Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 14, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | WESTERN MIDSTREAM PARTNERS, LP | ||
Entity File Number | 001-35753 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-0967367 | ||
Entity Address, Address Line One | 9950 Woodloch Forest Drive, Suite 2800 | ||
Entity Address, City or Town | The Woodlands, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | (346) | ||
Local Phone Number | 786-5000 | ||
Title of 12(b) Security | Common units | ||
Trading Symbol | WES | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.1 | ||
Entity Common Units Outstanding | 380,483,668 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001423902 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
WES Operating [Member] | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | WESTERN MIDSTREAM OPERATING, LP | ||
Entity File Number | 001-34046 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1075808 | ||
Entity Address, Address Line One | 9950 Woodloch Forest Drive, Suite 2800 | ||
Entity Address, City or Town | The Woodlands, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | (346) | ||
Local Phone Number | 786-5000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001414475 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
WES Operating [Member] | |
Auditor Information [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues and other | ||||
Revenues and other | [1] | $ 3,106,476 | $ 3,251,721 | $ 2,877,155 |
Equity income, net – related parties | 152,959 | 183,483 | 204,645 | |
Operating expenses | ||||
Cost of product | 164,598 | 420,900 | 322,285 | |
Operation and maintenance | 762,530 | 654,566 | 581,300 | |
General and administrative | 232,632 | 194,017 | 195,549 | |
Property and other taxes | 56,458 | 78,559 | 64,267 | |
Depreciation and amortization | 600,668 | 582,365 | 551,629 | |
Long-lived asset and other impairments | [2] | 52,884 | 20,585 | 30,543 |
Total operating expenses | [3] | 1,869,770 | 1,950,992 | 1,745,573 |
Gain (loss) on divestiture and other, net | (10,102) | 103,676 | 44 | |
Operating income (loss) | 1,379,563 | 1,587,888 | 1,336,271 | |
Interest expense | (348,228) | (333,939) | (376,512) | |
Gain (loss) on early extinguishment of debt | 15,378 | 91 | (24,944) | |
Other income (expense), net | 5,679 | 1,603 | (623) | |
Income (loss) before income taxes | 1,052,392 | 1,255,643 | 934,192 | |
Income tax expense (benefit) | 4,385 | 4,187 | (9,807) | |
Net income (loss) | 1,048,007 | 1,251,456 | 943,999 | |
Net income (loss) attributable to noncontrolling interests | 25,791 | 34,353 | 27,707 | |
Net income (loss) attributable to Western Midstream Partners, LP | 1,022,216 | 1,217,103 | 916,292 | |
Limited partners' interest in net income (loss): | ||||
Net income (loss) attributable to Western Midstream Partners, LP | 1,022,216 | 1,217,103 | 916,292 | |
General partner interest in net (income) loss | (23,684) | (27,541) | (19,815) | |
Limited partners' interest in net income (loss) | [4] | $ 998,532 | $ 1,189,562 | $ 896,477 |
Net income (loss) per common unit - basic | [4] | $ 2.61 | $ 3.01 | $ 2.18 |
Net income (loss) per common unit - diluted | [4] | $ 2.60 | $ 3 | $ 2.18 |
Weighted-average common units outstanding - basic | [4] | 383,028 | 394,951 | 411,309 |
Weighted-average common units outstanding - diluted | [4] | 384,408 | 396,236 | 412,022 |
Service Revenues - Fee Based [Member] | ||||
Revenues and other | ||||
Revenues and other | $ 2,768,757 | $ 2,602,053 | $ 2,462,835 | |
Service Revenues - Product Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 191,727 | 249,692 | 122,584 | |
Product Sales [Member] | ||||
Revenues and other | ||||
Revenues and other | 145,024 | 399,023 | 290,947 | |
Other [Member] | ||||
Revenues and other | ||||
Revenues and other | $ 968 | $ 953 | $ 789 | |
[1] Total revenues and other includes related-party amounts of $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . See Note 7 and Note 9 . Total operating expenses includes related-party amounts of $(68.0) million, $(18.0) million, and $86.2 million for the years ended December 31, 2023, 2022, and 2021, respectively, all primarily related to changes in imbalance positions. See Note 6 . See Note 5. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Total revenues and other | [1] | $ 3,106,476 | $ 3,251,721 | $ 2,877,155 |
Total operating expenses | [2] | 1,869,770 | 1,950,992 | 1,745,573 |
Related Parties [Member] | ||||
Total revenues and other | 1,834,094 | 1,795,233 | 1,632,358 | |
Total operating expenses | $ (68,001) | $ (18,028) | $ 86,223 | |
[1] Total revenues and other includes related-party amounts of $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . Total operating expenses includes related-party amounts of $(68.0) million, $(18.0) million, and $86.2 million for the years ended December 31, 2023, 2022, and 2021, respectively, all primarily related to changes in imbalance positions. See Note 6 . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 272,787 | $ 286,656 | |
Accounts receivable, net | 666,637 | 554,263 | |
Other current assets | 52,986 | 59,506 | |
Total current assets | 992,410 | 900,425 | |
Property, plant, and equipment | |||
Cost | 14,945,431 | 13,365,593 | |
Less accumulated depreciation | 5,290,415 | 4,823,993 | |
Net property, plant, and equipment | 9,655,016 | 8,541,600 | |
Goodwill | 4,783 | 4,783 | |
Other intangible assets | 681,408 | 713,075 | |
Equity investments | 904,535 | 944,696 | |
Other assets | [1] | 233,455 | 167,049 |
Total assets | [2] | 12,471,607 | 11,271,628 |
Current liabilities | |||
Accounts and imbalance payables | 362,451 | 360,562 | |
Short-term debt | 617,748 | 215,780 | |
Accrued ad valorem taxes | 61,285 | 72,875 | |
Accrued liabilities | 262,572 | 254,640 | |
Total current liabilities | 1,304,056 | 903,857 | |
Long-term liabilities | |||
Long-term debt | 7,283,556 | 6,569,582 | |
Deferred income taxes | 15,468 | 14,424 | |
Asset retirement obligations | 359,185 | 290,021 | |
Other liabilities | 480,212 | 385,629 | |
Total long-term liabilities | 8,138,421 | 7,259,656 | |
Total liabilities | [3] | 9,442,477 | 8,163,513 |
Equity and partners' capital | |||
Common units (379,519,983 and 384,070,984 units issued and outstanding at December 31, 2023 and 2022, respectively) | 2,894,231 | 2,969,604 | |
General partner units (9,060,641 units issued and outstanding at December 31, 2023 and 2022) | 3,193 | 2,105 | |
Total partners' capital | 2,897,424 | 2,971,709 | |
Noncontrolling interests | 131,706 | 136,406 | |
Total equity and partners' capital | 3,029,130 | 3,108,115 | |
Total liabilities, equity, and partners' capital | $ 12,471,607 | $ 11,271,628 | |
Common units issued | 379,519,983 | 384,070,984 | |
Common units outstanding | 379,519,983 | 384,070,984 | |
General partner units issued | 9,060,641 | 9,060,641 | |
General partner units outstanding | 9,060,641 | 9,060,641 | |
[1] Other assets includes $5.7 million and $6.5 million of NGLs line - fill inventory as of December 31, 2023 and 2022, respectively. Other assets also includes $96.3 million and $60.4 million of materials and supplies inventory as of December 31, 2023 and 2022, respectively. Total assets includes related - party amounts of $1.3 billion as of December 31, 2023 and 2022, which includes related - party Accounts receivable, net of $358.1 million and $313.9 million as of December 31, 2023 and 2022, respectively. See Note 6 . Total liabilities includes related - party amounts of $378.8 million and $312.3 million as of December 31, 2023 and 2022, respectively. See Note 6 . |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Materials and supplies inventory | $ 96,300 | $ 60,400 | |
Total assets | [1] | 12,471,607 | 11,271,628 |
Accounts receivable, net | 666,637 | 554,263 | |
Total liabilities | [2] | 9,442,477 | 8,163,513 |
Related Parties [Member] | |||
Total assets | 1,307,152 | 1,289,269 | |
Accounts receivable, net | 358,141 | 313,937 | |
Total liabilities | 378,840 | 312,305 | |
Natural-Gas Liquids [Member] | |||
NGLs line-fill inventory | $ 5,700 | $ 6,500 | |
[1] Total assets includes related - party amounts of $1.3 billion as of December 31, 2023 and 2022, which includes related - party Accounts receivable, net of $358.1 million and $313.9 million as of December 31, 2023 and 2022, respectively. See Note 6 . Total liabilities includes related - party amounts of $378.8 million and $312.3 million as of December 31, 2023 and 2022, respectively. See Note 6 . |
Consolidated Statements of Equi
Consolidated Statements of Equity and Partners' Capital - USD ($) $ in Thousands | Total | Occidental [Member] | Chipeta [Member] | WES Operating [Member] | Common Units [Member] | Common Units [Member] Occidental [Member] | General Partner [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] Chipeta [Member] | Noncontrolling Interests [Member] WES Operating [Member] | |
Balance at Dec. 31, 2020 | $ 2,895,212 | $ 2,778,339 | $ (17,208) | $ 134,081 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | 943,999 | 896,477 | 19,815 | 27,707 | |||||||
Distributions to noncontrolling interest owners | $ (9,117) | $ (14,984) | $ (9,117) | $ (14,984) | |||||||
Distributions to Partnership unitholders | (533,758) | (522,269) | (11,489) | ||||||||
Unit repurchases | [1] | (217,465) | (217,465) | ||||||||
Contributions of equity-based compensation from related parties | $ 10,087 | $ 10,087 | |||||||||
Equity-based compensation expense | 17,589 | 17,589 | |||||||||
Net contributions from (distributions to) related parties | 8,533 | 8,533 | |||||||||
Other | (4,336) | (4,336) | |||||||||
Balance at Dec. 31, 2021 | 3,095,760 | 2,966,955 | (8,882) | 137,687 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | 1,251,456 | 1,189,562 | 27,541 | 34,353 | |||||||
Distributions to noncontrolling interest owners | (10,736) | (24,898) | (10,736) | (24,898) | |||||||
Distributions to Partnership unitholders | (735,755) | (719,201) | (16,554) | ||||||||
Unit repurchases | [1] | (487,590) | (487,590) | ||||||||
Contributions of equity-based compensation from related parties | $ 2,277 | $ 2,277 | |||||||||
Equity-based compensation expense | 25,506 | 25,506 | |||||||||
Net contributions from (distributions to) related parties | 1,423 | 1,423 | |||||||||
Other | (9,328) | (9,328) | |||||||||
Balance at Dec. 31, 2022 | 3,108,115 | 2,969,604 | 2,105 | 136,406 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | 1,048,007 | 998,532 | 23,684 | 25,791 | |||||||
Distributions to noncontrolling interest owners | $ (7,641) | $ (22,850) | $ (7,641) | $ (22,850) | |||||||
Distributions to Partnership unitholders | (978,430) | (955,834) | (22,596) | ||||||||
Unit repurchases | [1] | (134,602) | (134,602) | ||||||||
Equity-based compensation expense | 32,005 | 32,005 | |||||||||
Other | (15,474) | (15,474) | |||||||||
Balance at Dec. 31, 2023 | $ 3,029,130 | $ 2,894,231 | $ 3,193 | $ 131,706 | |||||||
[1] See Note 5 . |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 1,048,007 | $ 1,251,456 | $ 943,999 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 600,668 | 582,365 | 551,629 | |
Long-lived asset and other impairments | [1] | 52,884 | 20,585 | 30,543 |
Non-cash equity-based compensation expense | 32,005 | 27,783 | 27,676 | |
Deferred income taxes | 1,044 | 1,999 | (9,770) | |
Accretion and amortization of long-term obligations, net | 8,151 | 7,142 | 7,635 | |
Equity income, net – related parties | (152,959) | (183,483) | (204,645) | |
Distributions from equity-investment earnings – related parties | 155,169 | 186,153 | 213,516 | |
(Gain) loss on divestiture and other, net | 10,102 | (103,676) | (44) | |
(Gain) loss on early extinguishment of debt | (15,378) | (91) | 24,944 | |
Other | 442 | 510 | 260 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (78,346) | (116,296) | 16,366 | |
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (68,019) | (7,812) | 114,887 | |
Change in other items, net | 67,564 | 34,791 | 49,856 | |
Net cash provided by operating activities | 1,661,334 | 1,701,426 | 1,766,852 | |
Cash flows from investing activities | ||||
Capital expenditures | (735,080) | (487,228) | (313,674) | |
Contributions to equity investments – related parties | (1,153) | (9,632) | (4,435) | |
Distributions from equity investments in excess of cumulative earnings – related parties | 39,104 | 63,897 | 41,385 | |
(Increase) decrease in materials and supplies inventory and other | (32,329) | (9,468) | 11,084 | |
Net cash used in investing activities | (1,607,291) | (218,237) | (257,538) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 2,448,733 | 1,389,010 | 480,000 | |
Repayments of debt | (1,967,928) | (1,518,548) | (1,432,966) | |
Commercial paper borrowings (repayments), net | 609,916 | 0 | 0 | |
Increase (decrease) in outstanding checks | 3,516 | 2,206 | (21,631) | |
Distributions to Partnership unitholders | [2] | (978,430) | (735,755) | (533,758) |
Net contributions from (distributions to) related parties | 0 | 1,423 | 8,533 | |
Unit repurchases | [2] | (134,602) | (487,590) | (217,465) |
Other | (18,626) | (13,644) | (10,849) | |
Net cash provided by (used in) financing activities | (67,912) | (1,398,532) | (1,752,237) | |
Net increase (decrease) in cash and cash equivalents | (13,869) | 84,657 | (242,923) | |
Cash and cash equivalents at beginning of period | 286,656 | 201,999 | 444,922 | |
Cash and cash equivalents at end of period | 272,787 | 286,656 | 201,999 | |
Supplemental disclosures | ||||
Interest paid, net of capitalized interest | 326,948 | 355,363 | 375,007 | |
Income taxes paid (reimbursements received) | 4,131 | 912 | 938 | |
Accrued capital expenditures | 99,610 | 82,353 | 35,240 | |
Third Parties [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions from third parties | (877,746) | (40,127) | 0 | |
Proceeds from the sale of assets | (87) | 264,121 | 8,102 | |
Related Parties [Member] | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
(Gain) loss on divestiture and other, net | 0 | 1,756 | (420) | |
Cash flows from investing activities | ||||
Capital expenditures | 0 | (470) | (2,000) | |
Proceeds from the sale of assets | 0 | 200 | 0 | |
Cash flows from financing activities | ||||
Distributions to Partnership unitholders | (494,127) | (372,468) | (272,192) | |
Unit repurchases | (127,500) | (252,500) | (50,225) | |
Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | (7,641) | (10,736) | (9,117) | |
WES Operating [Member] | ||||
Cash flows from financing activities | ||||
Distributions to noncontrolling interest owner of WES Operating | (22,850) | (24,898) | (14,984) | |
WES Operating [Member] | Related Parties [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Partnership unitholders | $ (22,850) | $ (24,898) | $ (14,984) | |
[1] See Note 7 and Note 9 . Includes related-party amounts. See Note 6 . |
Consolidated Statements of Op_3
Consolidated Statements of Operations - WES Operating - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues and other | ||||
Revenues and other | [1] | $ 3,106,476 | $ 3,251,721 | $ 2,877,155 |
Equity income, net – related parties | 152,959 | 183,483 | 204,645 | |
Operating expenses | ||||
Cost of product | 164,598 | 420,900 | 322,285 | |
Operation and maintenance | 762,530 | 654,566 | 581,300 | |
General and administrative | 232,632 | 194,017 | 195,549 | |
Property and other taxes | 56,458 | 78,559 | 64,267 | |
Depreciation and amortization | 600,668 | 582,365 | 551,629 | |
Long-lived asset and other impairments | [2] | 52,884 | 20,585 | 30,543 |
Total operating expenses | [3] | 1,869,770 | 1,950,992 | 1,745,573 |
Gain (loss) on divestiture and other, net | (10,102) | 103,676 | 44 | |
Operating income (loss) | 1,379,563 | 1,587,888 | 1,336,271 | |
Interest expense | (348,228) | (333,939) | (376,512) | |
Gain (loss) on early extinguishment of debt | 15,378 | 91 | (24,944) | |
Other income (expense), net | 5,679 | 1,603 | (623) | |
Income (loss) before income taxes | 1,052,392 | 1,255,643 | 934,192 | |
Income tax expense (benefit) | 4,385 | 4,187 | (9,807) | |
Net income (loss) | 1,048,007 | 1,251,456 | 943,999 | |
Net income (loss) attributable to noncontrolling interest | 25,791 | 34,353 | 27,707 | |
Net income (loss) attributable to Western Midstream Operating, LP | 1,022,216 | 1,217,103 | 916,292 | |
Service Revenues - Fee Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 2,768,757 | 2,602,053 | 2,462,835 | |
Service Revenues - Product Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 191,727 | 249,692 | 122,584 | |
Product Sales [Member] | ||||
Revenues and other | ||||
Revenues and other | 145,024 | 399,023 | 290,947 | |
Other [Member] | ||||
Revenues and other | ||||
Revenues and other | 968 | 953 | 789 | |
WES Operating [Member] | ||||
Revenues and other | ||||
Revenues and other | [4] | 3,106,476 | 3,251,721 | 2,877,155 |
Equity income, net – related parties | 152,959 | 183,483 | 204,645 | |
Operating expenses | ||||
Cost of product | 164,598 | 420,900 | 322,285 | |
Operation and maintenance | 762,530 | 654,566 | 581,300 | |
General and administrative | 229,689 | 191,361 | 192,617 | |
Property and other taxes | 56,458 | 78,559 | 64,267 | |
Depreciation and amortization | 600,668 | 582,365 | 551,629 | |
Long-lived asset and other impairments | [5] | 52,884 | 20,585 | 30,543 |
Total operating expenses | [6] | 1,866,827 | 1,948,336 | 1,742,641 |
Gain (loss) on divestiture and other, net | (10,102) | 103,676 | 44 | |
Operating income (loss) | 1,382,506 | 1,590,544 | 1,339,203 | |
Interest expense | (348,228) | (333,939) | (376,512) | |
Gain (loss) on early extinguishment of debt | 15,378 | 91 | (24,944) | |
Other income (expense), net | 5,404 | 1,558 | (634) | |
Income (loss) before income taxes | 1,055,060 | 1,258,254 | 937,113 | |
Income tax expense (benefit) | 4,379 | 4,180 | (9,816) | |
Net income (loss) | 1,050,681 | 1,254,074 | 946,929 | |
Net income (loss) attributable to noncontrolling interest | 4,869 | 9,454 | 8,942 | |
Net income (loss) attributable to Western Midstream Operating, LP | 1,045,812 | 1,244,620 | 937,987 | |
WES Operating [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 2,768,757 | 2,602,053 | 2,462,835 | |
WES Operating [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 191,727 | 249,692 | 122,584 | |
WES Operating [Member] | Product Sales [Member] | ||||
Revenues and other | ||||
Revenues and other | 145,024 | 399,023 | 290,947 | |
WES Operating [Member] | Other [Member] | ||||
Revenues and other | ||||
Revenues and other | $ 968 | $ 953 | $ 789 | |
[1] Total revenues and other includes related-party amounts of $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . See Note 7 and Note 9 . Total operating expenses includes related-party amounts of $(68.0) million, $(18.0) million, and $86.2 million for the years ended December 31, 2023, 2022, and 2021, respectively, all primarily related to changes in imbalance positions. See Note 6 . Total revenues and other includes $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . See Note 7 and Note 9 . Total operating expenses includes related-party amounts of $(64.7) million, $(15.0) million, and $89.0 million for the years ended December 31, 2023, 2022, and 2021, respectively, all primarily related to changes in imbalance positions. See Note 6 . |
Consolidated Statements of Op_4
Consolidated Statements of Operations - WES Operating (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Total revenues and other | [1] | $ 3,106,476 | $ 3,251,721 | $ 2,877,155 |
Total operating expenses | [2] | 1,869,770 | 1,950,992 | 1,745,573 |
Related Parties [Member] | ||||
Total revenues and other | 1,834,094 | 1,795,233 | 1,632,358 | |
Total operating expenses | (68,001) | (18,028) | 86,223 | |
WES Operating [Member] | ||||
Total revenues and other | [3] | 3,106,476 | 3,251,721 | 2,877,155 |
Total operating expenses | [4] | 1,866,827 | 1,948,336 | 1,742,641 |
WES Operating [Member] | Related Parties [Member] | ||||
Total revenues and other | 1,800,000 | 1,800,000 | 1,600,000 | |
Total operating expenses | $ (64,700) | $ (15,000) | $ 89,000 | |
[1] Total revenues and other includes related-party amounts of $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . Total operating expenses includes related-party amounts of $(68.0) million, $(18.0) million, and $86.2 million for the years ended December 31, 2023, 2022, and 2021, respectively, all primarily related to changes in imbalance positions. See Note 6 . Total revenues and other includes $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . Total operating expenses includes related-party amounts of $(64.7) million, $(15.0) million, and $89.0 million for the years ended December 31, 2023, 2022, and 2021, respectively, all primarily related to changes in imbalance positions. See Note 6 . |
Consolidated Balance Sheets - W
Consolidated Balance Sheets - WES Operating - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 272,787 | $ 286,656 | |
Accounts receivable, net | 666,637 | 554,263 | |
Other current assets | 52,986 | 59,506 | |
Total current assets | 992,410 | 900,425 | |
Property, plant, and equipment | |||
Cost | 14,945,431 | 13,365,593 | |
Less accumulated depreciation | 5,290,415 | 4,823,993 | |
Net property, plant, and equipment | 9,655,016 | 8,541,600 | |
Goodwill | 4,783 | 4,783 | |
Other intangible assets | 681,408 | 713,075 | |
Equity investments | 904,535 | 944,696 | |
Other assets | [1] | 233,455 | 167,049 |
Total assets | [2] | 12,471,607 | 11,271,628 |
Current liabilities | |||
Accounts and imbalance payables | 362,451 | 360,562 | |
Short-term debt | 617,748 | 215,780 | |
Accrued ad valorem taxes | 61,285 | 72,875 | |
Accrued liabilities | 262,572 | 254,640 | |
Total current liabilities | 1,304,056 | 903,857 | |
Long-term liabilities | |||
Long-term debt | 7,283,556 | 6,569,582 | |
Deferred income taxes | 15,468 | 14,424 | |
Asset retirement obligations | 359,185 | 290,021 | |
Other liabilities | 480,212 | 385,629 | |
Total long-term liabilities | 8,138,421 | 7,259,656 | |
Total liabilities | [3] | 9,442,477 | 8,163,513 |
Equity and partners' capital | |||
Common units (318,675,578 units issued and outstanding at December 31, 2023, and 2022) | 2,894,231 | 2,969,604 | |
Total partners' capital | 2,897,424 | 2,971,709 | |
Noncontrolling interest | 131,706 | 136,406 | |
Total equity and partners' capital | 3,029,130 | 3,108,115 | |
Total liabilities, equity, and partners' capital | $ 12,471,607 | $ 11,271,628 | |
Common units issued | 379,519,983 | 384,070,984 | |
Common units outstanding | 379,519,983 | 384,070,984 | |
WES Operating [Member] | |||
Current assets | |||
Cash and cash equivalents | $ 268,184 | $ 286,101 | |
Accounts receivable, net | 666,615 | 554,263 | |
Other current assets | 50,468 | 57,291 | |
Total current assets | 985,267 | 897,655 | |
Property, plant, and equipment | |||
Cost | 14,945,431 | 13,365,593 | |
Less accumulated depreciation | 5,290,415 | 4,823,993 | |
Net property, plant, and equipment | 9,655,016 | 8,541,600 | |
Goodwill | 4,783 | 4,783 | |
Other intangible assets | 681,408 | 713,075 | |
Equity investments | 904,535 | 944,696 | |
Other assets | [4] | 231,644 | 166,450 |
Total assets | [5] | 12,462,653 | 11,268,259 |
Current liabilities | |||
Accounts and imbalance payables | 392,752 | 404,468 | |
Short-term debt | 617,748 | 215,780 | |
Accrued ad valorem taxes | 61,285 | 72,875 | |
Accrued liabilities | 203,461 | 197,289 | |
Total current liabilities | 1,275,246 | 890,412 | |
Long-term liabilities | |||
Long-term debt | 7,283,556 | 6,569,582 | |
Deferred income taxes | 15,468 | 14,424 | |
Asset retirement obligations | 359,185 | 290,021 | |
Other liabilities | 476,844 | 383,713 | |
Total long-term liabilities | 8,135,053 | 7,257,740 | |
Total liabilities | [6] | 9,410,299 | 8,148,152 |
Equity and partners' capital | |||
Common units (318,675,578 units issued and outstanding at December 31, 2023, and 2022) | 3,027,031 | 3,092,012 | |
Total partners' capital | 3,027,031 | 3,092,012 | |
Noncontrolling interest | 25,323 | 28,095 | |
Total equity and partners' capital | 3,052,354 | 3,120,107 | |
Total liabilities, equity, and partners' capital | $ 12,462,653 | $ 11,268,259 | |
Common units issued | 318,675,578 | 318,675,578 | |
Common units outstanding | 318,675,578 | 318,675,578 | |
[1] Other assets includes $5.7 million and $6.5 million of NGLs line - fill inventory as of December 31, 2023 and 2022, respectively. Other assets also includes $96.3 million and $60.4 million of materials and supplies inventory as of December 31, 2023 and 2022, respectively. Total assets includes related - party amounts of $1.3 billion as of December 31, 2023 and 2022, which includes related - party Accounts receivable, net of $358.1 million and $313.9 million as of December 31, 2023 and 2022, respectively. See Note 6 . Total liabilities includes related - party amounts of $378.8 million and $312.3 million as of December 31, 2023 and 2022, respectively. See Note 6 . Other assets includes $5.7 million and $6.5 million of NGLs line - fill inventory as of December 31, 2023 and 2022, respectively. Other assets also includes $96.3 million and $60.4 million of materials and supplies inventory as of December 31, 2023 and 2022, respectively. Total assets includes related - party amounts of $1.3 billion as of December 31, 2023 and 2022, which includes related - party Accounts receivable, net of $358.1 million and $313.9 million as of December 31, 2023 and 2022, respectively. See Note 6 . Total liabilities includes related - party amounts of $409.5 million and $356.0 million as of December 31, 2023 and 2022, respectively. See Note 6 . |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - WES Operating (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Materials and supplies inventory | $ 96,300 | $ 60,400 | |
Total assets | [1] | 12,471,607 | 11,271,628 |
Accounts receivable, net | 666,637 | 554,263 | |
Total liabilities | [2] | 9,442,477 | 8,163,513 |
Related Parties [Member] | |||
Total assets | 1,307,152 | 1,289,269 | |
Accounts receivable, net | 358,141 | 313,937 | |
Total liabilities | 378,840 | 312,305 | |
Natural-Gas Liquids [Member] | |||
NGLs line-fill inventory | 5,700 | 6,500 | |
WES Operating [Member] | |||
Materials and supplies inventory | 96,300 | 60,400 | |
Total assets | [3] | 12,462,653 | 11,268,259 |
Accounts receivable, net | 666,615 | 554,263 | |
Total liabilities | [4] | 9,410,299 | 8,148,152 |
WES Operating [Member] | Related Parties [Member] | |||
Total assets | 1,300,000 | 1,300,000 | |
Accounts receivable, net | 358,100 | 313,900 | |
Total liabilities | 409,500 | 356,000 | |
WES Operating [Member] | Natural-Gas Liquids [Member] | |||
NGLs line-fill inventory | $ 5,700 | $ 6,500 | |
[1] Total assets includes related - party amounts of $1.3 billion as of December 31, 2023 and 2022, which includes related - party Accounts receivable, net of $358.1 million and $313.9 million as of December 31, 2023 and 2022, respectively. See Note 6 . Total liabilities includes related - party amounts of $378.8 million and $312.3 million as of December 31, 2023 and 2022, respectively. See Note 6 . Total assets includes related - party amounts of $1.3 billion as of December 31, 2023 and 2022, which includes related - party Accounts receivable, net of $358.1 million and $313.9 million as of December 31, 2023 and 2022, respectively. See Note 6 . Total liabilities includes related - party amounts of $409.5 million and $356.0 million as of December 31, 2023 and 2022, respectively. See Note 6 . |
Consolidated Statements of Eq_2
Consolidated Statements of Equity and Partners' Capital - WES Operating - USD ($) $ in Thousands | Total | Occidental [Member] | Chipeta [Member] | Common Units [Member] | Common Units [Member] Occidental [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] Chipeta [Member] | WES Operating [Member] | WES Operating [Member] Occidental [Member] | WES Operating [Member] WES [Member] | WES Operating [Member] Chipeta [Member] | WES Operating [Member] Common Units [Member] | WES Operating [Member] Common Units [Member] Occidental [Member] | WES Operating [Member] Common Units [Member] WES [Member] | WES Operating [Member] Noncontrolling Interest [Member] | WES Operating [Member] Noncontrolling Interest [Member] Chipeta [Member] |
Balance at Dec. 31, 2020 | $ 2,895,212 | $ 2,778,339 | $ 134,081 | $ 2,860,751 | $ 2,831,199 | $ 29,552 | ||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||
Net income (loss) | 943,999 | 896,477 | 27,707 | 946,929 | 937,987 | 8,942 | ||||||||||
Distributions to noncontrolling interest owners | $ (9,117) | $ (9,117) | $ (9,117) | $ (9,117) | ||||||||||||
Distributions to WES Operating unitholders | (533,758) | (522,269) | (749,018) | (749,018) | ||||||||||||
Contributions of equity-based compensation from related parties | $ 10,087 | $ 10,087 | $ 10,087 | $ 24,501 | $ 10,087 | $ 24,501 | ||||||||||
Net contributions from (distributions to) related parties | 8,533 | 8,533 | 8,533 | 8,533 | ||||||||||||
Balance at Dec. 31, 2021 | 3,095,760 | 2,966,955 | 137,687 | 3,092,666 | 3,063,289 | 29,377 | ||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||
Net income (loss) | 1,251,456 | 1,189,562 | 34,353 | 1,254,074 | 1,244,620 | 9,454 | ||||||||||
Distributions to noncontrolling interest owners | (10,736) | (10,736) | (10,736) | (10,736) | ||||||||||||
Distributions to WES Operating unitholders | (735,755) | (719,201) | (1,244,533) | (1,244,533) | ||||||||||||
Contributions of equity-based compensation from related parties | $ 2,277 | $ 2,277 | $ 2,277 | 24,936 | $ 2,277 | 24,936 | ||||||||||
Net contributions from (distributions to) related parties | 1,423 | 1,423 | 1,423 | 1,423 | ||||||||||||
Balance at Dec. 31, 2022 | 3,108,115 | 2,969,604 | 136,406 | 3,120,107 | 3,092,012 | 28,095 | ||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||||||
Net income (loss) | 1,048,007 | 998,532 | 25,791 | 1,050,681 | 1,045,812 | 4,869 | ||||||||||
Distributions to noncontrolling interest owners | $ (7,641) | $ (7,641) | $ (7,641) | $ (7,641) | ||||||||||||
Distributions to WES Operating unitholders | (978,430) | (955,834) | (1,142,217) | (1,142,217) | ||||||||||||
Contributions of equity-based compensation from related parties | $ 31,424 | $ 31,424 | ||||||||||||||
Balance at Dec. 31, 2023 | $ 3,029,130 | $ 2,894,231 | $ 131,706 | $ 3,052,354 | $ 3,027,031 | $ 25,323 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - WES Operating - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Cash flows from operating activities | ||||||
Net income (loss) | $ 1,048,007 | $ 1,251,456 | $ 943,999 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization | 600,668 | 582,365 | 551,629 | |||
