Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q3 2021 Earnings Presentation
34 slides from Western Midstream Partners, Lp's earnings presentation, Nov 10, 2021
Slide 1: Third-Quarter 2021 Review
Third-Quarter 2021 Review November 10, 2021
Slide 2: Forward-Looking Statements and Ownership Structure
Forward-Looking Statements and Ownership Structure WES OWNERSHIP STRUCTURE This presentation contains forward-looking statements. Western Midstream Partners, LP Occidental Public Unitholders (“WES”) believes that its expectations are based on reasonable assumptions. No assurance, NYSE: OXY however,
Slide 3: Financial Performance
Financial Performance 3
Slide 4: Financial Performance 3Q 2021
Financial Performance 3Q 2021 ($ in millions) Actuals Operating Cash Flow $391.3 $250 Cash Capital Investments1 $71.3 million Net Income3 Free Cash Flow $320.0 Cash Distributions Paid2 $134.6 $532 million Free Cash Flow After Distributions $185.4 Adjusted EBITDA 1) Includes net distributions from eq
Slide 5: 2021 Guidance
2021 Guidance ($ in millions) Adjusted EBITDA1 $1,825 – $1,925 ABOVE THE HIGH END Total Capital Expenditures2 $275 – $375 BELOW THE HIGH END Leverage Target3 ≤4.0x BETTER THAN TARGET Per-Unit Cash Distribution4 ≥$1.24 BETTER THAN TARGET 1) A reconciliation of the Adjusted EBITDA range to net cash pr
Slide 6: Capital Structure Optimization
Capital Structure Optimization Since Issuance of January 2020 Senior Notes 36 ~$11 $1.15 3.7x million per unit billion leverage Total Units Weighted-Average Senior Notes Debt/EBITDA Retired1 Purchase Price1 Retired2 Ratio3 Near-Term Maturity Profile 1,600 $369 1,400 Principal ($MM) 1,200 Expect to r
Slide 7: Enhancing Free Cash Flow
Enhancing Free Cash Flow Since Issuance of January 2020 Senior Notes 8% Of Total Units Retired1 14% Of Senior Notes Retired $31 $52 Interest Cash Flow Expense Savings1,2 Eliminated3 million million $83 MILLION ANNUALIZED FREE CASH FLOW INCREASE 3 Note: Amounts cumulative after announcing Senior Note
Slide 8: Enhancing Unitholder Value
Enhancing Unitholder Value Since Issuance of January 2020 Senior Notes $1.15 Senior Notes Retired $392 Of Units Repurchased $1.1 Distributions Paid $6.31 Value Returned billion1 million2 billion3 per unit4,5 ~17% OF ENTERPRISE VALUE RETURNED TO STAKEHOLDERS 5 1) Since January 2020 bond issuance. 2)
Slide 9: Operational Update
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Slide 10: Operational Performance
Operational Performance 3Q 2021 Actuals Natural-Gas Throughput (MMcf/d) 4,081 Adjusted Gross Margin for Natural-Gas Assets ($/Mcf) $1.31 Crude-Oil and NGLs Throughput (MBbls/d) 641 Adjusted Gross Margin for Crude-Oil and NGLs Assets ($/Bbl) $2.52 Produced-Water Throughput (MBbls/d) 735 Adjusted Gros
Slide 11: Environmental, Social & Governance
Environmental, Social & Governance 11
Slide 12: Our Approach to ESG
Our Approach to ESG Supporting Focusing Operating Sustainable On People Responsibly Environments We are committed to We are focused on We are committed to responsible supporting our workforce operating responsibly. We environmental and communities. When are developing intentional stewardship by they
Slide 13: 2020-2021 Sustainability Report Highlights
2020-2021 Sustainability Report Highlights Surpassed One Future 2025 Majority Methane Intensity of our senior Goal leadership team is female or of racial Reduced or ethnic minority Employee TRIR by Installed 73% >350,000 Since 2018 Horsepower of Electric Compression through 2020 Co-Developed ESG Rep
Slide 14: Summary
Summary 14
Slide 15: WES IS MORE
Contracts Revenue supported by MVCs or Cost-of-Service contracts Customers Investment- Balance Sheet High-quality Grade Metrics Declining leverage producers and ~$2 billion positioned for of liquidity growth WES Free Cash Flow IS Assets Best-in-class assets Reducing leverage, in the most active buyi
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Slide 17: Appendix
Appendix 17
Slide 18: 2021 Adjusted EBITDA Guidance
2021 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION1 Other2 12% of Asset EBITDA Equity Investments Delaware Basin 12% of Asset EBITDA 40% of Asset EBITDA $1,825 Million 66% Gas 16% Oil to 18% Water $1,925 Million ABOVE THE HIGH END DJ Basin 36% of Asset EBITDA 83% Gas 17% Oil 1) E
Slide 19: 2021 Capital Guidance
