Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q2 2020 Earnings Presentation
24 slides from Western Midstream Partners, Lp's earnings presentation, Aug 11, 2020
Slide 1: Second-Quarter 2020 Review
Second-Quarter 2020 Review August 11, 2020
Slide 2: Forward-Looking Statements and Corporate Structure
Forward-Looking Statements and Corporate Structure = 5 OXY Occidental Public Unitholders ae NYSE OXY 55.4% 4h.6 prove correct. A number. ual results to differ materially from Nar Nar results, or other expectations ex in this presentation uaF) These imeline for a () i ~ tations; our \ Western Midstre
Slide 3: Opening Remarks
OPENING REMARKS
Slide 4: Revised 2020 Adjusted EBITDA Guidance
Revised 2020 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION Other 11% of Asset EBITDA \ Delaware Basin $1,850 Million 38% ns aT to 59% Gas ay: 21% Oil $1,900 Million a DJ Basin 38% of Asset EBITDA 85% Gas 15% Oil
Slide 5: Revised Cash-Flow Enhancements
Revised Cash-Flaw Enhancements Original 2020 Revised 2020 (in millions) Guidance Guidance Variance G&A and O&M Cost Savings $0 $115 $115 Total Capital Expenditures! $875 - $950 $400 - $450 $487.5 Pre-Cut Post-Cut Variance Distributions to WES Unitholders $1,127 $564 $563 Annualized Cash-Flow Enhance
Slide 6: Operational Performance
Operational Performance ay Natural-Gas Throughput (mmci/a) 4,413 Adjusted Gross Margin for Natural-Gas Assets ($/Mct) $1.13 Crude-Oil and NGLs Throughput (ebis/a) 711 Adjusted Gross Margin for Crude-Oil, and NGLs Assets (¢/sbi) $2.56 Produced-Water Throughput (mebis/a) 773 Adjusted Gross Margin for
Slide 7: Revised 2020 Capital Guidance
Revised 2020 Capital Guidance Equity Investments Other b% 11% Equity Investments Maintenance 6% y 19% Gathering 37% Water Delaware Basin 18% Th% Processing 20% $400 Million to $450 Million Key Projects ~28,750 HP Compression ~65 Miles of Gathering Three SWD Facilities 90 MBbl/d Salt-Water Disposal N
Slide 8: Financial Performance
Financial Performance ($ in millions) Operating Cash Flow Cash Capital Investments $137.1 Free Cash Flow $208.6 Cash Distributions $140.9 Free Cash Flow After Distributions
Slide 9: Delivering Results
Delivering Results Expected ($ in millions) 2020 Target 2020 Results! — Improvement G&A and O&M Cost Savings $75 $115 $40 “Total Capital Expenditures? =“ (ssssSsS*S*« SG. ONG] “Annualized Cashflow Enhancements ss“(“(itsé=‘“‘*é‘«é« SHS STS Adjusted) STB ss $0 2020 Target — 2Q20 Progress Debt Repurcha
Slide 10: Q&A
Im oon Q&A
Slide 11: Appendix
APPENDIX
Slide 12: Premier Asset Portfolio
Premier Asset Portfolio Value-Focused Portfolio! Revenue: 44% Delaware Basin, 36% DJ Basin GATHERING . 9 SYSTEMS Total Capital: 52% Delaware Basin, 37% DJ Basin PROCESSING & Direct Commodity Exposure Protection? TREATING FACILITIES 4 ~93% Fee-Based Gas Contracts NATURAL-GAS Yoo . 100% Fee-Based Liqu
Slide 13: Delaware Basin: Expansive Multi-Product Infrastructure
Delaware Basin: Expansive Multi-Product Infrastructure | Hohions | . Highlights ; 1389139 1500 17g ag 272.274 1,309 gg 0s 10981101 Gas, oil, and water services ' = 1000 Hl = : = 500 Backbone infrastructure in place ' ) Efficient and scalable capital investments H 102018 202018 302018 402018 102019 2
Slide 14: Delaware Basin: Gas Infrastructure
