |
• | Realized capital expenditures below low-end 2019 guidance range |
(1) Please see the tables at the end of this release for a reconciliation of GAAP to non-GAAP measures and calculation of the Coverage ratio. | ||
• | Finalized service and governance agreements with Occidental that will position WES to operate as a stand-alone enterprise |
• | Priced a $3.5 billion four-tranche senior notes offering that was 6.2x oversubscribed with each tranche pricing at WES’s lowest historical coupon for like-tenor notes |
For the fourth quarter of 2019, WES paid a per-unit quarterly distribution of $0.6220. The full-year 2019 per-unit distribution of $2.47 represents a more than 5-percent increase over the full-year 2018 per-unit distribution of $2.35. This marks WES’s 28th consecutive quarterly distribution increase and achieves WES’s 2019 annual distribution-growth guidance range of 5 percent to 6 percent. The fourth-quarter 2019 Coverage ratio(1) was 1.23 times. The full-year 2019 Coverage ratio(1) was 1.18 times.
“I’m pleased with our fourth-quarter results,” said Chief Executive Officer, Michael Ure. “In 2019, we placed the first Latham train and the second Mentone train into service; grew Adjusted EBITDA 17-percent year-over-year as a result of increased throughput across all products; and entered into new service, operating, and governing agreements at year end that enable us to operate more fully as an independent midstream company. This was a productive and successful year for WES, and we are ideally positioned to deliver strong results in 2020.”
Fourth-quarter 2019 total natural-gas throughput(2) averaged 4.3 Bcf/d, representing a 3-percent sequential-quarter increase and an 8-percent increase from fourth-quarter 2018. Fourth-quarter 2019 total throughput for crude-oil, NGLs, and produced-water assets(2) averaged 1,378 MBbls/d, representing a 16-percent sequential-quarter increase and a 38-percent increase from fourth-quarter 2018. Full-year 2019 total natural-gas throughput(2) averaged 4.2 Bcf/d, representing a 9-percent increase from full-year 2018. Full-year 2019 total throughput for crude-oil, NGLs, and produced-water assets(2) averaged 1,195 MBbls/d, representing a 57-percent increase from full-year 2018.
(1) Please see the tables at the end of this release for a reconciliation of GAAP to non-GAAP measures and calculation of the Coverage ratio. | ||
(2) 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 as of December 31, 2019. | ||
2
Fourth-quarter 2019 capital expenditures(1), including equity investments and excluding capitalized interest, totaled $242.6 million, with cash maintenance capital expenditures totaling $29.6 million. For full-year 2019, capital expenditures(1), including equity investments(2) and excluding capitalized interest, totaled $1.249 billion, which is approximately $100 million below the 2019 guidance midpoint of $1.35 billion. For full-year 2019, cash maintenance capital expenditures totaled $124.4 million, which is approximately $11 million below the 2019 guidance midpoint of $135 million.
2020 GUIDANCE
• | Adjusted EBITDA between $1.875 billion and $1.975 billion |
• | Total capital expenditures between $875 million and $950 million, including costs associated with over 60,000 horsepower of compression, over 140 miles of gathering, the completion of the second Latham train during first-quarter 2020, and the addition of two 30 MBbl/d oil-stabilization trains and approximately 180 MBbl/d of saltwater disposal capacity in the Delaware Basin by year-end 2020 |
• | Total maintenance capital expenditures between $125 million and $135 million |
• | Coverage ratio of at least 1.25x with ~1-percent year-over-year distribution increase from full-year 2019 per-unit distributions of $2.47 per unit |
“Our 2020 guidance demonstrates our continued focus on capital-efficient organic growth and the strength of our balance sheet,” said Chief Financial Officer, Mike Pearl. “We are focused on generating long-term value for all our stakeholders by maintaining our investment-grade credit profile, delivering exceptional customer service, and driving operational efficiencies throughout the organization.”
