Western Midstream Announces Fourth-Quarter and Full-Year 2022 Results
Western Midstream Partners, LP (WES) reported strong financial results for Q4 and full-year 2022, with a net income of $328.6 million for Q4 and $1.190 billion for the full year. Adjusted EBITDA for 2022 totaled $2.128 billion, exceeding guidance. WES achieved a year-end net leverage ratio of 3.1 times and announced a quarterly Base Distribution of $0.50 per unit, correlating to an annualized $2.00 per unit for 2023. The company projects 2023 Adjusted EBITDA between $2.050 billion and $2.150 billion. An Enhanced Distribution of $140 million is anticipated, pending board approval. The firm expects to maintain strong free cash flow despite increasing capital expenditures.
- Q4 2022 Net income of $328.6 million, or $0.85 per common unit.
- Full-year 2022 Net income of $1.190 billion, achieving Adjusted EBITDA of $2.128 billion.
- Maintained a year-end net leverage ratio of 3.1 times, below the Enhanced Distribution threshold of 3.4 times.
- Repurchased 19.5 million common units for $487.6 million.
- Anticipated Enhanced Distribution of $140 million or $0.36 per unit for Q1 2023.
- Q4 2022 throughput for crude-oil and NGLs decreased by 9% sequentially.
- Fourth-quarter Free cash flow decreased from previous quarters, totaling $168.5 million.
Announces 2023 Guidance and 2022 Enhanced Distribution Expectation
-
Reported fourth-quarter 2022 Net income attributable to limited partners of
, generating fourth-quarter Adjusted EBITDA(1) of$328.6 million .$515.8 million -
Reported full-year 2022 Net income attributable to limited partners of
, generating full-year Adjusted EBITDA(1) of$1.19 0 billion , achieving the full-year 2022 Adjusted EBITDA guidance range of$2.12 8 billion to$2.12 5 billion .$2.22 5 billion -
Reported fourth-quarter 2022 Cash flows provided by operating activities of
, generating fourth-quarter Free cash flow(1) of$489.2 million .$365.6 million -
Reported full-year 2022 Cash flows provided by operating activities of
, generating full-year Free cash flow(1) of$1.70 1 billion , achieving the full-year 2022 Free cash flow guidance range of$1.26 8 billion to$1.25 0 billion .$1.35 0 billion - Achieved year-end 2022 net leverage ratio(2) of 3.1 times.
-
Repurchased 19,532,305 common units for aggregate consideration of
through$487.6 million December 31, 2022 . -
Provided 2023 Adjusted EBITDA(3) guidance range of
to$2.05 0 billion and total capital expenditures(4) range between$2.15 0 billion and$575.0 million .$675.0 million -
Expect to maintain a quarterly Base Distribution of
per unit, or$0.50 per unit annualized for full-year 2023.$2.00 -
Expect to announce an Enhanced Distribution of
, or approximately$140.0 million per unit, which if approved, would be paid in conjunction with the first-quarter 2023 Base Distribution.(5)$0.36
2022 HIGHLIGHTS
- Increased average throughput for natural-gas, crude-oil and NGLs, and produced-water by 1-percent, 3-percent, and 19-percent year-over-year, respectively.
-
Repurchased 19,532,305 common units for aggregate consideration of
through year-end, including 1,549,948 common units in the fourth quarter for an aggregate consideration of$487.6 million . This represents 39.0-percent of the$40.5 million common unit repurchase program, which runs through$1.25 0 billionDecember 31, 2024 . The total common units repurchased sinceSeptember 2020 now represent 13.7-percent of total unaffected units outstanding. - Achieved year-end 2022 net leverage ratio(2) of 3.1 times, which surpasses the 2022 Enhanced Distribution leverage threshold of 3.4 times.
-
Achieved full-year Base Distribution guidance of
per unit.$2.00 -
Acquired the remaining 50-percent interest in Ranch Westex JV for
and sold our 15-percent interest in Cactus II for$40.1 million .$264.8 million -
Executed multiple, long-term commercial agreements with some of our largest producers in the
Delaware Basin supported by either minimum volume commitments or acreage dedications and executed several agreements with new customers in theMaverick Basin .