Long-lived asset and other impairments | [1] | 52,884 | 20,585 | 30,543 | ||
Non-cash equity-based compensation expense | 32,005 | 27,783 | 27,676 | |||
Deferred income taxes | 1,044 | 1,999 | (9,770) | |||
Accretion and amortization of long-term obligations, net | 8,151 | 7,142 | 7,635 | |||
Equity income, net – related parties | (152,959) | (183,483) | (204,645) | |||
Distributions from equity-investment earnings – related parties | 155,169 | 186,153 | 213,516 | |||
(Gain) loss on divestiture and other, net | 10,102 | (103,676) | (44) | |||
(Gain) loss on early extinguishment of debt | (15,378) | (91) | 24,944 | |||
Other | 442 | 510 | 260 | |||
Changes in assets and liabilities: | ||||||
(Increase) decrease in accounts receivable, net | (78,346) | (116,296) | 16,366 | |||
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (68,019) | (7,812) | 114,887 | |||
Change in other items, net | 67,564 | 34,791 | 49,856 | |||
Net cash provided by operating activities | 1,661,334 | 1,701,426 | 1,766,852 | |||
Cash flows from investing activities | ||||||
Capital expenditures | (735,080) | (487,228) | (313,674) | |||
Contributions to equity investments – related parties | (1,153) | (9,632) | (4,435) | |||
Distributions from equity investments in excess of cumulative earnings – related parties | 39,104 | 63,897 | 41,385 | |||
(Increase) decrease in materials and supplies inventory and other | (32,329) | (9,468) | 11,084 | |||
Net cash used in investing activities | (1,607,291) | (218,237) | (257,538) | |||
Cash flows from financing activities | ||||||
Borrowings, net of debt issuance costs | 2,448,733 | 1,389,010 | 480,000 | |||
Repayments of debt | (1,967,928) | (1,518,548) | (1,432,966) | |||
Commercial paper borrowings (repayments), net | 609,916 | 0 | 0 | |||
Increase (decrease) in outstanding checks | 3,516 | 2,206 | (21,631) | |||
Distributions to WES Operating unitholders | [2] | (978,430) | (735,755) | (533,758) | ||
Net contributions from (distributions to) related parties | 0 | 1,423 | 8,533 | |||
Other | (18,626) | (13,644) | (10,849) | |||
Net cash provided by (used in) financing activities | (67,912) | (1,398,532) | (1,752,237) | |||
Net increase (decrease) in cash and cash equivalents | (13,869) | 84,657 | (242,923) | |||
Cash and cash equivalents at beginning of period | 286,656 | 201,999 | 444,922 | |||
Cash and cash equivalents at end of period | 272,787 | 286,656 | 201,999 | |||
Supplemental disclosures | ||||||
Interest paid, net of capitalized interest | 326,948 | 355,363 | 375,007 | |||
Income taxes paid (reimbursements received) | 4,131 | 912 | 938 | |||
Accrued capital expenditures | 99,610 | 82,353 | 35,240 | |||
Third Parties [Member] | ||||||
Cash flows from investing activities | ||||||
Acquisitions from third parties | (877,746) | (40,127) | 0 | |||
Proceeds from the sale of assets | (87) | 264,121 | 8,102 | |||
Related Parties [Member] | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
(Gain) loss on divestiture and other, net | 0 | 1,756 | (420) | |||
Cash flows from investing activities | ||||||
Capital expenditures | 0 | (470) | (2,000) | |||
Proceeds from the sale of assets | 0 | 200 | 0 | |||
Cash flows from financing activities | ||||||
Distributions to WES Operating unitholders | (494,127) | (372,468) | (272,192) | |||
Chipeta [Member] | ||||||
Cash flows from financing activities | ||||||
Distributions to Chipeta noncontrolling interest owner | (7,641) | (10,736) | (9,117) | |||
WES Operating [Member] | ||||||
Cash flows from operating activities | ||||||
Net income (loss) | 1,050,681 | 1,254,074 | 946,929 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization | 600,668 | 582,365 | 551,629 | |||
Long-lived asset and other impairments | [3] | 52,884 | 20,585 | 30,543 | ||
Non-cash equity-based compensation expense | 31,424 | 27,213 | 34,588 | |||
Deferred income taxes | 1,044 | 1,999 | (9,770) | |||
Accretion and amortization of long-term obligations, net | 8,151 | 7,142 | 7,635 | |||
Equity income, net – related parties | (152,959) | (183,483) | (204,645) | |||
Distributions from equity-investment earnings – related parties | 155,169 | 186,153 | 213,516 | |||
(Gain) loss on divestiture and other, net | 10,102 | (103,676) | (44) | |||
(Gain) loss on early extinguishment of debt | (15,378) | (91) | 24,944 | |||
Other | 442 | 510 | 260 | |||
Changes in assets and liabilities: | ||||||
(Increase) decrease in accounts receivable, net | (78,324) | (116,296) | (28,965) | |||
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (83,332) | (17,189) | 150,055 | |||
Change in other items, net | 67,629 | 34,827 | 48,704 | |||
Net cash provided by operating activities | 1,648,201 | 1,694,133 | 1,765,379 | |||
Cash flows from investing activities | ||||||
Capital expenditures | (735,080) | (487,228) | [4] | (313,674) | [4] | |
Contributions to equity investments – related parties | (1,153) | (9,632) | (4,435) | |||
Distributions from equity investments in excess of cumulative earnings – related parties | 39,104 | 63,897 | 41,385 | |||
(Increase) decrease in materials and supplies inventory and other | (32,329) | (9,468) | 11,084 | |||
Net cash used in investing activities | (1,607,291) | (218,237) | (257,538) | |||
Cash flows from financing activities | ||||||
Borrowings, net of debt issuance costs | 2,448,733 | 1,389,010 | 480,000 | |||
Repayments of debt | (1,967,928) | (1,518,548) | (1,432,966) | |||
Commercial paper borrowings (repayments), net | 609,916 | 0 | 0 | |||
Increase (decrease) in outstanding checks | 3,464 | 2,309 | (21,699) | |||
Distributions to WES Operating unitholders | [4] | (1,142,217) | (1,244,533) | (749,018) | ||
Net contributions from (distributions to) related parties | 0 | 1,423 | 8,533 | |||
Other | (3,154) | (4,318) | (6,513) | |||
Net cash provided by (used in) financing activities | (58,827) | (1,385,393) | (1,730,780) | |||
Net increase (decrease) in cash and cash equivalents | (17,917) | 90,503 | (222,939) | |||
Cash and cash equivalents at beginning of period | 286,101 | 195,598 | 418,537 | |||
Cash and cash equivalents at end of period | 268,184 | 286,101 | 195,598 | |||
Supplemental disclosures | ||||||
Interest paid, net of capitalized interest | 326,948 | 355,363 | 375,007 | |||
Income taxes paid (reimbursements received) | 4,131 | 912 | 938 | |||
Accrued capital expenditures | 99,610 | 82,353 | 35,240 | |||
WES Operating [Member] | Third Parties [Member] | ||||||
Cash flows from investing activities | ||||||
Acquisitions from third parties | (877,746) | (40,127) | 0 | |||
Proceeds from the sale of assets | (87) | 264,121 | 8,102 | |||
WES Operating [Member] | Related Parties [Member] | ||||||
Cash flows from investing activities | ||||||
Proceeds from the sale of assets | 0 | 200 | 0 | |||
Cash flows from financing activities | ||||||
Distributions to WES Operating unitholders | (1,142,217) | (1,244,533) | (749,018) | |||
WES Operating [Member] | Chipeta [Member] | ||||||
Cash flows from financing activities | ||||||
Distributions to Chipeta noncontrolling interest owner | $ (7,641) | $ (10,736) | $ (9,117) | |||
[1] See Note 7 and Note 9 . Includes related-party amounts. See Note 6 . See Note 7 and Note 9 . Includes related-party amounts. See Note 6. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION General. Western Midstream Partners, LP is a Delaware master limited partnership formed in September 2012. Western Midstream Operating, LP (together with its subsidiaries, “WES Operating”) is a Delaware limited partnership formed in 2007 to acquire, own, develop, and operate midstream assets. Western Midstream Partners, LP owns, directly and indirectly, a 98.0% limited partner interest in WES Operating, and directly owns all of the outstanding equity interests of Western Midstream Operating GP, LLC, which holds the entire non - economic general partner interest in WES Operating. For purposes of these consolidated financial statements, the “Partnership” refers to Western Midstream Partners, LP in its individual capacity or to Western Midstream Partners, LP and its subsidiaries, including Western Midstream Operating GP, LLC and WES Operating, as the context requires. “WES Operating GP” refers to Western Midstream Operating GP, LLC, individually as the general partner of WES Operating. The Partnership’s general partner, Western Midstream Holdings, LLC (the “general partner”), is a wholly owned subsidiary of Occidental Petroleum Corporation. “Occidental” refers to Occidental Petroleum Corporation, as the context requires, and its subsidiaries, excluding the general partner. “Anadarko” refers to Anadarko Petroleum Corporation and its subsidiaries, excluding Western Midstream Holdings, LLC. Anadarko became a wholly owned subsidiary of Occidental as a result of Occidental’s acquisition by merger of Anadarko on August 8, 2019. “Related parties” refers to Occidental (see Note 6 ), the Partnership’s investments accounted for under the equity method of accounting (see Note 7 ), and the Partnership and WES Operating for transactions that eliminate upon consolidation (see Note 6 ). The Partnership is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural - gas liquids (“NGLs”), and crude oil; and gathering and disposing of produced water. In its capacity as a natural - gas processor, the Partnership also buys and sells natural gas, NGLs, and condensate on behalf of itself and its customers under certain contracts. As of December 31, 2023, the Partnership’s assets and investments consisted of the following: Wholly Operated Non-Operated Equity Gathering systems (1) 18 2 3 1 Treating facilities 38 3 — — Natural - gas processing plants/trains 24 3 — 3 NGLs pipelines 3 — — 5 Natural - gas pipelines 6 — — 1 Crude - oil pipelines 3 1 — 3 _________________________________________________________________________________________ (1) Includes the DBM water systems. These assets and investments are located in Texas, New Mexico, the Rocky Mountains (Colorado, Utah, and Wyoming), and North - central Pennsylvania. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of presentation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of the Partnership and entities in which it holds a controlling financial interest, including WES Operating, WES Operating GP, proportionately consolidated interests, and equity investments (see table below). All significant intercompany transactions have been eliminated. The following table outlines the ownership interests and the accounting method of consolidation used in the consolidated financial statements for entities not wholly owned (see Note 7) : Percentage Interest Full consolidation Chipeta (1) 75.00 % Proportionate consolidation (2) Springfield system 50.10 % Marcellus Interest systems 33.75 % Equity investments (3) Mi Vida JV LLC (“Mi Vida”) 50.00 % Front Range Pipeline LLC (“FRP”) 33.33 % Red Bluff Express Pipeline, LLC (“Red Bluff Express”) 30.00 % Enterprise EF78 LLC (“Mont Belvieu JV”) 25.00 % Rendezvous Gas Services, LLC (“Rendezvous”) 22.00 % Texas Express Pipeline LLC (“TEP”) 20.00 % Texas Express Gathering LLC (“TEG”) 20.00 % Whitethorn Pipeline Company LLC (“Whitethorn LLC”) 20.00 % Saddlehorn Pipeline Company LLC (“Saddlehorn”) 20.00 % Panola Pipeline Company, LLC (“Panola”) 15.00 % White Cliffs Pipeline, LLC (“White Cliffs”) 10.00 % _________________________________________________________________________________________ (1) The 25% third - party interest in Chipeta Processing LLC (“Chipeta”) is reflected within noncontrolling interests in the consolidated financial statements. See Noncontrolling interests below. (2) The Partnership proportionately consolidates its associated share of the assets, liabilities, revenues, and expenses attributable to these assets. (3) Investments in non - controlled entities over which the Partnership exercises significant influence are accounted for under the equity method of accounting. “Equity - investment throughput” refers to the Partnership’s share of average throughput for these investments. The consolidated financial results of WES Operating are included in the Partnership’s consolidated financial statements. Throughout these notes to consolidated financial statements, and to the extent material, any differences between the consolidated financial results of the Partnership and WES Operating are discussed separately. The Partnership’s consolidated financial statements differ from those of WES Operating primarily as a result of (i) the presentation of noncontrolling interest ownership (see Noncontrolling interests below), (ii) the elimination of WES Operating GP’s investment in WES Operating with WES Operating GP’s underlying capital account, (iii) the general and administrative expenses incurred by the Partnership, which are separate from, and in addition to, those incurred by WES Operating, (iv) the inclusion of the impact of Partnership equity balances and Partnership distributions, and (v) transactions between the Partnership and WES Operating that eliminate upon consolidation. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Presentation of the Partnership’s assets. The Partnership’s assets include assets owned and ownership interests accounted for by the Partnership under the equity method of accounting, through its 98.0% partnership interest in WES Operating, as of December 31, 2023 (see Note 7 ). The Partnership also owns and controls the entire non - economic general partner interest in WES Operating GP, and the Partnership’s general partner is owned by Occidental. Use of estimates. In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other reasonable methods. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates. Effects on the business, financial condition, and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information included herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements. Noncontrolling interests. The Partnership’s noncontrolling interests in the consolidated financial statements consist of (i) the 25% third - party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary. WES Operating’s noncontrolling interest in the consolidated financial statements consists of the 25% third - party interest in Chipeta. See Note 5. Fair value. The fair-value-measurement standard defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard characterizes inputs used in determining fair value according to a hierarchy that prioritizes those inputs based on the degree to which the inputs are observable. The three input levels of the fair-value hierarchy are as follows: Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in management’s internally developed present value of future cash flows model that underlies the fair value measurement). In determining fair value, management uses observable market data when available, or models that incorporate observable market data. When a fair value measurement is required and there is not a market-observable price for the asset or liability or a market-observable price for a similar asset or liability, the cost, income, or market approach is used, depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset-replacement cost. The income approach uses management’s best assumptions regarding expectations of projected cash flows and discounts the expected cash flows using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment because results are based on expected future events or conditions, such as contractual rates, estimates of future throughput, capital and operating costs and the timing thereof, economic and regulatory climates, and other factors. The market approach uses management’s best assumptions regarding expectations of projected earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and an assumed multiple of that EBITDA that a willing buyer would pay to acquire an asset. Management’s estimates of future net cash flows and EBITDA are inherently imprecise because they reflect management’s expectation of future conditions that are often outside of management’s control. However, the assumptions used reflect a market participant’s view of long-term revenues, costs, and other factors, and are consistent with assumptions used in the Partnership’s business plans and investment decisions. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Management uses relevant observable inputs available for the valuation technique employed to estimate fair value. If a fair-value measurement reflects inputs at multiple levels within the hierarchy, the fair-value measurement is characterized based on the lowest level of input that is significant to the fair-value measurement. Non-financial assets and liabilities initially measured at fair value include certain assets and liabilities acquired in a third-party business combination, assets and liabilities exchanged in non-monetary transactions, goodwill and other intangibles, and the initial measurement of asset retirement obligations. Impairment analyses for long-lived assets, goodwill, and equity investments and the initial recognition of asset retirement obligations use Level-3 inputs. The fair value of debt reflects any premium or discount for the difference between the stated interest rate and the quarter-end market interest rate and is based on quoted market prices for identical instruments, if available, or based on valuations of similar debt instruments. As such, debt fair values as presented in Note 13 use Level-2 inputs. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and outstanding borrowings on the revolving credit facility and commercial paper program reported on the consolidated balance sheets approximate fair value due to the short-term nature of these items. Cash equivalents. All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents. Credit losses. Accounts receivable represent contractual rights for services performed, with, on average, 30-day payment terms from the invoice date. Contract assets primarily relate to revenue accrued but not yet billed under cost-of-service contracts and accrued deficiency fees. Exposure to credit losses is analyzed within collective pools for all of our customers and, if necessary, individual customers may be analyzed separately if their credit quality becomes a concern. The Partnership monitors credit exposure to all customers to ensure exposures are within established credit limits. As of December 31, 2023, there are no negative indications regarding the collectability of significant receivables and the Partnership will continue to monitor the credit quality of its customer base and assess collectability of these assets as appropriate. The allowance for expected credit losses was immaterial at December 31, 2023 and 2022. Imbalances. The consolidated balance sheets include imbalance receivables and payables resulting from differences in volumes received into the Partnership’s systems and volumes delivered by the Partnership to customers. Volumes owed to or by the Partnership that are subject to monthly cash settlement are valued according to the terms of the contract as of the balance sheet dates and generally reflect market index prices. Other volumes owed to or by the Partnership are valued at the Partnership’s weighted-average cost as of the balance sheet dates and are settled in-kind. As of December 31, 2023, imbalance receivables and payables were $5.1 million and $7.2 million, respectively. As of December 31, 2022, imbalance receivables and payables were $32.7 million and $32.5 million, respectively. Net changes in imbalance receivables and payables are reported in Cost of product in the consolidated statements of operations. Inventory. The cost of NGLs inventory is determined by the weighted-average cost method on a location-by-location basis. Inventory is stated at the lower of weighted-average cost or net realizable value. NGLs inventory is reported in Other current assets and NGLs line-fill inventory is reported in Other assets on the consolidated balance sheets. Materials and supplies inventory is valued at weighted-average cost, reviewed periodically for obsolescence, and assessed for impairment together with any associated property, plant, and equipment and other intangible assets. Materials and supplies inventory is reported in Other assets on the consolidated balance sheets. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Property, plant, and equipment and other intangible assets. Property, plant, and equipment and other intangible assets are stated at historical cost less accumulated depreciation or amortization, or fair value if impaired. Prior long-lived asset acquisitions from Anadarko were transfers of net assets between entities under common control; therefore, the assets acquired were initially recorded at Anadarko’s historic carrying value. The difference between the carrying value of net assets acquired from Anadarko and the consideration paid has been recorded as an adjustment to partners’ capital. Assets acquired in a business combination or non-monetary exchange with a third party are initially recorded at fair value. All construction-related direct labor and material costs are capitalized. The cost of renewals and betterments that extend the useful life of property, plant, and equipment is also capitalized. The cost of repairs, replacements, and major maintenance projects that do not extend the useful life or increase the expected output of property, plant, and equipment is expensed as incurred. Depreciation is computed using the straight-line method based on estimated useful lives and salvage values of assets. Subsequent events could cause a change in estimates of remaining useful lives or salvage value, thereby impacting future depreciation amounts. Uncertainties that may impact these estimates include, but are not limited to, changes in laws and regulations relating to environmental matters, including air and water quality, restoration and abandonment requirements, economic conditions, and supply and demand in the area. Management assesses property, plant, and equipment together with any associated materials and supplies inventory and intangible assets, as described in Note 10 , for impairment when events or changes in circumstances indicate their carrying values may not be recoverable. Impairments exist when the carrying value of a long-lived asset exceeds the total estimated undiscounted net cash flows from the future use and eventual disposition of the asset. When alternative courses of action for future use of a long-lived asset are under consideration, estimates of future undiscounted net cash flows incorporate the possible outcomes and probabilities of their occurrence. If an impairment exists, an impairment loss is measured as the excess of the asset’s carrying value over its estimated fair value, such that the asset’s carrying value is adjusted down to its estimated fair value with an offsetting charge to Long-lived asset and other impairments. Refer to Note 9 for a description of impairments recorded during the years ended December 31, 2023, 2022, and 2021. Capitalized interest. Interest is capitalized as part of the historical cost of constructing assets that are in progress. Capitalized interest is determined by multiplying the Partnership’s weighted-average borrowing cost on debt by the average amount of assets under construction. Cumulative capitalized interest accrued during the year is expensed through depreciation or impairment. Segments. The Partnership’s operations continue to be organized into a single operating segment, the assets of which gather, compress, treat, process, and transport natural gas; gather, stabilize, and transport condensate, NGLs, and crude oil; and gather and dispose of produced water in the United States. In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The standard improves reportable segment disclosure requirements for public business entities primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit (referred to as the “significant expense principle”). The standard will become effective for the Partnership for the fiscal year 2024 annual financial statements and interim financial statements thereafter and will be applied retrospectively for all prior periods presented in the financial statements, with early adoption permitted. The Partnership plans to adopt the standard when it becomes effective beginning with the fiscal year 2024 annual financial statements. The Partnership is currently evaluating the impact this guidance will have on disclosures in the Notes to Consolidated Financial Statements. This standard will have no impact to the Partnership’s financial statements, but will result in additional disclosure. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated historic carrying value of midstream goodwill attributed to the Partnership’s assets previously acquired from Anadarko. The Partnership had allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment at the reporting unit level annually, as of October 1, or more often as facts and circumstances warrant. An initial qualitative assessment is performed to determine the likelihood of whether goodwill is impaired. If management concludes, based on qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no goodwill impairment is recorded and further testing is not necessary. If an assessment of qualitative factors does not result in management’s determination that the fair value of the reporting unit more likely than not exceeds its carrying value, then a quantitative assessment must be performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value through a charge to Goodwill impairment. See Note 10 . Asset retirement obligations. When tangible long-lived assets are acquired or constructed, the initial estimated asset retirement obligation liability is recognized at fair value, measured using discounted expected future cash outflows of the settlement obligation, with an associated increase in property, plant, and equipment. Over time, the discounted liability is adjusted up to its expected settlement value through accretion expense, which is reported within Depreciation and amortization in the consolidated statements of operations. Estimated asset retirement costs typically extend many years into the future, and estimation requires significant judgment. Subsequent to the initial recognition, the liability is adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to property, plant, and equipment, or depreciation expense if the asset is fully depreciated) until the obligation is settled. Revisions in estimated asset retirement obligations may result from changes in estimated asset retirement costs, inflation rates, discount rates, and the estimated timing of settlement. See Note 12 . Environmental expenditures. The Partnership is subject to various environmental-remediation obligations arising from federal, state, and local laws and regulations. Losses associated with environmental obligations are accrued when the necessity for environmental remediation or other potential environmental liabilities becomes probable and the costs can be reasonably estimated, with the exception of environmental obligations acquired in a business combination, which are recorded at fair value at the time of acquisition. Accruals for estimated losses from environmental-remediation obligations are recognized no later than at the time of the completion of the remediation feasibility study or when the evaluation of response options is complete. These accruals are adjusted as additional information becomes available or as circumstances change. Costs of future expenditures for environmental-remediation obligations are not discounted to their present value. See Note 16. Revenue and cost of product. The Partnership provides gathering, processing, treating, transportation, and disposal services pursuant to a variety of contracts. Under these arrangements, the Partnership receives fees and/or retains a percentage of products or a percentage of the proceeds from the sale of the customer’s products. These revenues are included in Service revenues and Product sales in the consolidated statements of operations. Payment is generally received from the customer in the month following the service or delivery of the product. Contracts with customers generally have initial terms ranging from 5 to 10 years. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Service revenues – fee based is recognized for fee-based contracts in the month of service based on the volumes delivered by the customer. Producers’ wells or production facilities are connected to the Partnership’s gathering systems for gathering, processing, treating, transportation, and disposal of natural gas, NGLs, condensate, crude oil, and produced water, as applicable. Revenues are valued based on the rate in effect for the month of service when the fee is either the same per-unit rate over the contract term or when the fee escalates and the escalation factor approximates inflation. Deficiency fees charged to customers that do not meet their minimum delivery requirements are recognized as services are performed based on an estimate of the fees that will be billed at the completion of the performance period. Because of its significant upfront capital investment, the Partnership may charge additional service fees to customers for only a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold), and these fees are recognized as revenue over the expected period of customer benefit, which is generally the life of the related properties. Timing differences between amounts recognized in Service revenues – fee based and the amounts billed to customer are recognized as contract assets or contract liabilities, and are amortized over the related contract period. The Partnership also receives Service revenues – fee based from contracts that have fees that require periodic rate redeterminations based on the related facility cost of service. The cost-of-service rates are calculated using a contractually specified rate of return and estimates including long-term assumptions for capital invested, receipt volumes, and operating and maintenance expenses. Certain of these cost-of-service agreements also have minimum-volume-commitment demand fees and guaranteed minimum revenues, in addition to cost-of-service rates. Such contracts include fixed and variable consideration that are recognized on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost-of-service rates charged to customers, and a cumulative catch-up revenue adjustment related to services already provided to the minimum volumes under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate based on the total expected variable consideration under the contract. If the Partnership determines it is probable that a significant reversal in the cumulative catch-up revenue adjustment could occur, the variable consideration may be constrained up to the amount of the probable significant reversal. Service revenues – product based includes service revenues from percent-of-proceeds gathering and processing contracts that are recognized net of the cost of product for purchases from the Partnership’s customers since it is acting as the agent in the product sale. Keep-whole agreements, percent-of-product agreements, and certain fee-based contracts that have a fixed-recovery component result in Service revenues – product based being recognized when the natural gas and/or NGLs are received from the customer as non-cash consideration for the services provided. Non-cash consideration for these services is valued at the time the services are provided. Revenue is also recognized in Product sales, along with the cost of product expense related to the sale, when the product received as non-cash consideration is sold to either Occidental or a third party. The Partnership also purchases natural-gas volumes from producers at the wellhead or from a production facility, typically at an index price, and charges the producer fees associated with the downstream gathering and processing services. When the fees relate to services performed after control of the product has transferred to the Partnership, the fees are treated as a reduction of the purchase cost. If the fees relate to services performed before control of the product has transferred to the Partnership, the fees are treated as Service revenues – fee based. Product sales revenue is recognized, along with cost of product expense related to the sale, when the purchased product is sold to either Occidental or a third party. The Partnership receives aid-in-construction reimbursements for certain capital costs necessary to provide services to customers (i.e., connection costs, etc.) under certain service contracts. Aid-in-construction reimbursements are reflected as a contract liability when received and are amortized to Service revenues – fee based over the expected period of customer benefit, which is generally the life of the related properties. