Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q1 2021 Earnings Presentation
34 slides from Western Midstream Partners, Lp's earnings presentation, May 11, 2021
Slide 1: First-Quarter 2021 Review
First-Quarter 2021 Review May 11, 2021
Slide 2: Forward-Looking Statements and Ownership Structure
Forward-Looking Statements and Ownership Structure ~~ Oxy Occidental Public Unitholders ae NYSE OXY This presentation contains forward-looking statements. Western Midstream Partners, LP ("WES") believes that its expectations are based on reasonable assumptions. No assurance, however, can be given th
Slide 3: Financial Performance
Financial Performance
Slide 4: Financial Performance
Financial Performance 1Q 2021 (in millions) Actuals Operating Cash Flow $261.6 Cash Capital Investments! $47.8 Free Cash Flow’ $213.8 Cash Distributions Paid $131.3 Free Cash Flow After Distributions $82.5 cludes capitalized interest, and excludes capital expenditures associated with the 2% third-pa
Slide 5: Multiple Paths to Return Value to Stakeholders
Multiple Paths to Return Value to Stakeholders Unit Buyback Program 2021 Maturity 2022 Maturity at year-end 2022 $250 $431 $581 <3.5x million! million million? leverage! at year-end 2021 YTD $578 million Returned to 2023 M i sh, Ox Shareholders aturty leverage? $2 40 million? TARGETED ANNUALIZED CAS
Slide 6: Operational Update
Operational Update
Slide 7: Operational Performance
Operational Performance Natural-Gas Throughput (wmct/a) 4,045 Adjusted Gross Margin for Natural-Gas Assets ($/mc1) $1.19 Crude-Oil and NGLs Throughput (ebis/a) 604 Adjusted Gross Margin for Crude-Oil and NGLs Assets ($/ab) $2.45 Produced-Water Throughput (mepis/a) 595 Adjusted Gross Margin for Produ
Slide 8: Outlook
Outlook
Slide 9: Focusing On People
e-Pect \ » ormance Metrics 090 CONN Focusing On People We are focused on improving the quality of life for our workforce and communities. When they succeed, so will our company.
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Slide 12: Appendix
Appendix
Slide 13: Creating Long-Term Value for Stakeholders
Creating Long-Term Value for Stakeholders Refine Business Model Provide Exceptional Customer Service 2021 Focus Areas Minimize Environmental Footprint Enhance Operational Approach
Slide 14: Focusing On People
000 CTNY Focusing On People improving the quality of life r workforce and nities. When they succeed, so will our company.
Slide 15: Design, Construct, and Operate Responsibly
Design, Construct, and Coordinate Collaborate Develop Solutions with Operate Responsibly with Producers with Peers Regulatory Groups • • • • • • • • 15
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Slide 17: 2021 Guidance
2021 Guidance ¢ in millions) Adjusted EBITDA' Per-Unit Cash Distribution‘ $1,825 - $1,925
Slide 18: 2021 Adjusted EBITDA Guidance
2021 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION Other 11% of Asset EBITDA d Delaware Basin $1 825 Million 40% of Asset EBITDA ’ to 60% Gas “ye 19% Oil $1,925 Million vv Wen DJ Basin 37% of Asset EBITDA 84% Gas 7) Riludes GAA. Represents asset ee cash contbuton 0 EBITDA 16% Oil
Slide 19: 2021 Capital Guidance
2021 Capital Guidance DJ Basin 18% Equity Investments 67% Gas 5% 33% Oil [/ Delaware Basin 59% 56% Gas 13% Oil 31% Water Well Connect 21% in Chipeta Equity Investments Maintenance 20% Expansion 43% $275 Million to $375 Million
Slide 20: WES Liquidity Profile
ara G WES Liquidity Profile Liquidity stn ($ in millions) Near-Term Maturity Profile ($ in millions) RCF Capacity $1,995 2000 Cash $56 1500 Maturities ($in millions) 1000 Short-Term $0 2022-2024 $821 500 2025+ $6,650 _ Liquidity 2021 2022 2023 2024 ember 31, 2024
Slide 21: 2021 Sensitivity Analysis
2021 Sensitivity Analysis 5% to 6% 5% to 6% decrease increase -10% in EBITDA pallyome in EBITDA VOLUME VOLUME and 0.) Basins throughput equally from all producers, excluding any impact as a result of force majeure events 10% to 12% 10% to 12% decrease increase -20% in EBITDA Sylivmem in EBITDA VOLUM
Slide 22: Premier Asset Portfolio
