Western Midstream Announces Fourth-Quarter and Full-Year 2021 Results
Western Midstream Partners, LP (WES) reported strong fourth-quarter 2021 results, with a net income of $238.2 million, leading to a full-year net income of $896.5 million. The fourth-quarter Adjusted EBITDA reached $480.9 million, contributing to a total of $1.947 billion for the year, surpassing guidance. Cash flows from operations were $661.9 million, and Free cash flow was $576.5 million in Q4 2021. WES anticipates a 53% distribution increase for Q1 2022 and initiated a $1 billion unit repurchase program. For 2022, WES expects Adjusted EBITDA between $1.925 billion and $2.025 billion.
- Full-year 2021 Adjusted EBITDA of $1.947 billion exceeded guidance of $1.825 billion to $1.925 billion.
- Fourth-quarter cash flows provided by operating activities totaled $661.9 million.
- New $1 billion unit repurchase program aims to enhance shareholder value.
- Expected 53% increase in distributions effective Q1 2022.
- Fourth-quarter net income included a non-cash revenue adjustment of $26.2 million.
- Full-year total natural gas throughput decreased by 3% year-over-year.
Announces 2022 Guidance and Annual Enhanced Distribution Framework
-
Reported fourth-quarter 2021 Net income attributable to limited partners of
$238.2 million $480.9 million $26.2 million -
Reported full-year 2021 Net income attributable to limited partners of
$896.5 million $1.94 7 billion$1.82 5 billion$1.92 5 billion -
Reported fourth-quarter 2021 Cash flows provided by operating activities of
$661.9 million $576.5 million -
Reported full-year 2021 Cash flows provided by operating activities of
$1.76 7 billion$1.49 0 billion - Achieved year-end 2021 leverage ratio(2) of approximately 3.6 times, or 3.5 times on a net(3) basis.
-
Provided 2022 Adjusted EBITDA(4) guidance range of
$1.92 5 billion$2.02 5 billion$375 million $475 million - Expect to declare a 53-percent distribution increase effective first-quarter 2022.
-
Immediately commencing a new
$1.0 billion
_____________________________________________________________________________________________ |
||
(1) |
|
Please see the definitions of the Partnership’s non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures. |
(2) |
|
Debt-to-Adjusted EBITDA (trailing twelve months). |
(3) |
|
The ratio of Net Debt (defined as total principal debt outstanding less total cash on-hand as of the end of the period) to Adjusted EBITDA (trailing twelve months). |
(4) |
|
A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss) is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding GAAP equivalent for the Adjusted EBITDA range. |
(5) |
|
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the |
RECENT HIGHLIGHTS
-
Surpassed projected year-end exit-rate throughput for all product lines, driven by increased producer activity levels in the
Delaware Basin . -
Maintained strong operational performance, with system availability above
99% for the second consecutive year. -
Repurchased 5,621,450 common units for aggregate consideration of
$113.1 million $250.0 million December 31, 2021 . Since third-quarter 2020, repurchased a total of 41,431,978 common units which represents approximately9% of total outstanding unit count as ofAugust 31, 2020 . -
Surpassed year-end leverage ratio(2) target of 4.0 times through the retirement of
$431.1 million $500.0 million -
Achieved full-year cash distribution guidance of
$1.24 $533.8 million - Received an upgrade for WES Operating’s long-term debt to “BBB-” from Standard & Poor’s, returning the Partnership to investment-grade.
______________________________________________________________________________________________ |
||
(1) |
|
Please see the definitions of the Partnership’s non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures. |
(2) |
|
Debt-to-Adjusted EBITDA (trailing twelve months). |
(3) |
|
The ratio of Net Debt (defined as total principal debt outstanding less total cash on-hand as of the end of the period) to Adjusted EBITDA (trailing twelve months). |
(4) |
|
Represents cash distributions paid during 2021. |
On
Net income (loss) attributable to limited partners and Adjusted EBITDA for the fourth quarter of 2021 include a non-cash decrease to revenue of approximately
“WES surpassed all of our financial metric expectations for 2021 through continued producer outperformance in the
____________________________________________________________________________________________ |
||
(1) |
|
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the |
Fourth-quarter 2021 total natural-gas throughput(1) averaged 4.2 Bcf/d, representing a 3-percent sequential-quarter increase and a 6-percent increase from fourth-quarter 2020. Fourth-quarter 2021 total throughput for crude-oil and NGLs assets(1) averaged 702 MBbls/d, representing a 10-percent sequential-quarter increase and a 13-percent increase from fourth-quarter 2020. Fourth-quarter 2021 total throughput for produced-water assets(1) averaged 792 MBbls/d, representing an 8-percent sequential-quarter increase and a 21-percent increase from fourth-quarter 2020.
