Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Q3 2020 Earnings Presentation
28 slides from Western Midstream Partners, Lp's earnings presentation, Nov 10, 2020
Slide 1: Third-Quarter 2020 Review
Third-Quarter 2020 Review November 10, 2020
Slide 2: Forward-Looking Statements and Ownership Structure
Forward-Looking Statements and Ownership Structure ~~ Oxy Occidental Public Unitholders ae NYSE OXY 52.5% uf) ay ae (WarketCaptalzaton Ol® \ Western Midstream Partners, LP Nt NYSE: WES prove correct. A number ual results to differ materially from results, or other expectations ex} in this presentati
Slide 3: Financial Performance
Financial Performance (¢ in millions) Actuals Operating Cash Flow $392.9 ‘cashCapitlinvestments) = a7 FreecahFow’ 3392 “cashDistibutinsPai® $09 “Free CashFlow AterDistibutins = $1983 «cut insensonenenes ten vsesandenaleapensives saree ebay tees bapen) br veqaner aan ws 8 nion ond quarter 2020 Cash d
Slide 4: Strategic Priorities
strategic Priorities “ag OPERATE MAXIMIZE GROW Existing Business Relationship with Third-Party Safely and Efficiently Oxy Business
Slide 5: Navigating Through 2020 Downturn
ING Navigating Through 2020 Downturn “A% decrease exceed +$500 mittion ~$1.3 billion in throughput guidance in capital savings! pcciaaalie VOLUME ADJUSTED cara race cal EBITDA FLOW EXPECTATIONS AS COMPARED TO PRE-COVID 2020 GUIDANCE
Slide 6: Operational Performance
Operational Performance Natural-Gas Throughput (mmci/a) Adjusted Gross Margin for Natural-Gas Assets ($/Mct) Crude-Oil and NGLs Throughput (mebis/a) Adjusted Gross Margin for Crude-Oil, and NGLs Assets ($/8b) Produced-Water Throughput (mebis/d) Adjusted Gross Margin for Produced-Water Assets ($/sbi)
Slide 7: Operational Achievements
Operational Achievernents Jee i, = Rt cee aa +$500 Million ee Capital Reduction a Impl : jf Ne >98% mp ementation Million System Availability |" \Wike tivesate 1 4 oe in O&M and “lie G&A Savings NUN 9 By $27 Mittion Si) > en ==. Asset Sale | pS Sie 0 Sa aa te LS Sa)
Slide 8: 2021 Preliminary Guidance
2021 Preliminary Guidance (§ in millions) Adjusted EBITDA! $1,825 - $1,925 “Total CapitalExpenditures? = S«*S TS GTS ‘LeverageTarget? box “Per-UnitCash Distribution’ = 12h Unit Repurchase Program $250
Slide 9: Financial Priorities
Ml Financial Priorities ~ S $ 94 Repurchased $6 96 5 a ibatons $2 99 sybacks $1 1 1 ome N million million million ~10% OF ENTERPRISE VALUE RETURNED TO STAKEHOLDERS = 4 . Ox » YE 2021 $43 HD atu >$ . 24 Distribution unt Baybee ie leverage million per unit
Slide 10: Focusing On People
000 CTNY Focusing On People improving the quality of life r workforce and nities. When they succeed, so will our company.
Slide 11: Q&A
Im oon Q&A
Slide 12: Appendix
APPENDIX
Slide 13: 2021 Adjusted EBITDA Guidance
2021 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION Other 11% of Asset EBITDA d Delaware Basin $1 825 Million 40% of Asset EBITDA ’ to 60% Gas “ye 19% Oil $1,925 Million vv Wen DJ Basin 37% of Asset EBITDA 84% Gas 7) Riludes GAA. Represents asset ee cash contbuton 0 EBITDA 16% Oil
Slide 14: 2021 Capital Guidance
2021 Capital Guidance Equity Investments DJ Basin a 18% Other 21% Delaware Basin 57% Well Connect 24% Equity Investments 4% Ns Maintenance 20% Expansion 37% $275 Million to $375 Million
Slide 15: WES Liquidity Profile
lc Y WES Liquidity Profile Liquidity Upcoming Maturities ($ in millions) RCF Capacity $1,995 Cash $138 1500 Maturities roo ($ in millions) Short-Term $431 500 2022-2024 $845 2025+ $6,650 | 0 Liquidity 2021 2022 2023 2024
Slide 16: Premier Asset Portfolio
Premier Asset Portfolio Value-Focused Portfolio! Revenue: 44% Delaware Basin, 36% DJ Basin GATHERING . 9 SYSTEMS Total Capital: 52% Delaware Basin, 37% DJ Basin PROCESSING & Direct Commodity Exposure Protection? TREATING FACILITIES 4 ~93% Fee-Based Gas Contracts NATURAL-GAS Yoo . 100% Fee-Based Liqu
Slide 17: Delaware Basin: Expansive Multi-Product Infrastructure
