Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Western Gas Partners — Q4 2017 Earnings Presentation
20 slides from Western Midstream Partners, Lp's earnings presentation, Feb 16, 2018
Slide 1: Fourth Quarter and Full Year 2017 Review
INVESTOR RELATIONS Jon VandenBrand Director 832.636.1007 N Y S E : W E S , W G P W W W . W E S T E R N G A S . C O M FOURTH QUARTER AND FULL YEAR 2017 REVIEW February 16, 2018
Slide 2: Cautionary Language Regarding Forward Looking Statements
Cautionary Language Regarding Forward Looking Statements This presentation contains forward-looking statements. Western Gas Partners, LP and Western Gas Equity Partners, LP believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations
Slide 3: Strong 2017 Performance
Strong 2017 Performance 2017 ($ in Millions) Guidance1 Actuals Adjusted EBITDA $1,025 - $1,075 $1,061 Total Capital Expenditures $800 - $850 $792 Maintenance Capital Expenditures $50 - $55 $50 Coverage Ratio At least 1.1x 1.13x WES Distribution Growth 7% 7% WGP Distribution Growth 12% - 19% 19% 1) P
Slide 4: 4Q17 vs 3Q17 Financial Performance
4Q17 vs 3Q17 Financial Performance ($ in Millions) 4Q17 3Q17 Adjusted EBITDA $273.3 $257.8 Total Capital Expenditures $291.6 $222.3 Maintenance Capital Expenditures $16.6 $10.6 Distributable Cash Flow $233.4 $231.9 Coverage Ratio 1.08x 1.09x www.wes terngas .c om | NYSE: W ES, WGP W E S T E R N G A
Slide 5: 4Q17 vs 3Q17 Operational Performance
4Q17 vs 3Q17 Operational Performance 4Q17 3Q17 Key Drivers DJ Basin and DBM Complex Growth Natural Gas Throughput (Bcf/d) 3.47 3.42 partially offset by Non-Cash DBJV Prior Period Volume Adjustment Crude, NGL & Produced Water 240 209 DBM Water Services Growth Throughput (MBbl/d) Adjusted Gross Margin
Slide 6: Focused 2018 Capital Program
Focused 2018 Capital Program CAPITAL BY REGION CAPITAL BY FUNCTION Processing 29% Delaware Basin DJ Basin 56% 37% Gathering 57% Maintenance 8% Other Other 6% 7% Total Capital: $1.0 to $1.1 Billion www.wes terngas .c om | NYSE: W ES, WGP W E S T E R N G A S P A R T N E R S 6
Slide 7: DJ Basin: Supporting Continued Drilling Activity
DJ Basin: Supporting Continued Drilling Activity 1 FOCUS AREAS 4 Gas Gathering 1 System Buildout 2 Latham Gas Plant 2 (400 MMcf/d) Potential Front Range 3 Pipeline Expansion 1 Residue Gas Pipeline 3 APC Leasehold 4 APC Mineral Interest Investment Option WES Gas Pipeline APC Oil Pipeline WES/APC Gas
Slide 8: Infrastructure Development Drives Volumetric Growth…
Infrastructure Development Drives Volumetric Growth… DELAWARE BASIN: COMBINED WES AND APC MIDSTREAM INFRASTRUCTURE KEY INFRASTRUCTURE ADDITIONS B GAS PROCESSING 1 1 Ramsey VI 4Q17 200 MMcf/d A Mentone I 3Q18 2 C 200 MMcf/d 2 3 3 Mentone II 4Q18 200 MMcf/d OIL TREATING A Reeves 2Q18 60 MBOPD N. Lovin
Slide 9: …That Drives 2H 2018 Performance
…That Drives 2H 2018 Performance First Half Second Half Expanded Weighted Capital Weighted EBITDA Coverage Ratio Distribution 1.4x Coverage Ratio 1.3x 1H 2018 1.2x + 72% 1H 1.2x 2018 2H Full Year 2018 46% 2018 Coverage 1.1x + 2H 2018 54% 1.1x 28% 1.0x + 1.0x 0.9x 1H18 2H18 www.wes terngas .c om | NY
Slide 10: APC Dropdown Inventory Continues to Grow
APC Dropdown Inventory Continues to Grow DJ Basin ~$550MM Crude Oil Gathering 2018E APC Midstream Capital Wattenberg Plant Natural Buttes Gathering Saddlehorn Pipeline1 $300MM+ 2018E APC Midstream EBITDA Delaware Basin Crude Oil Gathering Panola Pipeline1 95% of Dropdown EBITDA Delaware Basin Water
Slide 11: 2018 Outlook
2018 Outlook ($ in Millions) 2018 WES Adjusted EBITDA1 $1,150 - $1,250 WES Total Capital Expenditures $1,000 - $1,100 WES Maintenance Capital Expenditures $80 - $90 WES 2018 & 2019 Distribution Growth 1.5 cents/quarter WGP 2018 & 2019 Annual Distribution Growth 9 - 12%2 1) A reconciliation of the Ad
Slide 12: Appendices
Appendices www.wes terngas .c om | NYSE: W ES, WGP W E S T E R N G A S P A R T N E R S 12
Slide 13: WES Non-GAAP Reconciliation: Adjusted EBITDA
WES Non-GAAP Reconciliation “Adjusted EBITDA” WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairme
Slide 14: WES Non-GAAP Reconciliation: Adjusted EBITDA
WES Non-GAAP Reconciliation “Adjusted EBITDA” WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairme
Slide 15: WES Non-GAAP Reconciliation: Distributable Cash Flow
WES Non-GAAP Reconciliation “Distributable Cash Flow” 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’s commodity price swap agreements to the extent such amounts a
Slide 16: WES Non-GAAP Reconciliation: Adjusted Gross Margin
WES Non-GAAP Reconciliation “Adjusted Gross Margin Attributable to Western Gas Partners, LP” WES defines Adjusted gross margin as total revenues and other, less cost of product and reimbursements for electricity-related expenses recorded as revenue, plus distributions from equity investments and exc
Slide 17: WES Non-GAAP Reconciliation: Adjusted EBITDA
WES Non-GAAP Reconciliation “Adjusted EBITDA” WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairme
Slide 18: WES Non-GAAP Reconciliation: Adjusted EBITDA
WES Non-GAAP Reconciliation “Adjusted EBITDA” WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairme
Slide 19: WES Non-GAAP Reconciliation: Distributable Cash Flow
WES Non-GAAP Reconciliation “Distributable Cash Flow” 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’s commodity price swap agreements to the extent such amounts a
Slide 20: WES Non-GAAP Reconciliation: Adjusted Gross Margin
WES Non-GAAP Reconciliation “Adjusted Gross Margin Attributable to Western Gas Partners, LP” WES defines Adjusted gross margin as total revenues and other, less cost of product and reimbursements for electricity-related expenses recorded as revenue, plus distributions from equity investments and exc