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WES · Western Midstream Partners

15 filings

10-K

WES 10-K Annual Reports

Western Midstream Partners - 15 annual reports

Filing record · 2016–202610-K1210-Q368-K108

2025
Western Midstream Partners Annual Report, Year Ended Dec 31, 2025
Western Midstream Partners, LP (NYSE: WES) reported fiscal 2025 results in this Form 10-K filed February 18, 2026. Total revenues and other were $3,843,403 thousand in 2025 versus $3,605,223 thousand in 2024, and net income attributable to Western Midstream Partners, LP was $1,180,983 thousand versus $1,573,571 thousand. The 2024 result was boosted by $296,771 thousand of gains on divestiture and other, net, and 2025 included $120.5 million of acquisition-related G&A tied to the Aris Water Solutions acquisition, which closed October 15, 2025 for a transaction valued at $2.0 billion. Adjusted EBITDA rose to $2,480,782 thousand from $2,344,038 thousand, and Free Cash Flow rose to $1,526,025 thousand from $1,324,164 thousand. The Aris acquisition substantially expanded the produced-water business, with produced-water throughput for the Delaware Basin reaching 1,608 MBbls/d in 2025 versus 1,147 MBbls/d in 2024. Fee-based service revenues were $3,453,052 thousand, and the filing states that 97% of wellhead natural-gas volume and 100% of crude-oil and produced-water throughput (excluding equity investments) were served under fee-based contracts. Occidental remains the dominant counterparty: it owns the general partner and, as stated in the filing, provided 60% of total revenues and other on an excluding-equity-investments basis. Subsequent to year-end, the company agreed to a unit redemption with Occidental for approximately 15.3 million common units on February 3, 2026, after which Occidental is stated to hold 38.3% of outstanding common units. Liquidity remained substantial. Cash and cash equivalents were $819,491 thousand at December 31, 2025, the effective RCF borrowing capacity was $2.0 billion, and the working capital surplus was $420.5 million. Total debt carrying value was $8.6 billion. The board declared a fourth-quarter 2025 distribution of $0.910 per unit, unchanged from the prior quarter, and 2026 capital expenditures are expected to range from $850.0 million to $1.0 billion.
Feb 18, 2026
2024
Western Midstream Partners Annual Report, Year Ended Dec 31, 2024
Western Midstream Partners, LP (NYSE: WES) reported full-year 2024 results in its Form 10-K filed February 26, 2025. Total revenues and other rose to $3.61 billion in 2024 from $3.11 billion in 2023, and net income attributable to Western Midstream Partners, LP was $1.57 billion versus $1.02 billion. Adjusted EBITDA was $2.34 billion compared with $2.07 billion in 2023, and Free Cash Flow was $1.32 billion versus $0.96 billion. The company reported that 95% of its wellhead natural-gas volume and 100% of its crude-oil and produced-water throughput (excluding equity investments) were serviced under fee-based contracts in 2024. The partnership divested several non-core interests in 2024, including its 33.75% Marcellus Interest systems for $206.2 million and several equity investments to third parties for $588.6 million in combined proceeds. It also issued $800.0 million of 5.450% Senior Notes due 2034, retired $150.0 million of senior notes through open-market repurchases, and reported $2.0 billion of effective borrowing capacity under its revolving credit facility as of December 31, 2024. In February 2025, the Board authorized a new buyback program of up to $250.0 million through December 31, 2026, and the fourth-quarter 2024 distribution was declared at $0.875 per unit, unchanged from the prior quarter. Investors should note the concentration of revenue with Occidental Petroleum, which accounted for 60% of total revenues and other in 2024 and owns the general partner and about 43.5% of common units. The filing also cites the expected completion of the North Loving Plant in the first quarter of 2025 and 2025 capital expenditures guided to between $625.0 million and $775.0 million.