Full-year 2021 total natural-gas throughput(1) averaged 4.1 Bcf/d, representing a 3-percent decrease from full-year 2020. Full-year 2021 total throughput for crude-oil and NGLs assets(1) averaged 659 MBbls/d, representing a 6-percent decrease from full-year 2020. Full-year 2021 total throughput for produced-water assets(1) averaged 703 MBbls/d, representing a 1-percent increase from full-year 2020.
2022 GUIDANCE
Based on the most current production-forecast information from our producer customers, WES is providing 2022 guidance as follows:
-
Adjusted EBITDA(2) between
$1.92 5 billion$2.02 5 billion -
Total capital expenditures(3) between
$375 million $475 million -
Free cash flow(2) between
$1.20 0 billion$1.30 0 billion -
Full-year 2022 distributions of at least
$2.00
“We expect strong producer activity levels to continue in the
____________________________________________________________________________________________ |
||
(1) |
|
Represents total throughput attributable to WES, which excludes (i) the |
(2) |
|
A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Free cash flow range to net cash provided by operating activities, is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding GAAP equivalent for the Adjusted EBITDA or Free cash flow ranges. |
(3) |
|
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the |
(4) |
|
Subject to Board review and approval on a quarterly basis based on the needs of the business. |
FINANCIAL POLICY AND ENHANCED DISTRIBUTION FRAMEWORK
Additionally, WES has recently refined its financial policy, including establishing a framework for paying an annual enhanced distribution (“Enhanced Distribution”) in conjunction with the regular first-quarter distribution (beginning in 2023), contingent on attainment of certain prior-year financial metrics. WES expects to generate substantial value for all stakeholders through three core pillars of reducing leverage, increasing distributions, and repurchasing units. As such, WES anticipates taking the following actions:
-
Retiring
$715 million - Based on current conditions and estimates, targeting approximately a 53-percent step-up in the Partnership’s regular quarterly distribution (“Base Distribution”) effective first-quarter 2022.
-
Commencing a new
$1.0 billion - Establishing a framework whereby an annual Enhanced Distribution would be payable in conjunction with the first-quarter Base Distribution each year (beginning in 2023) in a target amount equal to Free cash flow generated in the prior year after subtracting the prior year’s debt repayments, Base Distributions, and unit repurchases. This Enhanced Distribution is contingent on the attainment of prior year-end net leverage(1) levels, after taking the Enhanced Distribution for such prior year into effect, of 3.4 times in 2022, 3.2 times in 2023, and 3.0 times in 2024(2).
“Since becoming a stand-alone midstream enterprise, we’ve made significant changes throughout the organization that have greatly improved our financial performance and positioned us for continued success,” said
______________________________________________________________________________________________ |
||
(1) |
|
The ratio of Net Debt (defined as total principal debt outstanding less total cash on-hand as of the end of the period) to Adjusted EBITDA (trailing twelve months). |
(2) |
|
The enhanced distribution is subject to any continuing cash reserve requirements as determined by the Board. |
(3) |
|
Calculated using limited and general partner unit counts and total enterprise value as of |
As part of the Partnership’s financial policy, the Board has authorized a buyback program of up to
The common units may be purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. The timing and amount of purchases under the Purchase Program will be determined based on ongoing assessments of capital needs, WES’s financial performance, the market price of the common units, and other factors, including organic growth and acquisition opportunities and general market conditions. The Purchase Program does not obligate the Partnership to purchase any specific dollar amount or number of units and may be suspended or discontinued at any time.