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Defined-contribution plan. Employees of the Partnership are eligible to participate in the Western Midstream Savings Plan, a defined - contribution benefit plan maintained by the Partnership. All regular employees may participate in the plan by making elective contributions that are matched by the Partnership, subject to certain limitations. The Partnership also makes other contributions based on plan guidelines. The Partnership recognized expense related to the plan of $24.6 million, $21.8 million, and $23.7 million for the years ended December 31, 2023, 2022, and 2021, respectively. Partnership income taxes. Deferred federal and state income taxes included in the accompanying consolidated financial statements are attributable to temporary differences between the financial statement carrying amount and tax basis of the Partnership’s investment in WES Operating. The Partnership’s accounting policy is to “look through” its investment in WES Operating for purposes of calculating deferred income tax asset and liability balances attributable to the Partnership’s interests in WES Operating. The Partnership had no material uncertain tax positions at December 31, 2023 or 2022. WES Operating income taxes. WES Operating generally is not subject to federal income tax or state income tax other than Texas margin tax on the portion of its income that is apportionable to Texas. Deferred state income taxes are recorded on temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. WES Operating routinely assesses the realizability of its deferred tax assets. If WES Operating concludes that it is more likely than not that some of the deferred tax assets will not be realized, the tax asset is reduced by recording a valuation allowance. With respect to assets previously acquired from Anadarko, WES Operating recorded Anadarko’s historic federal and state current and deferred income taxes for the periods prior to the acquisition of such assets. For periods on and subsequent to the acquisition, WES Operating is not subject to tax except for the Texas margin tax and, accordingly, does not record deferred federal income taxes related to the acquired assets. For periods beginning on and subsequent to the acquisition of assets from Anadarko, WES Operating made payments to Anadarko pursuant to the tax sharing agreement for its estimated share of taxes from all forms of taxation, excluding income taxes imposed by the United States, that are included in any combined or consolidated returns filed by Occidental. The aggregate difference in the basis of WES Operating’s assets for financial and tax reporting purposes cannot be readily determined as WES Operating does not have access to information about each partner’s tax attributes in WES Operating. The accounting standards for uncertain tax positions defines the criteria an individual tax position must satisfy for any part of the benefit of that position to be recognized in the financial statements. WES Operating had no material uncertain tax positions at December 31, 2023 or 2022. Net income (loss) per common unit. The Partnership applies the two-class method in determining net income (loss) per unit applicable to master limited partnerships having multiple classes of securities, including common units and general partner units. The two-class method allocates earnings pursuant to a formula that treats participating securities as having rights to earnings that otherwise would have been available to common unitholders. Under the two-class method, net income (loss) per unit is calculated as if all of the earnings for the period were distributed pursuant to the terms of the relevant |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. REVENUE FROM CONTRACTS WITH CUSTOMERS The following table summarizes revenue from contracts with customers: Year Ended December 31, thousands 2023 2022 2021 Revenue from customers Service revenues – fee based $ 2,768,757 $ 2,602,053 $ 2,283,584 Service revenues – product based 191,727 249,692 122,584 Product sales 145,024 399,023 290,947 Total revenue from customers 3,105,508 3,250,768 2,697,115 Revenue from other than customers Lease revenue (1) — — 179,251 Other 968 953 789 Total revenues and other $ 3,106,476 $ 3,251,721 $ 2,877,155 _________________________________________________________________________________________ (1) Includes fixed - and variable - lease revenue from an operating and maintenance agreement entered into with Occidental. See Note 6 and Note 14. Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $661.6 million and $545.0 million as of December 31, 2023 and 2022, respectively. Contract assets primarily relate to (i) revenue accrued but not yet billed under cost - of - service contracts with fixed and variable fees and (ii) accrued deficiency fees the Partnership expects to charge customers once the related performance periods are completed. The following table summarizes activity related to contract assets from contracts with customers: Year Ended December 31, thousands 2023 2022 Contract assets balance at beginning of year $ 22,561 $ 22,557 Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period (6,678) (7,683) Additional estimated revenues recognized 9,487 5,531 Cumulative catch-up adjustment for change in estimated consideration 13,922 2,156 Contract assets balance at end of year $ 39,292 $ 22,561 December 31, thousands 2023 2022 Other current assets $ 9,595 $ 3,381 Other assets 29,697 19,180 Total contract assets from contracts with customers $ 39,292 $ 22,561 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Contract liabilities primarily relate to (i) fixed and variable fees under cost - of - service contracts that are received from customers for which revenue recognition is deferred, (ii) aid - in - construction payments received from customers that must be recognized over the expected period of customer benefit, and (iii) fees that are charged to customers for only a portion of the contract term and must be recognized as revenues over the expected period of customer benefit. The following table summarizes activity related to contract liabilities from contracts with customers: Year Ended December 31, thousands 2023 2022 Contract liabilities balance at beginning of year $ 369,285 $ 313,146 Cash received or receivable, excluding revenues recognized during the period 84,336 71,097 Revenues recognized that were included in the contract liability balance at the beginning of the period (15,572) (16,158) Cumulative catch-up adjustment for change in estimated consideration (4,363) 1,200 Amounts acquired with the acquisition of Meritage (1) 11,813 — Contract liabilities balance at end of year $ 445,499 $ 369,285 December 31, thousands 2023 2022 Accrued liabilities $ 16,866 $ 20,903 Other liabilities 428,633 348,382 Total contract liabilities from contracts with customers $ 445,499 $ 369,285 _________________________________________________________________________________________ (1) See Note 3. Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2023, are presented in the following table. The Partnership applies the optional exemptions in Revenue from Contracts with Customers (Topic 606) and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Therefore, the following table represents only a portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and, in some cases, variable commodity prices for those volumes. thousands 2024 $ 1,145,612 2025 1,097,142 2026 1,019,676 2027 927,846 2028 665,106 Thereafter 2,127,654 Total $ 6,983,036 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | 3. ACQUISITIONS AND DIVESTITURES Meritage. On October 13, 2023, the Partnership closed on the acquisition of Meritage Midstream Services II, LLC (“Meritage”) for $885.0 million (subject to certain customary post-closing adjustments) funded with cash, including proceeds from the Partnership’s $600.0 million senior note issuance in September 2023 (see Note 13) and borrowings on the senior unsecured revolving credit facility (“RCF”). The $877.7 million included as Acquisitions from third parties in the consolidated statements of cash flows includes the cash purchase price adjusted for working capital and certain customary post-closing adjustments, and reduced by the $38.4 million of cash acquired (as presented in the table below). The assets acquired, located in Converse, Campbell, and Johnson counties, Wyoming, include approximately 1,500 miles of high- and low-pressure natural-gas gathering pipelines, approximately 380 MMcf/d of natural-gas processing capacity, and the Thunder Creek NGL pipeline, which is a 120 mile, 38 MBbls/d FERC-regulated NGL pipeline that connects to the processing facility. The acquisition expands the Partnership’s existing Powder River Basin asset base, increasing total natural-gas processing capacity in that region to 440 MMcf/d. The Meritage acquisition has been accounted for under the acquisition method of accounting. The assets acquired and liabilities assumed in the Meritage acquisition were recorded in the consolidated balance sheet at their estimated fair values as of the acquisition date. Results of operations attributable to the Meritage acquisition were included in the Partnership’s consolidated statements of operations beginning on the acquisition date in the fourth quarter of 2023. For the year ended December 31, 2023, acquisition-related transaction costs of $6.1 million, consisting primarily of third-party consulting and legal fees, are included in General and administrative expenses in the consolidated statements of operations. The following is the preliminary acquisition-date fair value as of December 31, 2023, for the assets acquired and liabilities assumed in the Meritage acquisition. The preliminary fair values are subject to change within the measurement period (up to one year from the acquisition date), pending a final determination of the fair value of certain customary post-closing working capital adjustments. thousands Assets acquired: Cash and cash equivalents $ 38,412 Accounts receivable, net 34,060 Other current assets 1,980 Property, plant, and equipment 925,905 Other assets 6,498 Total assets acquired 1,006,855 Liabilities assumed: Accounts payable and accrued liabilities 34,733 Other current liabilities 5,451 Asset retirement obligation 22,156 Other liabilities 28,356 Total liabilities assumed 90,696 Net assets acquired $ 916,159 The acquisition-date fair values are based on an assessment of the fair value of the assets acquired and liabilities assumed in the Meritage acquisition using inputs that are not observable in the market and thus represent Level 3 inputs. The fair values of the processing plants, gathering system, and related facilities and equipment are based on market and cost approaches. 3. ACQUISITIONS AND DIVESTITURES The following table presents pro forma condensed financial information of the Partnership as if the Meritage acquisition had occurred on January 1, 2022: Year Ended December 31, thousands 2023 2022 Revenues and other $ 3,239,035 $ 3,408,767 Net income (loss) attributable to Western Midstream Partners, LP 1,003,204 1,213,106 The following table presents pro forma condensed financial information of WES Operating (which are included in the Partnership’s pro forma condensed financial information) as if the Meritage acquisition had occurred on January 1, 2022: Year Ended December 31, thousands 2023 2022 Revenues and other $ 3,239,035 $ 3,408,767 Net income (loss) attributable to Western Midstream Operating, LP 1,026,800 1,240,623 The pro forma information is presented for illustration purposes only and is not necessarily indicative of the operating results that would have occurred had the Meritage acquisition been completed at the assumed date, nor is it necessarily indicative of future operating results of the combined entity. The pro forma adjustments reflect pre-acquisition results of the Meritage acquisition including (i) adjustments of $105.0 million and $221.6 million for the years ended December 31, 2023 and 2022, respectively, to decrease revenues and cost of product to apply the Partnership’s revenue recognition policy to record revenue and cost of product on a net basis within revenues for certain contracts; (ii) adjustments of $5.0 million and $2.1 million for the years ended December 31, 2023 and 2022, respectively, to decrease depreciation and amortization expense based on the acquisition-date fair value of property, plant, and equipment and estimated useful lives; and (iii) adjustments of $1.8 million to decrease interest expense and $20.9 million to increase interest expense for the years ended December 31, 2023 and 2022, respectively, related to the $600.0 million senior note issuance in September 2023 and borrowings on the RCF to finance the Meritage acquisition. The pro forma adjustments include estimates and assumptions based on currently available information. Management believes the estimates and assumptions are reasonable, and the relative effects of the transaction are properly reflected. The pro forma information reflects recurring adjustments, but does not reflect any cost savings or other synergies anticipated as a result of the Meritage acquisition, nor any future acquisition-related expenses. The pro forma information in the table above includes $41.4 million of revenues and $24.6 million of operating expenses attributable to the assets acquired as part of the Meritage acquisition that are included in the Partnership’s and WES Operating’s consolidated statements of operations for the year ended December 31, 2023. 3. ACQUISITIONS AND DIVESTITURES Cactus II. In November 2022, the Partnership sold its 15.00% interest in Cactus II to two third parties for $264.8 million, which includes a $1.8 million pro-rata distribution through closing. Total proceeds were received during the fourth quarter of 2022, resulting in a net gain on sale of $109.9 million that was recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. Ranch Westex. In September 2022, the Partnership acquired the remaining 50% interest in Ranch Westex JV LLC (“Ranch Westex”) from a third party for $40.1 million. Subsequent to the acquisition, (i) the Partnership is the sole owner and operator of the asset, (ii) Ranch Westex is no longer accounted for under the equity method of accounting, and (iii) the Ranch Westex processing plant is included as part of the operations of the West Texas complex. Fort Union and Bison facilities. In October 2020, the Partnership (i) sold its 14.81% interest in Fort Union Gas Gathering, LLC (“Fort Union”), which was accounted for under the equity method of accounting, and (ii) entered into an option agreement to sell the Bison treating facility, located in Northeast Wyoming, to a third party. During the second quarter of 2021, the third party exercised its option to purchase the Bison treating facility and the sale closed. The Partnership received total proceeds of $8.0 million, $7.0 million in the fourth quarter of 2020 and $1.0 million when the sale closed in the second quarter of 2021, resulting in a net gain on sale of $5.4 million that was recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. |
Partnership Distributions
Partnership Distributions | 12 Months Ended |
Dec. 31, 2023 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Partnership Distributions | 4. PARTNERSHIP DISTRIBUTIONS Partnership distributions. Under its partnership agreement, the Partnership distributes all of its available cash to unitholders of record on the applicable record date within 55 days following each quarter’s end. The amount of available cash (beyond proper reserves as defined in the partnership agreement) generally is all cash on hand at the end of the quarter, plus, at the discretion of the general partner, working capital borrowings made subsequent to the end of such quarter, less the amount of cash reserves established by the general partner to provide for the proper conduct of the Partnership’s business, including (i) to fund future capital expenditures; (ii) to comply with applicable laws, debt instruments, or other agreements; or (iii) to provide funds for unitholder distributions for any one or more of the next four quarters. Working capital borrowings generally include borrowings made under a credit facility or similar financing arrangement and are intended to be repaid or refinanced within 12 months. In all cases, working capital borrowings are used solely for working capital purposes or to fund unitholder distributions. The Board of Directors of the general partner (the “Board”) declared the following cash distributions to the Partnership’s unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Distribution Record 2021 March 31 $ 0.315 $ 132,969 May 14, 2021 April 30, 2021 June 30 0.319 134,662 August 13, 2021 July 30, 2021 September 30 0.323 134,862 November 12, 2021 November 1, 2021 December 31 0.327 134,749 February 14, 2022 January 31, 2022 2022 March 31 $ 0.500 $ 206,197 May 13, 2022 May 2, 2022 June 30 0.500 197,744 August 12, 2022 August 1, 2022 September 30 0.500 197,065 November 14, 2022 October 31, 2022 December 31 0.500 196,569 February 13, 2023 February 1, 2023 2023 March 31 (1) $ 0.856 $ 336,987 May 15, 2023 May 1, 2023 June 30 0.5625 221,442 August 14, 2023 July 31, 2023 September 30 0.575 223,432 November 13, 2023 November 1, 2023 December 31 0.575 223,438 February 13, 2024 February 1, 2024 _________________________________________________________________________________________ (1) Includes the regular quarterly distribution of $0.500 per unit, or $196.8 million, as well as the Enhanced Distribution of $0.356 per unit discussed below. To facilitate the distribution of available cash, during 2022 the Partnership adopted a financial policy that provided for an additional distribution (“Enhanced Distribution”) to be paid in conjunction with the regular first-quarter distribution of the following year (beginning in 2023), in a target amount equal to Free cash flow generated in the prior year after subtracting Free cash flow used for the prior year’s debt repayments, regular-quarter distributions, and unit repurchases. This Enhanced Distribution is subject to Board discretion, the establishment of cash reserves for the proper conduct of the Partnership’s business and is also contingent on the attainment of prior year-end net leverage thresholds (the ratio of total principal debt outstanding less total cash on hand as of the end of such period, as compared to trailing-twelve-months Adjusted EBITDA), after taking the Enhanced Distribution for such prior year into effect. Free cash flow and Adjusted EBITDA are defined under the caption Reconciliation of Non-GAAP Financial Measures within Part II, Item 7 of this Form 10-K. In April 2023, the Board approved an Enhanced Distribution of $0.356 per unit, or $140.1 million, related to the Partnership’s 2022 performance, which was paid in conjunction with the regular first-quarter 2023 distribution on May 15, 2023. 4. PARTNERSHIP DISTRIBUTIONS WES Operating partnership distributions. WES Operating makes quarterly cash distributions to the Partnership and WGR Asset Holding Company LLC (“WGRAH”), a subsidiary of Occidental, in proportion to their share of limited partner interests in WES Operating. See Note 5 . WES Operating made and/or declared the following cash distributions to its limited partners for the periods presented: thousands Quarters Ended Total Quarterly Distribution 2021 March 31 $ 137,030 May 2021 June 30 140,217 August 2021 September 30 140,217 November 2021 December 31 140,217 February 2022 2022 March 31 $ 213,513 May 2022 June 30 213,513 August 2022 September 30 213,513 November 2022 December 31 213,513 February 2023 2023 March 31 (1) $ 342,895 May 2023 June 30 226,260 August 2023 September 30 229,446 November 2023 December 31 229,446 February 2024 _________________________________________________________________________________________ (1) Includes amounts related to the Enhanced Distribution discussed above. In addition to the distributions above, during the years ended December 31, 2023 and 2022, WES Operating made distributions of $130.1 million and $463.8 million, respectively, to the Partnership and WGRAH. The Partnership used its portion of the distributions to repurchase common units. See Note 5 . |
Equity and Partners' Capital
Equity and Partners' Capital | 12 Months Ended |
Dec. 31, 2023 | |
Partners' Capital Notes [Abstract] | |
Equity and Partners' Capital | 5. EQUITY AND PARTNERS’ CAPITAL Holdings of Partnership equity. The Partnership’s common units are listed on the New York Stock Exchange under the ticker symbol “WES.” As of December 31, 2023, Occidental held 185,181,578 common units, representing a 47.7% limited partner interest in the Partnership, and through its ownership of the general partner, Occidental indirectly held 9,060,641 general partner units, representing a 2.3% general partner interest in the Partnership. The public held 194,338,405 common units, representing a 50.0% limited partner interest in the Partnership. In March 2021, an affiliate of Occidental sold 11,500,000 of the Partnership’s common units it held through an underwritten offering, including 1,500,000 common units pursuant to the full exercise of the underwriters’ over - allotment option. The Partnership did not receive any proceeds from the public offering. Partnership equity repurchases. In 2022, the Board authorized the Partnership to buy back up to $1.25 billion of the Partnership’s common units through December 31, 2024 (the “$1.25 billion Purchase Program”). The common units may be purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. During the year ended December 31, 2023, the Partnership repurchased 5,387,322 common units, which includes 5,100,000 common units repurchased from Occidental, for an aggregate purchase price of $134.6 million. During the year ended December 31, 2022, the Partnership repurchased 19,532,305 common units, which includes 10,000,000 common units repurchased from Occidental, on the open market for an aggregate purchase price of $487.6 million. The units were canceled immediately upon receipt. As of December 31, 2023, the Partnership had an authorized amount of $627.8 million remaining under the program. In November 2020, the Board authorized the Partnership to buy back up to $250.0 million of the Partnership’s common units through December 31, 2021 (the “Purchase Program”). The common units were purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. The Partnership repurchased 8,707,869 common units on the open market during the years ended December 31, 2021, for an aggregate purchase price of $167.2 million. In addition, the Partnership repurchased 2,500,000 common units from Occidental during the year ended December 31, 2021, for an aggregate purchase price of $50.2 million. The units were canceled by the Partnership immediately upon receipt. As of December 31, 2021, the entire $250.0 million authorized program had been fulfilled. Holdings of WES Operating equity. As of December 31, 2023, (i) the Partnership, directly and indirectly through its ownership of WES Operating GP, owned a 98.0% limited partner interest and the entire non - economic general partner interest in WES Operating and (ii) Occidental, through its ownership of WGRAH, owned a 2.0% limited partner interest in WES Operating, which is reflected as a noncontrolling interest within the consolidated financial statements of the Partnership (see Note 1 ). Partnership’s net income (loss) per common unit. The common and general partner unitholders’ allocation of net income (loss) attributable to the Partnership was equal to their cash distributions plus their respective allocations of undistributed earnings or losses in accordance with their weighted - average ownership percentage during each period using the two - class method. The Partnership’s basic net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) by the weighted - average number of common units outstanding during the period. Diluted net income (loss) per common unit includes the effect of outstanding units issued under the Partnership’s long-term incentive plans. 5. EQUITY AND PARTNERS’ CAPITAL The following table provides a reconciliation between basic and diluted net income (loss) per common unit: Year Ended December 31, thousands except per-unit amounts 2023 2022 2021 Net income (loss) Limited partners’ interest in net income (loss) $ 998,532 $ 1,189,562 $ 896,477 Weighted-average common units outstanding Basic 383,028 394,951 411,309 Dilutive effect of non-vested phantom units 1,380 1,285 713 Diluted 384,408 396,236 412,022 Excluded due to anti-dilutive effect 114 554 589 Net income (loss) per common unit Basic $ 2.61 $ 3.01 $ 2.18 Diluted $ 2.60 $ 3.00 $ 2.18 WES Operating’s net income (loss) per common unit. Net income (loss) per common unit for WES Operating is not calculated because it has no publicly traded units. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | |
Related-Party Transactions | 6. RELATED-PARTY TRANSACTIONS Summary of related-party transactions. The following tables summarize material related - party transactions included in the Partnership’s consolidated financial statements: Consolidated statements of operations Year Ended December 31, thousands 2023 2022 2021 Revenues and other Service revenues – fee based $ 1,773,914 $ 1,674,959 $ 1,589,367 Service revenues – product based 16,497 56,907 11,888 Product sales 43,683 63,367 31,103 Total revenues and other 1,834,094 1,795,233 1,632,358 Equity income, net – related parties (1) 152,959 183,483 204,645 Operating expenses Cost of product (2) (72,903) (25,447) 42,805 Operation and maintenance 4,618 5,081 27,805 General and administrative (3) 284 2,338 15,613 Total operating expenses (68,001) (18,028) 86,223 Gain (loss) on divestiture and other, net — (1,756) 420 _________________________________________________________________________________________ (1) See Note 7 . (2) Includes related-party natural - gas and NGLs imbalances. (3) Balances for the years ended December 31, 2022 and 2021, include equity - based compensation expense allocated to the Partnership by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6 ). The balance for the year ended December 31, 2021, also includes amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6 ). 6. RELATED-PARTY TRANSACTIONS Consolidated balance sheets December 31, thousands 2023 2022 Assets Accounts receivable, net $ 358,141 $ 313,937 Other current assets 1,260 1,578 Equity investments (1) 904,535 944,696 Other assets 43,216 29,058 Total assets 1,307,152 1,289,269 Liabilities Accounts and imbalance payables 38,541 32,150 Accrued liabilities 4,979 11,756 Other liabilities (2) 335,320 268,399 Total liabilities 378,840 312,305 _________________________________________________________________________________________ (1) See Note 7 . (2) Includes contract liabilities from contracts with customers. See Note 2 . Consolidated statements of cash flows Year Ended December 31, thousands 2023 2022 2021 Distributions from equity - investment earnings – related parties $ 155,169 $ 186,153 $ 213,516 Capital expenditures — (470) (2,000) Proceeds from the sale of assets to related parties — 200 — Contributions to equity investments – related parties (1,153) (9,632) (4,435) Distributions from equity investments in excess of cumulative earnings – related parties 39,104 63,897 41,385 Distributions to Partnership unitholders (1) (494,127) (372,468) (272,192) Distributions to WES Operating unitholders (2) (22,850) (24,898) (14,984) Net contributions from (distributions to) related parties — 1,423 8,533 Unit repurchases from Occidental (3) (127,500) (252,500) (50,225) _________________________________________________________________________________________ (1) Represents common and general partner unit distributions paid to Occidental pursuant to the partnership agreement of the Partnership (see Note 4 and Note 5 ). (2) Represents distributions paid to Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5 ). (3) Represents common units repurchased from Occidental (see Note 5). 6. RELATED-PARTY TRANSACTIONS The following tables summarize material related - party transactions for WES Operating (which are included in the Partnership’s consolidated financial statements) to the extent the amounts differ materially from the Partnership’s consolidated financial statements: Consolidated statements of operations Year Ended December 31, thousands 2023 2022 2021 General and administrative (1) $ 3,554 $ 5,373 $ 18,365 _________________________________________________________________________________________ (1) Includes an intercompany service fee between the Partnership and WES Operating. Balances for the years ended December 31, 2022 and 2021, include equity - based compensation expense allocated to WES Operating by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6 ). The balance for the year ended December 31, 2021, also includes amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6 ). Consolidated balance sheets December 31, thousands 2023 2022 Other current assets $ 1,235 $ 1,487 Other assets 41,405 28,459 Accounts and imbalance payables (1) 69,472 76,131 Accrued liabilities 4,662 11,439 _________________________________________________________________________________________ (1) Includes balances related to transactions between the Partnership and WES Operating. Consolidated statements of cash flows Year Ended December 31, thousands 2023 2022 2021 Distributions to WES Operating unitholders (1) $ (1,142,217) $ (1,244,533) $ (749,018) _________________________________________________________________________________________ (1) Represents distributions paid to the Partnership and Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement. Includes distributions made from WES Operating to the Partnership that were used by the Partnership to repurchase common units. See Note 4 and Note 5 . Related-party revenues. Related - party revenues include amounts earned by the Partnership from services provided to Occidental and from the sale of natural gas, condensate, and NGLs to Occidental. Gathering and processing agreements. The Partnership has significant gathering, processing, and produced-water disposal arrangements with affiliates of Occidental on most of its systems. While Occidental is the contracting counterparty of the Partnership, these arrangements with Occidental include not just Occidental - produced volumes, but also, in some instances, the volumes of other working - interest owners of Occidental who rely on the Partnership’s facilities and infrastructure to bring their volumes to market. Natural-gas throughput (excluding equity-investment throughput) attributable to production owned or controlled by Occidental was 34%, 35%, and 36% for the years ended December 31, 2023, 2022, and 2021, respectively. Crude-oil and NGLs throughput (excluding equity-investment throughput) attributable to production owned or controlled by Occidental was 86%, 89%, and 89% for the years ended December 31, 2023, 2022, and 2021, respectively. Produced-water throughput attributable to production owned or controlled by Occidental was 78%, 80%, and 87% for the years ended December 31, 2023, 2022, and 2021, respectively. 6. RELATED-PARTY TRANSACTIONS The Partnership is currently discussing varying interpretations of certain contractual provisions with Occidental regarding the calculation of the cost - of - service rates under an oil - gathering contract related to the Partnership’s DJ Basin oil - gathering system. If such discussions are resolved in a manner adverse to the Partnership, such resolution could have a negative impact on the Partnership’s financial condition and results of operations, including a reduction in rates and a non - cash charge to earnings. In connection with the sale of its Eagle Ford assets in 2017, Anadarko remained the primary counterparty to the Partnership’s Brasada gas processing agreement and entered into an agency relationship with Sanchez Energy Corporation (“Sanchez”), now Mesquite Energy, Inc. (“Mesquite”), that allowed Mesquite to process gas under such agreement. In December 2021, the Brasada gas processing agreement was assigned from Anadarko to Mesquite effective July 1, 2023. For this reason, Anadarko is not liable for any obligations under the Brasada gas processing agreement after June 30, 2023. For all periods presented, Mesquite performed Anadarko’s obligations under the Brasada gas processing agreement pursuant to its agency arrangement with Anadarko. Further, in connection with the sale of its Uinta Basin assets in 2020, Kerr McGee Oil & Gas Onshore LP, a subsidiary of Occidental, retained the deficiency payment obligations under a gas processing agreement at the Chipeta plant. This contingent payment obligation ended as of September 30, 2022. Marketing Transition Services Agreement. During the year ended December 31, 2020, Occidental provided marketing-related services to certain of the Partnership’s subsidiaries (the “Marketing Transition Services Agreement”). While the Partnership still has some marketing agreements with affiliates of Occidental, on January 1, 2021, the Partnership began marketing and selling substantially all of its crude oil and residue gas, and a majority of its NGLs, directly to third parties. Operating leases. Certain surface - use and salt - water disposal agreements between an affiliate of Occidental and certain wholly owned subsidiaries of the Partnership are classified as operating leases (see Related-party commercial agreement below). In addition, the Partnership has entered into operating leases for corporate and shared field offices with Occidental as the lessor. Effective December 31, 2019, an affiliate of Occidental and a wholly owned subsidiary of the Partnership, the lessor, entered into an operating and maintenance agreement pursuant to which Occidental provided operational and maintenance services with respect to a crude - oil gathering system and associated treating facilities owned by the Partnership through December 31, 2021. In April 2021, the Partnership exercised its option to terminate the operating and maintenance agreement with Occidental effective December 31, 2021. See Note 14 . Related-party expenses. Operation and maintenance expense includes amounts accrued for or paid to related parties for field - related costs, shared field offices, and easements (see Related-party commercial agreement below) supporting the Partnership’s operations at certain assets. A portion of general and administrative expense is paid by Occidental, which results in related - party transactions pursuant to the reimbursement provisions of the Partnership’s and WES Operating’s agreements with Occidental. Cost of product expense includes amounts related to certain continuing marketing arrangements with affiliates of Occidental, related - party imbalances, and transactions with affiliates accounted for under the equity method of accounting. See Marketing Transition Services Agreement in the section above. Related - party expenses bear no direct relationship to related - party revenues, and third - party expenses bear no direct relationship to third - party revenues. Services Agreement. Occidental performed certain centralized corporate functions for the Partnership and WES Operating pursuant to the agreement dated as of December 31, 2019, by and among Occidental, Anadarko, and WES Operating GP (“Services Agreement”). Most of the administrative and operational services previously provided by Occidental fully transitioned to the Partnership by December 31, 2021, with certain limited transition services remaining in place pursuant to the terms of the Services Agreement. 6. RELATED-PARTY TRANSACTIONS Incentive Plans. General and administrative expense for the years ended December 31, 2022 and 2021, includes non - cash equity - based compensation expense allocated to the Partnership by Occidental for awards granted to the executive officers of the general partner and to other employees prior to their employment with the Partnership under (i) the Anadarko Petroleum Corporation 2012 Omnibus Incentive Compensation Plan, as amended and restated, (ii) Occidental’s 2015 Long - Term Incentive Plan, and (iii) Occidental’s Phantom Share Unit Award Plan (collectively referred to as the “Incentive Plans”). General and administrative expense includes costs related to the Incentive Plans of $2.3 million and $10.1 million for the years ended December 31, 2022 and 2021, respectively. These amounts are reflected as contributions to partners’ capital in the consolidated statements of equity and partners’ capital. Construction reimbursement agreements and purchases and sales with related parties . From time to time, the Partnership enters into construction reimbursement agreements with Occidental providing that the Partnership will manage the construction of certain midstream infrastructure for Occidental in the Partnership’s areas of operation. Such arrangements generally provide for a reimbursement of costs incurred by the Partnership on a cost or cost-plus basis. Additionally, from time to time, in support of the Partnership’s business, the Partnership purchases and sells equipment, inventory, and other miscellaneous assets from or to Occidental or its affiliates. Related-party commercial agreement. During the first quarter of 2021, an affiliate of Occidental and certain wholly owned subsidiaries of the Partnership entered into a Commercial Understanding Agreement (“CUA”). Under the CUA, certain West Texas surface - use and salt - water disposal agreements were amended to reduce usage fees owed by the Partnership in exchange for the forgiveness of certain deficiency fees owed by Occidental and other unrelated contractual amendments. The present value of the reduced usage fees under the CUA was $30.0 million at the time the agreement was executed. Also, as a result of the amendments under the CUA, these agreements are classified as operating leases and a $30.0 million right-of-use (“ROU”) asset, included in Other assets on the consolidated balance sheets, was recognized during the first quarter of 2021. The ROU asset is being amortized to Operation and maintenance expense through 2038, the remaining term of the agreements. Customer concentration. Occidental was the only customer from which revenues exceeded 10% of consolidated revenues for all periods presented in the consolidated statements of operations. |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | 7. EQUITY INVESTMENTS The following tables present the financial statement impact of the Partnership’s equity investments: thousands Balance at December 31, 2021 Other-than-temporary impairment expense (1) Equity Contributions Distributions Distributions in excess of cumulative earnings (2) Acquisitions and Divestitures Balance at December 31, 2022 White Cliffs $ 40,753 $ (19,883) $ (1,086) $ — $ (32) $ (3,657) $ — $ 16,095 Rendezvous 22,075 — (2,582) — (677) (2,702) — 16,114 Mont Belvieu JV 96,728 — 29,475 — (29,599) (5,294) — 91,310 TEG 16,116 — 6,384 75 (6,407) (312) — 15,856 TEP 188,925 — 44,650 — (44,902) (3,986) — 184,687 FRP 196,632 — 45,841 455 (46,193) (4,019) — 192,716 Whitethorn LLC 149,690 — (3,417) 281 5,223 (5,182) — 146,595 Cactus II 171,294 — 11,696 — (11,835) (18,085) (153,070) — Saddlehorn 110,441 — 21,491 — (21,034) (6,707) — 104,191 Panola 20,044 — 2,343 — (2,212) (864) — 19,311 Mi Vida 51,763 — 11,316 — (11,113) (3,104) — 48,862 Ranch Westex 979 — 3,392 — (3,392) (8,376) 7,397 — Red Bluff Express 101,747 — 13,980 8,821 (13,980) (1,609) — 108,959 Total $ 1,167,187 $ (19,883) $ 183,483 $ 9,632 $ (186,153) $ (63,897) $ (145,673) $ 944,696 _________________________________________________________________________________________ (1) Recorded in Long-lived asset and other impairments in the consolidated statements of operations. (2) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. thousands Balance at December 31, 2022 Equity Contributions Distributions Distributions in excess of cumulative earnings (1) Balance at December 31, 2023 White Cliffs $ 16,095 $ 2,094 $ — $ (1,720) $ (3,221) $ 13,248 Rendezvous 16,114 (2,621) — (638) (2,040) 10,815 Mont Belvieu JV 91,310 23,476 — (23,128) (3,102) 88,556 TEG 15,856 3,504 700 (3,527) (1,348) 15,185 TEP 184,687 35,578 — (35,829) (11,877) 172,559 FRP 192,716 47,829 — (48,003) (5,991) 186,551 Whitethorn LLC 146,595 (6,870) 132 6,398 (1,456) 144,799 Saddlehorn 104,191 24,003 — (23,545) (2,889) 101,760 Panola 19,311 2,507 — (2,638) (464) 18,716 Mi Vida 48,862 9,135 — (8,215) (4,358) 45,424 Red Bluff Express 108,959 14,324 321 (14,324) (2,358) 106,922 Total $ 944,696 $ 152,959 $ 1,153 $ (155,169) $ (39,104) $ 904,535 _________________________________________________________________________________________ (1) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. 7. EQUITY INVESTMENTS The investment balance in White Cliffs at December 31, 2023, is $23.9 million less than the Partnership’s underlying equity in White Cliffs’ net assets. During the year ended December 31, 2022, the Partnership recognized an impairment loss of $19.9 million that resulted from a decline in value below the carrying value, which was determined to be other than temporary in nature. This investment was impaired to its estimated fair value of $16.1 million, using the income approach and Level-3 fair value inputs, due to a reduction in estimated future cash flows resulting from lower forecasted producer throughput. The investment balance in Rendezvous at December 31, 2023, includes $20.6 million for the purchase price allocated to the investment in Rendezvous in excess of the historic cost basis of Western Gas Resources, Inc. (“WGRI”), the entity that previously owned the interest in Rendezvous, which Anadarko acquired in August 2006. This excess balance is attributable to the difference between the fair value and book value of such gathering and treating facilities (at the time WGRI was acquired by Anadarko) and will be amortized to Equity income, net – related parties in the consolidated statements of operations over the remaining estimated useful life of those facilities. The investment balance in Whitethorn LLC at December 31, 2023, is $32.8 million less than the Partnership’s underlying equity in Whitethorn LLC’s net assets, primarily due to terms of the acquisition agreement which provided the Partnership a share of pre-acquisition operating cash flow. This difference will be accreted to Equity income, net – related parties in the consolidated statements of operations over the remaining estimated useful life of Whitethorn. The investment balance in Saddlehorn at December 31, 2023, was $17.1 million less than the Partnership’s underlying equity in Saddlehorn’s net assets, primarily due to income from an expansion project that was funded by Saddlehorn’s other owners being disproportionately allocated to the Partnership beginning in the second quarter of 2020. This difference will be accreted to Equity income, net – related parties in the consolidated statements of operations over the remaining estimated useful life of the Saddlehorn pipeline. In November 2022, the Partnership sold its 15.00% interest in Cactus II to two third parties. In September 2022, the Partnership acquired the remaining 50% interest in Ranch Westex from a third party. Subsequent to the acquisition, the Partnership is the sole owner and operator of the asset and Ranch Westex is no longer accounted for under the equity method of accounting. See Note 3. Management evaluates its equity investments for impairment whenever events or changes in circumstances indicate that the carrying value of such investments may have experienced a decline in value that is other than temporary. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether the investment has been impaired. Management assesses the fair value of equity investments using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third-party comparable sales and discounted cash flow models. If the estimated fair value is less than the carrying value, the excess of the carrying value over the estimated fair value is recognized as an impairment loss in the consolidated statements of operations. 7. EQUITY INVESTMENTS The following tables present the summarized combined financial information for equity investments (amounts represent 100% of investee financial information): Year Ended December 31, thousands 2023 2022 2021 Revenues $ 1,572,120 $ 1,922,733 $ 1,808,791 Operating income 619,597 661,779 946,299 Net income 623,593 661,916 945,801 December 31, thousands 2023 2022 Current assets $ 302,675 $ 293,539 Property, plant, and equipment, net 4,114,540 4,278,398 Other assets 50,693 52,163 Total assets $ 4,467,908 $ 4,624,100 Current liabilities $ 130,028 $ 123,897 Non-current liabilities 17,920 17,660 Equity 4,319,960 4,482,543 Total liabilities and equity $ 4,467,908 $ 4,624,100 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES The Partnership is not a taxable entity for U.S. federal income tax purposes; therefore, the federal statutory rate is zero percent. However, income apportionable to Texas is subject to Texas margin tax. For the years ended December 31, 2023 and 2022, the variance from the federal statutory rate was primarily due to the Texas margin tax liability. For the year ended December 31, 2021, the variance from the federal statutory rate was primarily impacted by a state margin rate reduction associated with Occidental’s settlement of state audit matters and the Texas margin tax liability. The components of income tax expense (benefit) are as follows: Year Ended December 31, thousands 2023 2022 2021 Current state income tax expense (benefit) $ 3,341 $ 2,188 $ (37) Deferred state income tax expense (benefit) 1,044 1,999 (9,770) Total income tax expense (benefit) $ 4,385 $ 4,187 $ (9,807) 8. INCOME TAXES Total income taxes differed from the amounts computed by applying the statutory income tax rate to income (loss) before income taxes. The sources of these differences are as follows: Year Ended December 31, thousands except percentages 2023 2022 2021 Income (loss) before income taxes $ 1,052,392 $ 1,255,643 $ 934,192 Statutory tax rate — % — % — % Tax computed at statutory rate $ — $ — $ — Adjustments resulting from: Texas margin tax expense (benefit) (1) 4,385 4,187 (9,807) Income tax expense (benefit) $ 4,385 $ 4,187 $ (9,807) Effective tax rate — % — % (1) % _________________________________________________________________________________________ (1) Includes a tax benefit of $12.5 million for the year ended December 31, 2021, related to a reduced Texas margin tax rate resulting from Occidental’s settlement of state audit matters. The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows: December 31, thousands 2023 2022 Depreciable property $ (15,467) $ (14,114) Other intangible assets (588) (603) Other 587 293 Net long-term deferred income tax liabilities $ (15,468) $ (14,424) |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | 9. PROPERTY, PLANT, AND EQUIPMENT A summary of the historical cost of property, plant, and equipment is as follows: December 31, thousands Estimated Useful Life 2023 2022 Land N/A $ 12,504 $ 10,982 Gathering systems – pipelines 30 years 5,890,607 5,519,592 Gathering systems – compressors 15 years 2,553,602 2,266,410 Processing complexes and treating facilities 25 years 3,745,332 3,419,201 Transportation pipeline and equipment 3 to 48 years 259,314 174,241 Produced - water disposal systems 20 years 1,098,616 932,627 Assets under construction N/A 479,368 263,353 Other 3 to 40 years 906,088 779,187 Total property, plant, and equipment 14,945,431 13,365,593 Less accumulated depreciation 5,290,415 4,823,993 Net property, plant, and equipment $ 9,655,016 $ 8,541,600 “Assets under construction” represents property that is not yet placed into productive service as of the respective balance sheet date and is excluded from capitalized costs being depreciated. Long-lived asset impairments. During the year ended December 31, 2023, the Partnership recognized a long-lived asset impairment of $52.1 million for assets located in the Rockies due to a reduction in estimated future cash flows resulting from a contract termination notice received in the first quarter of 2023. This asset was impaired to its estimated fair value of $22.8 million. The fair value was measured using the income approach and Level-3 fair value inputs. The income approach was based on the Partnership’s projected future EBITDA and free cash flows, which requires significant assumptions including, among others, future throughput volumes based on current expectations of producer activity and operating costs. During the year ended December 31, 2021, the Partnership recognized a long-lived asset impairment of $14.2 million at the DJ Basin complex due to cancellation of projects. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | 10. GOODWILL AND OTHER INTANGIBLES Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. The Partnership’s goodwill had been allocated to two reporting units: (i) gathering and processing and (ii) transportation. As of December 31, 2023, the carrying value of goodwill for the gathering and processing reporting unit was zero and goodwill allocated to the transportation reporting unit was $4.8 million. The Partnership’s annual goodwill impairment assessment indicated no impairment for the year ended December 31, 2023. Other intangible assets. The other intangible assets balance on the consolidated balance sheets includes the fair value, net of amortization, primarily related to (i) contracts assumed in connection with processing plant acquisitions in 2011 that are part of the DJ Basin complex, which are being amortized on a straight-line basis over 38 years and (ii) contracts assumed in connection with the DBM acquisition in November 2014, which are being amortized on a straight-line basis over 30 years. The Partnership assesses other intangible assets for impairment together with the related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. See Property, plant, and equipment and other intangible assets in Note 1 for further discussion of management’s process to evaluate potential impairment of long-lived assets. The following table presents the gross carrying value and accumulated amortization of other intangible assets: December 31, thousands 2023 2022 Gross carrying value $ 979,863 $ 979,863 Accumulated amortization (298,455) (266,788) Other intangible assets $ 681,408 $ 713,075 |
Selected Components of Working
Selected Components of Working Capital | 12 Months Ended |
Dec. 31, 2023 | |
Selected Components Of Working Capital [Abstract] | |
Selected Components of Working Capital | 11. SELECTED COMPONENTS OF WORKING CAPITAL A summary of accounts receivable, net is as follows: The Partnership WES Operating December 31, December 31, thousands 2023 2022 2023 2022 Trade receivables, net $ 665,892 $ 548,859 $ 665,892 $ 548,859 Other receivables, net 745 5,404 723 5,404 Total accounts receivable, net $ 666,637 $ 554,263 $ 666,615 $ 554,263 A summary of other current assets is as follows: The Partnership WES Operating December 31, December 31, thousands 2023 2022 2023 2022 NGLs inventory $ 2,557 $ 3,797 $ 2,557 $ 3,797 Imbalance receivables 5,056 32,658 5,056 32,658 Prepaid insurance 21,065 13,262 18,571 11,139 Contract assets 9,595 3,381 9,595 3,381 Other 14,713 6,408 14,689 6,316 Total other current assets $ 52,986 $ 59,506 $ 50,468 $ 57,291 A summary of accrued liabilities is as follows: The Partnership WES Operating December 31, December 31, thousands 2023 2022 2023 2022 Accrued interest expense $ 124,937 $ 110,486 $ 124,937 $ 110,486 Short - term asset retirement obligations 7,606 10,493 7,606 10,493 Short - term remediation and reclamation obligations 5,490 5,383 5,490 5,383 Income taxes payable 2,908 2,428 2,908 2,428 Contract liabilities 16,866 20,903 16,866 20,903 Accrued payroll and benefits 55,237 44,855 2,243 — Other 49,528 60,092 43,411 47,596 Total accrued liabilities $ 262,572 $ 254,640 $ 203,461 $ 197,289 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 12. ASSET RETIREMENT OBLIGATIONS The following table provides a summary of changes in asset retirement obligations: Year Ended December 31, thousands 2023 2022 Carrying amount of asset retirement obligations at beginning of year $ 300,514 $ 308,209 Liabilities incurred 34,929 10,513 Liabilities settled (11,273) (10,115) Accretion expense 15,040 14,474 Revisions in estimated liabilities 27,581 (22,567) Carrying amount of asset retirement obligations at end of year $ 366,791 $ 300,514 Liabilities incurred for the year ended December 31, 2023, primarily related to the acquisition of Meritage and expansion activity in West Texas. Revisions in estimated liabilities for the year ended December 31, 2023, primarily related to an increase in expected settlement costs across all areas of operations. Revisions in estimated liabilities for the year ended December 31, 2022, primarily related to a reduction in expected settlement costs at the West Texas and Brasada complexes, as well as the DBM oil and DBM water systems, partially offset by an increase in expected settlement costs at the Red Desert, Granger, and DJ Basin complexes, and at the Hilight system. |
Debt and Interest Expense
Debt and Interest Expense | 12 Months Ended |
Dec. 31, 2023 | |
Debt Instruments [Abstract] | |
Debt and Interest Expense | 13. DEBT AND INTEREST EXPENSE WES Operating is the borrower for all outstanding debt and is expected to be the borrower for all future debt issuances. The following table presents the outstanding debt: December 31, 2023 December 31, 2022 thousands Principal Carrying Fair Value (1) Principal Carrying Fair Value (1) Short - term debt Floating - Rate Senior Notes due 2023 $ — $ — $ — $ 213,138 $ 213,121 $ 214,823 Commercial paper 613,885 610,312 610,312 — — — Finance lease liabilities 7,436 7,436 7,436 2,659 2,659 2,659 Total short - term debt $ 621,321 $ 617,748 $ 617,748 $ 215,797 $ 215,780 $ 217,482 Long - term debt 3.100% Senior Notes due 2025 $ 666,481 $ 665,145 $ 650,765 $ 730,706 $ 727,953 $ 692,491 3.950% Senior Notes due 2025 349,163 347,938 341,415 399,163 396,825 379,107 4.650% Senior Notes due 2026 467,204 465,705 459,617 474,242 472,161 452,201 4.500% Senior Notes due 2028 357,094 354,665 346,121 400,000 396,698 368,346 4.750% Senior Notes due 2028 382,888 380,747 374,767 400,000 397,340 368,141 6.350% Senior Notes due 2029 600,000 593,069 626,994 — — — 4.050% Senior Notes due 2030 1,104,593 1,097,609 1,036,097 1,200,000 1,191,345 1,053,038 6.150% Senior Notes due 2033 750,000 741,125 780,203 — — — 5.450% Senior Notes due 2044 600,000 594,031 545,154 600,000 593,878 503,742 5.300% Senior Notes due 2048 700,000 687,735 614,082 700,000 687,494 580,570 5.500% Senior Notes due 2048 350,000 342,913 312,365 350,000 342,783 291,194 5.250% Senior Notes due 2050 1,000,000 984,206 895,440 1,000,000 983,945 829,804 RCF — — — 375,000 375,000 375,000 Finance lease liabilities 28,668 28,668 28,668 4,160 4,160 4,160 Total long - term debt $ 7,356,091 $ 7,283,556 $ 7,011,688 $ 6,633,271 $ 6,569,582 $ 5,897,794 _________________________________________________________________________________________ (1) Fair value is measured using the market approach and Level - 2 fair value inputs. 13. DEBT AND INTEREST EXPENSE Debt activity. The following table summarizes debt activity for the periods presented: thousands Carrying Value Balance at December 31, 2021 $ 6,906,548 RCF borrowings 1,390,000 Repayments of RCF borrowings (1,015,000) Repayment of 4.000% Senior Notes due 2022 (502,246) Repayment of 3.100% Senior Notes due 2025 (1,400) Finance lease liabilities 1,493 Other 5,967 Balance at December 31, 2022 $ 6,785,362 RCF borrowings 1,120,000 Commercial paper borrowings (1) 610,312 Repayments of RCF borrowings (1,495,000) Issuance of 6.350% Senior Notes due 2029 600,000 Issuance of 6.150% Senior Notes due 2033 750,000 Repayment of Floating-Rate Senior Notes due 2023 (213,138) Repayment of 3.100% Senior Notes due 2025 (64,225) Repayment of 3.950% Senior Notes due 2025 (50,000) Repayment of 4.650% Senior Notes due 2026 (7,038) Repayment of 4.500% Senior Notes due 2028 (42,906) Repayment of 4.750% Senior Notes due 2028 (17,112) Repayment of 4.050% Senior Notes due 2030 (95,407) Finance lease liabilities 29,285 Other (8,829) Balance at December 31, 2023 $ 7,901,304 ________________________________________________________________________________________ (1) Net of repayments related to commercial paper notes with maturities of 90 days or less. WES Operating Senior Notes. WES Operating issued the Fixed - Rate 3.100% Senior Notes due 2025, 4.050% Senior Notes due 2030, 5.250% Senior Notes due 2050, and the Floating - Rate Senior Notes due 2023 in January 2020. Including the effects of the issuance prices, underwriting discounts, and interest - rate adjustments, the effective interest rates of the Senior Notes due 2025, 2030, and 2050, were 3.290%, 4.169%, and 5.363%, respectively, at December 31, 2023, and were 3.790%, 4.671%, and 5.869%, respectively, at December 31, 2022. The effective interest rate of these notes is subject to adjustment from time to time due to a change in credit rating. During the third quarter of 2023, WES Operating completed the public offering of $600.0 million in aggregate principal amount of 6.350% Senior Notes due 2029. Interest is payable semi-annually on January 15th and July 15th of each year, with the initial interest payment being due on January 15, 2024. Net proceeds from the offering were used to fund a portion of the aggregate purchase price for the Meritage acquisition (see Note 3 ), to pay related costs and expenses, and for general partnership purposes. During the second quarter of 2023, WES Operating completed the public offering of $750.0 million in aggregate principal amount of 6.150% Senior Notes due 2033. Interest is payable semi-annually on April 1st and October 1st of each year, with the initial interest payment being due on October 1, 2023. Net proceeds from the offering were used to repay borrowings under the RCF and for general partnership purposes. During the year ended December 31, 2023, WES Operating purchased and retired $276.7 million of certain of its senior notes via open-market repurchases and redeemed the total principal amount outstanding on the Floating-Rate Senior Notes due 2023 at par value with cash on hand (see Debt activity above). For the year ended December 31, 2023, a gain of $15.4 million was recognized for the early retirement of portions of these notes. 