Feb 26, 2025
2023
Western Midstream Partners Annual Report, Year Ended Dec 31, 2023
Western Midstream Partners, LP (NYSE: WES) reported fiscal 2023 results in this Form 10-K filed February 21, 2024. Total revenues and other were $3,106,476 thousand ($3.11 billion) versus $3,251,721 thousand in 2022, while net income attributable to Western Midstream Partners, LP was $1,022,216 thousand versus $1,217,103 thousand. Adjusted EBITDA was $2,068,633 thousand compared with $2,127,973 thousand, and Free cash flow was $964,205 thousand compared with $1,268,463 thousand. Operating cash flow was $1,661,334 thousand. Growth came mainly from the October 2023 acquisition of Meritage Midstream Services II, LLC for $885.0 million, which expanded the Powder River Basin complex, alongside higher natural-gas and produced-water throughput. Crude-oil and NGLs throughput declined 4%. The balance sheet carried total debt of $7.9 billion at December 31, 2023, with a $311.6 million working capital deficit attributed mainly to commercial paper classified as short-term debt. Fitch upgraded WES Operating's long-term debt to BBB-, and the company's senior unsecured ratings are now investment grade at S&P, Moody's and Fitch. Occidental Petroleum owns the general partner and held 48.8% of outstanding common units. Management declared a fourth-quarter 2023 distribution of $0.575 per unit, and $627.8 million remained authorized under the $1.25 billion unit repurchase program. Subsequent to year end, on February 21, 2024, the Partnership announced agreements to divest its 33.75% Marcellus Interest, 15% Panola, 25% Mont Belvieu JV, 20% Whitethorn LLC and 20% Saddlehorn interests for combined proceeds of $790.0 million and an estimated net gain of approximately $300.0 million. The Mont Belvieu JV and Whitethorn sales closed on February 16, 2024 and resolved related lawsuits. The remaining sales are expected to close in the first or second quarter of 2024.
Feb 21, 2024
2022-A
Western Midstream Partners Annual Report (Amendment), Year Ended Dec 31, 2022
This Part III disclosure from Western Midstream Partners, LP (WES) covers 2022 executive compensation for its named executive officers: Michael P. Ure (President and CEO), Kristen S. Shults (SVP and CFO, promoted May 2, 2022), Christopher B. Dial, Robert W. Bourne, Catherine A. Green, and former SVP and Co-COO Craig W. Collins, who left WES effective November 11, 2022. The filing states that WES has substantially completed its shift to becoming a functionally independent company and that the Board is focused on cost efficiencies, service quality, safety and reliability, and a balanced approach to distributions, debt reduction, and common unit repurchases. The Board established a Compensation Committee in February 2022. Pay is weighted toward at-risk compensation: the filing states that more than 77% of executive officer pay is at risk, that 88% of the CEO's target direct compensation is performance- or time-based, and that 77% of the other NEOs' target direct compensation is at risk on average. The 2022 performance results cited in the filing include year-end net leverage of approximately 3.1 times against an enhanced distribution target of 3.4 times, and Adjusted EBITDA of $2,127.9 million against a $1,975 million target. Free cash flow was $1,357.8 million against a $1,250 million target, and the Board approved a 157% payout under the 2022 WES Cash Bonus Program. The 2020 performance unit awards paid out at 163.3% of target for ROA units and 150% for TUR units. WES had repurchased 19,532,305 units for $487.6 million, which the filing says is 39% of a $1.25 billion repurchase program. CEO Ure's 2022 total compensation was $7,648,005, and the filing reports a CEO pay ratio of 46 times the median employee's total annual compensation of $166,363, based on 1,217 employees. Collins's 2022 total of $5,048,486 includes $1,906,098 in All Other Compensation, which includes severance-related benefits under the Executive Severance Plan.
