- Reported fourth-quarter 2024 Net income attributable to limited
partners of $325.9 million,
generating fourth-quarter Adjusted EBITDA(1) of
$590.7 million.
- Reported full-year 2024 Net income attributable to limited
partners of $1.537 billion,
generating full-year Adjusted EBITDA(1) of $2.344 billion, and exceeding the midpoint of the
full-year 2024 Adjusted EBITDA guidance range of $2.200 billion to $2.400
billion.
- Reported fourth-quarter 2024 Cash flows provided by operating
activities of $554.4 million,
generating fourth-quarter Free Cash Flow(1) of
$309.3 million.
- Reported full-year 2024 Cash flows provided by operating
activities of $2.137 billion,
generating full-year Free Cash Flow(1) of $1.324 billion, and exceeding the high end of the
full-year 2024 Free Cash Flow guidance range of $1.050 billion to $1.250
billion.
- Announced a fourth-quarter Base Distribution of $0.875 per unit, which is consistent with the
prior quarter's Base Distribution, or $3.50 per unit on an annualized basis.
HOUSTON, Feb. 26,
2025 /PRNewswire/ -- Today Western Midstream
Partners, LP (NYSE: WES) ("WES" or the "Partnership")
announced fourth-quarter and full-year 2024 financial and operating
results. Net income (loss) attributable to limited partners for the
fourth quarter of 2024 totaled $325.9
million, or $0.85 per common
unit (diluted), with fourth-quarter 2024 Adjusted
EBITDA(1) totaling $590.7
million. Fourth-quarter Adjusted EBITDA(1)
includes $9.2 million of
positive revenue recognition adjustments associated with
cost-of-service agreements at the DJ Basin oil and Springfield
systems. Fourth-quarter 2024 Cash flows provided by operating
activities totaled $554.4 million,
and fourth-quarter 2024 Free Cash Flow(1) totaled
$309.3 million.
Net income (loss) attributable to limited partners for full-year
2024 totaled $1.537 billion, or
$4.02 per common unit (diluted), with
full-year 2024 Adjusted EBITDA(1) totaling $2.344 billion, full-year 2024 Cash flows
provided by operating activities totaling $2.137 billion, and full-year 2024 Free Cash
Flow(1) totaling $1.324
billion.
FULL-YEAR 2024 HIGHLIGHTS
- Achieved record annual natural-gas throughput(2) of
5.1 Bcf/d. Adjusted for the sale of the Marcellus assets in the
second quarter of 2024, natural-gas throughput increased
16-percent(3) year-over-year, in-line with our 2024
expectations of mid-to-upper teens average annual throughput
growth.
- Achieved annual crude-oil and NGLs throughput(2) of
530 MBbls/d. Adjusted for the crude-oil and NGLs assets that were
divested during 2024, crude-oil and NGLs throughput increased
12-percent(4) year-over-year, in-line with our revised
2024 expectations of low-double-digits average annual throughput
growth.
- Gathered record annual produced-water throughput(2)
of 1,124 MBbls/d, representing an 11-percent year-over-year
increase and in-line with our revised 2024 expectations of
low-double-digits average annual throughput growth.
- Achieved year-over-year throughput growth across all products
in the Delaware Basin of
14-percent, for both natural gas and crude oil and NGLs, and
11-percent for produced water.
- Divested multiple non-operated, non-core assets for
$794.8 million, the proceeds of which
were used to reduce long-term debt back towards pre-Meritage
Midstream acquisition levels.
- Commenced operations of the 300 MMcf/d Mentone III processing
train in the Delaware Basin and
materially progressed construction of the 250 MMcf/d North Loving processing train that is expected
to commence operations by the end of the first quarter 2025.
- Executed on our capital return framework by returning
$1.246 billion to unitholders in
2024, which included a 52-percent increase in the Base Distribution
in May 2024, and achieved our
year-end 2024 net leverage ratio target of 3.0 times by the end of
third quarter 2024.
On February 14, 2025, WES paid its fourth-quarter 2024
per-unit Base Distribution of $0.875,
which is in line with the prior quarter's Base Distribution.
Fourth-quarter and full-year 2024 Free Cash Flow(1)
after distributions totaled negative $31.6
million and positive $78.1
million, respectively. Fourth-quarter and full-year 2024
capital expenditures(5) totaled $179.2 million and $790.2
million, respectively.