13. DEBT AND INTEREST EXPENSE During the second quarter of 2022, WES Operating (i) redeemed the total principal amount outstanding of the 4.000% Senior Notes due 2022 at par value and (ii) purchased and retired $1.4 million of the 3.100% Senior Notes due 2025 via open-market repurchases. As of December 31, 2023, WES Operating was in compliance with all covenants under the relevant governing indentures. Revolving credit facility. In April 2023, WES Operating (i) repaid all then-outstanding borrowings under its RCF with proceeds from the 6.150% Senior Notes due 2033 offering, and (ii) entered into an amendment to its RCF to, among other things, extend the maturity date to April 2028 and provide for a maximum borrowing capacity up to $2.0 billion, expandable to a maximum of $2.5 billion, through the maturity date. The RCF bears interest at an Adjusted Term SOFR (as defined in the RCF amendment), plus applicable margins ranging from 1.00% to 1.70%, or an alternate base rate equal to the greatest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.50%, or (c) Adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%, in each case plus applicable margins currently ranging from zero to 0.70%, based on WES Operating’s senior unsecured debt rating. A required quarterly facility fee is paid ranging from 0.125% to 0.300% of the commitment amount (whether drawn or undrawn), which also is based on the senior unsecured debt rating. The RCF contains certain covenants that limit, among other things, WES Operating’s ability, and that of certain of its subsidiaries, to incur additional indebtedness, grant certain liens, merge, consolidate, or allow any material change in the character of its business, enter into certain related - party transactions and use proceeds other than for partnership purposes. The RCF also contains various customary covenants, certain events of default, and a maximum consolidated leverage ratio as of the end of each fiscal quarter (which is defined as the ratio of consolidated indebtedness as of the last day of a fiscal quarter to Consolidated EBITDA, as defined in the RCF agreement, for the most - recent four - consecutive fiscal quarters ending on such day) of 5.0 to 1.0, or a consolidated leverage ratio of 5.5 to 1.0 with respect to quarters ending in the 270 - day period immediately following certain acquisitions. As a result of certain covenants contained in the RCF, our capacity to borrow under the RCF may be limited. As of December 31, 2023, there were no outstanding borrowings and $5.1 million of outstanding letters of credit, resulting in $1.4 billion in effective borrowing capacity, after taking into account the $613.9 million of outstanding commercial paper borrowings (see below), for which we maintain availability under the RCF as support for WES Operating’s commercial paper program. As of December 31, 2023 and 2022, the interest rate on any outstanding RCF borrowings was 6.65% and 5.92%, respectively. The facility - fee rate was 0.20% and 0.25% at December 31, 2023 and 2022, respectively. As of December 31, 2023, WES Operating was in compliance with all covenants under the RCF. Commercial paper program. In November 2023, WES operating entered into an unsecured commercial paper program under which it may issue (and have outstanding at any one time) an aggregate principal amount up to $2.0 billion. WES Operating intends to maintain a minimum aggregate available borrowing capacity under the RCF equal to the aggregate amount of outstanding commercial paper borrowings. The maturities of the notes may vary, but may not exceed 397 days. As of December 31, 2023, there were $613.9 million aggregate principal amount of short-term notes outstanding under the commercial paper program at a weighted-average interest rate of 6.23% and weighted-average maturity of 34 days. Interest expense. The following table summarizes the amounts included in interest expense: Year Ended December 31, thousands 2023 2022 2021 Long - term and short - term debt $ (348,393) $ (326,949) $ (366,570) Finance lease liabilities (1,083) (414) (861) Commitment fees and amortization of debt-related costs (12,395) (12,212) (12,705) Capitalized interest 13,643 5,636 3,624 Interest expense $ (348,228) $ (333,939) $ (376,512) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lessee, Operating Leases | 14. LEASES Lessee. The Partnership has entered into operating leases for corporate offices, shared field offices, easements, and equipment supporting the Partnership’s operations, with both Occidental and third parties as lessors. The Partnership has also entered into finance leases with third parties for equipment, vehicles, and an NGL pipeline in Wyoming. The following table summarizes information related to the Partnership’s leases: December 31, 2023 2022 thousands except lease term and discount rate Operating Leases Finance Leases Operating Leases Finance Leases Assets Other assets $ 84,279 $ — $ 67,087 $ — Net property, plant, and equipment — 36,958 — 7,402 Total lease assets (1) $ 84,279 $ 36,958 $ 67,087 $ 7,402 Liabilities Accrued liabilities $ 11,259 $ — $ 10,342 $ — Short-term debt — 7,436 — 2,659 Other liabilities 48,459 — 33,318 — Long-term debt — 28,668 — 4,160 Total lease liabilities (1) $ 59,718 $ 36,104 $ 43,660 $ 6,819 Weighted-average remaining lease term (years) 9 6 8 6 Weighted-average discount rate (%) 4.6 7.1 4.5 8.2 ________________________________________________________________________________________ (1) Includes additions to ROU assets and lease liabilities of $33.1 million and $8.3 million related to operating leases for the years ended December 31, 2023 and 2022, respectively. Includes additions to ROU assets and lease liabilities of $32.6 million and $7.1 million related to finance leases for the years ended December 31, 2023 and 2022, respectively. The following table summarizes the Partnership’s lease cost: Year Ended December 31, thousands 2023 2022 2021 Operating lease cost $ 15,457 $ 14,767 $ 10,753 Short-term lease cost 48,343 38,875 37,616 Variable lease cost 3,930 5,611 2,628 Sublease income (311) (414) (414) Finance lease cost Amortization of ROU assets 3,487 5,377 7,151 Interest on lease liabilities 1,083 414 861 Total lease cost $ 71,989 $ 64,630 $ 58,595 14. LEASES The following table summarizes cash paid for amounts included in the measurement of lease liabilities: Year Ended December 31, 2023 2022 2021 thousands Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Operating cash flows $ 14,217 $ 1,083 $ 13,616 $ 229 $ 5,805 $ 861 Financing cash flows — 3,076 — 4,318 — 6,513 The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2023: Operating Leases Finance Leases 2024 $ 11,593 $ 7,670 2025 9,542 10,527 2026 8,267 9,274 2027 7,849 5,814 2028 7,993 5,659 Thereafter 34,020 3,795 Total lease payments 79,264 42,739 Less portion representing imputed interest 19,546 6,635 Total lease liabilities $ 59,718 $ 36,104 |
Lessee, Finance Leases | 14. LEASES Lessee. The Partnership has entered into operating leases for corporate offices, shared field offices, easements, and equipment supporting the Partnership’s operations, with both Occidental and third parties as lessors. The Partnership has also entered into finance leases with third parties for equipment, vehicles, and an NGL pipeline in Wyoming. The following table summarizes information related to the Partnership’s leases: December 31, 2023 2022 thousands except lease term and discount rate Operating Leases Finance Leases Operating Leases Finance Leases Assets Other assets $ 84,279 $ — $ 67,087 $ — Net property, plant, and equipment — 36,958 — 7,402 Total lease assets (1) $ 84,279 $ 36,958 $ 67,087 $ 7,402 Liabilities Accrued liabilities $ 11,259 $ — $ 10,342 $ — Short-term debt — 7,436 — 2,659 Other liabilities 48,459 — 33,318 — Long-term debt — 28,668 — 4,160 Total lease liabilities (1) $ 59,718 $ 36,104 $ 43,660 $ 6,819 Weighted-average remaining lease term (years) 9 6 8 6 Weighted-average discount rate (%) 4.6 7.1 4.5 8.2 ________________________________________________________________________________________ (1) Includes additions to ROU assets and lease liabilities of $33.1 million and $8.3 million related to operating leases for the years ended December 31, 2023 and 2022, respectively. Includes additions to ROU assets and lease liabilities of $32.6 million and $7.1 million related to finance leases for the years ended December 31, 2023 and 2022, respectively. The following table summarizes the Partnership’s lease cost: Year Ended December 31, thousands 2023 2022 2021 Operating lease cost $ 15,457 $ 14,767 $ 10,753 Short-term lease cost 48,343 38,875 37,616 Variable lease cost 3,930 5,611 2,628 Sublease income (311) (414) (414) Finance lease cost Amortization of ROU assets 3,487 5,377 7,151 Interest on lease liabilities 1,083 414 861 Total lease cost $ 71,989 $ 64,630 $ 58,595 14. LEASES The following table summarizes cash paid for amounts included in the measurement of lease liabilities: Year Ended December 31, 2023 2022 2021 thousands Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Operating cash flows $ 14,217 $ 1,083 $ 13,616 $ 229 $ 5,805 $ 861 Financing cash flows — 3,076 — 4,318 — 6,513 The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2023: Operating Leases Finance Leases 2024 $ 11,593 $ 7,670 2025 9,542 10,527 2026 8,267 9,274 2027 7,849 5,814 2028 7,993 5,659 Thereafter 34,020 3,795 Total lease payments 79,264 42,739 Less portion representing imputed interest 19,546 6,635 Total lease liabilities $ 59,718 $ 36,104 |
Lessor, Operating Leases | Lessor. Effective December 31, 2019, an affiliate of Occidental and a wholly owned subsidiary of the Partnership, the lessor, entered into an operating and maintenance agreement pursuant to which Occidental provided operational and maintenance services with respect to a crude - oil gathering system and associated treating facilities owned by the Partnership through December 31, 2021. The agreement and underlying contracts included (i) fixed consideration measured as the minimum - volume commitment for both gathering and treating, and (ii) variable consideration, which consisted of all volumes above the minimum - volume commitment. For the year ended December 31, 2021, the Partnership recognized fixed-lease revenue of $175.8 million and variable-lease revenue of $3.5 million related to these agreements, with such amounts included in Service revenues – fee based in the consolidated statements of operations. In December 2021, one of the Partnership’s processing agreements was amended. The amended contract was determined to be a lease agreement; however, the Partnership elected the practical expedient to combine the lease and the non-lease components, which consists of processing and stabilization services, into a single service component and will account for the contract under Revenue from Contracts with Customers (Topic 606) . |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | 15. EQUITY-BASED COMPENSATION The general partner has the authority to grant equity compensation awards to its outside directors, executive officers, and employees under the Western Gas Partners, LP 2017 Long-Term Incentive Plan (the “2017 LTIP”) and the Western Midstream Partners, LP 2021 Long - Term Incentive Plan (the “2021 LTIP”). These plans are collectively referred to as the “WES LTIPs.” The 2017 LTIP and the 2021 LTIP permit the issuance of up to 3,431,251 and 9,500,000 units, respectively, of which 1,226,875 and 9,479,648 units, respectively, remained available for future issuance as of December 31, 2023. The Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan expired during the year ended December 31, 2022. On March 22, 2021, the Board approved the 2021 LTIP. Subject to the capitalization adjustment provisions included in the 2021 LTIP, the total aggregate number of common units that may be delivered with respect to awards under the 2021 LTIP is 9,500,000 (the “2021 LTIP Limit”). Common units withheld from an award or surrendered by a participant to satisfy tax withholding obligations or to satisfy the payment of any exercise price with respect to an award will not be considered to be common units delivered under the 2021 LTIP for purposes of the 2021 LTIP Limit. If any award is forfeited, cancelled, exercised, settled in cash, or otherwise terminates or expires without the actual delivery of common units, the common units subject to such award will again be available for awards under the 2021 LTIP. The 2021 LTIP provides for the grant of unit options, unit appreciation rights, restricted units, phantom units, other unit - based awards, cash awards, and a unit award or a substitute award to employees and directors of the Partnership and its general partner. The Board awards phantom units (the “Awards”) to certain members of the leadership team of the Partnership under the WES LTIPs. The Awards include (i) an award of time-vested phantom units that vest ratably over a period of three years (“Time-Based Awards”), (ii) a market-based award that vests after a performance period of three years based on the Partnership’s relative total unitholder return as compared to a group of peer companies (“TUR Awards”), and (iii) a performance award that vests based on the Partnership’s average return on assets over a performance period of three years (“ROA Awards”). At vesting, the number of vested units for the TUR Awards and the ROA Awards will be determined in accordance with the terms of the respective award agreements that provide for payout percentages ranging from 0% to 200% based on results achieved over the applicable performance period. At vesting, the Awards generally will be settled in Partnership common units. Prior to vesting, the Awards granted in 2020 paid in-kind distributions in the form of Partnership common units. During the years ended December 31, 2023, 2022, and 2021, the Partnership issued 3,253, 13,754, and 21,681 common units, respectively, as in-kind distributions under such Awards. Prior to vesting, the Time-Based Awards granted after 2020 pay distribution equivalents in cash ratably. The TUR and ROA Awards granted after 2020 pay cash distributions at vesting based on actual performance. In addition, time-vested phantom units may be awarded under the WES LTIPs to non-executive employees and outside directors of the Partnership, which vest ratably over a period of three years and one year from the grant date, respectively. Prior to vesting, the awards to non-executive employees and outside directors pay distribution equivalents in cash. The equity-based compensation expense attributable to these awards is amortized over the vesting periods applicable to the awards using the straight-line method. Expense is recognized based on the grant-date fair value and recorded, net of actual forfeitures, as General and administrative expense in the consolidated statements of operations. The fair value of the Time-Based Awards and non-executive awards is based on the observable market price of the Partnership’s units on the grant date of the award. The fair value of the TUR Awards is determined using a Monte Carlo simulation at the grant date of the award. The fair value of the ROA Awards is based on the observable market price of the Partnership’s units on the grant date of the award and compensation expense is adjusted quarterly based on the estimated performance rating at vesting. The total fair value of phantom units vested was $23.4 million, $21.7 million, and $8.5 million for the years ended December 31, 2023, 2022, and 2021, respectively, based on the market price at the vesting date. Compensation expense for the WES LTIPs was $32.0 million, $25.5 million, and $17.6 million for the years ended December 31, 2023, 2022, and 2021, respectively. As of December 31, 2023, the Partnership had $41.0 million of estimated unrecognized compensation expense attributable to the WES LTIPs that will be recognized over a weighted-average period of 0.9 years. 15. EQUITY-BASED COMPENSATION The following table summarizes time-vested award activity under the WES LTIPs: 2023 2022 2021 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 21.33 1,689,030 $ 16.97 1,775,672 $ 15.69 1,307,606 Granted 28.19 1,140,789 26.11 866,900 17.86 1,041,635 Vested 19.66 (910,062) 16.84 (793,367) 14.82 (497,648) Forfeited 25.73 (183,055) 21.12 (160,175) 16.83 (75,921) Non-vested units at end of year 26.24 1,736,702 21.33 1,689,030 16.97 1,775,672 The following table summarizes TUR Awards activity under the WES LTIPs: 2023 2022 2021 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 24.62 388,817 $ 21.17 325,217 $ 17.79 108,481 Granted 40.44 231,395 37.80 94,173 22.77 237,720 Vested 17.79 (155,052) — — — — Forfeited 40.22 (1,631) 28.54 (30,573) 21.78 (20,984) Non-vested units at end of year 32.22 463,529 24.62 388,817 21.17 325,217 The following table summarizes ROA Awards activity under the WES LTIPs: 2023 2022 2021 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 18.12 388,817 $ 16.01 325,217 $ 16.27 108,481 Granted 28.48 245,143 25.95 94,173 15.88 237,720 Vested 16.27 (168,800) — — — — Forfeited 28.38 (1,631) 19.74 (30,573) 15.96 (20,984) Non-vested units at end of year 22.51 463,529 18.12 388,817 16.01 325,217 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES Environmental obligations. The Partnership is subject to various environmental-remediation obligations arising from federal, state, and local regulations regarding air and water quality, hazardous and solid waste disposal, and other environmental matters. As of December 31, 2023 and 2022, the consolidated balance sheets included $7.3 million and $7.4 million, respectively, of liabilities for remediation and reclamation obligations. The current portion of these amounts is included in Accrued liabilities Note 11 . Management regularly monitors the remediation and reclamation process and the liabilities recorded and believes its environmental obligations are adequate to fund remedial actions required to comply with present laws and regulations, and that the ultimate liability for these matters, if any, will not differ materially from recorded amounts nor materially affect the overall results of operations, cash flows, or financial condition. There can be no assurance, however, that current regulatory requirements will not change, or past non-compliance with environmental issues will not be discovered. Litigation and legal proceedings. From time to time, the Partnership is involved in legal, tax, regulatory, and other proceedings in various forums regarding performance, contracts, and other matters that arise in the ordinary course of business. Management is not aware of any such proceeding for which the final disposition could have a material adverse effect on the Partnership’s financial condition, results of operations, or cash flows. Other commitments. The Partnership has payment obligations, or commitments, that include, among other things, a revolving credit facility, other third - party long - term debt, obligations related to the Partnership’s capital spending programs, pipeline and offload commitments, and various operating and finance leases. The payment obligations related to the Partnership’s capital spending programs, the majority of which is expected to be paid in the next 12 months, primarily relate to expansion, construction, and asset - integrity projects at the West Texas complex, DBM water systems, DJ Basin complex, and DBM oil system. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. SUBSEQUENT EVENTS On February 21, 2024, the Partnership announced its entry into definitive agreements for the divestment of the following assets: (i) the 33.75% interest in the Marcellus Interest systems, (ii) the 15.00% interest in Panola Pipeline Company, LLC (“Panola”), (iii) the 25.00% interest in Enterprise EF78 LLC (the “Mont Belvieu JV”), (iv) the 20.00% interest in Whitethorn Pipeline Company LLC (“Whitethorn LLC”), and (v) the 20.00% interest in Saddlehorn Pipeline Company LLC (“Saddlehorn”). As disclosed in Note 1—Summary of Significant Accounting Policies and Basis of Presentation within this Form 10-K, the interest in the Marcellus Interest systems is proportionately consolidated, while the interests in Panola, the Mont Belvieu JV, Whitethorn LLC, and Saddlehorn are accounted for under the equity method of accounting. The sale of the interests in the Mont Belvieu JV and Whitethorn LLC on February 16, 2024, also resolved outstanding legal proceedings associated with those assets. The sale of the Marcellus Interest systems, Panola, and Saddlehorn are expected to close in the first or second quarters of 2024, subject to customary closing conditions. The divestments are expected to result in combined proceeds of $790.0 million for an estimated aggregate net gain on sale of approximately $300.0 million. The proceeds payable under each transaction will be subject to customary adjustments calculated at closing. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to Western Midstream Partners, LP | $ 1,022,216 | $ 1,217,103 | $ 916,292 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation policy | Basis of presentation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of the Partnership and entities in which it holds a controlling financial interest, including WES Operating, WES Operating GP, proportionately consolidated interests, and equity investments (see table below). All significant intercompany transactions have been eliminated. The following table outlines the ownership interests and the accounting method of consolidation used in the consolidated financial statements for entities not wholly owned (see Note 7) : Percentage Interest Full consolidation Chipeta (1) 75.00 % Proportionate consolidation (2) Springfield system 50.10 % Marcellus Interest systems 33.75 % Equity investments (3) Mi Vida JV LLC (“Mi Vida”) 50.00 % Front Range Pipeline LLC (“FRP”) 33.33 % Red Bluff Express Pipeline, LLC (“Red Bluff Express”) 30.00 % Enterprise EF78 LLC (“Mont Belvieu JV”) 25.00 % Rendezvous Gas Services, LLC (“Rendezvous”) 22.00 % Texas Express Pipeline LLC (“TEP”) 20.00 % Texas Express Gathering LLC (“TEG”) 20.00 % Whitethorn Pipeline Company LLC (“Whitethorn LLC”) 20.00 % Saddlehorn Pipeline Company LLC (“Saddlehorn”) 20.00 % Panola Pipeline Company, LLC (“Panola”) 15.00 % White Cliffs Pipeline, LLC (“White Cliffs”) 10.00 % _________________________________________________________________________________________ (1) The 25% third - party interest in Chipeta Processing LLC (“Chipeta”) is reflected within noncontrolling interests in the consolidated financial statements. See Noncontrolling interests below. (2) The Partnership proportionately consolidates its associated share of the assets, liabilities, revenues, and expenses attributable to these assets. (3) Investments in non - controlled entities over which the Partnership exercises significant influence are accounted for under the equity method of accounting. “Equity - investment throughput” refers to the Partnership’s share of average throughput for these investments. The consolidated financial results of WES Operating are included in the Partnership’s consolidated financial statements. Throughout these notes to consolidated financial statements, and to the extent material, any differences between the consolidated financial results of the Partnership and WES Operating are discussed separately. The Partnership’s consolidated financial statements differ from those of WES Operating primarily as a result of (i) the presentation of noncontrolling interest ownership (see Noncontrolling interests below), (ii) the elimination of WES Operating GP’s investment in WES Operating with WES Operating GP’s underlying capital account, (iii) the general and administrative expenses incurred by the Partnership, which are separate from, and in addition to, those incurred by WES Operating, (iv) the inclusion of the impact of Partnership equity balances and Partnership distributions, and (v) transactions between the Partnership and WES Operating that eliminate upon consolidation. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Presentation of the Partnership’s assets. The Partnership’s assets include assets owned and ownership interests accounted for by the Partnership under the equity method of accounting, through its 98.0% partnership interest in WES Operating, as of December 31, 2023 (see Note 7 ). The Partnership also owns and controls the entire non - economic general partner interest in WES Operating GP, and the Partnership’s general partner is owned by Occidental. Noncontrolling interests. The Partnership’s noncontrolling interests in the consolidated financial statements consist of (i) the 25% third - party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary. WES Operating’s noncontrolling interest in the consolidated financial statements consists of the 25% third - party interest in Chipeta. See Note 5. |
Use of estimates policy | Use of estimates. In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other reasonable methods. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates. Effects on the business, financial condition, and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information included herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements. |
Fair value policy | Fair value. The fair-value-measurement standard defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard characterizes inputs used in determining fair value according to a hierarchy that prioritizes those inputs based on the degree to which the inputs are observable. The three input levels of the fair-value hierarchy are as follows: Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in management’s internally developed present value of future cash flows model that underlies the fair value measurement). In determining fair value, management uses observable market data when available, or models that incorporate observable market data. When a fair value measurement is required and there is not a market-observable price for the asset or liability or a market-observable price for a similar asset or liability, the cost, income, or market approach is used, depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset-replacement cost. The income approach uses management’s best assumptions regarding expectations of projected cash flows and discounts the expected cash flows using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment because results are based on expected future events or conditions, such as contractual rates, estimates of future throughput, capital and operating costs and the timing thereof, economic and regulatory climates, and other factors. The market approach uses management’s best assumptions regarding expectations of projected earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and an assumed multiple of that EBITDA that a willing buyer would pay to acquire an asset. Management’s estimates of future net cash flows and EBITDA are inherently imprecise because they reflect management’s expectation of future conditions that are often outside of management’s control. However, the assumptions used reflect a market participant’s view of long-term revenues, costs, and other factors, and are consistent with assumptions used in the Partnership’s business plans and investment decisions. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Management uses relevant observable inputs available for the valuation technique employed to estimate fair value. If a fair-value measurement reflects inputs at multiple levels within the hierarchy, the fair-value measurement is characterized based on the lowest level of input that is significant to the fair-value measurement. Non-financial assets and liabilities initially measured at fair value include certain assets and liabilities acquired in a third-party business combination, assets and liabilities exchanged in non-monetary transactions, goodwill and other intangibles, and the initial measurement of asset retirement obligations. Impairment analyses for long-lived assets, goodwill, and equity investments and the initial recognition of asset retirement obligations use Level-3 inputs. The fair value of debt reflects any premium or discount for the difference between the stated interest rate and the quarter-end market interest rate and is based on quoted market prices for identical instruments, if available, or based on valuations of similar debt instruments. As such, debt fair values as presented in Note 13 use Level-2 inputs. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and outstanding borrowings on the revolving credit facility and commercial paper program reported on the consolidated balance sheets approximate fair value due to the short-term nature of these items. |
Cash equivalents policy | Cash equivalents. All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents. |
Credit losses policy | Credit losses. Accounts receivable represent contractual rights for services performed, with, on average, 30-day payment terms from the invoice date. Contract assets primarily relate to revenue accrued but not yet billed under cost-of-service contracts and accrued deficiency fees. Exposure to credit losses is analyzed within collective pools for all of our customers and, if necessary, individual customers may be analyzed separately if their credit quality becomes a concern. The Partnership monitors credit exposure to all customers to ensure exposures are within established credit limits. As of December 31, 2023, there are no negative indications regarding the collectability of significant receivables and the Partnership will continue to monitor the credit quality of its customer base and assess collectability of these assets as appropriate. The allowance for expected credit losses was immaterial at December 31, 2023 and 2022. |
Imbalances policy | Imbalances. The consolidated balance sheets include imbalance receivables and payables resulting from differences in volumes received into the Partnership’s systems and volumes delivered by the Partnership to customers. Volumes owed to or by the Partnership that are subject to monthly cash settlement are valued according to the terms of the contract as of the balance sheet dates and generally reflect market index prices. Other volumes owed to or by the Partnership are valued at the Partnership’s weighted-average cost as of the balance sheet dates and are settled in-kind. As of December 31, 2023, imbalance receivables and payables were $5.1 million and $7.2 million, respectively. As of December 31, 2022, imbalance receivables and payables were $32.7 million and $32.5 million, respectively. Net changes in imbalance receivables and payables are reported in Cost of product in the consolidated statements of operations. |