On
Fourth-quarter 2022 natural-gas throughput(7) averaged 4.2 Bcf/d, representing a 1-percent sequential-quarter decrease and a 1-percent increase from fourth-quarter 2021. Fourth-quarter 2022 throughput for crude-oil and NGLs assets(7) averaged 649 MBbls/d, representing a 9-percent sequential-quarter decrease and an 8-percent decrease from fourth-quarter 2021. Fourth-quarter 2022 throughput for produced-water assets(7) averaged 851 MBbls/d, representing a 3-percent sequential-quarter decrease and a 7-percent increase from fourth-quarter 2021.
Full-year 2022 natural-gas throughput(7) averaged 4.2 Bcf/d, representing a 1-percent increase from full-year 2021. Full-year 2022 throughput for crude-oil and NGLs assets(7) averaged 676 MBbls/d, representing a 3-percent increase from full-year 2021. Full-year 2022 throughput for produced-water assets(7) averaged 836 MBbls/d, representing a 19-percent increase from full-year 2021.
“2022 was an incredibly successful year for WES. We grew average year-over-year throughput across all three products and generated the highest Net income and Adjusted EBITDA in our partnership’s history,” said
2022 ENHANCED DISTRIBUTION
“We have been able to meaningfully improve the health of our balance sheet and reduce net leverage from 4.6 times at year-end 2019 to 3.1 times at year-end 2022, which is significantly below our 2022 Enhanced Distribution threshold of 3.4 times,” said
“Our recommendation to pay an Enhanced Distribution reflects our strong Free cash flow profile and the value creation from non-core asset sales in 2022. We view our financial policy, specifically the Enhanced Distribution framework, as a way to generate additional value for our long-term unitholders and to further differentiate WES relative to its peers,” concluded
2023 GUIDANCE
Based on the most current production-forecast information from our producer customers, WES is providing 2023 guidance as follows:
-
Adjusted EBITDA(3) between
and$2.05 0 billion .$2.15 0 billion -
Total capital expenditures(4) between
and$575.0 million .$675.0 million -
Free cash flow(3) between
and$1.12 5 billion .$1.22 5 billion -
Full-year 2023 Base Distribution of at least
per unit(6), which excludes the impact of any potential Enhanced Distribution.$2.00
“Although our 2023 Adjusted EBITDA outlook is tempered relative to 2022, we expect our profitability to remain strong. Additionally, we are confident in our ability to generate substantial Free cash flow in 2023, even with an expected year-over-year increase in capital expenditures, which predominantly relates to the construction of Mentone Train III,” said
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; 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
______________________________________________________________
(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) |
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. |
|
(4) |
Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the |
|
(5) |
Board action on any Enhanced Distribution will be requested in April and is subject to the Board’s assessment of the needs of the business at that time. |
|
(6) |
Subject to Board review and approval on a quarterly basis based on the needs of the business. |
|
(7) |
Represents total throughput attributable to WES, which excludes (i) the |
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