Fourth-quarter 2024 natural-gas throughput(2)
averaged 5.2 Bcf/d, representing a 4-percent sequential-quarter
increase. Fourth-quarter 2024 throughput for crude-oil and NGLs
assets(2) averaged 534 MBbls/d, representing a 6-percent
sequential-quarter increase. Fourth-quarter 2024 throughput for
produced-water assets(2) averaged 1,191 MBbls/d,
representing an 8-percent sequential-quarter increase.
Full-year 2024 natural-gas throughput(2) averaged 5.1
Bcf/d. Adjusted for the sale of the Marcellus assets in the second
quarter of 2024, natural gas throughput increased
16-percent(3) from full-year 2023. Full-year 2024
throughput for crude-oil and NGLs assets(2) averaged 530
MBbls/d. Adjusted for the crude-oil and NGLs assets that were
divested during 2024, crude-oil and NGLs throughput increased
12-percent(4) from full-year 2023. Full-year 2024
throughput for produced-water assets(2) averaged 1,124
MBbls/d, representing an 11-percent increase from full-year
2023.
"2024 was a successful year for WES as we achieved double-digit
throughput growth across all three product lines and grew both
Adjusted EBITDA and Free Cash Flow meaningfully year-over-year,"
said Oscar Brown, President and
Chief Executive Officer.
"With the start-up of Mentone Train III, WES has retained its
position as one of the top natural-gas processors in the core of
the Delaware Basin, and we expect
the basin to continue to be our primary driver of volume growth in
2025. In the DJ Basin, we experienced strong throughput growth
which resulted in record natural-gas throughput and our first
annual increase in crude-oil and NGLs throughput since 2019.
Additionally, we executed an amendment with Phillips 66, extending
their original agreement and adding additional tranches of firm
processing capacity in the DJ Basin, which should provide volume
stability in the near term. Our Powder River Basin presence was
significantly strengthened through the successful integration
of Meritage Midstream, making us the basin's largest gatherer
and processor and driving substantial throughput growth."
"In parallel with our commercial success, WES continued to
execute on its capital allocation framework. We achieved our
year-end leverage target of 3.0-times during the third quarter,
while also returning more than $1.246
billion to unitholders through the Base Distribution. This
included a 52-percent increase to the Base Distribution starting in
the first quarter of 2024, to $0.875
per unit on a quarterly basis, which is 41-percent higher than our
pre-pandemic Base Distribution level. We intend to build on this
operational and financial momentum in 2025 and target a mid-to-low
single-digits annual distribution growth rate, which will be
supported by growth in the underlying business and incremental Free
Cash Flow generation," Mr. Brown continued.
"This afternoon, we also announced that WES has sanctioned the
construction of the Pathfinder pipeline to transport over 800
MBbls/d of produced water for disposal at WES's existing and new
disposal facilities in eastern Loving
County. This expansion will be supported by a new long-term
produced-water agreement with Occidental to provide up to 280
MBbls/d of firm gathering and transportation capacity and up to 220
MBbls/d of firm disposal capacity, which is supported by
corresponding minimum-volume commitments. We intend to utilize this
first-of-its-kind, innovative produced-water solution to serve
current customer needs and capture future growth as Delaware Basin producers execute their
development plans. This project also advances WES's strategy of
prioritizing capital-efficient, organic growth that creates
long-term value for all of our stakeholders," concluded Mr.
Brown.
CONFERENCE CALL TOMORROW AT 1:00 P.M.
CT
WES will host a conference call on Thursday, February 27,
2025, at 1:00 p.m. Central Time
(2:00 p.m. Eastern Time) to discuss
its fourth-quarter and full-year 2024 results. 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 small number of phone lines are
available for analysts; individuals should dial 800-836-8184
(Domestic) or 646-357-8785 (International) ten to fifteen minutes
before the scheduled conference call time. A replay of the live
audio webcast can be accessed on the Partnership's website at
www.westernmidstream.com for one year after the call.
For additional details on WES's financial and operational
performance, please refer to the earnings slides and updated
investor presentation available at www.westernmidstream.com.