Feb 23, 2023
2022
Western Midstream Partners Annual Report, Year Ended Dec 31, 2022
Western Midstream Partners, LP (NYSE: WES) reported full-year 2022 results in this Form 10-K filed February 22, 2023. Total revenues and other were $3,251,721 thousand for 2022, up from $2,877,155 thousand in 2021, and net income attributable to Western Midstream Partners, LP was $1,217,103 thousand, compared with $916,292 thousand in 2021. Adjusted EBITDA was $2,127,973 thousand, and Free cash flow was $1,268,463 thousand, down from $1,490,128 thousand in 2021. Management highlighted that 93% of wellhead natural-gas volume and 100% of crude-oil and produced-water throughput (excluding equity investments) were served under fee-based contracts in 2022. The partnership repurchased 19,532,305 common units for $487.6 million during 2022, including 10,000,000 units bought from Occidental Petroleum, which owns the general partner and 48.4% of common units. The Board raised the unit repurchase authorization from $1.0 billion to $1.25 billion in November 2022, with $762.4 million remaining at year-end. The quarterly distribution was held at $0.50 per unit for the fourth quarter of 2022, and the filing notes that an Enhanced Distribution tied to prior-year Free cash flow is planned for 2023 onward, subject to Board discretion and leverage targets. Balance-sheet and portfolio actions included the sale of the 15% Cactus II interest for $264.8 million (net gain of $109.9 million), the acquisition of the remaining 50% of Ranch Westex for $40.1 million, and the redemption of $502.2 million of 4.000% senior notes due 2022. Carrying value of outstanding debt was $6.8 billion at year-end, the RCF had $1.6 billion of available capacity, and the filing states that S&P upgraded WES Operating's long-term debt to BBB- in January 2022. Occidental remains the dominant customer, accounting for 55% of total revenues and other.
Feb 22, 2023
2021
Western Midstream Partners Annual Report, Year Ended Dec 31, 2021
Western Midstream Partners, LP (NYSE: WES) reported its annual results for the year ended December 31, 2021 in this Form 10-K filed February 23, 2022. The Partnership is a midstream master limited partnership that gathers, compresses, treats, processes and transports natural gas, gathers and transports condensate, NGLs and crude oil, and gathers and disposes of produced water, with assets in Texas, New Mexico, the Rocky Mountains and North-central Pennsylvania. Occidental Petroleum owns the general partner and held 49.7% of common units as of December 31, 2021, and Occidental accounted for 57% of total revenues and other for the year. Total revenues and other were $2.88 billion in 2021 versus $2.77 billion in 2020, and net income attributable to the Partnership was $916.3 million versus $527.0 million. Adjusted EBITDA was $1.95 billion, down from $2.03 billion, and free cash flow rose to $1.49 billion from $1.23 billion. Balance sheet and capital allocation were central to 2021. Total assets were $11.27 billion and long-term debt was $6.40 billion, with the 4.000% Senior Notes due 2022 ($502.1 million) classified as short-term and producing a $455.4 million working capital deficit. The Partnership redeemed $431.1 million of 5.375% Senior Notes due 2021, repurchased $500.0 million of senior notes via tender offer, and completed a $250.0 million unit buyback, then authorized a new buyback of up to $1.0 billion through December 31, 2024 in February 2022. The quarterly distribution for the fourth quarter of 2021 was $0.32700 per unit, and 2022 capital expenditures are estimated at $375.0 million to $475.0 million. S&P upgraded WES Operating's long-term debt to BBB- in January 2022. The filing also discloses risks investors should weigh, including dependence on Occidental, exposure to producer activity levels in the Delaware and DJ Basins, a material weakness-free internal control assessment by KPMG, an impairment-related critical audit matter, and an ongoing dispute with Occidental over DJ Basin oil-gathering cost-of-service rates. Weather from winter storm Uri reduced net income and Adjusted EBITDA by approximately $30 million in 2021.
Feb 23, 2022
2020
Western Midstream Partners Annual Report, Year Ended Dec 31, 2020
Western Midstream Partners, LP (NYSE: WES) reported for fiscal 2020 a midstream business with operating income of $878.9 million, net income of $516.9 million, and Adjusted EBITDA of $2,030.4 million, up from $1,719.1 million in 2019. Operating income included goodwill and long-lived asset impairments of $644.9 million, including a $441.0 million goodwill impairment for the gathering and processing reporting unit. Free cash flow was $1,227.1 million, versus $37.1 million in 2019, and net cash provided by operating activities was $1,637.4 million. Occidental Petroleum, which owns the general partner, held 214,281,578 common units (50.7% limited partner interest) as of December 31, 2020, and accounted for 66% of total revenues and other. The partnership reduced its quarterly distribution by 50% during 2020 to $0.31100 per unit, and the fourth-quarter 2020 distribution of $0.31100 was paid February 12, 2021. The company guided to 2021 total capital expenditures of $275.0 million to $375.0 million and a full-year 2021 distribution of at least $1.24 per unit. Total debt carrying value was $7.9 billion at year-end, and WES Operating's credit ratings were downgraded below investment grade by Fitch, S&P, and Moody's in 2020, increasing annualized borrowing costs by $43.0 million. The company also announced a $250.0 million common unit buyback through December 31, 2021, under which 2,368,711 units had been repurchased for $32.5 million by year-end. Key risks disclosed include dependence on Occidental for over 50% of revenues, a $441.0 million goodwill impairment and further potential long-lived asset impairments, the pending Sanchez bankruptcy rejection attempt affecting Springfield and Brasada assets, an EPA/Colorado enforcement action against a subsidiary at the Fort Lupton facility, and a lawsuit against Enterprise over Mont Belvieu revenue allocation.