(1) Accrual-based and excludes capital expenditures associated with the 25% third-party interest in Chipeta. | ||
(2) Acquisitions and contributions. | ||
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CONFERENCE CALL TOMORROW AT 1 P.M. CST
WES will host a conference call on Friday, February 28, 2020, at 1:00 p.m. Central Standard Time (2:00 p.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2019 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 0032829. 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.
WESTERN MIDSTREAM ANNUAL REPORT AVAILABLE
WES has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, with the Securities and Exchange Commission. A copy of the report is available for viewing and downloading on the Western Midstream web site at www.westernmidstream.com. Unitholders may request hard copies of the report, which contains WES’s audit financial statements, free of charge, by emailing investors@westernmidstream.com or by submitting a written request to Western Midstream Partners, LP at the following address: P.O. Box 1330, Houston, TX 77251-1330, Attention: Investor Relations.
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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-growth 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. Western Midstream Partners, LP 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
Abby.Dempsey@westernmidstream.com
832.636.6000
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Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Below are reconciliations of (i) net income (loss) (GAAP) to WES’s Distributable cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Midstream Partners, LP (“Adjusted EBITDA”) (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Midstream Partners, LP (“Adjusted gross margin”) (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES’s Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio 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. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES’s Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio 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.
WES defines “Distributable cash flow” as Adjusted EBITDA, plus interest income and the net settlement amounts from the sale and/or purchase of natural gas, condensate, and NGLs under WES Operating’s commodity-price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less Service revenues – fee based recognized in Adjusted EBITDA in excess of (less than) customer billings, net cash paid (or to be paid) for interest expense (including amortization of deferred debt issuance costs originally paid in cash and offset by non-cash capitalized interest), maintenance capital expenditures, WES Operating Series A Preferred unit distributions, income taxes, and Distributable cash flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA.
WES defines Adjusted EBITDA as net income (loss), plus distributions from equity investments, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairments, and other expense (including lower of cost or market inventory adjustments recorded in cost of product), less gain (loss) on divestiture and other, net, income from equity investments, interest income, income tax benefit, other income, and the noncontrolling interests owners’ proportionate share of revenues and expenses.
WES defines 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.
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Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
Distributable Cash Flow
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
thousands except Coverage ratio | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Net income (loss) to Distributable cash flow and calculation of the Coverage ratio | ||||||||||||||||
Net income (loss) | $ | 295,440 | $ | 183,917 | $ | 807,700 | $ | 630,654 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 61,288 | 71,327 | 264,828 | 216,977 | ||||||||||||