thousands except per-unit amounts |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues and other |
|
|
|
|
|
|
|
|
||||||||
Service revenues – fee based |
|
$ |
647,948 |
|
|
$ |
621,093 |
|
|
$ |
2,602,053 |
|
|
$ |
2,462,835 |
|
Service revenues – product based |
|
|
46,971 |
|
|
|
34,317 |
|
|
|
249,692 |
|
|
|
122,584 |
|
Product sales |
|
|
84,268 |
|
|
|
63,588 |
|
|
|
399,023 |
|
|
|
290,947 |
|
Other |
|
|
250 |
|
|
|
212 |
|
|
|
953 |
|
|
|
789 |
|
Total revenues and other |
|
|
779,437 |
|
|
|
719,210 |
|
|
|
3,251,721 |
|
|
|
2,877,155 |
|
Equity income, net – related parties |
|
|
44,095 |
|
|
|
45,308 |
|
|
|
183,483 |
|
|
|
204,645 |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||||||
Cost of product |
|
|
92,663 |
|
|
|
72,040 |
|
|
|
420,900 |
|
|
|
322,285 |
|
Operation and maintenance |
|
|
166,923 |
|
|
|
147,102 |
|
|
|
654,566 |
|
|
|
581,300 |
|
General and administrative |
|
|
49,382 |
|
|
|
55,576 |
|
|
|
194,017 |
|
|
|
195,549 |
|
Property and other taxes |
|
|
18,065 |
|
|
|
18,275 |
|
|
|
78,559 |
|
|
|
64,267 |
|
Depreciation and amortization |
|
|
151,910 |
|
|
|
144,225 |
|
|
|
582,365 |
|
|
|
551,629 |
|
Long-lived asset and other impairments |
|
|
20,491 |
|
|
|
1,345 |
|
|
|
20,585 |
|
|
|
30,543 |
|
Total operating expenses |
|
|
499,434 |
|
|
|
438,563 |
|
|
|
1,950,992 |
|
|
|
1,745,573 |
|
Gain (loss) on divestiture and other, net |
|
|
104,560 |
|
|
|
(234 |
) |
|
|
103,676 |
|
|
|
44 |
|
Operating income (loss) |
|
|
428,658 |
|
|
|
325,721 |
|
|
|
1,587,888 |
|
|
|
1,336,271 |
|
Interest expense |
|
|
(84,606 |
) |
|
|
(89,472 |
) |
|
|
(333,939 |
) |
|
|
(376,512 |
) |
Gain (loss) on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
(24,944 |
) |
Other income (expense), net |
|
|
1,486 |
|
|
|
390 |
|
|
|
1,603 |
|
|
|
(623 |
) |
Income (loss) before income taxes |
|
|
345,538 |
|
|
|
236,639 |
|
|
|
1,255,643 |
|
|
|
934,192 |
|
Income tax expense (benefit) |
|
|
504 |
|
|
|
(14,210 |
) |
|
|
4,187 |
|
|
|
(9,807 |
) |
Net income (loss) |
|
|
345,034 |
|
|
|
250,849 |
|
|
|
1,251,456 |
|
|
|
943,999 |
|
Net income (loss) attributable to noncontrolling interests |
|
|
8,710 |
|
|
|
7,332 |
|
|
|
34,353 |
|
|
|
27,707 |
|
Net income (loss) attributable to |
|
$ |
336,324 |
|
|
$ |
243,517 |
|
|
$ |
1,217,103 |
|
|
$ |
916,292 |
|
Limited partners’ interest in net income (loss): |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to |
|
$ |
336,324 |
|
|
$ |
243,517 |
|
|
$ |
1,217,103 |
|
|
$ |
916,292 |
|
General partner interest in net (income) loss |
|
|
(7,747 |
) |
|
|
(5,331 |
) |
|
|
(27,541 |
) |
|
|
(19,815 |
) |
Limited partners’ interest in net income (loss) |
|
$ |
328,577 |
|
|
$ |
238,186 |
|
|
$ |
1,189,562 |
|
|
$ |
896,477 |
|
Net income (loss) per common unit – basic |
|
$ |
0.85 |
|
|
$ |
0.58 |
|
|
$ |
3.01 |
|
|
$ |
2.18 |
|
Net income (loss) per common unit – diluted |
|
$ |
0.85 |
|
|
$ |
0.58 |
|
|
$ |
3.00 |
|
|
$ |
2.18 |
|
Weighted-average common units outstanding – basic |
|
|
384,885 |
|
|
|
407,212 |
|
|
|
394,951 |
|
|
|
411,309 |
|
Weighted-average common units outstanding – diluted |
|
|
386,482 |
|
|
|
408,454 |
|
|
|
396,236 |
|
|
|
412,022 |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited) |
|||||||
|
|||||||
thousands except number of units |
|
|
|
|
|||
Total current assets |
|
$ |
900,425 |
|
$ |
684,764 |
|
Net property, plant, and equipment |
|
|
8,541,600 |
|
|
8,512,907 |
|
Other assets |
|
|
1,829,603 |