Feb 26, 2021
2019
Western Midstream Partners Annual Report, Year Ended Dec 31, 2019
Western Midstream Partners, LP (NYSE: WES) reported a 2019 year in which it completed the Merger with Western Midstream Operating, LP on February 28, 2019, and acquired the Anadarko Midstream Assets (AMA) in February 2019 for approximately $2.0 billion in cash, following the August 2019 acquisition of Anadarko by Occidental Petroleum. Total revenues and other were $2,746.2 million in 2019 versus $2,299.7 million in 2018, operating income was $1,231.3 million versus $861.3 million, and net income attributable to Western Midstream Partners, LP was $697.2 million versus $551.6 million. Adjusted EBITDA rose to $1,719.1 million from $1,466.4 million, and distributable cash flow was $1,325.4 million, giving a coverage ratio of 1.18x for distributions declared for 2019. The partnership's business remains heavily dependent on Occidental, which accounted for 59% of total revenues and other and over 50% of revenues related to the volumes it gathers, treats, processes, transports and disposes; 93% of wellhead natural-gas volume and 100% of crude-oil, NGLs and produced-water throughput (excluding equity investments) were under fee-based contracts. Net cash provided by operating activities was $1,324.1 million, versus $1,348.2 million in 2018, reflecting cash payments of $107.7 million to settle interest-rate swaps. Capital expenditures totaled $1,188.8 million, and total debt principal was $8.0 billion at year-end, with $1.6 billion available under the $2.0 billion revolving credit facility. At year-end 2019, the quarterly distribution was $0.62200 per unit, or $281.8 million in aggregate, and the company stated that it expects 2020 total capital expenditures of $875.0 million to $950.0 million. In late 2019, the December 2019 Agreements with Occidental terminated the omnibus agreements, established a Services Agreement, and amended debt agreements; in January 2020 the company issued $2.2 billion of senior notes and $300.0 million of floating rate notes to repay its $3.0 billion term loan.
Feb 27, 2020
2018
Western Midstream Partners Annual Report, Year Ended Dec 31, 2018
Western Gas Equity Partners, LP (WGP) is a Delaware MLP formed by Anadarko whose only cash-generating assets are its partnership interests in Western Gas Partners, LP (WES): a 1.5% general partner interest, 100% of the incentive distribution rights, and 50,132,046 WES common units representing a 29.6% limited partner interest. WGP consolidates WES, which operates gathering, processing, treating, transportation and produced water disposal assets in the Rocky Mountains, North-central Pennsylvania, Texas and New Mexico. For 2018, WES reported total revenues and other of $1.99 billion, operating income of $625.4 million, net income attributable to WGP of $369.4 million ($1.69 per common unit), and Adjusted EBITDA of $1.21 billion. Distributions to WGP unitholders were $2.34875 per unit for 2018, and the fourth-quarter 2018 distribution was raised to $0.60250 per unit. The filing's most significant event is the pending Merger, announced November 7, 2018 and expected to close in the first quarter of 2019. Under the Merger Agreement, WGP will acquire WES, WGP will be renamed Western Midstream Partners, LP, and its units will trade under the symbol "WES." Anadarko's midstream assets are contributed to WES in exchange for $1.814 billion in cash (less an intercompany note) and 45,760,201 WES common units, plus $193.9 million in cash for Saddlehorn and Panola interests. WES unitholders are to receive WGP units, and the transaction is funded by a $2.0 billion 364-day facility. Anadarko owned 77.8% of WGP common units at year end. Investors should note concentration and dependence risks. Anadarko accounted for 54% of WES total revenues and 38% of throughput in 2018, and WES's fee-based contracts covered 89% of wellhead natural gas volumes and 100% of crude oil and produced water throughput. WES recorded $228.3 million of impairments in 2018, including $125.9 million at the Third Creek gathering system, and total long-term debt principal was $4.84 billion at year end. The filing also discloses a pending EPA and Department of Justice matter over leak detection and repair requirements, with fines expected to exceed $100,000 for each matter.