Non-cash equity-based compensation expense | 4,114 | 1,544 | 14,392 | 7,310 | ||||||||||||
Non-cash settled interest expense, net | 19 | — | 39 | — | ||||||||||||
Income tax (benefit) expense | 793 | 22,741 | 13,472 | 58,934 | ||||||||||||
Depreciation and amortization | 120,278 | 118,407 | 483,255 | 389,164 | ||||||||||||
Impairments | 1,985 | 75,298 | 6,279 | 230,584 | ||||||||||||
Above-market component of swap agreements with Anadarko | — | 10,896 | 7,407 | 51,618 | ||||||||||||
Other expense | — | 8,080 | 161,813 | 8,264 | ||||||||||||
Less: | ||||||||||||||||
Recognized Service revenues – fee based in excess of (less than) customer billings | (6,534 | ) | 53,527 | (28,764 | ) | 62,498 | ||||||||||
Gain (loss) on divestiture and other, net | (3 | ) | 961 | (1,406 | ) | 1,312 | ||||||||||
Equity income, net – affiliates | 62,035 | 61,595 | 237,518 | 195,469 | ||||||||||||
Cash paid for maintenance capital expenditures | 29,660 | 39,328 | 124,548 | 120,865 | ||||||||||||
Capitalized interest | 6,047 | 7,196 | 26,980 | 32,479 | ||||||||||||
Cash paid for (reimbursement of) income taxes | — | 2,495 | 96 | 2,408 | ||||||||||||
Other income | 37,792 | — | 37,792 | 2,749 | ||||||||||||
Distributable cash flow attributable to noncontrolling interests (1) | 9,512 | 9,000 | 36,976 | 36,138 | ||||||||||||
Distributable cash flow (2) | $ | 345,408 | $ | 318,108 | $ | 1,325,445 | $ | 1,139,587 | ||||||||
Distributions declared | ||||||||||||||||
Distributions from WES Operating | $ | 284,505 | $ | 1,128,309 | ||||||||||||
Less: Cash reserve for the proper conduct of WES’s business | 2,719 | 9,360 | ||||||||||||||
Distributions to WES unitholders (3) | $ | 281,786 | $ | 1,118,949 | ||||||||||||
Coverage ratio | 1.23 | x | 1.18 | x | ||||||||||||
(1) | 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 as of December 31, 2019. |
(2) | For the three months and year ended December 31, 2019, excludes cash payments of $107.7 million related to the settlement of interest-rate swap agreements. |
(3) | Reflects cash distributions of $0.62200 and $2.47000 per unit declared for the three months and year ended December 31, 2019, respectively. |
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Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
Adjusted EBITDA
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
thousands | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 295,440 | $ | 183,917 | $ | 807,700 | $ | 630,654 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 61,288 | 71,327 | 264,828 | 216,977 | ||||||||||||
Non-cash equity-based compensation expense | 4,114 | 1,544 | 14,392 | 7,310 | ||||||||||||
Interest expense | 79,414 | 54,702 | 303,286 | 183,831 | ||||||||||||
Income tax expense | 793 | 22,741 | 13,472 | 58,934 | ||||||||||||
Depreciation and amortization | 120,278 | 118,407 | 483,255 | 389,164 | ||||||||||||
Impairments | 1,985 | 75,298 | 6,279 | 230,584 | ||||||||||||
Other expense | — | 8,080 | 161,813 | 8,264 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (3 | ) | 961 | (1,406 | ) | 1,312 | ||||||||||
Equity income, net – affiliates | 62,035 | 61,595 | 237,518 | 195,469 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | ||||||||||||
Other income | 37,792 | — | 37,792 | 2,749 | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (1) | 11,636 | 11,893 | 45,131 | 42,843 | ||||||||||||
Adjusted EBITDA | $ | 447,627 | $ | 457,342 | $ | 1,719,090 | $ | 1,466,445 | ||||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA | ||||||||||||||||
Net cash provided by operating activities | $ | 297,415 | $ | 382,980 | $ | 1,324,100 | $ | 1,348,175 | ||||||||
Interest (income) expense, net | 75,189 | 50,477 | 286,386 | 166,931 | ||||||||||||
Uncontributed cash-based compensation awards | (1,891 | ) | (53 | ) | (1,102 | ) | 879 | |||||||||
Accretion and amortization of long-term obligations, net | (1,942 | ) | (1,284 | ) | (8,441 | ) | (5,943 | ) | ||||||||
Current income tax (benefit) expense | (215 | ) | (33,012 | ) | 5,863 | (80,114 | ) | |||||||||