CONFERENCE CALL TOMORROW AT
WES will host a conference call on
For additional details on WES’s financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.
FILING OF ANNUAL REPORT ON FORM 10-K
Today WES also announced the filing of its Annual Report on Form 10-K for the fiscal year ended
ABOUT
For more information about
This news release contains forward-looking statements. WES’s management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; the ultimate impact of efforts to fight COVID-19 on the global economy and any related impact on commodity demand and prices; our ability to safely and efficiently operate WES’s assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the “Risk Factors” section of WES’s most-recent Form 10-K filed with the
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
thousands except per-unit amounts |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenues and other |
|
|
|
|
|
|
|
|
||||||||
Service revenues – fee based |
|
$ |
621,093 |
|
|
$ |
603,777 |
|
|
$ |
2,462,835 |
|
|
$ |
2,584,323 |
|
Service revenues – product based |
|
|
34,317 |
|
|
|
13,132 |
|
|
|
122,584 |
|
|
|
48,369 |
|
Product sales |
|
|
63,588 |
|
|
|
30,068 |
|
|
|
290,947 |
|
|
|
138,559 |
|
Other |
|
|
212 |
|
|
|
503 |
|
|
|
789 |
|
|
|
1,341 |
|
Total revenues and other |
|
|
719,210 |
|
|
|
647,480 |
|
|
|
2,877,155 |
|
|
|
2,772,592 |
|
Equity income, net – related parties |
|
|
45,308 |
|
|
|
49,962 |
|
|
|
204,645 |
|
|
|
226,750 |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Cost of product |
|
|
72,040 |
|
|
|
34,477 |
|
|
|
322,285 |
|
|
|
188,088 |
|
Operation and maintenance |
|
|
147,102 |
|
|
|
144,204 |
|
|
|
581,300 |
|
|
|
580,874 |
|
General and administrative |
|
|
55,576 |
|
|
|
37,303 |
|
|
|
195,549 |
|
|
|
155,769 |
|
Property and other taxes |
|
|
18,275 |
|
|
|
11,077 |
|
|
|
64,267 |
|
|
|
68,340 |
|
Depreciation and amortization |
|
|
144,225 |
|
|
|
106,398 |
|
|
|
551,629 |
|
|
|
491,086 |
|
Long-lived asset and other impairments |
|
|
1,345 |
|
|
|
3,314 |
|
|
|
30,543 |
|
|
|
203,889 |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
441,017 |
|
Total operating expenses |
|
|
438,563 |
|
|
|
336,773 |
|
|
|
1,745,573 |
|
|
|
2,129,063 |
|
Gain (loss) on divestiture and other, net |
|
|
(234 |
) |
|
|
12,285 |
|
|
|
44 |
|
|
|
8,634 |
|
Operating income (loss) |
|
|
325,721 |
|
|
|
372,954 |
|
|
|
1,336,271 |
|
|
|
878,913 |
|
Interest income – |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,736 |
|
Interest expense |
|
|
(89,472 |
) |
|
|
(101,247 |
) |
|
|
(376,512 |
) |
|
|
(380,058 |
) |
Gain (loss) on early extinguishment of debt |
|
|
— |
|
|
|
862 |
|
|
|
(24,944 |
) |
|
|
11,234 |
|
Other income (expense), net |
|
|
390 |
|
|
|
413 |
|
|
|
(623 |
) |
|
|
1,025 |
|
Income (loss) before income taxes |
|
|
236,639 |
|
|
|
272,982 |
|
|
|
934,192 |
|
|
|
522,850 |
|
Income tax expense (benefit) |
|
|
(14,210 |
) |
|
|
2,206 |
|
|
|
(9,807 |
) |
|
|
5,998 |
|
Net income (loss) |
|
|
250,849 |
|
|
|
270,776 |
|
|
|
943,999 |
|
|
|
516,852 |
|
Net income (loss) attributable to noncontrolling interests |
|
|
7,332 |
|
|
|
6,885 |
|
|
|
27,707 |
|
|
|
(10,160 |
) |
Net income (loss) attributable to |
|
$ |
243,517 |
|
|
$ |
263,891 |
|
|