FILING OF ANNUAL REPORT ON FORM 10-K
Today WES announced the filing of its Annual Report on Form 10-K
for the fiscal year ended December 31,
2024, with the Securities and Exchange Commission. A copy of
the report is available for viewing and downloading on the Western
Midstream website at www.westernmidstream.com. Unitholders may
request hard copies of the report, which contains WES's audited
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: 9950
Woodloch Forest Drive, Suite 2800, The
Woodlands, TX 77380, Attention: Western Midstream Investor
Relations.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited
partnership formed to develop, acquire, own, and operate midstream
assets. With midstream assets located in Texas, New
Mexico, Colorado,
Utah, and Wyoming, 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 its customers under
certain gas processing contracts. A substantial majority of WES's
cash flows are protected from direct exposure to commodity price
volatility through fee-based contracts.
For more information about WES, 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; 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 including Project Pathfinder; 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.
______________________________________________________________
|
(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.
|
|
(2)
|
Represents total
throughput attributable to WES, which excludes (i) the 2.0% limited
partner interest in WES Operating owned by an Occidental subsidiary
and (ii) for natural-gas throughput, the 25% third-party interest
in Chipeta, which collectively represent WES's noncontrolling
interests.
|
|
(3)
|
For the years ended
December 31, 2024 and 2023, excludes an average of 38 MMcf/d and
120 MMcf/d, respectively, of throughput associated with the sale of
the Marcellus Interest gathering system in April 2024.
|
|
(4)
|
For the years ended
December 31, 2024 and 2023, excludes an average of 23 MBbls/d and
203 MBbls/d, respectively, of throughput associated with the sale
of (i) Saddlehorn Pipeline LLC, Whitethorn Pipeline Company LLC,
Panola Pipeline Company LLC, and Enterprise EF78 LLC in the first
quarter of 2024 and (ii) Wamsutter Pipeline LLC in the third
quarter of 2024.
|
|
(5)
|
Accrual-based, includes
equity investments, excludes capitalized interest, and excludes
capital expenditures associated with the 25% third-party interest
in Chipeta.
|
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523
Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
thousands except
per-unit amounts
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues and
other
|
|
|
|
|
|
|
|
|
|
Service revenues – fee
based
|
|
$
858,896
|
|
$ 763,837
|
|
$
3,248,262
|
|
$
2,768,757
|
|
Service revenues –
product based
|
|
38,455
|
|
49,515
|
|
215,776
|
|
191,727
|
|
Product
sales
|
|
31,024
|
|
44,688
|
|
140,100
|
|
145,024
|
|
Other
|
|
128
|
|
168
|
|
1,085
|
|
968
|
|
Total revenues and
other
|
|
928,503
|
|
858,208
|
|
3,605,223
|
|
3,106,476
|
|
Equity income, net –
related parties
|
|
28,158
|
|
36,120
|
|
112,385
|
|
152,959
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
39,315
|
|
40,803
|
|
172,251
|
|
164,598
|
|
Operation and
maintenance
|
|
231,244
|
|
200,426
|
|
880,568
|
|
762,530
|
|
General and
administrative
|
|
76,028
|
|
73,060
|
|
271,526
|
|
232,632
|
|
Property and other
taxes
|
|
18,684
|
|
16,497
|
|
62,668
|
|
56,458
|
|
Depreciation and
amortization
|
|
162,990
|
|
165,187
|
|
650,428
|
|
600,668
|
|
Long-lived asset and
other impairments
|
|
2
|
|
4
|
|
6,206
|
|
52,884
|
|
Total operating
expenses
|
|
528,263
|
|
495,977
|
|
2,043,647
|
|
1,869,770
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,655)
|
|
(6,434)
|
|
296,771
|
|
(10,102)
|
|
Operating income
(loss)
|
|
425,743
|
|
391,917
|
|
1,970,732
|
|
1,379,563
|
|
Interest
expense
|
|
(99,336)
|
|
(97,622)
|
|
(378,513)
|
|
(348,228)
|
|
Gain (loss) on early
extinguishment of debt
|
|
—
|
|
—
|
|
5,403
|
|
15,378
|
|
Other income (expense),
net
|
|
15,617
|
|
2,862
|
|
31,741
|
|
5,679
|
|
Income (loss) before
income taxes
|
|
342,024
|
|
297,157
|
|
1,629,363
|
|
1,052,392
|
|
Income tax expense
(benefit)
|
|
444
|
|
1,405
|
|
18,111
|
|
4,385
|
|
Net income
(loss)
|
|
341,580
|
|
295,752
|
|
1,611,252
|
|
1,048,007
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
7,967
|
|
7,398
|