Premier Asset Portfolio GATHERING SYSTEMS PROCESSING & TREATING FACILITIES NATURAL-GAS PIPELINES Q CRUDE-OIL/NGLs PIPELINES * PIPELINE MILES. @ WES Assets @ WES Equity Interests WES Equity-Interest Pipelines Value-Focused Portfolio! Revenue: 46% Delaware Basin, 38% DJ Basin Total Capital: 68% Delawa
Slide 23: Delaware Basin: Expansive Multi-Product Infrastructure
Delaware Basin: Expansive Multi-Product Infrastructure Gas , 1,389 Customer Base 1600 op ude 1098 110 17179 1272 —1.214 1,309 1,294 4.196 439 Percentage of Related-Party 3 Product 1 2 500 Volumes = Gas AT% , 1.201820 201830 2018 40 2018 10.2019 20 2019 30.2019 4Q 2019 10.2020 20 202030 2020.40 2020
Slide 24: Delaware Basin: Gas Infrastructure
Delaware Basin: Gas Infrastructure WES Gas Processing West Texas Complex 1,370 MMct/d Equity-Interest Gas Processing Mi Vida 200 MMct/d Ranch Westex 125 MMct/d EDDY LEA NEW MEXICO TEXAS RAMSEY! LOVING CULBERSON MENTONE: WINKLER SMILES REEVES WARD MI VIDA RANCH WESTEX Gas Processing Plant Gas-Gatheri
Slide 25: Delaware Basin: Oil Infrastructure
Delaware Basin: Oil Infrastructure EDDY LEA NEW MEXICO. TEXAS IH LOVING LOVING CULBERSON Oil Treating WINKLER 256 MBbls/d Capacity “SMILES REEVES | a @® eesionarcit-reating Facility —_ Oil Pipetines Federal Land (Surface and Mineral)
Slide 26: Delaware Basin: Water Infrastructure
Delaware Basin: Water Infrastructure EDDY LEA NEW MEXICO. TEXAS CULBERSON Salt-Water Disposal 1,180 MBbls/d Capacity @ Salt-Water Disposal Wells — Water Pipelines Federal Land (Surface and Mineral)
Slide 27: DJ Basin
DJ Basin Customer Base P if Related-Pi bas ercentage of Related-Party 1407 9 ‘ 1,329 1,344 Product Volumes! hor aig tig 185 1.258 1.266 4 49, 1295 329 1,290 4,197 2 1000 = = Oil 100% 0 1Q 2018 2Q 20183Q 2018 4Q 2018 10 2019 2G 2019 3Q 2019 4Q 2019 1@ 2020 2Q 20203Q 2020 4Q 2020 10 2021 Oil Weighted-
Slide 28: DJ Basin
DJ Basin COLORADO LARIMER WELD Gas Processing 1,730 MMcf/d BOULDER Oil Stabilization 155 MBbls/d sms a ADAMS Gas Processing Plant oitreating Facies + Pipelines (Oi and Gas) WATTENBERG pane Federal Land
Slide 29: Additional Portfolio Assets
Additional Portfolio Assets Dimmit “SA Lycoming f f T7 —7 z j < webb i Wyoming Utah Pennsylvania ; South Texas Hilight Complex Chipeta Marcellus Gas Gathering pringtierg watering Granger Complex Brasada Gas Plant Red Desert Complex
Slide 30: Equity Investment Overview
Equity Investment Overview Equity Investment Location Description Operator Ranch Westex 50% Ward County, TX 125 MMct/d gas-processing plant Energy Transfer . Rendezvous 22% ‘SW Wyoming ~450 MMcf/d natural-gas pipeline Marathon PROVIDES STABILITY AND DIVERSIFICATION OF MIDSTREAM SERVICE, CASH FLOW, A
Slide 31: Reconciliation of Net income to Adjusted EBITDA
Three Months Ended thousands March 31, 2021 Reconciliation of Net income (loss) to Adjusted EBITDA Net income (loss) $ 191,235 Add: Distributions from equity investments 61,189 Non-cash equity-based compensation expense 6,734 Interest expense 98,493 Income tax expense 1,112 Depreciation and amortiza
Slide 32: Reconciliation of Operating Cash Flow to Adjusted EBITDA
Three Months Ended thousands March 31, 2021 Reconciliation of Net cash provided by operating activities to Adjusted EBITDA Net cash provided by operating activities $ 261,550 Interest (income) expense, net 98,493 Accretion and amortization of long-term obligations, net (2,088) Current income tax exp
Slide 33: Reconciliation of Operating Cash Flow to Free Cash Flow
Three Months Ended thousands March 31, 2021 Reconciliation of Net cash provided by operating activities to Free cash flow Net cash provided by operating activities $ 261,550 Less: Capital expenditures 59,783 Contributions to equity investments – related parties 86 Add: Distributions from equity inve
Slide 34: Reconciliation of Operating Income to Adjusted Gross Margin
Three Months Ended thousands March 31, 2021 Reconciliation of Operating income (loss) to Adjusted gross margin Operating income (loss) $ 292,336 Add: Distributions from equity investments 61,189 Operation and maintenance 140,332 General and administrative 45,116 Property and other taxes 14,384 Depre
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