Feb 20, 2019
2017
Western Midstream Partners Annual Report, Year Ended Dec 31, 2017
Western Gas Equity Partners, LP (WGP) is a Delaware MLP formed by Anadarko whose only cash-generating assets are its partnership interests in Western Gas Partners, LP (WES): 50,132,046 WES common units (a 29.8% limited partner interest), a 1.5% general partner interest held through WES GP, and 100% of WES's incentive distribution rights. WES is a midstream MLP providing gathering, compressing, treating, processing and transporting natural gas, plus gathering and stabilizing condensate, NGLs and crude oil and gathering and disposing of produced water, primarily for Anadarko and third parties. Anadarko owns an 81.6% limited partner interest in WGP. For 2017, WES's total revenues and other were $2,248.4 million (up from $1,804.3 million in 2016), operating income was $704.4 million, and net income attributable to WGP was $376.6 million, or $1.72 per common unit. WES's Adjusted EBITDA was $1,061.0 million and Distributable cash flow was $929.0 million, which covered declared distributions of $824.9 million by a coverage ratio of 1.13x. WGP raised its quarterly distribution to $0.54875 per unit for the fourth quarter of 2017, and WES's distribution rose to $0.920 per unit. Total throughput attributable to WES for natural gas assets declined 9% to 3,575 MMcf/d, while crude oil, NGL and produced water throughput rose 9% to 201 MBbls/d. Net impairments were $178.4 million, including $158.8 million at the Granger complex after a producer bankruptcy. Key risks highlighted include heavy dependence on Anadarko (61% of WES total revenues and 41% of natural gas throughput in 2017), the expiration in December 2018 of commodity price swap agreements with Anadarko that contributed $58.6 million of above-market cash contributions in 2017, the IDR structure that makes WGP's distribution growth highly sensitive to WES distributions, and a pending DBJV arbitration with SWEPI seeking about $190.0 million. Subsequent events include a February 2018 amendment expanding the WES revolving credit facility to $1.5 billion and a reduction of the WGP revolver commitments to $35.0 million.
Feb 16, 2018
2016
Western Midstream Partners Annual Report, Year Ended Dec 31, 2016
Western Gas Equity Partners, LP (WGP) is a Delaware MLP formed by Anadarko to own its interests in Western Gas Partners, LP (WES), which is now Western Midstream Partners. WGP's only cash-generating assets are a 1.5% general partner interest in WES, 100% of WES's incentive distribution rights, and 50,132,046 WES common units, a 29.9% limited partner interest. WES gathers, compresses, treats, processes and transports natural gas, and gathers, stabilizes and transports condensate, NGLs and crude oil, primarily for Anadarko and third parties in the Rocky Mountains, North-central Pennsylvania and Texas. For 2016, 94% of WES's Adjusted gross margin was attributable to fee-based contracts, and 99% was derived from fee-based or hedged contracts. Anadarko accounted for 68% of WES total revenues and 47% of throughput (excluding equity investment throughput) in 2016. Financially, WGP reported 2016 total revenues of $1.80 billion, operating income of $704.5 million and net income attributable to WGP of $345.8 million, compared with $165.5 million in 2015, which included $515.5 million of impairments. WES Adjusted EBITDA rose to $1.03 billion from $907.6 million, and Distributable cash flow reached $852.4 million from $781.4 million, a coverage ratio of 1.29x. WGP declared a fourth-quarter 2016 distribution of $0.46250 per unit, and WES declared $0.860 per unit. Major 2016 events included the $750.0 million Springfield acquisition from Anadarko, the issuance of $686.9 million of WES Series A Preferred units, and new senior notes. Key risks include dependence on Anadarko, exposure to commodity prices as the WES commodity price swap agreements with Anadarko expire on December 31, 2017, and the expiration of the DJ Basin and MGR swaps. Subsequent events include WES's agreement to acquire WPZ's 50% interest in DBJV for $155.0 million in cash and a Consent and Conversion Agreement converting 50% of Series A Preferred units into common units on February 23, 2017, with the remainder on May 2, 2017.