Other (income) expense, net (2) | 107,533 | (460 | ) | 106,136 | (3,209 | ) | ||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 9,053 | 9,769 | 30,256 | 29,585 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable, net | 35,283 | (4,351 | ) | 45,033 | 60,502 | |||||||||||
Accounts and imbalance payables and accrued liabilities, net | (38,524 | ) | 15,476 | 30,866 | (45,605 | ) | ||||||||||
Other items, net | (22,638 | ) | 49,693 | (54,876 | ) | 38,087 | ||||||||||
Adjusted EBITDA attributable to noncontrolling interests (1) | (11,636 | ) | (11,893 | ) | (45,131 | ) | (42,843 | ) | ||||||||
Adjusted EBITDA | $ | 447,627 | $ | 457,342 | $ | 1,719,090 | $ | 1,466,445 | ||||||||
Cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 1,324,100 | $ | 1,348,175 | ||||||||||||
Net cash used in investing activities | (3,387,853 | ) | (2,210,813 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 2,071,573 | 875,192 | ||||||||||||||
(1) | 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 as of December 31, 2019. |
(2) | Excludes interest-rate swap losses of $25.6 million that will be paid in 2020 for the three months and year ended December 31, 2019, and $8.0 million for the three months and year ended December 31, 2018. |
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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 | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin | ||||||||||||||||
Operating income (loss) | $ | 333,630 | $ | 264,647 | $ | 1,231,343 | $ | 861,282 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 61,288 | 71,327 | 264,828 | 216,977 | ||||||||||||
Operation and maintenance | 173,387 | 142,235 | 641,219 | 480,861 | ||||||||||||
General and administrative | 30,951 | 19,747 | 114,591 | 67,195 | ||||||||||||
Property and other taxes | 15,504 | 10,352 | 61,352 | 51,848 | ||||||||||||
Depreciation and amortization | 120,278 | 118,407 | 483,255 | 389,164 | ||||||||||||
Impairments | 1,985 | 75,298 | 6,279 | 230,584 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (3 | ) | 961 | (1,406 | ) | 1,312 | ||||||||||
Equity income, net – affiliates | 62,035 | 61,595 | 237,518 | 195,469 | ||||||||||||
Reimbursed electricity-related charges recorded as revenues | 13,882 | 16,474 | 74,629 | 66,678 | ||||||||||||
Adjusted gross margin attributable to noncontrolling interests (1) | 16,846 | 15,913 | 64,049 | 56,247 | ||||||||||||
Adjusted gross margin | $ | 644,263 | $ | 607,070 | $ | 2,428,077 | $ | 1,978,205 | ||||||||
Adjusted gross margin for natural-gas assets | $ | 429,739 | $ | 395,281 | $ | 1,656,041 | $ | 1,443,466 | ||||||||
Adjusted gross margin for crude-oil, NGLs, and produced-water assets | 214,524 | 211,789 | 772,036 | 534,739 | ||||||||||||
(1) | 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 as of December 31, 2019. |
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Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
thousands except per-unit amounts | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues and other | ||||||||||||||||
Service revenues – fee based | $ | 626,708 | $ | 593,765 | $ | 2,388,191 | $ | 1,905,728 | ||||||||
Service revenues – product based | 24,597 | 19,364 | 70,127 | 88,785 | ||||||||||||
Product sales | 71,538 | 79,081 | 286,388 | 303,020 | ||||||||||||
Other | 367 | 416 | 1,468 | 2,125 | ||||||||||||
Total revenues and other | 723,210 | 692,626 | 2,746,174 | 2,299,658 | ||||||||||||
Equity income, net – affiliates | 62,035 | 61,595 | 237,518 | 195,469 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 109,507 | 124,496 | 444,247 | 415,505 | ||||||||||||
Operation and maintenance | 173,387 | 142,235 | 641,219 | 480,861 | ||||||||||||
General and administrative | 30,951 | 19,747 | 114,591 | 67,195 | ||||||||||||
Property and other taxes | 15,504 | 10,352 | 61,352 | 51,848 | ||||||||||||
Depreciation and amortization | 120,278 | 118,407 | 483,255 | 389,164 | ||||||||||||