$ |
916,292 |
|
|
$ |
527,012 |
|
Limited partners’ interest in net income (loss): |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to |
|
$ |
243,517 |
|
|
$ |
263,891 |
|
|
$ |
916,292 |
|
|
$ |
527,012 |
|
General partner interest in net (income) loss |
|
|
(5,331 |
) |
|
|
(5,642 |
) |
|
|
(19,815 |
) |
|
|
(11,104 |
) |
Limited partners’ interest in net income (loss) |
|
$ |
238,186 |
|
|
$ |
258,249 |
|
|
$ |
896,477 |
|
|
$ |
515,908 |
|
Net income (loss) per common unit – basic |
|
$ |
0.58 |
|
|
$ |
0.62 |
|
|
$ |
2.18 |
|
|
$ |
1.18 |
|
Net income (loss) per common unit – diluted |
|
$ |
0.58 |
|
|
$ |
0.62 |
|
|
$ |
2.18 |
|
|
$ |
1.18 |
|
Weighted-average common units outstanding – basic |
|
|
407,212 |
|
|
|
415,597 |
|
|
|
411,309 |
|
|
|
435,554 |
|
Weighted-average common units outstanding – diluted |
|
|
408,454 |
|
|
|
415,907 |
|
|
|
412,022 |
|
|
|
435,624 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
|
|
|
||||||
thousands except number of units |
|
2021 |
|
2020 |
||||
Total current assets |
|
$ |
684,764 |
|
|
$ |
943,064 |
|
Net property, plant, and equipment |
|
|
8,512,907 |
|
|
|
8,709,945 |
|
Other assets |
|
|
2,075,408 |
|
|
|
2,177,018 |
|
Total assets |
|
$ |
11,273,079 |
|
|
$ |
11,830,027 |
|
Total current liabilities |
|
$ |
1,140,197 |
|
|
$ |
960,935 |
|
Long-term debt |
|
|
6,400,616 |
|
|
|
7,415,832 |
|
Asset retirement obligations |
|
|
298,275 |
|
|
|
260,283 |
|
Other liabilities |
|
|
338,231 |
|
|
|
297,765 |
|
Total liabilities |
|
|
8,177,319 |
|
|
|
8,934,815 |
|
Equity and partners’ capital |
|
|
|
|
||||
Common units (402,993,919 and 413,839,863 units issued and outstanding at |
|
|
2,966,955 |
|
|
|
2,778,339 |
|
General partner units (9,060,641 units issued and outstanding at |
|
|
(8,882 |
) |
|
|
(17,208 |
) |
Noncontrolling interests |
|
|
137,687 |
|
|
|
134,081 |
|
Total liabilities, equity, and partners’ capital |
|
$ |
11,273,079 |
|
|
$ |
11,830,027 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
|
|
Year Ended |
||||||
thousands |
|
2021 |
|
2020 |
||||
Cash flows from operating activities |
|
|
|
|
||||
Net income (loss) |
|
$ |
943,999 |
|
|
$ |
516,852 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
551,629 |
|
|
|
491,086 |
|
Long-lived asset and other impairments |
|
|
30,543 |
|
|
|
203,889 |
|
|
|
|
— |
|
|
|
441,017 |
|
(Gain) loss on divestiture and other, net |
|
|
(44 |
) |
|
|
(8,634 |
) |
(Gain) loss on early extinguishment of debt |
|
|
24,944 |
|
|
|
(11,234 |
) |
Cash paid to settle interest-rate swaps |
|
|
— |
|
|
|
(25,621 |
) |
Change in other items, net |
|
|
215,781 |
|
|
|
30,063 |
|
Net cash provided by operating activities |
|
$ |
1,766,852 |
|
|
$ |
1,637,418 |
|
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures |
|
$ |
(313,674 |
) |
|
$ |
(423,602 |
) |
Contributions to equity investments - related parties |
|
|
(4,435 |
) |
|
|
(19,388 |
) |
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
41,385 |
|
|
|
32,160 |
|
Proceeds from the sale of assets to third parties |
|
|
8,102 |
|
|
|
20,333 |
|
(Increase) decrease in materials and supplies inventory and other |
|
|
11,084 |
|
|
|
(57,757 |
) |
Net cash used in investing activities |
|
$ |
(257,538 |
) |
|
$ |
(448,254 |