|
37,681
|
|
25,791
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
333,613
|
|
$ 288,354
|
|
$
1,573,571
|
|
$
1,022,216
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Midstream Partners, LP
|
|
$
333,613
|
|
$ 288,354
|
|
$
1,573,571
|
|
$
1,022,216
|
|
General partner
interest in net (income) loss
|
|
(7,759)
|
|
(6,724)
|
|
(36,604)
|
|
(23,684)
|
|
Limited partners'
interest in net income (loss)
|
|
$
325,854
|
|
$ 281,630
|
|
$
1,536,967
|
|
$ 998,532
|
|
Net income (loss)
per common unit – basic
|
|
$
0.86
|
|
$
0.74
|
|
$
4.04
|
|
$
2.61
|
|
Net income (loss)
per common unit – diluted
|
|
$
0.85
|
|
$
0.74
|
|
$
4.02
|
|
$
2.60
|
|
Weighted-average
common units outstanding – basic
|
|
380,556
|
|
379,517
|
|
380,397
|
|
383,028
|
|
Weighted-average
common units outstanding – diluted
|
|
382,918
|
|
381,140
|
|
382,455
|
|
384,408
|
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
December
31,
|
|
thousands except
number of units
|
|
2024
|
|
2023
|
|
Total current
assets
|
|
$
1,847,190
|
|
$
992,410
|
|
Net property, plant,
and equipment
|
|
9,714,609
|
|
9,655,016
|
|
Other assets
|
|
1,582,986
|
|
1,824,181
|
|
Total
assets
|
|
$
13,144,785
|
|
$ 12,471,607
|
|
Total current
liabilities
|
|
$
1,691,694
|
|
$
1,304,056
|
|
Long-term
debt
|
|
6,926,647
|
|
7,283,556
|
|
Asset retirement
obligations
|
|
370,195
|
|
359,185
|
|
Other
liabilities
|
|
781,079
|
|
495,680
|
|
Total
liabilities
|
|
9,769,615
|
|
9,442,477
|
|
Equity and partners'
capital
|
|
|
|
|
|
Common units
(380,556,643 and 379,519,983 units issued and outstanding at
December 31,
2024 and 2023, respectively)
|
|
3,224,802
|
|
2,894,231
|
|
General partner units
(9,060,641 units issued and outstanding at December 31,
2024
and 2023)
|
|
10,803
|
|
3,193
|
|
Noncontrolling
interests
|
|
139,565
|
|
131,706
|
|
Total liabilities,
equity, and partners' capital
|
|
$
13,144,785
|
|
$ 12,471,607
|
|
Western Midstream
Partners, LP
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
Year
Ended
December 31,
|
|
thousands
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net income
(loss)
|
|
$
1,611,252
|
|
$
1,048,007
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and
changes in assets and liabilities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
650,428
|
|
600,668
|
|
Long-lived asset and
other impairments
|
|
6,206
|
|
52,884
|
|
(Gain) loss on
divestiture and other, net
|
|
(296,771)
|
|
10,102
|
|
(Gain) loss on early
extinguishment of debt
|
|
(5,403)
|
|
(15,378)
|
|
Change in other items,
net
|
|
171,148
|
|
(34,949)
|
|
Net cash provided by
operating activities
|
|
$
2,136,860
|
|
$
1,661,334
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Capital
expenditures
|
|
$ (833,856)
|
|
$ (735,080)
|
|
Acquisitions from third
parties
|
|
(443)
|
|
(877,746)
|
|
Contributions to equity
investments - related parties
|
|
(9,690)
|
|
(1,153)
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
30,850
|
|
39,104
|
|
Proceeds from the sale
of assets to third parties
|
|
792,255
|
|
(87)
|
|
(Increase) decrease in
materials and supplies inventory and other
|
|
(18,284)
|
|
(32,329)
|
|
Net cash provided by
(used in) investing activities
|
|
$
(39,168)
|
|
$
(1,607,291)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Borrowings, net of debt
issuance costs
|
|
$
789,044
|
|
$
2,448,733
|
|
Repayments of
debt
|
|
(143,852)
|
|
(1,967,928)
|
|
Commercial paper
borrowings (repayments), net
|
|
(610,313)
|
|
609,916
|
|
Increase (decrease) in
outstanding checks
|
|
(5,622)
|
|
3,516
|
|
Distributions to
Partnership unitholders
|
|
(1,246,069)
|
|
(978,430)
|
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(4,372)
|
|
(7,641)
|
|
Distributions to
noncontrolling interest owner of WES Operating
|
|
(25,450)
|
|
(22,850)
|
|
Unit
repurchases
|
|
—
|
|
(134,602)
|
|
Other
|
|
(33,381)
|
|
(18,626)
|
|
Net cash provided by
(used in) financing activities
|
|
$
(1,280,015)
|
|
$
(67,912)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
817,677
|
|
$
(13,869)
|
|
Cash and cash
equivalents at beginning of period
|
|
272,787
|
|
286,656
|
|
Cash and cash
equivalents at end of period
|
|
$
1,090,464
|
|
$
272,787
|
Western Midstream Partners,
LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
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 interest
owners' proportionate share of revenues and cost of product.