|
|
2,075,408 |
|
Total assets |
|
$ |
11,271,628 |
|
$ |
11,273,079 |
|
Total current liabilities |
|
$ |
903,857 |
|
$ |
1,140,197 |
|
Long-term debt |
|
|
6,569,582 |
|
|
6,400,616 |
|
Asset retirement obligations |
|
|
290,021 |
|
|
298,275 |
|
Other liabilities |
|
|
400,053 |
|
|
338,231 |
|
Total liabilities |
|
|
8,163,513 |
|
|
8,177,319 |
|
Equity and partners’ capital |
|
|
|
|
|||
Common units (384,070,984 and 402,993,919 units issued and outstanding at |
|
|
2,969,604 |
|
|
2,966,955 |
|
General partner units (9,060,641 units issued and outstanding at |
|
|
2,105 |
|
|
(8,882 |
) |
Noncontrolling interests |
|
|
136,406 |
|
|
137,687 |
|
Total liabilities, equity, and partners’ capital |
|
$ |
11,271,628 |
|
$ |
11,273,079 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
|
||||||||
|
|
Year Ended
|
||||||
thousands |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
|
||||
Net income (loss) |
|
$ |
1,251,456 |
|
|
$ |
943,999 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
582,365 |
|
|
|
551,629 |
|
Long-lived asset and other impairments |
|
|
20,585 |
|
|
|
30,543 |
|
(Gain) loss on divestiture and other, net |
|
|
(103,676 |
) |
|
|
(44 |
) |
(Gain) loss on early extinguishment of debt |
|
|
(91 |
) |
|
|
24,944 |
|
Change in other items, net |
|
|
(49,213 |
) |
|
|
215,781 |
|
Net cash provided by operating activities |
|
$ |
1,701,426 |
|
|
$ |
1,766,852 |
|
Cash flows from investing activities |
|
|
|
|
||||
Capital expenditures |
|
$ |
(487,228 |
) |
|
$ |
(313,674 |
) |
Acquisitions from third parties |
|
|
(40,127 |
) |
|
|
— |
|
Contributions to equity investments - related parties |
|
|
(9,632 |
) |
|
|
(4,435 |
) |
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
63,897 |
|
|
|
41,385 |
|
Proceeds from the sale of assets to related parties |
|
|
200 |
|
|
|
— |
|
Proceeds from the sale of assets to third parties |
|
|
264,121 |
|
|
|
8,102 |
|
(Increase) decrease in materials and supplies inventory and other |
|
|
(9,468 |
) |
|
|
11,084 |
|
Net cash used in investing activities |
|
$ |
(218,237 |
) |
|
$ |
(257,538 |
) |
Cash flows from financing activities |
|
|
|
|
||||
Borrowings, net of debt issuance costs |
|
$ |
1,389,010 |
|
|
$ |
480,000 |
|
Repayments of debt |
|
|
(1,518,548 |
) |
|
|
(1,432,966 |
) |
Increase (decrease) in outstanding checks |
|
|
2,206 |
|
|
|
(21,631 |
) |
Distributions to Partnership unitholders |
|
|
(735,755 |
) |
|
|
(533,758 |
) |
Distributions to Chipeta noncontrolling interest owner |
|
|
(10,736 |
) |
|
|
(9,117 |
) |
Distributions to noncontrolling interest owner of WES Operating |
|
|
(24,898 |
) |
|
|
(14,984 |
) |
Net contributions from (distributions to) related parties |
|
|
1,423 |
|
|
|
8,533 |
|
Unit repurchases |
|
|
(487,590 |
) |
|
|
(217,465 |
) |
Other |
|
|
(13,644 |
) |
|
|
(10,849 |
) |
Net cash provided by (used in) financing activities |
|
$ |
(1,398,532 |
) |
|
$ |
(1,752,237 |
) |
Net increase (decrease) in cash and cash equivalents |
|
$ |
84,657 |
|
|
$ |
(242,923 |
) |
Cash and cash equivalents at beginning of period |
|
|
201,999 |
|
|
|
444,922 |
|
Cash and cash equivalents at end of period |
|
$ |
286,656 |
|
|
$ |
201,999 |
|
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) |
||||||||||||
(Unaudited) |
||||||||||||
Adjusted Gross Margin |
||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||
thousands |
|
|
|
|
|
|
|
|
||||