) |
Cash flows from financing activities |
|
|
|
|
||||
Borrowings, net of debt issuance costs |
|
$ |
480,000 |
|
|
$ |
3,681,173 |
|
Repayments of debt |
|
|
(1,432,966 |
) |
|
|
(3,803,888 |
) |
Increase (decrease) in outstanding checks |
|
|
(21,631 |
) |
|
|
20,699 |
|
Distributions to Partnership unitholders |
|
|
(533,758 |
) |
|
|
(695,834 |
) |
Distributions to Chipeta noncontrolling interest owner |
|
|
(9,117 |
) |
|
|
(8,644 |
) |
Distributions to noncontrolling interest owner of WES Operating |
|
|
(14,984 |
) |
|
|
(15,434 |
) |
Net contributions from (distributions to) related parties |
|
|
8,533 |
|
|
|
24,466 |
|
Finance lease payments |
|
|
(6,513 |
) |
|
|
(14,207 |
) |
Unit repurchases |
|
|
(217,465 |
) |
|
|
(32,535 |
) |
Other |
|
|
(4,336 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
$ |
(1,752,237 |
) |
|
$ |
(844,204 |
) |
Net increase (decrease) in cash and cash equivalents |
|
$ |
(242,923 |
) |
|
$ |
344,960 |
|
Cash and cash equivalents at beginning of period |
|
|
444,922 |
|
|
|
99,962 |
|
Cash and cash equivalents at end of period |
|
$ |
201,999 |
|
|
$ |
444,922 |
|
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines Adjusted gross margin attributable to
WES defines 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 expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) interest income, (v) income tax benefit, (vi) other income, and (vii) the noncontrolling interest owners’ proportionate share of revenues and expenses.
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. Management considers Free cash flow an appropriate metric for assessing capital discipline, cost efficiency, and balance-sheet strength. Although Free cash flow is the metric used to assess WES’s ability to make distributions to unitholders, this measure should not be viewed as indicative of the actual amount of cash that is available for distributions or planned for distributions for a given period. Instead, Free cash flow should be considered indicative of the amount of cash that is available for distributions, debt repayments, and other general partnership purposes.
Below are reconciliations of (i) gross margin (GAAP) to Adjusted gross margin (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that Adjusted gross margin, Adjusted EBITDA, and Free cash flow are widely accepted financial indicators of WES’s financial performance compared to other publicly traded partnerships and are useful in assessing WES’s ability to incur and service debt, fund capital expenditures, and make distributions. Adjusted gross margin, Adjusted EBITDA, and Free cash flow as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES’s Adjusted gross margin, Adjusted EBITDA, and Free cash flow should be considered in conjunction with net income (loss) attributable to
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) |
||||||||||||
Adjusted Gross Margin |
||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||
thousands |
|
|
|
|
|
|
|
|
||||
Reconciliation of Gross margin to Adjusted gross margin |
|
|
|
|
|
|
|
|
||||
Total revenues and other |
|
$ |
719,210 |
|
$ |
763,840 |
|
$ |
2,877,155 |
|
$ |
2,772,592 |
Less: |
|
|
|
|
|
|
|
|
||||
Cost of product |
|
|
72,040 |
|
|
83,232 |
|
|