Delaware Basin: Gas Infrastructure WES Gas Processing West Texas Complex 1.3 Bef/d Equity-Interest Gas Processing Mi Vida 200 MMct/d Ranch Westex 125 MMct/d EDDY LEA NEW MEXICO. TEXAS RAMSEY LOVING CULBERSON MENTONE: winter SMILES REEVES WARD RANCH WESTEX MYVIDA Gas Processing Plant Gas-Gathering Li
Slide 15: Delaware Basin: Oil Infrastructure
Delaware Basin: Oil Infrastructure EDDY LEA NEW MEXICO. TEXAS IH LOVING LOVING CULBERSON Oil Treating ues 255 MBbl/d Capacity SMILES REEVES | a @® eesionarcitreating Facility —_ Oil Pipetines Federal Land (Surface and Mineral)
Slide 16: Delaware Basin: Water Infrastructure
Delaware Basin: Water Infrastructure EDDY LEA NEW MEXICO. TEXAS CULBERSON Salt-Water Disposal 975 MBbl/d Capacity @ Salt-Water Disposal Wells — Water Pipelines Federal Land (Surface and Mineral)
Slide 17: DJ Basin
DJ Basin Gas Highlights , ) 1407 13 10749 aig 1851288 1,266 ggg A 329 : Free-cash-flow positive : = 1000 H Long-term, fee-based contracts ' Voie eee eee eee! ! 0 102018 202018 302018 402018 102019 202019 302019 402019 102020 202020 Oil Weighted-Average Remaining Life’ S 208g gy(it BT Bag & io 0 Oil
Slide 18: DJ Basin
DJ Basin COLORADO LARIMER WELD Gas Processing 1,730 MMcf/d BOULDER Oil Stabilization 155 MBbI/d sms a ADAMS {4 Gas Processing Plant i G oitreating Facies — Pipelines (Oil and Gas) WATTENBERG PLAN Federal Land
Slide 19: Additional Portfolio Assets
Additional Portfolio Assets Dimmit “SA Lycoming f f T7 —7 z j < webb i Wyoming Utah Pennsylvania South Texas __ Bison Chipeta Marcellus Gas Gatherin Springfield Gathering Hilight Complex Pp 9 Brasada Gas Plant Granger Complex Red Desert Complex
Slide 20: Equity Investment Overview
Equity Investment Overview Equity Investment S| acatic Operator Rendezvous 22% ‘SW Wyoming ~450 MMcf/d natural-gas pipeline Marathon PROVIDES STABILITY AND DIVERSIFICATION OF MIDSTREAM SERVICE, CASH FLOW, AND CUSTOMER BASE STABLE CASH FLOWS SUPPORTED BY +80% MINIMUM-VOLUME COMMITMENTS OR COST-OF-SER
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Three Months Ended thousands June 30, 2020 Reconciliation of Net income (loss) to Adjusted EBITDA Net income (loss) $ 281,341 Add: Distributions from equity investments 71,576 Non-cash equity-based compensation expense 5,677 Interest expense 94,654 Income tax expense 5,044 Depreciation and amortizat
Slide 22: Reconciliation of Operating Cash Flow to Adjusted EBITDA
Three Months Ended thousands June 30, 2020 Reconciliation of Net cash provided by operating activities to Adjusted EBITDA Net cash provided by operating activities $ 345,688 Interest (income) expense, net 90,429 Accretion and amortization of long-term obligations, net (2,197) Current income tax expe
Slide 23: Reconciliation of Operating Cash Flow to Free Cash Flow
Three Months Ended thousands June 30, 2020 Reconciliation of Net cash provided by operating activities to Free cash flow Net cash provided by operating activities $ 345,688 Less: Capital expenditures 140,249 Contributions to equity investments 5,104 Add: Distributions from equity investments in exce
Slide 24: Reconciliation of Operating Income to Adjusted Gross Margin
Three Months Ended thousands June 30, 2020 Reconciliation of Operating income (loss) to Adjusted gross margin Operating income (loss) $ 373,766 Add: Distributions from equity investments 71,576 Operation and maintenance 145,186 General and administrative 36,423 Property and other taxes 19,395 Deprec
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