2021 Capital Guidance DJ Basin 14% 73% Gas Equity Investments 27% Oil Other 2% Equity Investments 8% 2% Other 14% Expansion 45% $275 Million Well Connect to 30% $375 Million BELOW THE HIGH END Delaware Basin Maintenance 70% 15% 63% Gas 12% Oil 25% Water Note: Accrual-based, includes equity investmen
Slide 20: WES Liquidity Profile
WES Liquidity Profile Near-Term Maturity Profile ($ in millions) 2500 Liquidity ($ in millions) RCF Capacity $1,775 2000 Cash $100 1500 Maturities ($ in millions) 1000 2021 $0 2022 – 20241 $715 500 2025+ $6,256 0 2020 Liquidity 2021 2022 2023 2024 Note: As of September 30, 2021. 1) Maturities range
Slide 21: Premier Asset Portfolio
Premier Asset Portfolio Value-Focused Portfolio1 Revenue: 46% Delaware Basin, 38% DJ Basin 23 GATHERING SYSTEMS Total Capital: 68% Delaware Basin, 10% DJ Basin 71 PROCESSING & Direct Commodity Exposure Protection2 TREATING FACILITIES ~93% Fee-Based Gas Contracts 100% Fee-Based Liquids Contracts 6 NA
Slide 22: Delaware Basin: Expansive Multi-Product Infrastructure
Delaware Basin: Expansive Multi-Product Infrastructure Gas 1,389 Customer Base 1500 1,178 1,179 1,272 1,274 1,309 1,294 1,196 1,133 1,244 1,274 1000 MMcf/d Percentage of Related-Party Product Volumes1 500 Gas 47% 0 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 20
Slide 23: Delaware Basin: Gas Infrastructure
Delaware Basin: Gas Infrastructure EDDY LEA NEW MEXICO TEXAS RAMSEY LOVING WES Gas Processing West Texas Complex CULBERSON 1.370 Bcf/d MENTONE Equity-Interest Gas WINKLER Processing Mi Vida 200 MMcf/d 5 MILES Ranch Westex REEVES 125 MMcf/d WARD Gas-Processing Plant MI VIDA RANCH Gas-Gathering Lines
Slide 24: Delaware Basin: Oil Infrastructure
Delaware Basin: Oil Infrastructure EDDY LEA NEW MEXICO TEXAS NORTH LOVING LOVING CULBERSON REEVES Oil Treating WINKLER 292 MBbls/d Capacity 5 MILES REEVES WARD Regional-Oil-Treating Facility Oil Pipelines Federal Land (Surface and Mineral) State Land (Surface and Mineral) Note: Expected capacity as
Slide 25: Delaware Basin: Water Infrastructure
Delaware Basin: Water Infrastructure EDDY LEA NEW MEXICO TEXAS LOVING CULBERSON Salt-Water Disposal WINKLER 1,180 MBbls/d Capacity 5 MILES REEVES WARD Salt-Water Disposal Wells Water-Gathering Lines Federal Land (Surface and Mineral) State Land (Surface and Mineral) Note: Expected capacity as of yea
Slide 26: DJ Basin
DJ Basin Customer Base Percentage of Related-Party Gas Product Volumes1 1500 1,258 1,266 1,295 1,407 1,329 1,290 1,197 1,344 1,413 1,368 1,124 Gas ~65% 1000 MMcf/d 500 Oil 100% 0 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Long-Term Contract Support Oil We
Slide 27: DJ Basin
DJ Basin COLORADO LATHAM CRYO LARIMER WELD COSF Gas Processing LANCASTER COMPLEX 1,730 MMcf/d BOULDER Oil Stabilization 155 MBbls/d 5 MILES ADAMS Gas-Processing Plant Oil-Treating Facilities Gas-Processing Plant Pipelines (Oil and Gas) WATTENBERG PLANT Oil-Treating Facilities Federal Land Pipelines
Slide 28: Additional Portfolio Assets
Additional Portfolio Assets South Texas Wyoming Utah Pennsylvania Hilight Complex Springfield Gathering Chipeta Marcellus Gas Gathering Granger Complex Brasada Gas Plant Red Desert Complex 28
Slide 29: Equity Investment Overview
Equity Investment Overview WES Equity Investment Ownership Location Description Operator Ranch Westex 50% Ward County, TX 125 MMcf/d gas-processing plant Energy Transfer Mi Vida 50% Ward County, TX 200 MMcf/d gas-processing plant Energy Transfer Red Bluff Express 30% Reeves County, TX to Waha, TX 1.
Slide 30: Creating Long-Term Value for Stakeholders
Creating Long-Term Value for Stakeholders Refine Business Provide Exceptional Model Customer Service 2021 Focus Areas Minimize Environmental Enhance Operational Footprint Approach 30
Slide 31: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted EBITDA” 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
Slide 32: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted EBITDA” 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
Slide 33: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Free Cash Flow” 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. 33
Slide 34: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted Gross Margin” 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 distributi
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