Reconciliation of Gross margin to Adjusted gross margin |
|
|
|
|
|
|
|
|
||||
Total revenues and other |
|
$ |
779,437 |
|
$ |
837,568 |
|
$ |
3,251,721 |
|
$ |
2,877,155 |
Less: |
|
|
|
|
|
|
|
|
||||
Cost of product |
|
|
92,663 |
|
|
106,833 |
|
|
420,900 |
|
|
322,285 |
Depreciation and amortization |
|
|
151,910 |
|
|
156,837 |
|
|
582,365 |
|
|
551,629 |
Gross margin |
|
|
534,864 |
|
|
573,898 |
|
|
2,248,456 |
|
|
2,003,241 |
Add: |
|
|
|
|
|
|
|
|
||||
Distributions from equity investments |
|
|
69,282 |
|
|
58,957 |
|
|
250,050 |
|
|
254,901 |
Depreciation and amortization |
|
|
151,910 |
|
|
156,837 |
|
|
582,365 |
|
|
551,629 |
Less: |
|
|
|
|
|
|
|
|
||||
Reimbursed electricity-related charges recorded as revenues |
|
|
23,577 |
|
|
20,741 |
|
|
81,764 |
|
|
74,405 |
Adjusted gross margin attributable to noncontrolling interests (1) |
|
|
17,490 |
|
|
18,886 |
|
|
73,632 |
|
|
67,850 |
Adjusted gross margin |
|
$ |
714,989 |
|
$ |
750,065 |
|
$ |
2,925,475 |
|
$ |
2,667,516 |
|
|
|
|
|
|
|
|
|
||||
Gross margin |
|
|
|
|
|
|
|
|
||||
Gross margin for natural-gas assets (2) |
|
$ |
403,043 |
|
$ |
422,709 |
|
$ |
1,676,732 |
|
$ |
1,536,163 |
Gross margin for crude-oil and NGLs assets (2) |
|
|
75,690 |
|
|
90,581 |
|
|
346,406 |
|
|
287,391 |
Gross margin for produced-water assets (2) |
|
|
61,189 |
|
|
65,439 |
|
|
245,274 |
|
|
197,821 |
Adjusted gross margin |
|
|
|
|
|
|
|
|
||||
Adjusted gross margin for natural-gas assets |
|
$ |
492,591 |
|
$ |
521,117 |
|
$ |
2,031,600 |
|
$ |
1,882,726 |
Adjusted gross margin for crude-oil and NGLs assets |
|
|
150,611 |
|
|
153,225 |
|
|
607,769 |
|
|
547,134 |
Adjusted gross margin for produced-water assets |
|
|
71,787 |
|
|
75,723 |
|
|
286,106 |
|
|
237,656 |
(1) |
For all periods presented, includes (i) the |
|
(2) |
Excludes corporate-level depreciation and amortization. |
|
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Adjusted EBITDA |
||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
thousands |
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
$ |
345,034 |
|
|
$ |
273,581 |
|
|
$ |
1,251,456 |
|
|
$ |
943,999 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Distributions from equity investments |
|
|
69,282 |
|
|
|
58,957 |
|
|
|
250,050 |
|
|
|
254,901 |
|
Non-cash equity-based compensation expense |
|
|
6,538 |
|
|
|
6,464 |
|
|
|
27,783 |
|
|
|
27,676 |
|
Interest expense |
|
|
84,606 |
|
|
|
83,106 |
|
|
|
333,939 |
|
|
|
376,512 |
|
Income tax expense |
|
|
504 |
|
|
|
387 |
|
|
|
4,187 |
|
|
|
4,403 |
|
Depreciation and amortization |
|
|
151,910 |
|
|
|
156,837 |
|
|
|
582,365 |
|
|
|
551,629 |
|
Impairments |
|
|
20,491 |
|
|
|
4 |
|
|
|
20,585 |
|
|
|
30,543 |
|
Other expense |
|
|
209 |
|
|
|
165 |
|
|
|
555 |
|
|
|
1,468 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Gain (loss) on divestiture and other, net |
|
|
104,560 |
|
|
|
(104 |
) |
|
|
103,676 |
|
|
|
44 |
|
Gain (loss) on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
91 |
|
|
|
(24,944 |
) |
Equity income, net – related parties |
|
|
44,095 |
|
|
|
41,317 |
|
|
|
183,483 |
|
|
|
204,645 |
|
Other income |
|
|
1,484 |
|
|
|
58 |
|
|
|
1,648 |
|
|
|
585 |
|
Income tax benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,210 |
|
Adjusted EBITDA attributable to noncontrolling interests (1) |
|
|
12,654 |
|
|
|
13,406 |
|
|
|
54,049 |
|
|
|
49,901 |
|
Adjusted EBITDA |
|
$ |
515,781 |
|
|
$ |
524,824 |
|
|
$ |
2,127,973 |
|