Inventory policy | Inventory. The cost of NGLs inventory is determined by the weighted-average cost method on a location-by-location basis. Inventory is stated at the lower of weighted-average cost or net realizable value. NGLs inventory is reported in Other current assets and NGLs line-fill inventory is reported in Other assets on the consolidated balance sheets. Materials and supplies inventory is valued at weighted-average cost, reviewed periodically for obsolescence, and assessed for impairment together with any associated property, plant, and equipment and other intangible assets. Materials and supplies inventory is reported in Other assets on the consolidated balance sheets. |
Property, plant, and equipment and other intangible assets policy | Property, plant, and equipment and other intangible assets. Property, plant, and equipment and other intangible assets are stated at historical cost less accumulated depreciation or amortization, or fair value if impaired. Prior long-lived asset acquisitions from Anadarko were transfers of net assets between entities under common control; therefore, the assets acquired were initially recorded at Anadarko’s historic carrying value. The difference between the carrying value of net assets acquired from Anadarko and the consideration paid has been recorded as an adjustment to partners’ capital. Assets acquired in a business combination or non-monetary exchange with a third party are initially recorded at fair value. All construction-related direct labor and material costs are capitalized. The cost of renewals and betterments that extend the useful life of property, plant, and equipment is also capitalized. The cost of repairs, replacements, and major maintenance projects that do not extend the useful life or increase the expected output of property, plant, and equipment is expensed as incurred. Depreciation is computed using the straight-line method based on estimated useful lives and salvage values of assets. Subsequent events could cause a change in estimates of remaining useful lives or salvage value, thereby impacting future depreciation amounts. Uncertainties that may impact these estimates include, but are not limited to, changes in laws and regulations relating to environmental matters, including air and water quality, restoration and abandonment requirements, economic conditions, and supply and demand in the area. Management assesses property, plant, and equipment together with any associated materials and supplies inventory and intangible assets, as described in Note 10 , for impairment when events or changes in circumstances indicate their carrying values may not be recoverable. Impairments exist when the carrying value of a long-lived asset exceeds the total estimated undiscounted net cash flows from the future use and eventual disposition of the asset. When alternative courses of action for future use of a long-lived asset are under consideration, estimates of future undiscounted net cash flows incorporate the possible outcomes and probabilities of their occurrence. If an impairment exists, an impairment loss is measured as the excess of the asset’s carrying value over its estimated fair value, such that the asset’s carrying value is adjusted down to its estimated fair value with an offsetting charge to Long-lived asset and other impairments. Refer to Note 9 for a description of impairments recorded during the years ended December 31, 2023, 2022, and 2021. |
Capitalized interest policy | Capitalized interest. Interest is capitalized as part of the historical cost of constructing assets that are in progress. Capitalized interest is determined by multiplying the Partnership’s weighted-average borrowing cost on debt by the average amount of assets under construction. Cumulative capitalized interest accrued during the year is expensed through depreciation or impairment. |
Segments policy | Segments. The Partnership’s operations continue to be organized into a single operating segment, the assets of which gather, compress, treat, process, and transport natural gas; gather, stabilize, and transport condensate, NGLs, and crude oil; and gather and dispose of produced water in the United States. In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The standard improves reportable segment disclosure requirements for public business entities primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit (referred to as the “significant expense principle”). The standard will become effective for the Partnership for the fiscal year 2024 annual financial statements and interim financial statements thereafter and will be applied retrospectively for all prior periods presented in the financial statements, with early adoption permitted. The Partnership plans to adopt the standard when it becomes effective beginning with the fiscal year 2024 annual financial statements. The Partnership is currently evaluating the impact this guidance will have on disclosures in the Notes to Consolidated Financial Statements. This standard will have no impact to the Partnership’s financial statements, but will result in additional disclosure. |
Recently adopted accounting standards policy | In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The standard improves reportable segment disclosure requirements for public business entities primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit (referred to as the “significant expense principle”). The standard will become effective for the Partnership for the fiscal year 2024 annual financial statements and interim financial statements thereafter and will be applied retrospectively for all prior periods presented in the financial statements, with early adoption permitted. The Partnership plans to adopt the standard when it becomes effective beginning with the fiscal year 2024 annual financial statements. The Partnership is currently evaluating the impact this guidance will have on disclosures in the Notes to Consolidated Financial Statements. This standard will have no impact to the Partnership’s financial statements, but will result in additional disclosure. |
Goodwill policy | Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated historic carrying value of midstream goodwill attributed to the Partnership’s assets previously acquired from Anadarko. The Partnership had allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment at the reporting unit level annually, as of October 1, or more often as facts and circumstances warrant. An initial qualitative assessment is performed to determine the likelihood of whether goodwill is impaired. If management concludes, based on qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no goodwill impairment is recorded and further testing is not necessary. If an assessment of qualitative factors does not result in management’s determination that the fair value of the reporting unit more likely than not exceeds its carrying value, then a quantitative assessment must be performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value through a charge to Goodwill impairment. See Note 10 . |
Asset retirement obligations policy | Asset retirement obligations. When tangible long-lived assets are acquired or constructed, the initial estimated asset retirement obligation liability is recognized at fair value, measured using discounted expected future cash outflows of the settlement obligation, with an associated increase in property, plant, and equipment. Over time, the discounted liability is adjusted up to its expected settlement value through accretion expense, which is reported within Depreciation and amortization in the consolidated statements of operations. Estimated asset retirement costs typically extend many years into the future, and estimation requires significant judgment. Subsequent to the initial recognition, the liability is adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to property, plant, and equipment, or depreciation expense if the asset is fully depreciated) until the obligation is settled. Revisions in estimated asset retirement obligations may result from changes in estimated asset retirement costs, inflation rates, discount rates, and the estimated timing of settlement. See Note 12 . |
Environmental expenditures policy | Environmental expenditures. The Partnership is subject to various environmental-remediation obligations arising from federal, state, and local laws and regulations. Losses associated with environmental obligations are accrued when the necessity for environmental remediation or other potential environmental liabilities becomes probable and the costs can be reasonably estimated, with the exception of environmental obligations acquired in a business combination, which are recorded at fair value at the time of acquisition. Accruals for estimated losses from environmental-remediation obligations are recognized no later than at the time of the completion of the remediation feasibility study or when the evaluation of response options is complete. These accruals are adjusted as additional information becomes available or as circumstances change. Costs of future expenditures for environmental-remediation obligations are not discounted to their present value. See Note 16. |
Revenue and cost of product policy | Revenue and cost of product. The Partnership provides gathering, processing, treating, transportation, and disposal services pursuant to a variety of contracts. Under these arrangements, the Partnership receives fees and/or retains a percentage of products or a percentage of the proceeds from the sale of the customer’s products. These revenues are included in Service revenues and Product sales in the consolidated statements of operations. Payment is generally received from the customer in the month following the service or delivery of the product. Contracts with customers generally have initial terms ranging from 5 to 10 years. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Service revenues – fee based is recognized for fee-based contracts in the month of service based on the volumes delivered by the customer. Producers’ wells or production facilities are connected to the Partnership’s gathering systems for gathering, processing, treating, transportation, and disposal of natural gas, NGLs, condensate, crude oil, and produced water, as applicable. Revenues are valued based on the rate in effect for the month of service when the fee is either the same per-unit rate over the contract term or when the fee escalates and the escalation factor approximates inflation. Deficiency fees charged to customers that do not meet their minimum delivery requirements are recognized as services are performed based on an estimate of the fees that will be billed at the completion of the performance period. Because of its significant upfront capital investment, the Partnership may charge additional service fees to customers for only a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold), and these fees are recognized as revenue over the expected period of customer benefit, which is generally the life of the related properties. Timing differences between amounts recognized in Service revenues – fee based and the amounts billed to customer are recognized as contract assets or contract liabilities, and are amortized over the related contract period. The Partnership also receives Service revenues – fee based from contracts that have fees that require periodic rate redeterminations based on the related facility cost of service. The cost-of-service rates are calculated using a contractually specified rate of return and estimates including long-term assumptions for capital invested, receipt volumes, and operating and maintenance expenses. Certain of these cost-of-service agreements also have minimum-volume-commitment demand fees and guaranteed minimum revenues, in addition to cost-of-service rates. Such contracts include fixed and variable consideration that are recognized on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost-of-service rates charged to customers, and a cumulative catch-up revenue adjustment related to services already provided to the minimum volumes under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate based on the total expected variable consideration under the contract. If the Partnership determines it is probable that a significant reversal in the cumulative catch-up revenue adjustment could occur, the variable consideration may be constrained up to the amount of the probable significant reversal. Service revenues – product based includes service revenues from percent-of-proceeds gathering and processing contracts that are recognized net of the cost of product for purchases from the Partnership’s customers since it is acting as the agent in the product sale. Keep-whole agreements, percent-of-product agreements, and certain fee-based contracts that have a fixed-recovery component result in Service revenues – product based being recognized when the natural gas and/or NGLs are received from the customer as non-cash consideration for the services provided. Non-cash consideration for these services is valued at the time the services are provided. Revenue is also recognized in Product sales, along with the cost of product expense related to the sale, when the product received as non-cash consideration is sold to either Occidental or a third party. The Partnership also purchases natural-gas volumes from producers at the wellhead or from a production facility, typically at an index price, and charges the producer fees associated with the downstream gathering and processing services. When the fees relate to services performed after control of the product has transferred to the Partnership, the fees are treated as a reduction of the purchase cost. If the fees relate to services performed before control of the product has transferred to the Partnership, the fees are treated as Service revenues – fee based. Product sales revenue is recognized, along with cost of product expense related to the sale, when the purchased product is sold to either Occidental or a third party. The Partnership receives aid-in-construction reimbursements for certain capital costs necessary to provide services to customers (i.e., connection costs, etc.) under certain service contracts. Aid-in-construction reimbursements are reflected as a contract liability when received and are amortized to Service revenues – fee based over the expected period of customer benefit, which is generally the life of the related properties. |
Defined-contribution plan policy | Defined-contribution plan. Employees of the Partnership are eligible to participate in the Western Midstream Savings Plan, a defined - contribution benefit plan maintained by the Partnership. All regular employees may participate in the plan by making elective contributions that are matched by the Partnership, subject to certain limitations. The Partnership also makes other contributions based on plan guidelines. The Partnership recognized expense related to the plan of $24.6 million, $21.8 million, and $23.7 million for the years ended December 31, 2023, 2022, and 2021, respectively. |
Income taxes policy | Partnership income taxes. Deferred federal and state income taxes included in the accompanying consolidated financial statements are attributable to temporary differences between the financial statement carrying amount and tax basis of the Partnership’s investment in WES Operating. The Partnership’s accounting policy is to “look through” its investment in WES Operating for purposes of calculating deferred income tax asset and liability balances attributable to the Partnership’s interests in WES Operating. The Partnership had no material uncertain tax positions at December 31, 2023 or 2022. WES Operating income taxes. WES Operating generally is not subject to federal income tax or state income tax other than Texas margin tax on the portion of its income that is apportionable to Texas. Deferred state income taxes are recorded on temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. WES Operating routinely assesses the realizability of its deferred tax assets. If WES Operating concludes that it is more likely than not that some of the deferred tax assets will not be realized, the tax asset is reduced by recording a valuation allowance. With respect to assets previously acquired from Anadarko, WES Operating recorded Anadarko’s historic federal and state current and deferred income taxes for the periods prior to the acquisition of such assets. For periods on and subsequent to the acquisition, WES Operating is not subject to tax except for the Texas margin tax and, accordingly, does not record deferred federal income taxes related to the acquired assets. For periods beginning on and subsequent to the acquisition of assets from Anadarko, WES Operating made payments to Anadarko pursuant to the tax sharing agreement for its estimated share of taxes from all forms of taxation, excluding income taxes imposed by the United States, that are included in any combined or consolidated returns filed by Occidental. The aggregate difference in the basis of WES Operating’s assets for financial and tax reporting purposes cannot be readily determined as WES Operating does not have access to information about each partner’s tax attributes in WES Operating. The accounting standards for uncertain tax positions defines the criteria an individual tax position must satisfy for any part of the benefit of that position to be recognized in the financial statements. WES Operating had no material uncertain tax positions at December 31, 2023 or 2022. |
Net income (loss) per common unit policy | Net income (loss) per common unit. The Partnership applies the two-class method in determining net income (loss) per unit applicable to master limited partnerships having multiple classes of securities, including common units and general partner units. The two-class method allocates earnings pursuant to a formula that treats participating securities as having rights to earnings that otherwise would have been available to common unitholders. Under the two-class method, net income (loss) per unit is calculated as if all of the earnings for the period were distributed pursuant to the terms of the relevant contractual arrangement. The accounting guidance provides the methodology for the allocation of undistributed earnings to the general partner and limited partners and the circumstances in which such an allocation should be made. For the Partnership, earnings per unit is calculated based on the assumption that the Partnership distributes cash to its unitholders equal to the net income of the Partnership, notwithstanding the general partner’s ultimate discretion over the amount of cash to be distributed for the period, the existence of other legal or contractual limitations that would prevent distributions of all of the net income for the period, or any other economic or practical limitation on the ability to make a full distribution of the net income for the period. See Note 5 . Net income (loss) per common unit for WES Operating is not calculated because no publicly traded units are outstanding. Partnership’s net income (loss) per common unit. The common and general partner unitholders’ allocation of net income (loss) attributable to the Partnership was equal to their cash distributions plus their respective allocations of undistributed earnings or losses in accordance with their weighted - average ownership percentage during each period using the two - class method. The Partnership’s basic net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) by the weighted - average number of common units outstanding during the period. Diluted net income (loss) per common unit includes the effect of outstanding units issued under the Partnership’s long-term incentive plans. 5. EQUITY AND PARTNERS’ CAPITAL The following table provides a reconciliation between basic and diluted net income (loss) per common unit: Year Ended December 31, thousands except per-unit amounts 2023 2022 2021 Net income (loss) Limited partners’ interest in net income (loss) $ 998,532 $ 1,189,562 $ 896,477 Weighted-average common units outstanding Basic 383,028 394,951 411,309 Dilutive effect of non-vested phantom units 1,380 1,285 713 Diluted 384,408 396,236 412,022 Excluded due to anti-dilutive effect 114 554 589 Net income (loss) per common unit Basic $ 2.61 $ 3.01 $ 2.18 Diluted $ 2.60 $ 3.00 $ 2.18 WES Operating’s net income (loss) per common unit. Net income (loss) per common unit for WES Operating is not calculated because it has no publicly traded units. |
Leases, lessee policy | Leases. The Partnership determines if an arrangement is a lease based on the rights and obligations conveyed at contract inception. Significant judgment is required when determining whether a customer obtains the right to direct the use of identified property or equipment. When the Partnership is a lessee at the lease-commencement date, a lease is classified as either operating or finance, and right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of future lease payments over the lease term. As the rate implicit in the Partnership’s leases is generally not readily determinable, the Partnership discounts lease liabilities using the Partnership’s incremental borrowing rate at the commencement date. Non-lease components associated with leases that begin in 2019 or later are accounted for as part of the lease component, and prepaid lease payments are included as ROU assets. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that the Partnership will exercise that option. Leases of 12 months or less are not recognized on the consolidated balance sheets. Lease cost is generally recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized over the lease term using the effective interest method. Variable lease payments are recognized when the obligation for those payments is incurred. |
Leases, lessor policy | When the Partnership is a lessor at the lease-commencement date, a lease is classified as operating, sales-type, or direct financing. The underlying assets associated with these agreements are evaluated for future use beyond the lease term. For operating leases, lease income is generally recognized on a straight-line basis over the lease term. Variable lease payments are recognized when the obligation for those payments is performed. The Partnership does not have sales-type or direct financing leases. For the Partnership’s gathering and processing assets, we elected the practical expedient to not separate lease and non-lease components. When the non-lease component is determined to be the predominant component, the combined components are accounted for under Revenue from Contracts with Customers (Topic 606) . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill policy | Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated historic carrying value of midstream goodwill attributed to the Partnership’s assets previously acquired from Anadarko. The Partnership had allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment at the reporting unit level annually, as of October 1, or more often as facts and circumstances warrant. An initial qualitative assessment is performed to determine the likelihood of whether goodwill is impaired. If management concludes, based on qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no goodwill impairment is recorded and further testing is not necessary. If an assessment of qualitative factors does not result in management’s determination that the fair value of the reporting unit more likely than not exceeds its carrying value, then a quantitative assessment must be performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value through a charge to Goodwill impairment. See Note 10 . |
Equity-Based Compensation (Poli
Equity-Based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-based compensation policy | The equity-based compensation expense attributable to these awards is amortized over the vesting periods applicable to the awards using the straight-line method. Expense is recognized based on the grant-date fair value and recorded, net of actual forfeitures, as General and administrative expense in the consolidated statements of operations. The fair value of the Time-Based Awards and non-executive awards is based on the observable market price of the Partnership’s units on the grant date of the award. The fair value of the TUR Awards is determined using a Monte Carlo simulation at the grant date of the award. The fair value of the ROA Awards is based on the observable market price of the Partnership’s units on the grant date of the award and compensation expense is adjusted quarterly based on the estimated performance rating at vesting. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Assets and Investments Table | As of December 31, 2023, the Partnership’s assets and investments consisted of the following: Wholly Operated Non-Operated Equity Gathering systems (1) 18 2 3 1 Treating facilities 38 3 — — Natural - gas processing plants/trains 24 3 — 3 NGLs pipelines 3 — — 5 Natural - gas pipelines 6 — — 1 Crude - oil pipelines 3 1 — 3 _________________________________________________________________________________________ (1) Includes the DBM water systems. |
Ownership Interests and Method of Consolidation Table | The following table outlines the ownership interests and the accounting method of consolidation used in the consolidated financial statements for entities not wholly owned (see Note 7) : Percentage Interest Full consolidation Chipeta (1) 75.00 % Proportionate consolidation (2) Springfield system 50.10 % Marcellus Interest systems 33.75 % Equity investments (3) Mi Vida JV LLC (“Mi Vida”) 50.00 % Front Range Pipeline LLC (“FRP”) 33.33 % Red Bluff Express Pipeline, LLC (“Red Bluff Express”) 30.00 % Enterprise EF78 LLC (“Mont Belvieu JV”) 25.00 % Rendezvous Gas Services, LLC (“Rendezvous”) 22.00 % Texas Express Pipeline LLC (“TEP”) 20.00 % Texas Express Gathering LLC (“TEG”) 20.00 % Whitethorn Pipeline Company LLC (“Whitethorn LLC”) 20.00 % Saddlehorn Pipeline Company LLC (“Saddlehorn”) 20.00 % Panola Pipeline Company, LLC (“Panola”) 15.00 % White Cliffs Pipeline, LLC (“White Cliffs”) 10.00 % _________________________________________________________________________________________ (1) The 25% third - party interest in Chipeta Processing LLC (“Chipeta”) is reflected within noncontrolling interests in the consolidated financial statements. See Noncontrolling interests below. (2) The Partnership proportionately consolidates its associated share of the assets, liabilities, revenues, and expenses attributable to these assets. (3) Investments in non - controlled entities over which the Partnership exercises significant influence are accounted for under the equity method of accounting. “Equity - investment throughput” refers to the Partnership’s share of average throughput for these investments. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers Table | The following table summarizes revenue from contracts with customers: Year Ended December 31, thousands 2023 2022 2021 Revenue from customers Service revenues – fee based $ 2,768,757 $ 2,602,053 $ 2,283,584 Service revenues – product based 191,727 249,692 122,584 Product sales 145,024 399,023 290,947 Total revenue from customers 3,105,508 3,250,768 2,697,115 Revenue from other than customers Lease revenue (1) — — 179,251 Other 968 953 789 Total revenues and other $ 3,106,476 $ 3,251,721 $ 2,877,155 _________________________________________________________________________________________ (1) Includes fixed - and variable - lease revenue from an operating and maintenance agreement entered into with Occidental. See Note 6 and Note 14. |
Contract Balances Tables | The following table summarizes activity related to contract assets from contracts with customers: Year Ended December 31, thousands 2023 2022 Contract assets balance at beginning of year $ 22,561 $ 22,557 Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period (6,678) (7,683) Additional estimated revenues recognized 9,487 5,531 Cumulative catch-up adjustment for change in estimated consideration 13,922 2,156 Contract assets balance at end of year $ 39,292 $ 22,561 December 31, thousands 2023 2022 Other current assets $ 9,595 $ 3,381 Other assets 29,697 19,180 Total contract assets from contracts with customers $ 39,292 $ 22,561 Year Ended December 31, thousands 2023 2022 Contract liabilities balance at beginning of year $ 369,285 $ 313,146 Cash received or receivable, excluding revenues recognized during the period 84,336 71,097 Revenues recognized that were included in the contract liability balance at the beginning of the period (15,572) (16,158) Cumulative catch-up adjustment for change in estimated consideration (4,363) 1,200 Amounts acquired with the acquisition of Meritage (1) 11,813 — Contract liabilities balance at end of year $ 445,499 $ 369,285 December 31, thousands 2023 2022 Accrued liabilities $ 16,866 $ 20,903 Other liabilities 428,633 348,382 Total contract liabilities from contracts with customers $ 445,499 $ 369,285 _________________________________________________________________________________________ (1) See Note 3. |
Expected Revenue Recognition from Satisfaction of Performance Obligations Table | Therefore, the following table represents only a portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and, in some cases, variable commodity prices for those volumes. thousands 2024 $ 1,145,612 2025 1,097,142 2026 1,019,676 2027 927,846 2028 665,106 Thereafter 2,127,654 Total $ 6,983,036 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition-Date Fair Value Table | The following is the preliminary acquisition-date fair value as of December 31, 2023, for the assets acquired and liabilities assumed in the Meritage acquisition. The preliminary fair values are subject to change within the measurement period (up to one year from the acquisition date), pending a final determination of the fair value of certain customary post-closing working capital adjustments. thousands Assets acquired: Cash and cash equivalents $ 38,412 Accounts receivable, net 34,060 Other current assets 1,980 Property, plant, and equipment 925,905 Other assets 6,498 Total assets acquired 1,006,855 Liabilities assumed: Accounts payable and accrued liabilities 34,733 Other current liabilities 5,451 Asset retirement obligation 22,156 Other liabilities 28,356 Total liabilities assumed 90,696 Net assets acquired $ 916,159 |
