Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q1 2020 Earnings Presentation
26 slides from Western Midstream Partners, Lp's earnings presentation, May 6, 2020
Slide 1: First-Quarter 2020 Review
First-Quarter 2020 Review May 6, 2020
Slide 2: Forward-Looking Statements and Corporate Structure
Forward-Looking Statements and Corporate Structure = Ox Y Occidental Public Unitholders We NSE 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 tha
Slide 3: 3
3
Slide 4: Cash-Flow Enhancements
Cash-Flow Enhancements Original 2020 Revised 2020 ($in millions) Guidance Guidance Variance G&A and O&M Cost Savings $0 $75 $75 Total Capital Expenditures! $875 - $950 $450 - $550 $412.5 Pre-Cut Post-Cut Variance Distributions to WES Unitholders $1,127 $564 $563 Annualized Cash-Flow Enhancements $1,
Slide 5: Revised 2020 Adjusted EBITDA Guidance
Revised 2020 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION Other 13% of Asset EBITDA @ Delaware Basin anna 40% of Asset EBITDA $1,725 Million a to 2% Oil $1 1825 Million 19% Water DJ Basin 37% of Asset EBITDA 84% Gas ))Bctutes Gua Represents assetlevel cash contbwiont EBITD 16% O
Slide 6: Operational Performance
Operational Performance Natural-Gas Throughput (wmct/a) Adjusted Gross Margin for Natural-Gas Assets ($/Mci) Crude-Oil and NGLs Throughput (mebis/a) Adjusted Gross Margin for Crude-Oil, and NGLs Assets ($/sb0) Produced-Water Throughput (mebis/a) Adjusted Gross Margin for Produced-Water Assets ($/sb)
Slide 7: Revised 2020 Capital Guidance
Revised 2020 Capital Guidance Equity Investments Other 4% 13% $450 Million to $550 Million Maintenance 22% Delaware Basin Water 66% 18% Equity Investments A% Gathering 38% DJ Basin Key Projects 17% ~15,000 HP Compression +69 Miles of Gathering Four SWD Facilities 120 MBbl/d Salt-Water Disposal N. Lo
Slide 8: Financial Performance
Financial Performance ~~ o. 1Q 202 - - (¢ in millions) Actuals 4 Operating Cash Flow $393.3 Cash Capital Investments $178.7 Free Cash Flow $214.6 Cash Distributions $281.8 Free Cash Flow After Distributions
Slide 9: Financial Policy
Financial Policy Free Cash Flow After Distributions $2.0 Billion Revolving Credit Facility Provides Ample Liquidity ss YE 2020 Target - Below 4.5x YE 2021 Target - Below 4.0x IMPROVED BALANCE-SHEET STRENGTH No Near-Term Need To Access Capital Markets el Dp fe
Slide 10: Thank You
THANK YOU to our healthcare community, frontline workers, employees, and contractors
Slide 11: Q&A
Q&A
Slide 12: Appendix
APPENDIX
Slide 13: Premier Asset Portfolio
Premier Asset Portfolio GATHERING SYSTEMS PROCESSING & TREATING FACILITIES NATURAL-GAS wes PIPELINES CRUDE-OIL/NGLs PIPELINES PIPELINE MILES @ WES Assets @ WES Equity Interests WES Equity-Interest Pipelines Value-Focused Portfolio! Revenue: 44% Delaware Basin, 36% DJ Basin Total Capital: 52% Delawar
Slide 14: Delaware Basin: Expansive Multi-Product Infrastructure
Delaware Basin: Expansive Multi-Product Infrastructure Highlight : Gas, oil, and water services 3m ' ' = 500 : Backbone infrastructure in place ' ) ! Efficient and scalable capital investments 102018 20.2018 = 3.2018 : Long-term, fee-based contracts : High-quality, top-tier counterparties . 200 Me ~
Slide 15: Delaware Basin: Gas Infrastructure
Delaware Basin: Gas Infrastructure WES Gas Processing West Texas Complex 1.3 Bet/d Equity-Interest Gas Processing Mi Vida 200 MMcf/d Ranch Westex 125 MMct/d EDDY LEA NEW MEXICO TEXAS RAMSEY LOVING CULBERSON MENTONE WINKLER 5 MILES REEVES WARD RANCH WESTEX MI VIDA Gas Processing Plant Gas-Gathering L