|
$ |
1,946,690 |
|
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
489,219 |
|
|
$ |
468,768 |
|
|
$ |
1,701,426 |
|
|
$ |
1,766,852 |
|
Interest (income) expense, net |
|
|
84,606 |
|
|
|
83,106 |
|
|
|
333,939 |
|
|
|
376,512 |
|
Accretion and amortization of long-term obligations, net |
|
|
(1,783 |
) |
|
|
(1,773 |
) |
|
|
(7,142 |
) |
|
|
(7,635 |
) |
Current income tax expense (benefit) |
|
|
262 |
|
|
|
550 |
|
|
|
2,188 |
|
|
|
(37 |
) |
Other (income) expense, net |
|
|
(1,486 |
) |
|
|
(56 |
) |
|
|
(1,603 |
) |
|
|
623 |
|
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
22,839 |
|
|
|
15,651 |
|
|
|
63,897 |
|
|
|
41,385 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable, net |
|
|
(96,659 |
) |
|
|
(66,875 |
) |
|
|
116,296 |
|
|
|
(16,366 |
) |
Accounts and imbalance payables and accrued liabilities, net |
|
|
72,881 |
|
|
|
17,840 |
|
|
|
7,812 |
|
|
|
(114,887 |
) |
Other items, net |
|
|
(41,444 |
) |
|
|
21,019 |
|
|
|
(34,791 |
) |
|
|
(49,856 |
) |
Adjusted EBITDA attributable to noncontrolling interests (1) |
|
|
(12,654 |
) |
|
|
(13,406 |
) |
|
|
(54,049 |
) |
|
|
(49,901 |
) |
Adjusted EBITDA |
|
$ |
515,781 |
|
|
$ |
524,824 |
|
|
$ |
2,127,973 |
|
|
$ |
1,946,690 |
|
Cash flow information |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
489,219 |
|
|
$ |
468,768 |
|
|
$ |
1,701,426 |
|
|
$ |
1,766,852 |
|
Net cash used in investing activities |
|
|
138,015 |
|
|
|
(185,305 |
) |
|
|
(218,237 |
) |
|
|
(257,538 |
) |
Net cash provided by (used in) financing activities |
|
|
(499,671 |
) |
|
|
(221,804 |
) |
|
|
(1,398,532 |
) |
|
|
(1,752,237 |
) |
(1) |
For all periods presented, includes (i) the |
|
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
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 |
|
$ |
489,219 |
|
|
$ |
468,768 |
|
|
$ |
1,701,426 |
|
|
$ |
1,766,852 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
145,723 |
|
|
|
150,148 |
|
|
|
487,228 |
|
|
|
313,674 |
|
Contributions to equity investments – related parties |
|
|
733 |
|
|
|
3,859 |
|
|
|
9,632 |
|
|
|
4,435 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Distributions from equity investments in excess of cumulative earnings – related parties |
|
|
22,839 |
|
|
|
15,651 |
|
|
|
63,897 |
|
|
|
41,385 |
|
Free cash flow |
|
$ |
365,602 |
|
|
$ |
330,412 |
|
|
$ |
1,268,463 |
|
|
$ |
1,490,128 |
|
Cash flow information |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
489,219 |
|
|
$ |
468,768 |
|
|
$ |
1,701,426 |
|
|
$ |
1,766,852 |
|
Net cash used in investing activities |
|
|
138,015 |
|
|
|
(185,305 |
) |
|
|
(218,237 |
) |
|
|
(257,538 |
) |
Net cash provided by (used in) financing activities |
|
|
(499,671 |
) |
|
|
(221,804 |
) |
|
|
(1,398,532 |
) |
|
|
(1,752,237 |
) |
|
||||||||||||
OPERATING STATISTICS |
||||||||||||
(Unaudited) |
||||||||||||
|
||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
Throughput for natural-gas assets (MMcf/d) |
|
|
|
|
|
|
|
|
||||
Gathering, treating, and transportation |
|
|
402 |
|
|
418 |
|
|
409 |
|
|
466 |
Processing |
|
|
3,520 |
|
|
3,544 |
|
|
3,474 |
|
|
3,374 |
Equity investments (1) |
|
|
463 |
|
|
473 |
|
|
483 |
|
|
463 |
Total throughput |
|
|
4,385 |
|
|
4,435 |
|
|
4,366 |
|
|
4,303 |
Throughput attributable to noncontrolling interests (2) |
|
|
154 |
|
|
161 |
|
|
156 |
|
|
155 |
Total throughput attributable to WES for natural-gas assets |
|
|
4,231 |
|
|
4,274 |