WES defines Adjusted EBITDA attributable to Western Midstream
Partners, LP ("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) income tax benefit, (vi) other income, and
(vii) the noncontrolling interest owners' proportionate share of
revenues and expenses.
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.
Below are reconciliations of (i) gross margin (GAAP) to Adjusted
Gross Margin (non-GAAP), (ii) net income (loss) (GAAP) and net cash
provided by operating activities (GAAP) to Adjusted EBITDA
(non-GAAP), and (iii) net cash provided by operating activities
(GAAP) to Free Cash Flow (non-GAAP), as required under Regulation G
of the Securities Exchange Act of 1934. Management believes that
Adjusted Gross Margin, Adjusted EBITDA, and Free Cash Flow 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. Adjusted Gross Margin,
Adjusted EBITDA, and Free Cash Flow as defined by WES, may not be
comparable to similarly titled measures used by other companies.
Therefore, WES's Adjusted Gross Margin, Adjusted EBITDA, and Free
Cash Flow should be considered in conjunction with net income
(loss) attributable to Western Midstream Partners, LP and other
applicable performance measures, such as gross margin or cash flows
provided by operating activities.
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
|
|
|
Adjusted Gross
Margin
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
thousands
|
|
December 31,
2024
|
|
September
30,
2024
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Reconciliation of
Gross margin to Adjusted Gross Margin
|
|
Total revenues and
other
|
|
$
928,503
|
|
$
883,362
|
|
$
3,605,223
|
|
$
3,106,476
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
39,315
|
|
32,847
|
|
172,251
|
|
164,598
|
|
Depreciation and
amortization
|
|
162,990
|
|
166,015
|
|
650,428
|
|
600,668
|
|
Gross margin
|
|
726,198
|
|
684,500
|
|
2,782,544
|
|
2,341,210
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
31,585
|
|
29,344
|
|
142,236
|
|
194,273
|
|
Depreciation and
amortization
|
|
162,990
|
|
166,015
|
|
650,428
|
|
600,668
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Reimbursed
electricity-related charges recorded as revenues
|
|
31,834
|
|
32,379
|
|
117,906
|
|
102,109
|
|
Adjusted Gross Margin
attributable to noncontrolling interests (1)
|
|
20,542
|
|
19,986
|
|
80,509
|
|
70,195
|
|
Adjusted Gross
Margin
|
|
$
868,397
|
|
$
827,494
|
|
$
3,376,793
|
|
$
2,963,847
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
Gross margin for
natural-gas assets (2)
|
|
$
534,452
|
|
$
511,244
|
|
$
2,073,533
|
|
$
1,738,125
|
|
Gross margin for
crude-oil and NGLs assets (2)
|
|
108,259
|
|
97,263
|
|
395,886
|
|
368,444
|
|
Gross margin for
produced-water assets (2)
|
|
91,219
|
|
83,178
|
|
341,784
|
|
259,541
|
|
Adjusted Gross
Margin
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Margin
for natural-gas assets
|
|
$
616,373
|
|
$
596,459
|
|
$
2,411,438
|
|
$
2,067,528
|
|
Adjusted Gross Margin
for crude-oil and NGLs assets
|
|
147,060
|
|
134,253
|
|
570,476
|
|
589,091
|
|
Adjusted Gross Margin
for produced-water assets
|
|
104,964
|
|
96,782
|
|
394,879
|
|
307,228
|
|
|
|
(1)
|
Includes (i) the 25%
third-party interest in Chipeta and (ii) the 2.0% limited partner
interest in WES Operating owned by an Occidental subsidiary, which
collectively represent WES's noncontrolling interests.
|
|
(2)
|
Excludes
corporate-level depreciation and amortization.