322,285 |
|
|
188,088 |
Depreciation and amortization |
|
|
144,225 |
|
|
139,002 |
|
|
551,629 |
|
|
491,086 |
Gross margin |
|
|
502,945 |
|
|
541,606 |
|
|
2,003,241 |
|
|
2,093,418 |
Add: |
|
|
|
|
|
|
|
|
||||
Distributions from equity investments |
|
|
60,054 |
|
|
62,711 |
|
|
254,901 |
|
|
278,797 |
Depreciation and amortization |
|
|
144,225 |
|
|
139,002 |
|
|
551,629 |
|
|
491,086 |
Less: |
|
|
|
|
|
|
|
|
||||
Reimbursed electricity-related charges recorded as revenues |
|
|
19,783 |
|
|
19,725 |
|
|
74,405 |
|
|
79,261 |
Adjusted gross margin attributable to noncontrolling interests (1) |
|
|
17,192 |
|
|
18,187 |
|
|
67,850 |
|
|
65,835 |
Adjusted gross margin |
|
$ |
670,249 |
|
$ |
705,407 |
|
$ |
2,667,516 |
|
$ |
2,718,205 |
Adjusted gross margin for natural-gas assets |
|
$ |
488,220 |
|
$ |
492,708 |
|
$ |
1,882,726 |
|
$ |
1,820,926 |
Adjusted gross margin for crude-oil and NGLs assets |
|
|
114,733 |
|
|
148,939 |
|
|
547,134 |
|
|
647,390 |
Adjusted gross margin for produced-water assets |
|
|
67,296 |
|
|
63,760 |
|
|
237,656 |
|
|
249,889 |
(1) |
|
For all periods presented, includes (i) the |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) |
||||||||||||||||
Adjusted EBITDA |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
thousands |
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
250,849 |
|
|
$ |
263,638 |
|
|
$ |
943,999 |
|
|
$ |
516,852 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Distributions from equity investments |
|
|
60,054 |
|
|
|
62,711 |
|
|
|
254,901 |
|
|
|
278,797 |
|
Non-cash equity-based compensation expense |
|
|
6,842 |
|
|
|
6,979 |
|
|
|
27,676 |
|
|
|
22,462 |
|
Interest expense |
|
|
89,472 |
|
|
|
93,257 |
|
|
|
376,512 |
|
|
|
380,058 |
|
Income tax expense |
|
|
— |
|
|
|
1,826 |
|
|
|
4,403 |
|
|
|
10,278 |
|
Depreciation and amortization |
|
|
144,225 |
|
|
|
139,002 |
|
|
|
551,629 |
|
|
|
491,086 |
|
Impairments |
|
|
1,345 |
|
|
|
1,594 |
|
|
|
30,543 |
|
|
|
644,906 |
|
Other expense |
|
|
216 |
|
|
|
4 |
|
|
|
1,468 |
|
|
|
1,953 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Gain (loss) on divestiture and other, net |
|
|
(234 |
) |
|
|
(364 |
) |
|
|
44 |
|
|
|
8,634 |
|
Gain (loss) on early extinguishment of debt |
|
|
— |
|
|
|
(24,655 |
) |
|
|
(24,944 |
) |
|
|
11,234 |
|
Equity income, net – related parties |
|
|
45,308 |
|
|
|
48,506 |
|
|
|
204,645 |
|
|
|
226,750 |
|
Interest income – |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,736 |
|
Other income |
|
|
392 |
|
|
|
109 |
|
|
|
585 |
|
|
|
2,785 |
|
Income tax benefit |
|
|
14,210 |
|
|
|
— |
|
|
|
14,210 |
|
|
|
4,280 |
|
Adjusted EBITDA attributable to noncontrolling interests (1) |
|
|
12,453 |
|
|
|
13,835 |
|
|
|
49,901 |
|
|
|
50,607 |
|
Adjusted EBITDA |
|
$ |
480,874 |
|
|
$ |
531,580 |
|
|
$ |
1,946,690 |
|
|
$ |
2,030,366 |
|
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
661,858 |
|
|
$ |
391,333 |
|
|
$ |
1,766,852 |
|
|
$ |
1,637,418 |
|
Interest (income) expense, net |
|
|
89,472 |
|
|
|
93,257 |
|
|
|
376,512 |
|
|
|
368,322 |
|
Accretion and amortization of long-term obligations, net |
|
|
(1,762 |
) |
|
|
(1,871 |
) |
|
|
(7,635 |
) |
|
|
(8,654 |
) |
Current income tax expense (benefit) |
|
|
(2,165 |
) |
|
|