|
|
4,210 |
|
|
4,148 |
Throughput for crude-oil and NGLs assets (MBbls/d) |
|
|
|
|
|
|
|
|
||||
Gathering, treating, and transportation |
|
|
315 |
|
|
319 |
|
|
317 |
|
|
306 |
Equity investments (1) |
|
|
347 |
|
|
411 |
|
|
373 |
|
|
366 |
Total throughput |
|
|
662 |
|
|
730 |
|
|
690 |
|
|
672 |
Throughput attributable to noncontrolling interests (2) |
|
|
13 |
|
|
15 |
|
|
14 |
|
|
13 |
Total throughput attributable to WES for crude-oil and NGLs assets |
|
|
649 |
|
|
715 |
|
|
676 |
|
|
659 |
Throughput for produced-water assets (MBbls/d) |
|
|
|
|
|
|
|
|
||||
Gathering and disposal |
|
|
868 |
|
|
895 |
|
|
853 |
|
|
717 |
Throughput attributable to noncontrolling interests (2) |
|
|
17 |
|
|
18 |
|
|
17 |
|
|
14 |
Total throughput attributable to WES for produced-water assets |
|
|
851 |
|
|
877 |
|
|
836 |
|
|
703 |
Per-Mcf Gross margin for natural-gas assets (3) |
|
$ |
1.00 |
|
$ |
1.04 |
|
$ |
1.05 |
|
$ |
0.98 |
Per-Bbl Gross margin for crude-oil and NGLs assets (3) |
|
|
1.24 |
|
|
1.35 |
|
|
1.38 |
|
|
1.17 |
Per-Bbl Gross margin for produced-water assets (3) |
|
|
0.77 |
|
|
0.79 |
|
|
0.79 |
|
|
0.76 |
|
|
|
|
|
|
|
|
|
||||
Per-Mcf Adjusted gross margin for natural-gas assets (4) |
|
$ |
1.27 |
|
$ |
1.33 |
|
$ |
1.32 |
|
$ |
1.24 |
Per-Bbl Adjusted gross margin for crude-oil and NGLs assets (4) |
|
|
2.53 |
|
|
2.33 |
|
|
2.46 |
|
|
2.28 |
Per-Bbl Adjusted gross margin for produced-water assets (4) |
|
|
0.92 |
|
|
0.94 |
|
|
0.94 |
|
|
0.93 |
(1) |
Represents our share of average throughput for investments accounted for under the equity method of accounting. |
|
(2) |
For all periods presented, includes (i) the |
|
(3) |
Average for period. Calculated as Gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) for natural-gas assets, crude-oil and NGLs assets, or produced-water assets. |
|
(4) |
Average for period. Calculated as Adjusted Gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) attributable to WES for natural-gas assets, crude-oil and NGLs assets, or produced-water assets. |
|
||||||||
OPERATING STATISTICS (CONTINUED) |
||||||||
(Unaudited) |
||||||||
|
||||||||
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
|
|
|
|
|
|
|
Throughput for natural-gas assets (MMcf/d) |
|
|
|
|
|
|
|
|
|
|
1,524 |
|
1,536 |
|
1,470 |
|
1,256 |
|
|
1,343 |
|
1,326 |
|
1,331 |
|
1,369 |
Equity investments |
|
463 |
|
473 |
|
483 |
|
463 |
Other |
|
1,055 |
|
1,100 |
|
1,082 |
|
1,215 |
Total throughput for natural-gas assets |
|
4,385 |
|
4,435 |
|
4,366 |
|
4,303 |
Throughput for crude-oil and NGLs assets (MBbls/d) |
|
|
|
|
|
|
|
|
|
|
203 |
|
199 |
|
198 |
|
183 |
|
|
77 |
|
81 |
|
82 |
|
90 |
Equity investments |
|
347 |
|
411 |
|
373 |
|
366 |
Other |
|
35 |
|
39 |
|
37 |
|
33 |
Total throughput for crude-oil and NGLs assets |
|
662 |
|
730 |
|
690 |
|
672 |
Throughput for produced-water assets (MBbls/d) |
|
|
|
|
|
|
|
|
|
|
868 |
|
895 |
|
853 |
|
717 |
Total throughput for produced-water assets |
|
868 |
|
895 |
|
853 |
|
717 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005168/en/
Director, Investor Relations
Daniel.Jenkins@westernmidstream.com
832.636.1009
Manager, Investor Relations
Shelby.Keltner@westernmidstream.com
832.636.1009
Source:
FAQ
What were Western Midstream's Q4 2022 financial results?
What is the 2023 guidance for WES?
What is the Enhanced Distribution expected from WES?
How much did WES spend on unit repurchases?