Feb 23, 2017
2015
Western Midstream Partners Annual Report, Year Ended Dec 31, 2015
Western Gas Equity Partners, LP (WGP) is a Delaware MLP formed by Anadarko whose only cash-generating assets are its interests in Western Gas Partners, LP (WES): a 1.8% general partner interest, 100% of the incentive distribution rights, and a significant limited partner interest (49,296,205 WES common units, a 34.6% limited partner interest as of December 31, 2015). WES gathers, processes, treats and transports natural gas, NGLs and crude oil, primarily for Anadarko and third-party producers. Reported 2015 total revenues and other were $1,561,372 thousand, versus $1,382,868 thousand in 2014, while operating income fell to $34,386 thousand from $475,278 thousand, driven by $514,096 thousand of impairments at the Red Desert complex and Hilight system and a $20,224 thousand fourth-quarter loss tied to the December 3, 2015 DBM complex incident. WGP reported net income attributable to WGP of $87,863 thousand for 2015, and distributions declared on its units totaled $1.49125 per unit. The filing discloses a material weakness in internal control over financial reporting, which KPMG's report describes as resulting in an adverse opinion. The weakness stems from an impairment triggering-event assessment as of March 31, 2015 that incorrectly included the effect of WES's commodity price swaps with Anadarko, and it led to restatement of unaudited interim 2015 periods. Credit ratings were downgraded by Moody's in February 2016 (WES senior unsecured to Ba1 with negative outlook). Cash distributions on WGP units increased to $0.40375 per unit for the fourth quarter of 2015, and WES's distribution rose to $0.800 per unit. Subsequent to year end, WES agreed on February 24, 2016 to acquire Springfield Pipeline LLC from Anadarko for $750.0 million, financed by perpetual convertible preferred units, WES common units and borrowings under the WES RCF. Investors should weigh the dependence on Anadarko for a substantial share of throughput and revenues, the swap agreements expiring December 31, 2016, and the impairment and credit rating pressures disclosed in the filing.
Feb 25, 2016
2014
Western Midstream Partners Annual Report, Year Ended Dec 31, 2014
Western Gas Equity Partners, LP (WGP) is a Delaware master limited partnership formed by Anadarko Petroleum Corporation whose only cash-generating assets are its partnership interests in Western Gas Partners, LP (WES): a 1.8% general partner interest, 100% of the incentive distribution rights, and a 34.9% limited partner interest (49,296,205 common units) as of December 31, 2014. WES gathers, processes, compresses, treats and transports natural gas, condensate, NGLs and crude oil, with approximately 80% of its services provided under long-term fee-based agreements and 99% of 2014 gross margin derived from fee-based contracts or hedged percent-of-proceeds and keep-whole contracts. Anadarko is the dominant customer, accounting for 76% of WES total revenues and 53% of throughput (excluding equity investment throughput and barrel-measured throughput) in 2014. For fiscal 2014, WGP reported total revenues of $1,273.8 million, operating income of $448.3 million, and net income attributable to WGP of $221.9 million, or $1.02 per common unit. WES completed the $1.55 billion acquisition of Delaware Basin Midstream (DBM) in November 2014, funded partly by $750.0 million of Class C units issued to an Anadarko subsidiary, and acquired Anadarko's TEFR interests in March 2014. WES's Adjusted EBITDA attributable to WES rose to $646.0 million and distributable cash flow to $531.1 million, supporting a WGP distribution increase to $0.31250 per unit for the fourth quarter of 2014. The partnership carries significant structural considerations for investors: WGP's distributions depend entirely on WES distributions, incentive distribution rights share up to 48.0% of incremental cash, Anadarko owns 88.3% of WGP common units and controls the general partner, and WES's commodity price swap agreements with Anadarko expired for several systems on December 31, 2014, with further expirations scheduled for June and September 2015.