824 |
|
|
|
(37 |
) |
|
|
2,702 |
|
Other (income) expense, net |
|
|
(390 |
) |
|
|
(110 |
) |
|
|
623 |
|
|
|
(1,025 |
) |
Cash paid to settle interest-rate swaps |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,621 |
|
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
11,310 |
|
|
|
8,702 |
|
|
|
41,385 |
|
|
|
32,160 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(147,139 |
) |
|
|
61,609 |
|
|
|
(16,366 |
) |
|
|
193,688 |
|
Accounts and imbalance payables and accrued liabilities, net |
|
|
(58,392 |
) |
|
|
(17,204 |
) |
|
|
(114,887 |
) |
|
|
(144,437 |
) |
Other items, net |
|
|
(59,465 |
) |
|
|
8,875 |
|
|
|
(49,856 |
) |
|
|
(24,822 |
) |
Adjusted EBITDA attributable to noncontrolling interests (1) |
|
|
(12,453 |
) |
|
|
(13,835 |
) |
|
|
(49,901 |
) |
|
|
(50,607 |
) |
Adjusted EBITDA |
|
$ |
480,874 |
|
|
$ |
531,580 |
|
|
$ |
1,946,690 |
|
|
$ |
2,030,366 |
|
Cash flow information |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
661,858 |
|
|
$ |
391,333 |
|
|
$ |
1,766,852 |
|
|
$ |
1,637,418 |
|
Net cash used in investing activities |
|
|
(70,251 |
) |
|
|
(80,883 |
) |
|
|
(257,538 |
) |
|
|
(448,254 |
) |
Net cash provided by (used in) financing activities |
|
|
(489,470 |
) |
|
|
(516,161 |
) |
|
|
(1,752,237 |
) |
|
|
(844,204 |
) |
(1) |
|
For all periods presented, includes (i) the |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) |
||||||||||||||||
Free Cash Flow |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
thousands |
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Net cash provided by operating activities to Free cash flow |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
661,858 |
|
|
$ |
391,333 |
|
|
$ |
1,766,852 |
|
|
$ |
1,637,418 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
95,917 |
|
|
|
79,829 |
|
|
|
313,674 |
|
|
|
423,602 |
|
Contributions to equity investments – related parties |
|
|
752 |
|
|
|
175 |
|
|
|
4,435 |
|
|
|
19,388 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
11,310 |
|
|
|
8,702 |
|
|
|
41,385 |
|
|
|
32,160 |
|
Free cash flow |
|
$ |
576,499 |
|
|
$ |
320,031 |
|
|
$ |
1,490,128 |
|
|
$ |
1,226,588 |
|
Cash flow information |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
661,858 |
|
|
$ |
391,333 |
|
|
$ |
1,766,852 |
|
|
$ |
1,637,418 |
|
Net cash used in investing activities |
|
|
(70,251 |
) |
|
|
(80,883 |
) |
|
|
(257,538 |
) |
|
|
(448,254 |
) |
Net cash provided by (used in) financing activities |
|
|
(489,470 |
) |
|
|
(516,161 |
) |
|
|
(1,752,237 |
) |
|
|
(844,204 |
) |
OPERATING STATISTICS (Unaudited) |
||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
Throughput for natural-gas assets (MMcf/d) |
|
|
|
|
|
|
|
|
||||
Gathering, treating, and transportation |
|
|
437 |
|
|
378 |
|
|
466 |
|
|
543 |
Processing |
|
|
3,409 |
|
|
3,416 |
|
|
3,374 |
|
|
3,445 |
Equity investments (1) |
|
|
513 |
|
|
443 |
|
|
463 |
|
|
445 |
Total throughput |
|
|
4,359 |
|
|
4,237 |
|
|
4,303 |
|
|
4,433 |
Throughput attributable to noncontrolling interests (2) |
|
|
155 |
|
|
156 |
|
|
155 |
|
|
159 |
Total throughput attributable to WES for natural-gas assets |
|
|
4,204 |
|
|
4,081 |
|
|
4,148 |
|
|
4,274 |
Throughput for crude-oil and NGLs assets (MBbls/d) |
||||||||||||