Impairments | 1,985 | 75,298 | 6,279 | 230,584 | ||||||||||||
Total operating expenses | 451,612 | 490,535 | 1,750,943 | 1,635,157 | ||||||||||||
Gain (loss) on divestiture and other, net | (3 | ) | 961 | (1,406 | ) | 1,312 | ||||||||||
Operating income (loss) | 333,630 | 264,647 | 1,231,343 | 861,282 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | ||||||||||||
Interest expense | (79,414 | ) | (54,702 | ) | (303,286 | ) | (183,831 | ) | ||||||||
Other income (expense), net (1) | 37,792 | (7,512 | ) | (123,785 | ) | (4,763 | ) | |||||||||
Income (loss) before income taxes | 296,233 | 206,658 | 821,172 | 689,588 | ||||||||||||
Income tax expense (benefit) | 793 | 22,741 | 13,472 | 58,934 | ||||||||||||
Net income (loss) | 295,440 | 183,917 | 807,700 | 630,654 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 7,670 | 15,414 | 110,459 | 79,083 | ||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 287,770 | $ | 168,503 | $ | 697,241 | $ | 551,571 | ||||||||
Limited partners’ interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 287,770 | $ | 168,503 | $ | 697,241 | $ | 551,571 | ||||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (75,133 | ) | (29,279 | ) | (182,142 | ) | |||||||||
General partner interest in net income (loss) | (5,637 | ) | — | (5,637 | ) | — | ||||||||||
Limited partners’ interest in net income (loss) | $ | 282,133 | $ | 93,370 | $ | 662,325 | $ | 369,429 | ||||||||
Net income (loss) per common unit – basic and diluted | $ | 0.62 | $ | 0.43 | $ | 1.59 | $ | 1.69 | ||||||||
Weighted-average common units outstanding – basic and diluted | 452,934 | 218,938 | 415,794 | 218,936 | ||||||||||||
(1) | Includes net gains (losses) on interest-rate swaps of $37.6 million and ($125.3) million for the three months and year ended December 31, 2019, respectively, and ($8.0) million for the three months and year ended December 31, 2018. |
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Western Midstream Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, | ||||||||
thousands except number of units | 2019 | 2018 | ||||||
Total current assets | $ | 402,412 | $ | 344,764 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant, and equipment | 9,064,931 | 8,410,353 | ||||||
Other assets | 2,619,110 | 2,442,088 | ||||||
Total assets | $ | 12,346,453 | $ | 11,457,205 | ||||
Total current liabilities | $ | 485,954 | $ | 637,477 | ||||
Long-term debt | 7,951,565 | 4,787,381 | ||||||
APCWH Note Payable | — | 427,493 | ||||||
Asset retirement obligations | 336,396 | 300,024 | ||||||
Other liabilities | 227,245 | 412,147 | ||||||
Total liabilities | 9,001,160 | 6,564,522 | ||||||
Equity and partners’ capital | ||||||||
Common units (443,971,409 and 218,937,797 units issued and outstanding at December 31, 2019 and 2018, respectively) | 3,209,947 | 951,888 | ||||||
General partner units (9,060,641 and zero units issued and outstanding at December 31, 2019 and 2018, respectively) | (14,224 | ) | — | |||||
Net investment by Anadarko | — | 1,388,018 | ||||||
Noncontrolling interests | 149,570 | 2,552,777 | ||||||
Total liabilities, equity and partners’ capital | $ | 12,346,453 | $ | 11,457,205 | ||||
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Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended December 31, | ||||||||
thousands | 2019 | 2018 | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 807,700 | $ | 630,654 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | ||||||||
Depreciation and amortization | 483,255 | 389,164 | ||||||
Impairments | 6,279 | 230,584 | ||||||
(Gain) loss on divestiture and other, net | 1,406 | (1,312 | ) | |||||
(Gain) loss on interest-rate swaps | 125,334 | 7,972 | ||||||
Cash paid to settle interest-rate swaps | (107,685 | ) | — | |||||
Change in other items, net | 7,811 | 91,113 | ||||||
Net cash provided by operating activities | $ | 1,324,100 | $ | 1,348,175 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (1,188,829 | ) | $ | (1,948,595 | ) | ||