Feb 26, 2015
2013
Western Midstream Partners Annual Report, Year Ended Dec 31, 2013
Western Gas Equity Partners, LP (WGP) is a Delaware master limited partnership formed by Anadarko Petroleum Corporation whose only cash-generating assets are its partnership interests in Western Gas Partners, LP (WES): a 2.0% general partner interest, 100% of the incentive distribution rights, and a limited partner interest. As of December 31, 2013, WGP held 49,296,205 WES common units, a 41.2% limited partner interest in WES. WES is a midstream MLP gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil, with Anadarko accounting for a substantial share of its throughput and revenues, including 79% of total revenues and 57% of throughput attributable to Anadarko for 2013. For 2013, WGP reported total revenues of $1,053,495 thousand, operating income of $317,929 thousand, and net income attributable to Western Gas Equity Partners, LP of $160,214 thousand, versus $910,587 thousand revenues and $61,420 thousand net income attributable in 2012. WES throughput rose to 3,200 MMcf/d attributable to WES, a 14% increase over 2012, and gross margin per Mcf attributable to WES averaged $0.58, a 7% increase. Adjusted EBITDA attributable to WES was $457,773 thousand and distributable cash flow was $380,529 thousand, producing a coverage ratio of 1.17x. Investors should note that WGP's cash flow depends entirely on WES distributions, and that WES's growth relies heavily on acquisitions and projects from Anadarko. During 2013, WES completed several acquisitions, including the Non-Operated Marcellus Interest, the Anadarko-Operated Marcellus Interest, a 25% interest in the Mont Belvieu JV, and OTTCO, and it brought the 200 MMcf/d Brasada facility online in June 2013. WES raised its quarterly distribution to $0.60 per unit for the fourth quarter of 2013, its nineteenth consecutive quarterly increase, while WGP raised its distribution to $0.23125 per unit. In February 2014, WES agreed to acquire Anadarko's interests in Texas Express for $375.0 million, to be financed partly with a $350.0 million borrowing under a new $1.2 billion revolving credit facility.
Feb 28, 2014
2012
Western Midstream Partners Annual Report, Year Ended Dec 31, 2012
Western Gas Equity Partners, LP (WGP) is a Delaware master limited partnership formed by Anadarko Petroleum Corporation to own partnership interests in Western Gas Partners, LP (WES). Its only cash-generating assets are its interests in WES: a 2.0% general partner interest, 100% of the incentive distribution rights (IDRs), and a limited partner interest of 49,296,205 WES common units, or 46.2% of WES. WGP completed its initial public offering of 19,758,150 common units at $22.00 per unit on December 12, 2012, with Anadarko holding 91.0% of the limited partner interest. WGP has no independent operations, so its results closely track those of WES, which gathers, processes, treats and transports natural gas, NGLs, condensate and crude oil, largely for Anadarko. For 2012, WES reported total revenues of $849.4 million, operating income of $147.5 million at WGP, and net income attributable to WGP of $34.0 million. Throughput attributable to WES rose 9% to 2,432 MMcf/d, and gross margin per Mcf attributable to WES averaged $0.55, a 5% decrease. Adjusted EBITDA attributable to WES was $327.7 million and distributable cash flow was $264.4 million, with a coverage ratio of 1.20x. WES raised its quarterly distribution to $0.52 per unit for the fourth quarter of 2012, its fifteenth consecutive quarterly increase. WGP's initial estimated quarterly distribution is $0.165 per unit. Investors should weigh the heavy reliance on Anadarko, which accounted for approximately 76% of WES's gathering, transportation and treating throughput and about 79% of its total revenues, along with the incentive-based and affiliate-related conflicts of interest. Growth depends on acquisitions from Anadarko and third parties and on expansion projects, including the Brasada and Lancaster plants, with expansion capital expenditures of $426.8 million in 2012 and 2013 total capital expenditures projected at $550 million to $600 million.
Mar 28, 2013