Delaware Basin: Expansive Multi-Product Infrastructure | Hohignts | - Highlights ; o74__ 1389139 1500 117811799272 1.214 1309 1,294 gig OKs 00% 1101 Gas, oil, and water services = 1000 = = 500 Backbone infrastructure in place ) Efficient and scalable capital investments 102018 202018 302018 4Q2018 1
Slide 18: Delaware Basin: Gas Infrastructure
Delaware Basin: Gas Infrastructure WES Gas Processing West Texas Complex 1.3 Bef/d Equity-Interest Gas Processing Mi Vida 200 MMct/d Ranch Westex 125 MMct/d EDDY LEA NEW MEXICO TEXAS RAMSEY LOVING CULBERSON MENTONE: WINKLER SMILES REEVES WARD MI VIDA RANCH WESTEX Gas Processing Plant Gas-Gathering L
Slide 19: Delaware Basin: Oil Infrastructure
Delaware Basin: Oil Infrastructure EDDY LEA NEW MEXICO. TEXAS IH LOVING LOVING CULBERSON Oil Treating WINKLER 255 MBbls/d Capacity “SMILES REEVES | a @® eesionarcitreating Facility —_ Oil Pipetines Federal Land (Surface and Mineral)
Slide 20: Delaware Basin: Water Infrastructure
Delaware Basin: Water Infrastructure EDDY LEA NEW MEXICO. TEXAS CULBERSON Salt-Water Disposal 975 MBbls/d Capacity @ Salt-Water Disposal Wells — Water Pipelines Federal Land (Surface and Mineral)
Slide 21: DJ Basin
DJ Basin Gas 9 407 ot mn Hightights ior 1119191485 1258 1,266 yyy, 129 Or az) 1.290 : Free-cash-flow positive : = 1000 : / = H Long-term, fee-based contracts ' Voie eee eee eee! ! 0 102018 202018 302018 402018 12019 202019 302019 402019 102020 202020 302020 Oil Weighted-Average Remaining Life’ 5 8p
Slide 22: DJ Basin
DJ Basin COLORADO LARIMER WELD Gas Processing 1,730 MMcf/d BOULDER Oil Stabilization 155 MBbls/d sms a ADAMS {4 Gas Processing Plant i G oitreating Facies — Pipelines (Oil and Gas) WATTENBERG PLAN Federal Land
Slide 23: Additional Portfolio Assets
Additional Portfolio Assets - \ Zavala PF trion } A aa t= ¢ Wyoming Utah Pennsylvania South Texas __ Bison Chipeta Marcellus Gas Gatherin Springfield Gathering Hilight Complex Pp 9 Brasada Gas Plant Granger Complex Red Desert Complex )In October 2020, the Partnership entered into an option agreement
Slide 24: Equity Investment Overview
Equity Investment Overview Equity Investment S| acatic Operator Rendezvous 22% ‘SW Wyoming ~450 MMcf/d natural-gas pipeline Marathon PROVIDES STABILITY AND DIVERSIFICATION OF MIDSTREAM SERVICE, CASH FLOW, AND CUSTOMER BASE STABLE CASH FLOWS SUPPORTED BY +80% MINIMUM-VOLUME COMMITMENTS OR COST-OF-SER
Slide 25: Reconciliation of Net income to Adjusted EBITDA
Three Months Ended thousands September 30, 2020 Reconciliation of Net income (loss) to Adjusted EBITDA Net income (loss) $ 254,135 Add: Distributions from equity investments 72,070 Non-cash equity-based compensation expense 5,616 Interest expense 95,571 Income tax expense 3,028 Depreciation and amor
Slide 26: Reconciliation of Operating Cash Flow to Adjusted EBITDA
Three Months Ended thousands September 30, 2020 Reconciliation of Net cash provided by operating activities to Adjusted EBITDA Net cash provided by operating activities $ 392,894 Interest (income) expense, net 92,285 Accretion and amortization of long-term obligations, net (2,185) Current income tax
Slide 27: Reconciliation of Operating Cash Flow to Free Cash Flow
Three Months Ended thousands September 30, 2020 Reconciliation of Net cash provided by operating activities to Free cash flow Net cash provided by operating activities $ 392,894 Less: Capital expenditures 59,197 Contributions to equity investments 2,953 Add: Distributions from equity investments in
Slide 28: Reconciliation of Operating Income to Adjusted Gross Margin
Three Months Ended thousands September 30, 2020 Reconciliation of Operating income (loss) to Adjusted gross margin Operating income (loss) $ 347,096 Add: Distributions from equity investments 72,070 Operation and maintenance 132,293 General and administrative 41,578 Property and other taxes 19,392 D
Western Midstream Partners — Q3 2020 Earnings Presentation on 6ix