Acquisitions from affiliates | (2,007,926 | ) | (254 | ) | ||||
Acquisitions from third parties | (93,303 | ) | (161,858 | ) | ||||
Investments in equity affiliates | (128,393 | ) | (133,629 | ) | ||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 30,256 | 29,585 | ||||||
Proceeds from the sale of assets to third parties | 342 | 3,938 | ||||||
Net cash used in investing activities | $ | (3,387,853 | ) | $ | (2,210,813 | ) | ||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 4,169,695 | $ | 2,671,337 | ||||
Repayments of debt | (1,467,595 | ) | (1,040,000 | ) | ||||
Increase (decrease) in outstanding checks | 1,571 | (3,206 | ) | |||||
Registration expenses related to the issuance of Partnership common units | (855 | ) | — | |||||
Distributions to Partnership unitholders | (969,073 | ) | (502,457 | ) | ||||
Distributions to Chipeta noncontrolling interest owner | (9,663 | ) | (13,529 | ) | ||||
Distributions to noncontrolling interest owners of WES Operating | (118,225 | ) | (386,326 | ) | ||||
Net contributions from (distributions to) Anadarko | 458,819 | 97,755 | ||||||
Above-market component of swap agreements with Anadarko | 7,407 | 51,618 | ||||||
Finance lease payments – affiliates | (508 | ) | — | |||||
Net cash provided by (used in) financing activities | $ | 2,071,573 | $ | 875,192 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 7,820 | $ | 12,554 | ||||
Cash and cash equivalents at beginning of period | 92,142 | 79,588 | ||||||
Cash and cash equivalents at end of period | $ | 99,962 | $ | 92,142 | ||||
12
Western Midstream Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Throughput for natural-gas assets (MMcf/d) | ||||||||||||||||
Gathering, treating, and transportation | 534 | 589 | 528 | 546 | ||||||||||||
Processing | 3,532 | 3,307 | 3,497 | 3,231 | ||||||||||||
Equity investment (1) | 423 | 272 | 398 | 291 | ||||||||||||
Total throughput | 4,489 | 4,168 | 4,423 | 4,068 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 174 | 166 | 175 | 170 | ||||||||||||
Total throughput attributable to WES for natural-gas assets | 4,315 | 4,002 | 4,248 | 3,898 | ||||||||||||
Throughput for crude-oil, NGLs, and produced-water assets (MBbls/d) | ||||||||||||||||
Gathering, treating, transportation, and disposal | 957 | 723 | 876 | 534 | ||||||||||||
Equity investment (3) | 449 | 298 | 343 | 241 | ||||||||||||
Total throughput | 1,406 | 1,021 | 1,219 | 775 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 28 | 20 | 24 | 15 | ||||||||||||
Total throughput attributable to WES for crude-oil, NGLs, and produced-water assets | 1,378 | 1,001 | 1,195 | 760 | ||||||||||||
Per-Mcf Adjusted gross margin for natural-gas assets (4) | $ | 1.08 | $ | 1.07 | $ | 1.07 | $ | 1.01 | ||||||||
Per-Bbl Adjusted gross margin for crude-oil, NGLs, and produced-water assets (5) | 1.69 | 2.30 | 1.77 | 1.93 | ||||||||||||
(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 as of December 31, 2019. |
(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, NGLs, and produced-water assets, divided by total throughput (MBbls/d) attributable to WES for crude-oil, NGLs, and produced-water assets. |
13
Western Midstream Partners, LP
OPERATING STATISTICS (CONTINUED)
(Unaudited)
Three Months Ended December 31, | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,274 | 1,101 | 168 | 148 | 610 | 413 | ||||||||||||
DJ Basin | 1,295 | 1,185 | 129 | 107 | — | — | ||||||||||||
Equity investments | 423 | 272 | 449 | 298 | — | — | ||||||||||||
Other | 1,497 | 1,610 | 50 | 55 | — | — | ||||||||||||
Total throughput | 4,489 | 4,168 | 796 | 608 | 610 | 413 | ||||||||||||
Year Ended December 31, | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,226 | 1,041 | 150 | 132 | 556 | 239 | ||||||||||||
DJ Basin | 1,236 | 1,133 | 118 | 105 | — | — | ||||||||||||
Equity investments | 398 | 291 | 343 | 241 | — | — | ||||||||||||
Other | 1,563 | 1,603 | 52 | 58 | — | — | ||||||||||||
Total throughput | 4,423 | 4,068 | 663 | 536 | 556 | 239 | ||||||||||||
14