|
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
thousands
|
|
December 31,
2024
|
|
September
30,
2024
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Reconciliation of
Net income (loss) to Adjusted EBITDA
|
|
Net income
(loss)
|
|
$
341,580
|
|
$
295,892
|
|
$
1,611,252
|
|
$
1,048,007
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
31,585
|
|
29,344
|
|
142,236
|
|
194,273
|
|
Non-cash equity-based
compensation expense
|
|
9,421
|
|
8,759
|
|
37,994
|
|
32,005
|
|
Interest
expense
|
|
99,336
|
|
94,149
|
|
378,513
|
|
348,228
|
|
Income tax
expense
|
|
444
|
|
15,390
|
|
18,111
|
|
4,385
|
|
Depreciation and
amortization
|
|
162,990
|
|
166,015
|
|
650,428
|
|
600,668
|
|
Impairments
|
|
2
|
|
4,651
|
|
6,206
|
|
52,884
|
|
Other
expense
|
|
9
|
|
90
|
|
248
|
|
1,739
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,655)
|
|
467
|
|
296,771
|
|
(10,102)
|
|
Gain (loss) on early
extinguishment of debt
|
|
—
|
|
—
|
|
5,403
|
|
15,378
|
|
Equity income, net –
related parties
|
|
28,158
|
|
23,977
|
|
112,385
|
|
152,959
|
|
Other
income
|
|
15,617
|
|
9,565
|
|
31,741
|
|
6,976
|
|
Adjusted EBITDA
attributable to noncontrolling interests (1)
|
|
13,548
|
|
13,411
|
|
54,650
|
|
48,345
|
|
Adjusted
EBITDA
|
|
$
590,699
|
|
$
566,870
|
|
$
2,344,038
|
|
$
2,068,633
|
|
Reconciliation of
Net cash provided by operating activities to Adjusted
EBITDA
|
|
Net cash provided by
operating activities
|
|
$
554,446
|
|
$
551,288
|
|
$
2,136,860
|
|
$
1,661,334
|
|
Interest (income)
expense, net
|
|
99,336
|
|
94,149
|
|
378,513
|
|
348,228
|
|
Accretion and
amortization of long-term obligations, net
|
|
(2,354)
|
|
(2,221)
|
|
(9,238)
|
|
(8,151)
|
|
Current income tax
expense (benefit)
|
|
411
|
|
1,471
|
|
3,900
|
|
3,341
|
|
Other (income) expense,
net
|
|
(15,617)
|
|
(9,565)
|
|
(31,741)
|
|
(5,679)
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
3,290
|
|
3,257
|
|
30,850
|
|
39,104
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
30,203
|
|
(12,683)
|
|
42,798
|
|
78,346
|
|
Accounts and imbalance
payables and accrued liabilities, net
|
|
(56,949)
|
|
(8,161)
|
|
21,935
|
|
68,019
|
|
Other items,
net
|
|
(8,519)
|
|
(37,254)
|
|
(175,189)
|
|
(67,564)
|
|
Adjusted EBITDA
attributable to noncontrolling interests (1)
|
|
(13,548)
|
|
(13,411)
|
|
(54,650)
|
|
(48,345)
|
|
Adjusted
EBITDA
|
|
$
590,699
|
|
$
566,870
|
|
$
2,344,038
|
|
$
2,068,633
|
|
Cash flow
information
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
554,446
|
|
$
551,288
|
|
$
2,136,860
|
|
$
1,661,334
|
|
Net cash provided by
(used in) investing activities
|
|
(230,321)
|
|
(190,701)
|
|
(39,168)
|
|
(1,607,291)
|
|
Net cash provided by
(used in) financing activities
|
|
(358,398)
|
|
420,031
|
|
(1,280,015)
|
|
(67,912)
|
|
|
|
(1)
|
Includes (i) the 25%
third-party interest in Chipeta and (ii) the 2.0% limited
partner interest in WES Operating owned by an Occidental
subsidiary, which collectively represent WES's noncontrolling
interests.