Gathering, treating, and transportation |
|
|
323 |
|
|
304 |
|
|
306 |
|
|
331 |
Equity investments (3) |
|
|
393 |
|
|
350 |
|
|
366 |
|
|
381 |
Total throughput |
|
|
716 |
|
|
654 |
|
|
672 |
|
|
712 |
Throughput attributable to noncontrolling interests (2) |
|
|
14 |
|
|
13 |
|
|
13 |
|
|
14 |
Total throughput attributable to WES for crude-oil and NGLs assets |
|
|
702 |
|
|
641 |
|
|
659 |
|
|
698 |
Throughput for produced-water assets (MBbls/d) |
|
|
|
|
|
|
|
|
||||
Gathering and disposal |
|
|
808 |
|
|
750 |
|
|
717 |
|
|
712 |
Throughput attributable to noncontrolling interests (2) |
|
|
16 |
|
|
15 |
|
|
14 |
|
|
14 |
Total throughput attributable to WES for produced-water assets |
|
|
792 |
|
|
735 |
|
|
703 |
|
|
698 |
Per-Mcf Adjusted gross margin for natural-gas assets (4) |
|
$ |
1.26 |
|
$ |
1.31 |
|
$ |
1.24 |
|
$ |
1.16 |
Per-Bbl Adjusted gross margin for crude-oil and NGLs assets (5) |
|
|
1.78 |
|
|
2.52 |
|
|
2.28 |
|
|
2.54 |
Per-Bbl Adjusted gross margin for produced-water assets (6) |
|
|
0.92 |
|
|
0.94 |
|
|
0.93 |
|
|
0.98 |
(1) |
|
Represents the |
(2) |
|
For all periods presented, includes (i) the |
(3) |
|
Represents the |
(4) |
|
Average for period. Calculated as Adjusted gross margin for natural-gas assets, divided by total throughput (MMcf/d) attributable to WES for natural-gas assets. |
(5) |
|
Average for period. Calculated as Adjusted gross margin for crude-oil and NGLs assets, divided by total throughput (MBbls/d) attributable to WES for crude-oil and NGLs assets. |
(6) |
|
Average for period. Calculated as Adjusted gross margin for produced-water assets, divided by total throughput (MBbls/d) attributable to WES for produced-water assets. |
OPERATING STATISTICS (CONTINUED) (Unaudited) |
||||||||
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
|
|
|
|
|
|
|
Throughput for natural-gas assets (MMcf/d) |
|
|
|
|
|
|
|
|
|
|
1,370 |
|
1,274 |
|
1,256 |
|
1,297 |
|
|
1,349 |
|
1,368 |
|
1,369 |
|
1,305 |
Equity investments |
|
513 |
|
443 |
|
463 |
|
445 |
Other |
|
1,127 |
|
1,152 |
|
1,215 |
|
1,386 |
Total throughput for natural-gas assets |
|
4,359 |
|
4,237 |
|
4,303 |
|
4,433 |
Throughput for crude-oil and NGLs assets (MBbls/d) |
|
|
||||||
|
|
199 |
|
185 |
|
183 |
|
189 |
|
|
92 |
|
87 |
|
90 |
|
101 |
Equity investments |
|
393 |
|
350 |
|
366 |
|
381 |
Other |
|
32 |
|
32 |
|
33 |
|
41 |
Total throughput for crude-oil and NGLs assets |
|
716 |
|
654 |
|
672 |
|
712 |
Throughput for produced-water assets (MBbls/d) |
|
|
||||||
|
|
808 |
|
750 |
|
717 |
|
712 |
Total throughput for produced-water assets |
|
808 |
|
750 |
|
717 |
|
712 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220222006290/en/
Senior Vice President, Finance and Sustainability
Kristen.Shults@westernmidstream.com
832.636.1009
Director, Investor Relations
Daniel.Jenkins@westernmidstream.com
832.636.1009
Manager, Investor Relations
Shelby.Keltner@westernmidstream.com
832.636.1009
Source:
FAQ
What are Western Midstream's fourth-quarter 2021 financial results for WES?
How much did WES generate in Free cash flow for Q4 2021?
What is the expected 2022 Adjusted EBITDA range for WES?
What distribution increase is WES planning for Q1 2022?
What is WES's new unit repurchase program?