Slide 16: Delaware Basin: Oil Infrastructure
Delaware Basin: Oil Infrastructure EDDY LEA NEW MEXICO. TEXAS a0) CULBERSON ma | Oil Treating a a 255 MBbl/d Capacity FS E(alt H LOVING 4 LOVING FO tLe ie 5 MILES = 1 T REEVES : I —— WINKLER WARD
Slide 17: Delaware Basin: Water Infrastructure
Delaware Basin: Water Infrastructure EDDY LEA NEW MEXICO TEXAS 6 % CULBERSON = y Salt-Water Disposal uaa WINKLER 1,005 MBbl/d Capacity rr | des Bi WARD mn se @ Salt-Water Disposal Wells {> === Water Pipelines
Slide 18: DJ Basin
DJ Basin bas Highlights ; ve hong tty 1185258245 ggg 1285 : Free-cash-flow positive = i000 1 1 = H Long-term, fee-based contracts ' ~ ; 102018 20.2018 302018 42018 102019 202019 302019 4a2019 10.2020 Long-Term Contract Support oil | Weighted-Average Product panera 128 129 128 Remaining Life so 102 1
Slide 19: DJ Basin
le DJ Basin v COLORADO LARIMER Gas Processing 1,730 MMcf/d BOULDER Oil Stabilization 155 MBbl/d ome Gas-Processing Plant | a | uy > | I _s GW oittreating Facies | = -WATTENBERG PLANT — Pipelines (Oil and Gas) 19
Slide 20: Additional Portfolio Assets
Additional Portfolio Assets Wyoming Utah Pennsylvania South Texas Bison Chipeta Marcellus Gas Gathering Springfield Gathering Hilight Complex Brasada Gas Plant Granger Complex Red Desert Complex
Slide 21: Equity Investment Overview
Equity Investment Overview Wes Equity Investment Ownership Location Description Operator h We We ™ Ward County, TX Rendezvous 22h ‘SW Wyoming 125 MMct/ 200 MMcf/d gas-processing plant ~450 MMcf/d natural-gas pipeline y) @ WES Equity Interests == WES Equity-Interest Pipelines Marathon PROVIDES STABIL
Slide 22: Reconciliation of Net income (loss) to Adjusted EBITDA
Three Months Ended thousands March 31, 2020 Reconciliation of Net income (loss) to Adjusted EBITDA Net income (loss) $ (289,400) Add: Distributions from equity investments 65,920 Non-cash equity-based compensation expense 5,234 Interest expense 88,586 Depreciation and amortization 132,319 Impairment
Slide 23: Reconciliation of Net cash from operating activities to Adjusted EBITDA
Three Months Ended thousands March 31, 2020 Reconciliation of Net cash provided by operating activities to Adjusted EBITDA Net cash provided by operating activities $ 393,311 Interest (income) expense, net 84,361 Accretion and amortization of long-term obligations, net (2,100) Current income tax (be
Slide 24: Reconciliation of Net cash from operating activities to Free cash flow
Three Months Ended thousands March 31, 2020 Reconciliation of Net cash provided by operating activities to Free cash flow Net cash provided by operating activities $ 393,311 Less: Capital expenditures 172,816 Contributions to equity investments 10,960 Add: Distributions from equity investments in ex
Slide 25: Reconciliation of Operating income (loss) to Adjusted gross margin
Three Months Ended thousands March 31, 2020 Reconciliation of Operating income (loss) to Adjusted gross margin Operating income (loss) $ (214,903) Add: Distributions from equity investments 65,920 Operation and maintenance 159,191 General and administrative 40,465 Property and other taxes 18,476 Dep
Slide 26: Reconciliation of Net income (loss) to Distributable cash flow
Three Months Ended thousands except Coverage ratio March 31, 2020 Reconciliation of Net income (loss) to Distributable cash flow and calculation of the Coverage ratio Net income (loss) $ (289,400) Add: Distributions from equity investments 65,920 Non-cash equity-based compensation expense 5,234 Inco
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