|
|
Western Midstream
Partners, LP
RECONCILIATION OF
GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)
|
|
|
Free Cash
Flow
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
thousands
|
|
December 31,
2024
|
|
September
30,
2024
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Reconciliation of
Net cash provided by operating activities to Free Cash
Flow
|
|
Net cash provided by
operating activities
|
|
$
554,446
|
|
$
551,288
|
|
$
2,136,860
|
|
$
1,661,334
|
|
Less:
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
238,769
|
|
189,434
|
|
833,856
|
|
735,080
|
|
Contributions to
equity investments – related parties
|
|
9,690
|
|
—
|
|
9,690
|
|
1,153
|
|
Add:
|
|
|
|
|
|
|
|
|
|
Distributions from
equity investments in excess of cumulative earnings – related
parties
|
|
3,290
|
|
3,257
|
|
30,850
|
|
39,104
|
|
Free Cash
Flow
|
|
$
309,277
|
|
$
365,111
|
|
$
1,324,164
|
|
$
964,205
|
|
Cash flow
information
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
554,446
|
|
$
551,288
|
|
$
2,136,860
|
|
$
1,661,334
|
|
Net cash provided by
(used in) investing activities
|
|
(230,321)
|
|
(190,701)
|
|
(39,168)
|
|
(1,607,291)
|
|
Net cash provided by
(used in) financing activities
|
|
(358,398)
|
|
420,031
|
|
(1,280,015)
|
|
(67,912)
|
|
Western Midstream
Partners, LP
OPERATING
STATISTICS
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2024
|
|
September
30,
2024
|
|
Inc/
(Dec)
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Inc/
(Dec)
|
|
Throughput for
natural-gas assets (MMcf/d)
|
|
Gathering, treating,
and transportation
|
|
380
|
|
388
|
|
(2) %
|
|
453
|
|
435
|
|
4 %
|
|
Processing
|
|
4,464
|
|
4,298
|
|
4 %
|
|
4,256
|
|
3,692
|
|
15 %
|
|
Equity investments
(1)
|
|
550
|
|
503
|
|
9 %
|
|
517
|
|
466
|
|
11 %
|
|
Total
throughput
|
|
5,394
|
|
5,189
|
|
4 %
|
|
5,226
|
|
4,593
|
|
14 %
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
181
|
|
173
|
|
5 %
|
|
174
|
|
161
|
|
8 %
|
|
Total throughput
attributable to WES for natural-gas assets
|
|
5,213
|
|
5,016
|
|
4 %
|
|
5,052
|
|
4,432
|
|
14 %
|
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
Gathering, treating,
and transportation
|
|
423
|
|
393
|
|
8 %
|
|
397
|
|
332
|
|
20 %
|
|
Equity investments
(1)
|
|
121
|
|
124
|
|
(2) %
|
|
144
|
|
333
|
|
(57) %
|
|
Total
throughput
|
|
544
|
|
517
|
|
5 %
|
|
541
|
|
665
|
|
(19) %
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
10
|
|
11
|
|
(9) %
|
|
11
|
|
13
|
|
(15) %
|
|
Total throughput
attributable to WES for crude-oil and NGLs assets
|
|
534
|
|
506
|
|
6 %
|
|
530
|
|
652
|
|
(19) %
|
|
Throughput for
produced-water assets (MBbls/d)
|
|
Gathering and
disposal
|
|
1,216
|
|
1,121
|
|
8 %
|
|
1,147
|
|
1,029
|
|
11 %
|
|
Throughput
attributable to noncontrolling interests (2)
|
|
25
|
|
22
|
|
14 %
|
|
23
|
|
20
|
|
15 %
|
|
Total throughput
attributable to WES for produced-water assets
|
|
1,191
|
|
1,099
|
|
8 %
|
|
1,124
|
|
1,009
|
|
11 %
|
|
Per-Mcf Gross
margin for natural-gas assets (3)
|
|
$
1.08
|
|
$
1.07
|
|
1 %
|
|
$
1.08
|
|
$
1.04
|
|
4 %
|
|
Per-Bbl Gross
margin for crude-oil and NGLs assets
(3)
|
|
2.16
|
|
2.05
|
|
5 %
|
|
2.00
|
|
1.52
|
|
32 %
|
|
Per-Bbl Gross
margin for produced-water assets (3)
|
|
0.82
|
|
0.81
|
|
1 %
|
|
0.81
|
|
0.69
|
|
17 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per-Mcf Adjusted Gross
Margin for natural-gas assets (4)
|
|
$
1.29
|
|
$
1.29
|
|
— %
|
|
$
1.30
|
|
$
1.28
|
|
2 %
|
|
Per-Bbl Adjusted Gross
Margin for crude-oil and NGLs assets (4)
|
|
3.00
|
|
2.88
|
|
4 %
|
|
2.94
|
|
2.48
|
|
19 %
|
|
Per-Bbl Adjusted Gross
Margin for produced-water assets (4)
|
|
0.96
|
|
0.96
|
|
— %
|
|
0.96
|
|
0.83
|
|
16 %
|
|
|
|
(1)
|
Represents our share of
average throughput for investments accounted for under the equity
method of accounting.
|
|
(2)
|
Includes (i) the 2.0%
limited partner interest in WES Operating owned by an
Occidental subsidiary and (ii) for natural-gas assets, the 25%
third-party interest in Chipeta, which collectively represent WES's
noncontrolling interests.
|
|
(3)
|
Average for period.