Pro-Forma Information Table | The following table presents pro forma condensed financial information of the Partnership as if the Meritage acquisition had occurred on January 1, 2022: Year Ended December 31, thousands 2023 2022 Revenues and other $ 3,239,035 $ 3,408,767 Net income (loss) attributable to Western Midstream Partners, LP 1,003,204 1,213,106 The following table presents pro forma condensed financial information of WES Operating (which are included in the Partnership’s pro forma condensed financial information) as if the Meritage acquisition had occurred on January 1, 2022: Year Ended December 31, thousands 2023 2022 Revenues and other $ 3,239,035 $ 3,408,767 Net income (loss) attributable to Western Midstream Operating, LP 1,026,800 1,240,623 |
Partnership Distributions (Tabl
Partnership Distributions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Cash Distributions Tables | The Board of Directors of the general partner (the “Board”) declared the following cash distributions to the Partnership’s unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Distribution Record 2021 March 31 $ 0.315 $ 132,969 May 14, 2021 April 30, 2021 June 30 0.319 134,662 August 13, 2021 July 30, 2021 September 30 0.323 134,862 November 12, 2021 November 1, 2021 December 31 0.327 134,749 February 14, 2022 January 31, 2022 2022 March 31 $ 0.500 $ 206,197 May 13, 2022 May 2, 2022 June 30 0.500 197,744 August 12, 2022 August 1, 2022 September 30 0.500 197,065 November 14, 2022 October 31, 2022 December 31 0.500 196,569 February 13, 2023 February 1, 2023 2023 March 31 (1) $ 0.856 $ 336,987 May 15, 2023 May 1, 2023 June 30 0.5625 221,442 August 14, 2023 July 31, 2023 September 30 0.575 223,432 November 13, 2023 November 1, 2023 December 31 0.575 223,438 February 13, 2024 February 1, 2024 _________________________________________________________________________________________ (1) Includes the regular quarterly distribution of $0.500 per unit, or $196.8 million, as well as the Enhanced Distribution of $0.356 per unit discussed below. thousands Quarters Ended Total Quarterly Distribution 2021 March 31 $ 137,030 May 2021 June 30 140,217 August 2021 September 30 140,217 November 2021 December 31 140,217 February 2022 2022 March 31 $ 213,513 May 2022 June 30 213,513 August 2022 September 30 213,513 November 2022 December 31 213,513 February 2023 2023 March 31 (1) $ 342,895 May 2023 June 30 226,260 August 2023 September 30 229,446 November 2023 December 31 229,446 February 2024 _________________________________________________________________________________________ (1) Includes amounts related to the Enhanced Distribution discussed above. |
Equity and Partners' Capital (T
Equity and Partners' Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Partners' Capital Notes [Abstract] | |
Calculation of Net Income (Loss) Per Unit Table | The following table provides a reconciliation between basic and diluted net income (loss) per common unit: Year Ended December 31, thousands except per-unit amounts 2023 2022 2021 Net income (loss) Limited partners’ interest in net income (loss) $ 998,532 $ 1,189,562 $ 896,477 Weighted-average common units outstanding Basic 383,028 394,951 411,309 Dilutive effect of non-vested phantom units 1,380 1,285 713 Diluted 384,408 396,236 412,022 Excluded due to anti-dilutive effect 114 554 589 Net income (loss) per common unit Basic $ 2.61 $ 3.01 $ 2.18 Diluted $ 2.60 $ 3.00 $ 2.18 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |
Related-Party Transactions Tables | The following tables summarize material related - party transactions included in the Partnership’s consolidated financial statements: Consolidated statements of operations Year Ended December 31, thousands 2023 2022 2021 Revenues and other Service revenues – fee based $ 1,773,914 $ 1,674,959 $ 1,589,367 Service revenues – product based 16,497 56,907 11,888 Product sales 43,683 63,367 31,103 Total revenues and other 1,834,094 1,795,233 1,632,358 Equity income, net – related parties (1) 152,959 183,483 204,645 Operating expenses Cost of product (2) (72,903) (25,447) 42,805 Operation and maintenance 4,618 5,081 27,805 General and administrative (3) 284 2,338 15,613 Total operating expenses (68,001) (18,028) 86,223 Gain (loss) on divestiture and other, net — (1,756) 420 _________________________________________________________________________________________ (1) See Note 7 . (2) Includes related-party natural - gas and NGLs imbalances. (3) Balances for the years ended December 31, 2022 and 2021, include equity - based compensation expense allocated to the Partnership by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6 ). The balance for the year ended December 31, 2021, also includes amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6 ). 6. RELATED-PARTY TRANSACTIONS Consolidated balance sheets December 31, thousands 2023 2022 Assets Accounts receivable, net $ 358,141 $ 313,937 Other current assets 1,260 1,578 Equity investments (1) 904,535 944,696 Other assets 43,216 29,058 Total assets 1,307,152 1,289,269 Liabilities Accounts and imbalance payables 38,541 32,150 Accrued liabilities 4,979 11,756 Other liabilities (2) 335,320 268,399 Total liabilities 378,840 312,305 _________________________________________________________________________________________ (1) See Note 7 . (2) Includes contract liabilities from contracts with customers. See Note 2 . Consolidated statements of cash flows Year Ended December 31, thousands 2023 2022 2021 Distributions from equity - investment earnings – related parties $ 155,169 $ 186,153 $ 213,516 Capital expenditures — (470) (2,000) Proceeds from the sale of assets to related parties — 200 — Contributions to equity investments – related parties (1,153) (9,632) (4,435) Distributions from equity investments in excess of cumulative earnings – related parties 39,104 63,897 41,385 Distributions to Partnership unitholders (1) (494,127) (372,468) (272,192) Distributions to WES Operating unitholders (2) (22,850) (24,898) (14,984) Net contributions from (distributions to) related parties — 1,423 8,533 Unit repurchases from Occidental (3) (127,500) (252,500) (50,225) _________________________________________________________________________________________ (1) Represents common and general partner unit distributions paid to Occidental pursuant to the partnership agreement of the Partnership (see Note 4 and Note 5 ). (2) Represents distributions paid to Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5 ). (3) Represents common units repurchased from Occidental (see Note 5). |
WES Operating [Member] | |
Related Party Transaction [Line Items] | |
Related-Party Transactions Tables | The following tables summarize material related - party transactions for WES Operating (which are included in the Partnership’s consolidated financial statements) to the extent the amounts differ materially from the Partnership’s consolidated financial statements: Consolidated statements of operations Year Ended December 31, thousands 2023 2022 2021 General and administrative (1) $ 3,554 $ 5,373 $ 18,365 _________________________________________________________________________________________ (1) Includes an intercompany service fee between the Partnership and WES Operating. Balances for the years ended December 31, 2022 and 2021, include equity - based compensation expense allocated to WES Operating by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6 ). The balance for the year ended December 31, 2021, also includes amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6 ). Consolidated balance sheets December 31, thousands 2023 2022 Other current assets $ 1,235 $ 1,487 Other assets 41,405 28,459 Accounts and imbalance payables (1) 69,472 76,131 Accrued liabilities 4,662 11,439 _________________________________________________________________________________________ (1) Includes balances related to transactions between the Partnership and WES Operating. Consolidated statements of cash flows Year Ended December 31, thousands 2023 2022 2021 Distributions to WES Operating unitholders (1) $ (1,142,217) $ (1,244,533) $ (749,018) _________________________________________________________________________________________ (1) Represents distributions paid to the Partnership and Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement. Includes distributions made from WES Operating to the Partnership that were used by the Partnership to repurchase common units. See Note 4 and Note 5 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments Table | The following tables present the financial statement impact of the Partnership’s equity investments: thousands Balance at December 31, 2021 Other-than-temporary impairment expense (1) Equity Contributions Distributions Distributions in excess of cumulative earnings (2) Acquisitions and Divestitures Balance at December 31, 2022 White Cliffs $ 40,753 $ (19,883) $ (1,086) $ — $ (32) $ (3,657) $ — $ 16,095 Rendezvous 22,075 — (2,582) — (677) (2,702) — 16,114 Mont Belvieu JV 96,728 — 29,475 — (29,599) (5,294) — 91,310 TEG 16,116 — 6,384 75 (6,407) (312) — 15,856 TEP 188,925 — 44,650 — (44,902) (3,986) — 184,687 FRP 196,632 — 45,841 455 (46,193) (4,019) — 192,716 Whitethorn LLC 149,690 — (3,417) 281 5,223 (5,182) — 146,595 Cactus II 171,294 — 11,696 — (11,835) (18,085) (153,070) — Saddlehorn 110,441 — 21,491 — (21,034) (6,707) — 104,191 Panola 20,044 — 2,343 — (2,212) (864) — 19,311 Mi Vida 51,763 — 11,316 — (11,113) (3,104) — 48,862 Ranch Westex 979 — 3,392 — (3,392) (8,376) 7,397 — Red Bluff Express 101,747 — 13,980 8,821 (13,980) (1,609) — 108,959 Total $ 1,167,187 $ (19,883) $ 183,483 $ 9,632 $ (186,153) $ (63,897) $ (145,673) $ 944,696 _________________________________________________________________________________________ (1) Recorded in Long-lived asset and other impairments in the consolidated statements of operations. (2) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. thousands Balance at December 31, 2022 Equity Contributions Distributions Distributions in excess of cumulative earnings (1) Balance at December 31, 2023 White Cliffs $ 16,095 $ 2,094 $ — $ (1,720) $ (3,221) $ 13,248 Rendezvous 16,114 (2,621) — (638) (2,040) 10,815 Mont Belvieu JV 91,310 23,476 — (23,128) (3,102) 88,556 TEG 15,856 3,504 700 (3,527) (1,348) 15,185 TEP 184,687 35,578 — (35,829) (11,877) 172,559 FRP 192,716 47,829 — (48,003) (5,991) 186,551 Whitethorn LLC 146,595 (6,870) 132 6,398 (1,456) 144,799 Saddlehorn 104,191 24,003 — (23,545) (2,889) 101,760 Panola 19,311 2,507 — (2,638) (464) 18,716 Mi Vida 48,862 9,135 — (8,215) (4,358) 45,424 Red Bluff Express 108,959 14,324 321 (14,324) (2,358) 106,922 Total $ 944,696 $ 152,959 $ 1,153 $ (155,169) $ (39,104) $ 904,535 _________________________________________________________________________________________ (1) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. |
Summarized Equity Investments Financial Information Presented at 100 Percent Tables | The following tables present the summarized combined financial information for equity investments (amounts represent 100% of investee financial information): Year Ended December 31, thousands 2023 2022 2021 Revenues $ 1,572,120 $ 1,922,733 $ 1,808,791 Operating income 619,597 661,779 946,299 Net income 623,593 661,916 945,801 December 31, thousands 2023 2022 Current assets $ 302,675 $ 293,539 Property, plant, and equipment, net 4,114,540 4,278,398 Other assets 50,693 52,163 Total assets $ 4,467,908 $ 4,624,100 Current liabilities $ 130,028 $ 123,897 Non-current liabilities 17,920 17,660 Equity 4,319,960 4,482,543 Total liabilities and equity $ 4,467,908 $ 4,624,100 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) Table | The components of income tax expense (benefit) are as follows: Year Ended December 31, thousands 2023 2022 2021 Current state income tax expense (benefit) $ 3,341 $ 2,188 $ (37) Deferred state income tax expense (benefit) 1,044 1,999 (9,770) Total income tax expense (benefit) $ 4,385 $ 4,187 $ (9,807) |
Tax Rate Reconciliation Table | Total income taxes differed from the amounts computed by applying the statutory income tax rate to income (loss) before income taxes. The sources of these differences are as follows: Year Ended December 31, thousands except percentages 2023 2022 2021 Income (loss) before income taxes $ 1,052,392 $ 1,255,643 $ 934,192 Statutory tax rate — % — % — % Tax computed at statutory rate $ — $ — $ — Adjustments resulting from: Texas margin tax expense (benefit) (1) 4,385 4,187 (9,807) Income tax expense (benefit) $ 4,385 $ 4,187 $ (9,807) Effective tax rate — % — % (1) % _________________________________________________________________________________________ (1) Includes a tax benefit of $12.5 million for the year ended December 31, 2021, related to a reduced Texas margin tax rate resulting from Occidental’s settlement of state audit matters. |
Income Tax Temporary Differences Table | The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows: December 31, thousands 2023 2022 Depreciable property $ (15,467) $ (14,114) Other intangible assets (588) (603) Other 587 293 Net long-term deferred income tax liabilities $ (15,468) $ (14,424) |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment Table | A summary of the historical cost of property, plant, and equipment is as follows: December 31, thousands Estimated Useful Life 2023 2022 Land N/A $ 12,504 $ 10,982 Gathering systems – pipelines 30 years 5,890,607 5,519,592 Gathering systems – compressors 15 years 2,553,602 2,266,410 Processing complexes and treating facilities 25 years 3,745,332 3,419,201 Transportation pipeline and equipment 3 to 48 years 259,314 174,241 Produced - water disposal systems 20 years 1,098,616 932,627 Assets under construction N/A 479,368 263,353 Other 3 to 40 years 906,088 779,187 Total property, plant, and equipment 14,945,431 13,365,593 Less accumulated depreciation 5,290,415 4,823,993 Net property, plant, and equipment $ 9,655,016 $ 8,541,600 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets Table | The following table presents the gross carrying value and accumulated amortization of other intangible assets: December 31, thousands 2023 2022 Gross carrying value $ 979,863 $ 979,863 Accumulated amortization (298,455) (266,788) Other intangible assets $ 681,408 $ 713,075 |
Selected Components of Workin_2
Selected Components of Working Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Selected Components Of Working Capital [Abstract] | |
Accounts Receivable, Net Table | A summary of accounts receivable, net is as follows: The Partnership WES Operating December 31, December 31, thousands 2023 2022 2023 2022 Trade receivables, net $ 665,892 $ 548,859 $ 665,892 $ 548,859 Other receivables, net 745 5,404 723 5,404 Total accounts receivable, net $ 666,637 $ 554,263 $ 666,615 $ 554,263 |
Other Current Assets Table | A summary of other current assets is as follows: The Partnership WES Operating December 31, December 31, thousands 2023 2022 2023 2022 NGLs inventory $ 2,557 $ 3,797 $ 2,557 $ 3,797 Imbalance receivables 5,056 32,658 5,056 32,658 Prepaid insurance 21,065 13,262 18,571 11,139 Contract assets 9,595 3,381 9,595 3,381 Other 14,713 6,408 14,689 6,316 Total other current assets $ 52,986 $ 59,506 $ 50,468 $ 57,291 |
Accrued Liabilities Table | A summary of accrued liabilities is as follows: The Partnership WES Operating December 31, December 31, thousands 2023 2022 2023 2022 Accrued interest expense $ 124,937 $ 110,486 $ 124,937 $ 110,486 Short - term asset retirement obligations 7,606 10,493 7,606 10,493 Short - term remediation and reclamation obligations 5,490 5,383 5,490 5,383 Income taxes payable 2,908 2,428 2,908 2,428 Contract liabilities 16,866 20,903 16,866 20,903 Accrued payroll and benefits 55,237 44,855 2,243 — Other 49,528 60,092 43,411 47,596 Total accrued liabilities $ 262,572 $ 254,640 $ 203,461 $ 197,289 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations Table | The following table provides a summary of changes in asset retirement obligations: Year Ended December 31, thousands 2023 2022 Carrying amount of asset retirement obligations at beginning of year $ 300,514 $ 308,209 Liabilities incurred 34,929 10,513 Liabilities settled (11,273) (10,115) Accretion expense 15,040 14,474 Revisions in estimated liabilities 27,581 (22,567) Carrying amount of asset retirement obligations at end of year $ 366,791 $ 300,514 |
Debt and Interest Expense (Tabl
Debt and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Instruments [Abstract] | |
Debt Outstanding and Debt Activity Tables | The following table presents the outstanding debt: December 31, 2023 December 31, 2022 thousands Principal Carrying Fair Value (1) Principal Carrying Fair Value (1) Short - term debt Floating - Rate Senior Notes due 2023 $ — $ — $ — $ 213,138 $ 213,121 $ 214,823 Commercial paper 613,885 610,312 610,312 — — — Finance lease liabilities 7,436 7,436 7,436 2,659 2,659 2,659 Total short - term debt $ 621,321 $ 617,748 $ 617,748 $ 215,797 $ 215,780 $ 217,482 Long - term debt 3.100% Senior Notes due 2025 $ 666,481 $ 665,145 $ 650,765 $ 730,706 $ 727,953 $ 692,491 3.950% Senior Notes due 2025 349,163 347,938 341,415 399,163 396,825 379,107 4.650% Senior Notes due 2026 467,204 465,705 459,617 474,242 472,161 452,201 4.500% Senior Notes due 2028 357,094 354,665 346,121 400,000 396,698 368,346 4.750% Senior Notes due 2028 382,888 380,747 374,767 400,000 397,340 368,141 6.350% Senior Notes due 2029 600,000 593,069 626,994 — — — 4.050% Senior Notes due 2030 1,104,593 1,097,609 1,036,097 1,200,000 1,191,345 1,053,038 6.150% Senior Notes due 2033 750,000 741,125 780,203 — — — 5.450% Senior Notes due 2044 600,000 594,031 545,154 600,000 593,878 503,742 5.300% Senior Notes due 2048 700,000 687,735 614,082 700,000 687,494 580,570 5.500% Senior Notes due 2048 350,000 342,913 312,365 350,000 342,783 291,194 5.250% Senior Notes due 2050 1,000,000 984,206 895,440 1,000,000 983,945 829,804 RCF — — — 375,000 375,000 375,000 Finance lease liabilities 28,668 28,668 28,668 4,160 4,160 4,160 Total long - term debt $ 7,356,091 $ 7,283,556 $ 7,011,688 $ 6,633,271 $ 6,569,582 $ 5,897,794 _________________________________________________________________________________________ (1) Fair value is measured using the market approach and Level - 2 fair value inputs. 13. DEBT AND INTEREST EXPENSE Debt activity. The following table summarizes debt activity for the periods presented: thousands Carrying Value Balance at December 31, 2021 $ 6,906,548 RCF borrowings 1,390,000 Repayments of RCF borrowings (1,015,000) Repayment of 4.000% Senior Notes due 2022 (502,246) Repayment of 3.100% Senior Notes due 2025 (1,400) Finance lease liabilities 1,493 Other 5,967 Balance at December 31, 2022 $ 6,785,362 RCF borrowings 1,120,000 Commercial paper borrowings (1) 610,312 Repayments of RCF borrowings (1,495,000) Issuance of 6.350% Senior Notes due 2029 600,000 Issuance of 6.150% Senior Notes due 2033 750,000 Repayment of Floating-Rate Senior Notes due 2023 (213,138) Repayment of 3.100% Senior Notes due 2025 (64,225) Repayment of 3.950% Senior Notes due 2025 (50,000) Repayment of 4.650% Senior Notes due 2026 (7,038) Repayment of 4.500% Senior Notes due 2028 (42,906) Repayment of 4.750% Senior Notes due 2028 (17,112) Repayment of 4.050% Senior Notes due 2030 (95,407) Finance lease liabilities 29,285 Other (8,829) Balance at December 31, 2023 $ 7,901,304 ________________________________________________________________________________________ (1) Net of repayments related to commercial paper notes with maturities of 90 days or less. |
Interest Expense Table | The following table summarizes the amounts included in interest expense: Year Ended December 31, thousands 2023 2022 2021 Long - term and short - term debt $ (348,393) $ (326,949) $ (366,570) Finance lease liabilities (1,083) (414) (861) Commitment fees and amortization of debt-related costs (12,395) (12,212) (12,705) Capitalized interest 13,643 5,636 3,624 Interest expense $ (348,228) $ (333,939) $ (376,512) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Leases Table | The following table summarizes information related to the Partnership’s leases: December 31, 2023 2022 thousands except lease term and discount rate Operating Leases Finance Leases Operating Leases Finance Leases Assets Other assets $ 84,279 $ — $ 67,087 $ — Net property, plant, and equipment — 36,958 — 7,402 Total lease assets (1) $ 84,279 $ 36,958 $ 67,087 $ 7,402 Liabilities Accrued liabilities $ 11,259 $ — $ 10,342 $ — Short-term debt — 7,436 — 2,659 Other liabilities 48,459 — 33,318 — Long-term debt — 28,668 — 4,160 Total lease liabilities (1) $ 59,718 $ 36,104 $ 43,660 $ 6,819 Weighted-average remaining lease term (years) 9 6 8 6 Weighted-average discount rate (%) 4.6 7.1 4.5 8.2 ________________________________________________________________________________________ (1) Includes additions to ROU assets and lease liabilities of $33.1 million and $8.3 million related to operating leases for the years ended December 31, 2023 and 2022, respectively. Includes additions to ROU assets and lease liabilities of $32.6 million and $7.1 million related to finance leases for the years ended December 31, 2023 and 2022, respectively. |
Summary of Lease Cost and Cash Flow Activity Tables | The following table summarizes the Partnership’s lease cost: Year Ended December 31, thousands 2023 2022 2021 Operating lease cost $ 15,457 $ 14,767 $ 10,753 Short-term lease cost 48,343 38,875 37,616 Variable lease cost 3,930 5,611 2,628 Sublease income (311) (414) (414) Finance lease cost Amortization of ROU assets 3,487 5,377 7,151 Interest on lease liabilities 1,083 414 861 Total lease cost $ 71,989 $ 64,630 $ 58,595 14. LEASES The following table summarizes cash paid for amounts included in the measurement of lease liabilities: Year Ended December 31, 2023 2022 2021 thousands Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Operating cash flows $ 14,217 $ 1,083 $ 13,616 $ 229 $ 5,805 $ 861 Financing cash flows — 3,076 — 4,318 — 6,513 |
Lessee, Operating Leases Maturity Tables | The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2023: Operating Leases Finance Leases 2024 $ 11,593 $ 7,670 2025 9,542 10,527 2026 8,267 9,274 2027 7,849 5,814 2028 7,993 5,659 Thereafter 34,020 3,795 Total lease payments 79,264 42,739 Less portion representing imputed interest 19,546 6,635 Total lease liabilities $ 59,718 $ 36,104 |
Lessee, Finance Leases Maturity Table | The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2023: Operating Leases Finance Leases 2024 $ 11,593 $ 7,670 2025 9,542 10,527 2026 8,267 9,274 2027 7,849 5,814 2028 7,993 5,659 Thereafter 34,020 3,795 Total lease payments 79,264 42,739 Less portion representing imputed interest 19,546 6,635 Total lease liabilities $ 59,718 $ 36,104 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Award Activity Tables | The following table summarizes time-vested award activity under the WES LTIPs: 2023 2022 2021 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 21.33 1,689,030 $ 16.97 1,775,672 $ 15.69 1,307,606 Granted 28.19 1,140,789 26.11 866,900 17.86 1,041,635 Vested 19.66 (910,062) 16.84 (793,367) 14.82 (497,648) Forfeited 25.73 (183,055) 21.12 (160,175) 16.83 (75,921) Non-vested units at end of year 26.24 1,736,702 21.33 1,689,030 16.97 1,775,672 The following table summarizes TUR Awards activity under the WES LTIPs: 2023 2022 2021 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 24.62 388,817 $ 21.17 325,217 $ 17.79 108,481 Granted 40.44 231,395 37.80 94,173 22.77 237,720 Vested 17.79 (155,052) — — — — Forfeited 40.22 (1,631) 28.54 (30,573) 21.78 (20,984) Non-vested units at end of year 32.22 463,529 24.62 388,817 21.17 325,217 The following table summarizes ROA Awards activity under the WES LTIPs: 2023 2022 2021 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 18.12 388,817 $ 16.01 325,217 $ 16.27 108,481 Granted 28.48 245,143 25.95 94,173 15.88 237,720 Vested 16.27 (168,800) — — — — Forfeited 28.38 (1,631) 19.74 (30,573) 15.96 (20,984) Non-vested units at end of year 22.51 463,529 18.12 388,817 16.01 325,217 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Basis of Presentation - Assets and Investments Table (Details) | Dec. 31, 2023 unit |
Wholly Owned and Operated [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 18 |
Wholly Owned and Operated [Member] | Treating Facilities [Member] | |
Assets [Line Items] | |
Assets, number of units | 38 |
Wholly Owned and Operated [Member] | Natural-Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 24 |
Wholly Owned and Operated [Member] | Natural-Gas Liquids Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Wholly Owned and Operated [Member] | Natural-Gas Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 6 |
Wholly Owned and Operated [Member] | Crude-Oil Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Operated Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 2 |
Operated Interests [Member] | Treating Facilities [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Operated Interests [Member] | Natural-Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Operated Interests [Member] | Crude-Oil Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 1 |
Non-Operated Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Equity Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 1 |
Equity Interests [Member] | Natural-Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Equity Interests [Member] | Natural-Gas Liquids Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 5 |
Equity Interests [Member] | Natural-Gas Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 1 |
Equity Interests [Member] | Crude-Oil Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Basis of Presentation - Ownership Interests and Method of Consolidation Table (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Chipeta [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Ownership interest by noncontrolling interest owner | 25% |
Full Consolidation [Member] | Chipeta [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Percentage ownership interest | 75% |
Proportionate Consolidation [Member] | Springfield System [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Percentage ownership interest | 50.10% |
Proportionate Consolidation [Member] | Marcellus Interest Systems [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Percentage ownership interest | 33.75% |
Equity Investments [Member] | Mi Vida [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 50% |
Equity Investments [Member] | Front Range Pipeline [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 33.33% |
Equity Investments [Member] | Red Bluff Express [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 30% |
Equity Investments [Member] | Mont Belvieu JV [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 25% |
Equity Investments [Member] | Rendezvous [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 22% |
Equity Investments [Member] | Texas Express Pipeline [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 20% |
Equity Investments [Member] | Texas Express Gathering [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 20% |
Equity Investments [Member] | Whitethorn LLC [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 20% |
Equity Investments [Member] | Saddlehorn [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 20% |
Equity Investments [Member] | Panola [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 15% |
Equity Investments [Member] | White Cliffs [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 10% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Imbalance receivables | $ 5,056 | $ 32,658 | |
Imbalance payables | 7,200 | 32,500 | |
Defined-contribution plan expense | $ 24,600 | $ 21,800 | $ 23,700 |
WES Operating [Member] | |||
Ownership interest by noncontrolling interest owner | 2% | ||
Chipeta [Member] | |||
Ownership interest by noncontrolling interest owner | 25% | ||
WES [Member] | WES Operating [Member] | |||
Ownership interest | 98% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue From Contracts With Customers Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | $ 3,105,508 | $ 3,250,768 | $ 2,697,115 | |
Revenue from other than customers, other | 968 | 953 | 789 | |
Total revenues and other | [1] | 3,106,476 | 3,251,721 | 2,877,155 |
Service Revenues - Fee Based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 2,768,757 | 2,602,053 | 2,283,584 | |
Total revenues and other | 2,768,757 | 2,602,053 | 2,462,835 | |
Service Revenues - Product Based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 191,727 | 249,692 | 122,584 | |
Total revenues and other | 191,727 | 249,692 | 122,584 | |
Product Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 145,024 | 399,023 | 290,947 | |
Total revenues and other | 145,024 | 399,023 | 290,947 | |
Lease Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other than customers, lease revenue | $ 0 | $ 0 | $ 179,251 | |
[1] Total revenues and other includes related-party amounts of $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Change in Contracts with Customer, Asset [Roll Forward] | ||
Contract assets balance at beginning of year | $ 22,561 | $ 22,557 |
Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period | (6,678) | (7,683) |
Additional estimated revenues recognized | 9,487 | 5,531 |
Cumulative catch-up adjustment for change in estimated consideration | 13,922 | 2,156 |
Contract assets balance at end of period | 39,292 | 22,561 |
Contract Assets [Abstract] | ||
Other current assets | 9,595 | 3,381 |
Other assets | 29,697 | 19,180 |
Total contract assets from contracts with customers | $ 39,292 | $ 22,561 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Liabilities Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Change in Contracts with Customer, Liability [Roll Forward] | ||
Contract liabilities balance at begining of year | $ 369,285 | $ 313,146 |
Cash received or receivable, excluding revenues recognized during the period | 84,336 | 71,097 |
Revenues recognized that were included in the contract liability balance at the beginning of the period | (15,572) | (16,158) |
Cumulative catch-up adjustment for change in estimated consideration | (4,363) | 1,200 |
Amounts acquired with the acquisition of Meritage | 11,813 | 0 |
Contract liabilities balance at end of period | 445,499 | 369,285 |
Contract Liabilities [Abstract] | ||
Accrued liabilities | 16,866 | 20,903 |
Other liabilities | 428,633 | 348,382 |
