Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q2 2021 Earnings Presentation
30 slides from Western Midstream Partners, Lp's earnings presentation, Aug 10, 2021
Slide 1: Second-Quarter 2021 Review
Second-Quarter 2021 Review August 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
Financial Performance 2Q 2021 ($ in millions) Actuals Operating Cash Flow $452.1 $226 Cash Capital Investments1 $72.3 million Net Income4 Free Cash Flow2 $379.8 Cash Distributions Paid3 $133.0 $491 million Free Cash Flow After Distributions $246.8 Adjusted EBITDA 1) Includes net distributions to equ
Slide 5: 2021 Guidance
2021 Guidance ($ in millions) Adjusted EBITDA1 $1,825 - $1,925 Total Capital Expenditures2 $275 - $375 Leverage Target3 ≤4.0x Per-Unit Cash Distribution4 ≥$1.24 1)A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss) is not provided because
Slide 6: Operational Update
Operational Update 6
Slide 7: Operational Performance
Operational Performance 2Q 2021 Actuals Natural-Gas Throughput (MMcf/d) 4,265 Adjusted Gross Margin for Natural-Gas $1.21 Assets ($/Mcf) Crude-Oil and NGLs Throughput (MBbls/d) 687 Adjusted Gross Margin for Crude-Oil and $2.40 NGLs Assets ($/Bbl) Produced-Water Throughput (MBbls/d) 688 Adjusted Gros
Slide 8: Expected 2021 Growth
Expected 2021 Growth High Teens High-Single Digits Mid-Single Digits GAS OIL WATER Note: Expected 2021 exit rate compared to 2020 exit rate. 8
Slide 9: Q&A
Q&A 9
Slide 10: Appendix
Appendix 10
Slide 11: 2021 Adjusted EBITDA Guidance
2021 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION1 Other2 11% of Asset EBITDA Equity Investments Delaware Basin 12% of Asset EBITDA 41% of Asset EBITDA $1,825 Million 64% Gas 17% Oil to 19% Water $1,925 Million DJ Basin 36% of Asset EBITDA 83% Gas 17% Oil 1)Excludes G&A. Represe
Slide 12: 2021 Capital Guidance
2021 Capital Guidance DJ Basin 14% Equity Investments Equity Investments 75% Gas 4% 4% 25% Oil Other 10% Other 15% Expansion 43% $275 Million Well Connect to 28% $375 Million Delaware Basin Maintenance 67% 15% 62% Gas 13% Oil 25% Water Note: Accrual-based, includes equity investments, excludes capit
Slide 13: WES Liquidity Profile
WES Liquidity Profile Near-Term Maturity Profile ($ in millions) 2500 Liquidity ($ in millions) RCF Capacity $1,995 2000 Cash $306 1500 Maturities ($ in millions) 1000 2021 $0 2022-20241 $821 500 2025+ $6,650 0 2020 Liquidity 2021 2022 2023 2024 Note: As of June 30, 2021. 1)Due between July 1, 2022
Slide 14: 2021 Sensitivity Analysis
2021 Sensitivity Analysis 5% to 6% 5% to 6% 10% to 12% 10% to 12% decrease increase decrease increase in EBITDA in EBITDA in EBITDA in EBITDA -10% +10% -20% +20% VOLUME VOLUME VOLUME VOLUME Note: Volume changes are to Delaware and DJ Basins throughput equally from all producers, excluding any impact
Slide 15: 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 16: 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 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 Oil 96% Oil
Slide 17: Delaware Basin: Gas Infrastructure
Delaware Basin: Gas Infrastructure EDDY LEA NEW MEXICO TEXAS RAMSEY LOVING WES Gas Processing CULBERSON West Texas Complex 1.370 Bcf/d MENTONE WINKLER Equity-Interest Gas 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 18: Delaware Basin: Oil Infrastructure
Delaware Basin: Oil Infrastructure EDDY LEA NEW MEXICO TEXAS NORTH LOVING LOVING CULBERSON REEVES WINKLER Oil Treating 256 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 19: Delaware Basin: Water Infrastructure
Delaware Basin: Water Infrastructure EDDY LEA NEW MEXICO TEXAS LOVING CULBERSON WINKLER Salt-Water Disposal 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 20: DJ Basin
DJ Basin Customer Base Percentage of Related-Party Gas Product 1,407 1,413 Volumes1 1500 1,258 1,266 1,295 1,329 1,290 1,344 1,124 1,197 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 Long-Term Contract Support Oil Weighted-Average
Slide 21: DJ Basin
DJ Basin COLORADO LATHAM CRYO LARIMER WELD COSF LANCASTER COMPLEX Gas Processing BOULDER 1,730 MMcf/d 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 22: 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 22
Slide 23: 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 24: 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 24
Slide 25: Our Approach to ESG
Our Approach to ESG Supporting Focusing Operating Sustainable On People Responsibly Environment We are implementing industry-leading We are focused on We are developing environmental improving the quality of intentional and robust protection practices and life for our workforce governance systems th
Slide 26: Minimizing Our Environmental Footprint
Minimizing Our Environmental Footprint Design, Construct, and Coordinate Collaborate Develop Solutions with Operate Responsibly with Producers with Peers Regulatory Groups • Designed COSF and ROTFs to • Guarantee infrastructure is in • Actively participate in EIC and • Supported rule by CDPHE1 gathe
Slide 27: 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 28: 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 29: 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. 29
Slide 30: 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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