Calculated as Gross margin for natural-gas assets,
crude-oil and NGLs assets, or produced-water assets,
divided by the respective total throughput (MMcf or MBbls) for
natural-gas assets, crude-oil and NGLs assets, or
produced-water assets.
|
|
(4)
|
Average for period.
Calculated as Adjusted Gross Margin for natural-gas assets,
crude-oil and NGLs assets, or produced-water assets,
divided by the respective total throughput (MMcf or MBbls)
attributable to WES for natural-gas assets, crude-oil
and NGLs assets, or produced-water assets.
|
|
Western Midstream
Partners, LP
OPERATING STATISTICS
(CONTINUED)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2024
|
|
September
30,
2024
|
|
Inc/
(Dec)
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Inc/
(Dec)
|
|
Throughput for
natural-gas assets (MMcf/d)
|
|
Operated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
1,973
|
|
1,889
|
|
4 %
|
|
1,871
|
|
1,635
|
|
14 %
|
|
DJ Basin
|
|
1,502
|
|
1,418
|
|
6 %
|
|
1,436
|
|
1,322
|
|
9 %
|
|
Powder River
Basin
|
|
488
|
|
505
|
|
(3) %
|
|
456
|
|
120
|
|
NM
|
|
Other
|
|
881
|
|
874
|
|
1 %
|
|
908
|
|
930
|
|
(2) %
|
|
Total operated
throughput for natural-gas assets
|
|
4,844
|
|
4,686
|
|
3 %
|
|
4,671
|
|
4,007
|
|
17 %
|
|
Non-operated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
investments
|
|
550
|
|
503
|
|
9 %
|
|
517
|
|
466
|
|
11 %
|
|
Other
|
|
—
|
|
—
|
|
— %
|
|
38
|
|
120
|
|
(68) %
|
|
Total non-operated
throughput for natural-gas assets
|
|
550
|
|
503
|
|
9 %
|
|
555
|
|
586
|
|
(5) %
|
|
Total throughput for
natural-gas assets
|
|
5,394
|
|
5,189
|
|
4 %
|
|
5,226
|
|
4,593
|
|
14 %
|
|
Throughput for
crude-oil and NGLs assets (MBbls/d)
|
|
Operated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
260
|
|
246
|
|
6 %
|
|
243
|
|
214
|
|
14 %
|
|
DJ Basin
|
|
102
|
|
87
|
|
17 %
|
|
92
|
|
71
|
|
30 %
|
|
Powder River
Basin
|
|
27
|
|
26
|
|
4 %
|
|
25
|
|
5
|
|
NM
|
|
Other
|
|
34
|
|
34
|
|
— %
|
|
37
|
|
42
|
|
(12) %
|
|
Total operated
throughput for crude-oil and NGLs assets
|
|
423
|
|
393
|
|
8 %
|
|
397
|
|
332
|
|
20 %
|
|
Non-operated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
investments
|
|
121
|
|
124
|
|
(2) %
|
|
144
|
|
333
|
|
(57) %
|
|
Total non-operated
throughput for crude-oil and NGLs assets
|
|
121
|
|
124
|
|
(2) %
|
|
144
|
|
333
|
|
(57) %
|
|
Total throughput for
crude-oil and NGLs assets
|
|
544
|
|
517
|
|
5 %
|
|
541
|
|
665
|
|
(19) %
|
|
Throughput for
produced-water assets (MBbls/d)
|
|
Operated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware
Basin
|
|
1,216
|
|
1,121
|
|
8 %
|
|
1,147
|
|
1,029
|
|
11 %
|
|
Total operated
throughput for produced-water assets
|
|
1,216
|
|
1,121
|
|
8 %
|
|
1,147
|
|
1,029
|
|
11 %
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/western-midstream-announces-fourth-quarter-and-full-year-2024-results-302386483.html
SOURCE Western Midstream Partners, LP
