Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — FY2021 Earnings Presentation
33 slides from Western Midstream Partners, Lp's earnings presentation, Feb 24, 2022
Slide 1: Fourth-Quarter & Full-Year 2021 Review
Fourth-Quarter & Full-Year 2021 Review February 24, 2022
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
Performance “= WU Financial Tu ae
Slide 4: Financial Performance
Financial Performance 4Q 2021 FY 2021 ($ in millions) Actuals Actuals Operating Cash Flow $661.9 $1,766.9 $896 Cash Capital Investments1 $85.4 $276.7 million FY’21 Net Income3 Free Cash Flow $576.5 $1,490.1 Cash Distributions Paid $134.92 $533.8 $1,947 million Free Cash Flow After Distributions $441
Slide 5: 2021 Financial Scorecard
2021 Financial Scorecard PAID $534 2021 2021 million ($ in millions, except where otherwise noted) Expected Actuals Distributions4 Adjusted EBITDA1 $1,825 – $1,925 $1,947 RETIRED Total Capital Expenditures2 $275 – $375 $324 $931 million Leverage Target 3 ≤4.0x ~3.6x Debt5 Per-Unit Cash Distribution4
Slide 6: Enhancing Unitholder Value
Enhancing Unitholder Value Since Issuance of January 2020 Senior Notes $1.15 Debt Retired $505 Of Units Repurchased $1.2 Distributions Paid $7.00 Value Returned billion1 million2 billion3 per unit4,5 ~18% OF ENTERPRISE VALUE RETURNED 5 1) Since January 2020 bond issuance. 2) Includes 27.86 million u
Slide 7: Returning Excess Free Cash Flow to Unitholders
Returning Excess Free Cash Flow to Unitholders Through Enhanced Distribution Framework Positive Capital Allocation Annual Net Annual Distribution Cash Flow Outlook Priorities Leverage Threshold4 Framework Debt Repayment1 $715 million 3.4x $2.00 Base YE’22 Distribution2 Annual Free Cash Flow Base Dis
Slide 8: 2022 Adjusted EBITDA Guidance
2022 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION1 50% Delaware Basin 31% DJ Basin $1,925 Million 64% Gas 82% Gas to 19% Oil 18% Oil $2,025 Million 17% Water 9% Equity Investments 10% Other2 1) Excludes G&A. Represents asset-level cash contribution to EBITDA. 2) Marcellus, South
Slide 9: 2022 Guidance
2022 Guidance ($ in millions) Adjusted EBITDA1 $1,925 – $2,025 Total Capital Expenditures2 $375 – $475 Free Cash Flow1 $1,200 – $1,300 Per-Unit Cash Distribution3 ≥ $2.00 Note: Based on current producer production-forecast information. 1) A reconciliation of the Adjusted EBITDA range to net cash pro
Slide 10: Operational Update
Operational Update 10
Slide 11: Operational Performance
Operational Performance 4Q 2021 FY 2021 Actuals Actuals Natural-Gas Throughput (MMcf/d) 4,204 4,148 Adjusted Gross Margin for Natural-Gas Assets ($/Mcf) $1.26 $1.24 Crude-Oil and NGLs Throughput (MBbls/d) 702 659 Adjusted Gross Margin for Crude-Oil and NGLs Assets ($/Bbl) $1.78 $2.28 Produced-Water
Slide 12: 2021 Operational Highlights
2021 Operational Highlights commercial success of 10 $30 Million new customers added to portfolio of 2021 Adjusted EBITDA 99% system reliability for 2nd consecutive year increased ROTF capacities by 20% GPA 1st Place per train Safety Award 74,000 Winner dedicated acres with Civitas for 2nd consecuti
Slide 13: Industry-Leading Sustainable Operations
Industry-Leading Sustainable Operations Carbon Emissions Intensity – AAPG Denver Basin1 4.0 3.5 WORSE 3.0 3.0 MT CO2 / MMSCF 2.3 2.0 1.7 1.5 1.5 1.2 BETTER 1.0 0.5 0.0 Peer A WES Peer B Peer C Peer D Peer E Peer F Peer G Note: The Denver Basin is a subset of the DJ Basin and is defined in the Nation
Slide 14: 2022 Capital Guidance
2022 Capital Guidance 2% Equity Investments 6% Other 18% Well Connect 12% DJ Basin 10% IT Transformation 94% Gas 6% Oil 20% 2% Equity Investments Maintenance 10% IT Transformation $375 Million to $475 Million 70% Delaware Basin 50% Expansion 60% Gas 16% Oil 24% Water Note: Accrual-based, includes eq
Slide 15: Summary
Summary 15
Slide 16: Why Invest in WES?
Why Invest in WES? Best-in-Class Asset Base with Accelerating Producer Activity Balanced Approach to Returning Free Cash Flow Declining Leverage and Strengthening Balance Sheet Sustainable Base and Enhanced Distribution Structure 16 16
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: WES Liquidity Profile
WES Liquidity Profile Near-Term Maturity Profile ($ in millions) 2,500 Liquidity ($ in millions) 2,000 RCF Capacity $1,995 Cash $202 1,500 1,000 Maturities ($ in millions) 2022 – 20241 $715 500 2025 $1,131 2026+ $5,125 0 Liquidity 2022 2023 2024 2025 Note: As of December 31, 2021. 1) Maturities rang
Slide 20: Enhanced Distribution Mechanics
Enhanced Distribution Mechanics Illustrative Potential Payout using 2021 Financial Information • Enhanced distribution would be Test YE’21 Enhanced Distribution Calculation payable with first-quarter base $ in millions distribution (starting 1Q’23) $1,490 Free cash flow1 • Dependent upon fulfillment
Slide 21: Premier Asset Portfolio
Premier Asset Portfolio Value-Focused Portfolio1 Revenue: 47% Delaware Basin, 35% DJ Basin 23 GATHERING SYSTEMS Total Capital: 74% Delaware Basin, 14% DJ Basin 72 PROCESSING & TREATING FACILITIES Direct Commodity Exposure Protection2 93% Fee-Based Gas Contracts 6 NATURAL-GAS PIPELINES 100% Fee-Based
Slide 22: Delaware Basin: Expansive Multi-Product Infrastructure
Delaware Basin: Expansive Multi-Product Infrastructure Gas 1,389 1,370 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 48% 0 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021
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: Capacity as of year-e
Slide 25: Delaware Basin: Water Infrastructure
Delaware Basin: Water Infrastructure EDDY LEA NEW MEXICO TEXAS LOVING CULBERSON Salt-Water Disposal WINKLER 1,300 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: Capacity as of year-end 202
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 1,349 1,124 Gas 57% 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 4Q 2021 Long-Term Contract S
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: 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 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 “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. Three Months Ended Year Ended Dec
Slide 33: 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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