Total contract liabilities from contracts with customers | $ 445,499 | $ 369,285 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Expected Revenues Table (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 6,983,036 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 1,145,612 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 1,097,142 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 1,019,676 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 927,846 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 665,106 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 2,127,654 |
Performance obligation expected to be satisfied, expected timing |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contracts with Customer [Line Items] | ||
Accounts receivable, net | $ 666,637 | $ 554,263 |
Customers [Member] | ||
Revenue from Contracts with Customer [Line Items] | ||
Accounts receivable, net | $ 661,600 | $ 545,000 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisition-Date Fair Value Table (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Assets acquired | |
Cash and cash equivalents | $ 38,412 |
Accounts receivable, net | 34,060 |
Other current assets | 1,980 |
Property, plant, and equipment | 925,905 |
Other assets | 6,498 |
Total assets acquired | 1,006,855 |
Liabilities assumed | |
Accounts payable and accrued liabilities | 34,733 |
Other current liabilities | 5,451 |
Asset retirement obligation | 22,156 |
Other liabilities | 28,356 |
Total liabilities assumed | 90,696 |
Net assets acquired | $ 916,159 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Pro-Forma Information Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Revenues and other, pro forma | $ 3,239,035 | $ 3,408,767 |
Net income (loss), pro forma | 1,003,204 | 1,213,106 |
WES Operating [Member] | ||
Business Acquisition [Line Items] | ||
Revenues and other, pro forma | 3,239,035 | 3,408,767 |
Net income (loss), pro forma | $ 1,026,800 | $ 1,240,623 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Oct. 13, 2023 | Dec. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||||
Cash and cash equivalents | $ 38,412 | ||||||
Distributions | 155,169 | $ 186,153 | $ 213,516 | ||||
(Gain) loss on disposition of assets and other net | (10,102) | 103,676 | 44 | ||||
Bison [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
(Gain) loss on disposition of assets and other net | 5,400 | ||||||
Proceeds from sale of assets | $ 1,000 | $ 7,000 | 8,000 | ||||
Ranch Westex [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Ownership interest purchased | 50% | ||||||
Acquisitions from third parties | $ 40,100 | ||||||
Cactus II [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Equity-investment ownership percentage | 15% | 15% | |||||
Proceeds from sale of equity method investments | $ 264,800 | ||||||
Distributions | $ 1,800 | 11,835 | |||||
(Gain) loss on disposition of assets and other net | 109,900 | ||||||
Fort Union [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Equity-investment ownership percentage | 14.81% | ||||||
WES Operating [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Distributions | 155,169 | 186,153 | 213,516 | ||||
(Gain) loss on disposition of assets and other net | (10,102) | 103,676 | $ 44 | ||||
6.350% Senior Notes due 2029 [Member] | Senior Notes [Member] | WES Operating [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Principal amount | $ 0 | 600,000 | 0 | ||||
Meritage | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Cash payment for acquisition | $ 885,000 | 877,700 | |||||
Cash and cash equivalents | 38,400 | ||||||
Acquisition-related transaction costs | 6,100 | ||||||
Pro-forma adjustment to revenues and cost of product | (105,000) | (221,600) | |||||
Pro-forma adjustment to depreciation and amortization | (5,000) | (2,100) | |||||
Pro-forma adjustment to interest expense | (1,800) | $ 20,900 | |||||
Revenue since acquisition date | 41,400 | ||||||
Operating expenses since acquisition date | $ 24,600 |
Partnership Distributions - Cas
Partnership Distributions - Cash Distributions Tables (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Total quarterly per-unit distribution | $ 0.575 | $ 0.575 | $ 0.5625 | $ 0.856 | $ 0.500 | $ 0.500 | $ 0.500 | $ 0.500 | $ 0.327 | $ 0.323 | $ 0.319 | $ 0.315 |
Total quarterly cash distribution | $ 223,438 | $ 223,432 | $ 221,442 | $ 336,987 | $ 196,569 | $ 197,065 | $ 197,744 | $ 206,197 | $ 134,749 | $ 134,862 | $ 134,662 | $ 132,969 |
Base quarterly per-unit distribution | $ 0.500 | |||||||||||
Base quarterly cash distribution | $ 196,800 | |||||||||||
Enhanced quarterly per-unit distribution | $ 0.356 | |||||||||||
WES Operating [Member] | ||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Total quarterly cash distribution | $ 229,446 | $ 229,446 | $ 226,260 | $ 342,895 | $ 213,513 | $ 213,513 | $ 213,513 | $ 213,513 | $ 140,217 | $ 140,217 | $ 140,217 | $ 137,030 |
Partnership Distributions - Add
Partnership Distributions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Distribution Made to Limited Partner [Line Items] | |||
Enhanced quarterly per-unit distribution | $ 0.356 | ||
Enhanced quarterly cash distribution | $ 140.1 | ||
WES [Member] | |||
Distribution Made to Limited Partner [Line Items] | |||
Partnership agreement day requirement of distribution of available cash | 55 days | ||
WES Operating [Member] | |||
Distribution Made to Limited Partner [Line Items] | |||
Additional quarterly cash distribution | $ 130.1 | $ 463.8 |
Equity and Partners' Capital -
Equity and Partners' Capital - Calculation of Net Income (Loss) Per Unit Table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Equity [Abstract] | ||||
Limited partners' interest in net income (loss) | [1] | $ 998,532 | $ 1,189,562 | $ 896,477 |
Weighted-average common units outstanding | ||||
Basic | [1] | 383,028 | 394,951 | 411,309 |
Dilutive effect of non-vested phantom units | 1,380 | 1,285 | 713 | |
Diluted | [1] | 384,408 | 396,236 | 412,022 |
Excluded due to anti-dilutive effect | 114 | 554 | 589 | |
Net income (loss) per common unit | ||||
Basic | [1] | $ 2.61 | $ 3.01 | $ 2.18 |
Diluted | [1] | $ 2.60 | $ 3 | $ 2.18 |
[1] See Note 5. |
Equity and Partners' Capital _2
Equity and Partners' Capital - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 02, 2022 | Nov. 30, 2020 | ||
Schedule of Investments [Line Items] | |||||||
Common units outstanding | 379,519,983 | 384,070,984 | |||||
General partner units outstanding | 9,060,641 | 9,060,641 | |||||
Unit repurchases, authorized amount | $ 1,250,000,000 | $ 250,000,000 | |||||
Unit repurchases, amount | [1] | $ 134,602,000 | $ 487,590,000 | $ 217,465,000 | |||
Unit repurchases, remaining authorized amount | $ 627,800,000 | ||||||
Public [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Unit repurchases, number of units | 5,387,322 | 19,532,305 | 8,707,869 | ||||
Unit repurchases, amount | $ 167,200,000 | ||||||
Occidental [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Unit repurchases, number of units | 5,100,000 | 10,000,000 | |||||
WES [Member] | Public [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Common units outstanding | 194,338,405 | ||||||
Limited partner's interest | 50% | ||||||
WES [Member] | WES Operating [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Limited partner's interest | 98% | ||||||
Occidental [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Unit repurchases, number of units | 2,500,000 | ||||||
Unit repurchases, amount | $ 50,200,000 | ||||||
Occidental [Member] | Limited Partner [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Units sold by a related party | 11,500,000 | ||||||
Units sold by a related party, over-allotment | 1,500,000 | ||||||
Occidental [Member] | WES [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Common units outstanding | 185,181,578 | ||||||
Limited partner's interest | 47.70% | ||||||
General partner units outstanding | 9,060,641 | ||||||
General partner's interest | 2.30% | ||||||
Occidental [Member] | WES Operating [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Limited partner's interest | 2% | ||||||
[1] Includes related-party amounts. See Note 6 . |
Related-Party Transactions - Su
Related-Party Transactions - Summary of WES Related-Party Transactions Tables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | [1] | $ 3,106,476 | $ 3,251,721 | $ 2,877,155 |
Equity income, net – related parties | 152,959 | 183,483 | 204,645 | |
Cost of product | 164,598 | 420,900 | 322,285 | |
Operation and maintenance | 762,530 | 654,566 | 581,300 | |
General and administrative | 232,632 | 194,017 | 195,549 | |
Total operating expenses | [2] | 1,869,770 | 1,950,992 | 1,745,573 |
(Gain) loss on disposition of assets and other net | (10,102) | 103,676 | 44 | |
Consolidated balance sheets [Abstract] | ||||
Accounts receivable, net | 666,637 | 554,263 | ||
Other current assets | 52,986 | 59,506 | ||
Equity investments | 904,535 | 944,696 | 1,167,187 | |
Other assets | [3] | 233,455 | 167,049 | |
Total assets | [4] | 12,471,607 | 11,271,628 | |
Accounts and imbalance payables | 362,451 | 360,562 | ||
Accrued liabilities | 262,572 | 254,640 | ||
Other liabilities | 480,212 | 385,629 | ||
Total liabilities | [5] | 9,442,477 | 8,163,513 | |
Consolidated statements of cash flows [Abstract] | ||||
Distributions from equity-investment earnings – related parties | 155,169 | 186,153 | 213,516 | |
Capital expenditures | (735,080) | (487,228) | (313,674) | |
Contributions to equity investments – related parties | (1,153) | (9,632) | (4,435) | |
Distributions from equity investments in excess of cumulative earnings – related parties | 39,104 | 63,897 | 41,385 | |
Distributions to Partnership unitholders | [6] | (978,430) | (735,755) | (533,758) |
Net contributions from (distributions to) related parties | 0 | 1,423 | 8,533 | |
Unit repurchases from Occidental | [6] | (134,602) | (487,590) | (217,465) |
Service Revenues - Fee Based [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 2,768,757 | 2,602,053 | 2,462,835 | |
Service Revenues - Product Based [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 191,727 | 249,692 | 122,584 | |
Product Sales [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 145,024 | 399,023 | 290,947 | |
Related Parties [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 1,834,094 | 1,795,233 | 1,632,358 | |
Cost of product | (72,903) | (25,447) | 42,805 | |
Operation and maintenance | 4,618 | 5,081 | 27,805 | |
General and administrative | 284 | 2,338 | 15,613 | |
Total operating expenses | (68,001) | (18,028) | 86,223 | |
(Gain) loss on disposition of assets and other net | 0 | (1,756) | 420 | |
Consolidated balance sheets [Abstract] | ||||
Accounts receivable, net | 358,141 | 313,937 | ||
Other current assets | 1,260 | 1,578 | ||
Other assets | 43,216 | 29,058 | ||
Total assets | 1,307,152 | 1,289,269 | ||
Accounts and imbalance payables | 38,541 | 32,150 | ||
Accrued liabilities | 4,979 | 11,756 | ||
Other liabilities | 335,320 | 268,399 | ||
Total liabilities | 378,840 | 312,305 | ||
Consolidated statements of cash flows [Abstract] | ||||
Capital expenditures | 0 | (470) | (2,000) | |
Proceeds from the sale of assets to related parties | 0 | 200 | 0 | |
Distributions to Partnership unitholders | (494,127) | (372,468) | (272,192) | |
Unit repurchases from Occidental | (127,500) | (252,500) | (50,225) | |
Related Parties [Member] | WES Operating [Member] | ||||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to Partnership unitholders | (22,850) | (24,898) | (14,984) | |
Related Parties [Member] | Service Revenues - Fee Based [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 1,773,914 | 1,674,959 | 1,589,367 | |
Related Parties [Member] | Service Revenues - Product Based [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 16,497 | 56,907 | 11,888 | |
Related Parties [Member] | Product Sales [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | $ 43,683 | $ 63,367 | $ 31,103 | |
[1] Total revenues and other includes related-party amounts of $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . Total operating expenses includes related-party amounts of $(68.0) million, $(18.0) million, and $86.2 million for the years ended December 31, 2023, 2022, and 2021, respectively, all primarily related to changes in imbalance positions. See Note 6 . Other assets includes $5.7 million and $6.5 million of NGLs line - fill inventory as of December 31, 2023 and 2022, respectively. Other assets also includes $96.3 million and $60.4 million of materials and supplies inventory as of December 31, 2023 and 2022, respectively. Total assets includes related - party amounts of $1.3 billion as of December 31, 2023 and 2022, which includes related - party Accounts receivable, net of $358.1 million and $313.9 million as of December 31, 2023 and 2022, respectively. See Note 6 . Total liabilities includes related - party amounts of $378.8 million and $312.3 million as of December 31, 2023 and 2022, respectively. See Note 6 . Includes related-party amounts. See Note 6 . |
Related-Party Transactions - _2
Related-Party Transactions - Summary of WES Operating Related-Party Transactions Tables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Consolidated statements of operations [Abstract] | ||||
General and administrative | $ 232,632 | $ 194,017 | $ 195,549 | |
Consolidated balance sheets [Abstract] | ||||
Other current assets | 52,986 | 59,506 | ||
Other assets | [1] | 233,455 | 167,049 | |
Accounts and imbalance payables | 362,451 | 360,562 | ||
Accrued liabilities | 262,572 | 254,640 | ||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to WES Operating unitholders | [2] | (978,430) | (735,755) | (533,758) |
Related Parties [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
General and administrative | 284 | 2,338 | 15,613 | |
Consolidated balance sheets [Abstract] | ||||
Other current assets | 1,260 | 1,578 | ||
Other assets | 43,216 | 29,058 | ||
Accounts and imbalance payables | 38,541 | 32,150 | ||
Accrued liabilities | 4,979 | 11,756 | ||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to WES Operating unitholders | (494,127) | (372,468) | (272,192) | |
WES Operating [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
General and administrative | 229,689 | 191,361 | 192,617 | |
Consolidated balance sheets [Abstract] | ||||
Other current assets | 50,468 | 57,291 | ||
Other assets | [3] | 231,644 | 166,450 | |
Accounts and imbalance payables | 392,752 | 404,468 | ||
Accrued liabilities | 203,461 | 197,289 | ||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to WES Operating unitholders | [4] | (1,142,217) | (1,244,533) | (749,018) |
WES Operating [Member] | Related Parties [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
General and administrative | 3,554 | 5,373 | 18,365 | |
Consolidated balance sheets [Abstract] | ||||
Other current assets | 1,235 | 1,487 | ||
Other assets | 41,405 | 28,459 | ||
Accounts and imbalance payables | 69,472 | 76,131 | ||
Accrued liabilities | 4,662 | 11,439 | ||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to WES Operating unitholders | $ (1,142,217) | $ (1,244,533) | $ (749,018) | |
[1] Other assets includes $5.7 million and $6.5 million of NGLs line - fill inventory as of December 31, 2023 and 2022, respectively. Other assets also includes $96.3 million and $60.4 million of materials and supplies inventory as of December 31, 2023 and 2022, respectively. Includes related-party amounts. See Note 6 . Other assets includes $5.7 million and $6.5 million of NGLs line - fill inventory as of December 31, 2023 and 2022, respectively. Other assets also includes $96.3 million and $60.4 million of materials and supplies inventory as of December 31, 2023 and 2022, respectively. Includes related-party amounts. See Note 6. |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Right-of-use asset recognized | $ 84,279 | $ 67,087 | ||
Related Parties [Member] | ||||
Related Party Transaction [Line Items] | ||||
Present value of reduced usage fees | $ 30,000 | |||
Right-of-use asset recognized | $ 30,000 | |||
Related Parties [Member] | Incentive Plans [Member] | ||||
Related Party Transaction [Line Items] | ||||
Allocated equity-based compensation expense | $ 2,300 | $ 10,100 | ||
Natural Gas [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related-party throughput percentage | 34% | 35% | 36% | |
Crude Oil and NGLs Member] | ||||
Related Party Transaction [Line Items] | ||||
Related-party throughput percentage | 86% | 89% | 89% | |
Produced water [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related-party throughput percentage | 78% | 80% | 87% |
Equity Investments - Equity Inv
Equity Investments - Equity Investments Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | $ 944,696 | $ 1,167,187 | ||
Other-than-temporary impairment expense | (19,883) | |||
Equity income, net | 152,959 | 183,483 | $ 204,645 | |
Contributions | 1,153 | 9,632 | 4,435 | |
Distributions | (155,169) | (186,153) | (213,516) | |
Distributions in excess of cumulative earnings | (39,104) | (63,897) | (41,385) | |
Acquisitions and divestitures | (145,673) | |||
Balance at end of period | $ 944,696 | 904,535 | 944,696 | 1,167,187 |
White Cliffs [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 16,095 | 40,753 | ||
Other-than-temporary impairment expense | (19,883) | |||
Equity income, net | 2,094 | (1,086) | ||
Contributions | 0 | 0 | ||
Distributions | (1,720) | (32) | ||
Distributions in excess of cumulative earnings | (3,221) | (3,657) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 16,095 | 13,248 | 16,095 | 40,753 |
Rendezvous [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 16,114 | 22,075 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | (2,621) | (2,582) | ||
Contributions | 0 | 0 | ||
Distributions | (638) | (677) | ||
Distributions in excess of cumulative earnings | (2,040) | (2,702) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 16,114 | 10,815 | 16,114 | 22,075 |
Mont Belvieu JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 91,310 | 96,728 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 23,476 | 29,475 | ||
Contributions | 0 | 0 | ||
Distributions | (23,128) | (29,599) | ||
Distributions in excess of cumulative earnings | (3,102) | (5,294) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 91,310 | 88,556 | 91,310 | 96,728 |
Texas Express Gathering [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 15,856 | 16,116 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 3,504 | 6,384 | ||
Contributions | 700 | 75 | ||
Distributions | (3,527) | (6,407) | ||
Distributions in excess of cumulative earnings | (1,348) | (312) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 15,856 | 15,185 | 15,856 | 16,116 |
Texas Express Pipeline [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 184,687 | 188,925 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 35,578 | 44,650 | ||
Contributions | 0 | 0 | ||
Distributions | (35,829) | (44,902) | ||
Distributions in excess of cumulative earnings | (11,877) | (3,986) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 184,687 | 172,559 | 184,687 | 188,925 |
Front Range Pipeline [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 192,716 | 196,632 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 47,829 | 45,841 | ||
Contributions | 0 | 455 | ||
Distributions | (48,003) | (46,193) | ||
Distributions in excess of cumulative earnings | (5,991) | (4,019) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 192,716 | 186,551 | 192,716 | 196,632 |
Whitethorn LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 146,595 | 149,690 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | (6,870) | (3,417) | ||
Contributions | 132 | 281 | ||
Distributions | 6,398 | 5,223 | ||
Distributions in excess of cumulative earnings | (1,456) | (5,182) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 146,595 | 144,799 | 146,595 | 149,690 |
Cactus II [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 0 | 171,294 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 11,696 | |||
Contributions | 0 | |||
Distributions | (1,800) | (11,835) | ||
Distributions in excess of cumulative earnings | (18,085) | |||
Acquisitions and divestitures | (153,070) | |||
Balance at end of period | 0 | 0 | 171,294 | |
Saddlehorn [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 104,191 | 110,441 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 24,003 | 21,491 | ||
Contributions | 0 | 0 | ||
Distributions | (23,545) | (21,034) | ||
Distributions in excess of cumulative earnings | (2,889) | (6,707) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 104,191 | 101,760 | 104,191 | 110,441 |
Panola [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 19,311 | 20,044 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 2,507 | 2,343 | ||
Contributions | 0 | 0 | ||
Distributions | (2,638) | (2,212) | ||
Distributions in excess of cumulative earnings | (464) | (864) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 19,311 | 18,716 | 19,311 | 20,044 |
Mi Vida [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 48,862 | 51,763 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 9,135 | 11,316 | ||
Contributions | 0 | 0 | ||
Distributions | (8,215) | (11,113) | ||
Distributions in excess of cumulative earnings | (4,358) | (3,104) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 48,862 | 45,424 | 48,862 | 51,763 |
Ranch Westex [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 0 | 979 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 3,392 | |||
Contributions | 0 | |||
Distributions | (3,392) | |||
Distributions in excess of cumulative earnings | (8,376) | |||
Acquisitions and divestitures | 7,397 | |||
Balance at end of period | 0 | 0 | 979 | |
Red Bluff Express [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 108,959 | 101,747 | ||
Other-than-temporary impairment expense | 0 | |||
Equity income, net | 14,324 | 13,980 | ||
Contributions | 321 | 8,821 | ||
Distributions | (14,324) | (13,980) | ||
Distributions in excess of cumulative earnings | (2,358) | (1,609) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | $ 108,959 | $ 106,922 | $ 108,959 | $ 101,747 |
Equity Investments - Summarized
Equity Investments - Summarized Combined Financial Data For Equity Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues and other | [1] | $ 3,106,476 | $ 3,251,721 | $ 2,877,155 | |
Operating income | 1,379,563 | 1,587,888 | 1,336,271 | ||
Net Income | 1,048,007 | 1,251,456 | 943,999 | ||
Current assets | 992,410 | 900,425 | |||
Property, plant, and equipment, net | 9,655,016 | 8,541,600 | |||
Other assets | [2] | 233,455 | 167,049 | ||
Total assets | [3] | 12,471,607 | 11,271,628 | ||
Current liabilities | 1,304,056 | 903,857 | |||
Non-current liabilities | 8,138,421 | 7,259,656 | |||
Equity | 3,029,130 | 3,108,115 | 3,095,760 | $ 2,895,212 | |
Total liabilities and equity | 12,471,607 | 11,271,628 | |||
Summarized equity investments [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues and other | 1,572,120 | 1,922,733 | 1,808,791 | ||
Operating income | 619,597 | 661,779 | 946,299 | ||
Net Income | 623,593 | 661,916 | $ 945,801 | ||
Current assets | 302,675 | 293,539 | |||
Property, plant, and equipment, net | 4,114,540 | 4,278,398 | |||
Other assets | 50,693 | 52,163 | |||
Total assets | 4,467,908 | 4,624,100 | |||
Current liabilities | 130,028 | 123,897 | |||
Non-current liabilities | 17,920 | 17,660 | |||
Equity | 4,319,960 | 4,482,543 | |||
Total liabilities and equity | $ 4,467,908 | $ 4,624,100 | |||
[1] Total revenues and other includes related-party amounts of $1.8 billion, $1.8 billion, and $1.6 billion for the years ended December 31, 2023, 2022, and 2021, respectively. See Note 6 . Other assets includes $5.7 million and $6.5 million of NGLs line - fill inventory as of December 31, 2023 and 2022, respectively. Other assets also includes $96.3 million and $60.4 million of materials and supplies inventory as of December 31, 2023 and 2022, respectively. Total assets includes related - party amounts of $1.3 billion as of December 31, 2023 and 2022, which includes related - party Accounts receivable, net of $358.1 million and $313.9 million as of December 31, 2023 and 2022, respectively. See Note 6 . |
Equity Investments - Additional
Equity Investments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment impairment loss | $ 19,883 | |||
Equity-investment balance | $ 944,696 | 944,696 | $ 904,535 | $ 1,167,187 |
Ranch Westex [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest purchased | 50% | |||
White Cliffs [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment difference between carrying and underlying value | (23,900) | |||
Equity investment impairment loss | 19,883 | |||
Equity-investment balance | $ 16,095 | 16,095 | 13,248 | 40,753 |
Rendezvous [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment difference between carrying and underlying value | 20,600 | |||
Equity investment impairment loss | 0 | |||
Equity-investment balance | 16,114 | 16,114 | 10,815 | 22,075 |
Whitethorn LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment difference between carrying and underlying value | (32,800) | |||
Equity investment impairment loss | 0 | |||
Equity-investment balance | 146,595 | 146,595 | 144,799 | 149,690 |
Saddlehorn [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment difference between carrying and underlying value | (17,100) | |||
Equity investment impairment loss | 0 | |||
Equity-investment balance | 104,191 | 104,191 | $ 101,760 | 110,441 |
Cactus II [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment impairment loss | 0 | |||
Equity-investment balance | $ 0 | $ 0 | 171,294 | |
Equity-investment ownership percentage | 15% | 15% | ||
Ranch Westex [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment impairment loss | $ 0 | |||
Equity-investment balance | $ 0 | $ 0 | $ 979 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current state income tax expense (benefit) | $ 3,341 | $ 2,188 | $ (37) |
Deferred state income tax expense (benefit) | 1,044 | 1,999 | (9,770) |
Total income tax expense (benefit) | $ 4,385 | $ 4,187 | $ (9,807) |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 1,052,392 | $ 1,255,643 | $ 934,192 |
Statutory tax rate | 0% | 0% | 0% |
Tax computed at statutory rate | $ 0 | $ 0 | $ 0 |
Adjustments resulting from: | |||
Texas margin tax expense (benefit) | 4,385 | 4,187 | (9,807) |
Total income tax expense (benefit) | $ 4,385 | $ 4,187 | $ (9,807) |
Effective tax rate | 0% | 0% | (1.00%) |
Tax benefit related to reduced Texas margin tax rate | $ 12,500 |
Income Taxes - Income Tax Tempo
Income Taxes - Income Tax Temporary Differences Table (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Depreciable property | $ (15,467) | $ (14,114) |
Other intangible assets | (588) | (603) |
Other | 587 | 293 |
Net long-term deferred income tax liabilities | $ (15,468) | $ (14,424) |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Historical Cost Table (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 14,945,431 | $ 13,365,593 |
Less accumulated depreciation | 5,290,415 | 4,823,993 |
Net property, plant, and equipment | 9,655,016 | 8,541,600 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 12,504 | 10,982 |
Gathering Systems – Pipelines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 5,890,607 | 5,519,592 |
Estimated useful life | 30 years | |
Gathering Systems – Compressors [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 2,553,602 | 2,266,410 |
Estimated useful life | 15 years | |
Processing Complexes And Treating Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 3,745,332 | 3,419,201 |
Estimated useful life | 25 years | |
Transportation Pipeline And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 259,314 | 174,241 |
Transportation Pipeline And Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Transportation Pipeline And Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 48 years | |
Produced-Water Disposal Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 1,098,616 | 932,627 |
Estimated useful life | 20 years | |
Assets Under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 479,368 | 263,353 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 906,088 | $ 779,187 |
Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset and other impairments | [1] | $ 52,884 | $ 20,585 | $ 30,543 |
Rockies Assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset and other impairments | 52,100 | |||
Rockies Assets | Level-3 Inputs [Member] | Fair Value, Nonrecurring [Member] | Valuation, Income Approach [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated fair value | $ 22,800 | |||
DJ Basin Complex [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset and other impairments | $ 14,200 | |||
[1] See Note 7 and Note 9 . |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Other Intangible Assets Table (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 979,863 | $ 979,863 |
Accumulated amortization | (298,455) | (266,788) |
Other intangible assets | $ 681,408 | $ 713,075 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Number of reporting units | 2 | ||
Goodwill | $ 4,783,000 | $ 4,783,000 | |
Amortization of intangible assets | 31,700,000 | $ 31,700,000 | $ 31,700,000 |
Estimated amortization expense 2024 | 31,700,000 | ||
Estimated amortization expense 2025 | 31,700,000 | ||
Estimated amortization expense 2026 | 31,700,000 | ||
Estimated amortization expense 2027 | 31,700,000 | ||
Estimated amortization expense 2028 | $ 31,700,000 | ||
DJ Basin Complex Processing Plants [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 38 years | ||
Delaware Basin Midstream LLC [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 30 years | ||
Gathering and Processing Reporting Unit [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 0 | ||
Transportation Reporting Unit [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 4,800,000 |
Selected Components of Workin_3
Selected Components of Working Capital - Accounts Receivable, Net Table (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade receivables, net | $ 665,892 | $ 548,859 |
Other receivables, net | 745 | 5,404 |
Total accounts receivable, net | 666,637 | 554,263 |
WES Operating [Member] | ||
Trade receivables, net | 665,892 | 548,859 |
Other receivables, net | 723 | 5,404 |
Total accounts receivable, net | $ 666,615 | $ 554,263 |
Selected Components of Workin_4
Selected Components of Working Capital - Other Current Assets Table (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
NGLs inventory | $ 2,557 | $ 3,797 |
Imbalance receivables | 5,056 | 32,658 |
Prepaid insurance | 21,065 | 13,262 |
Contract assets | 9,595 | 3,381 |
Other | 14,713 | 6,408 |
Total other current assets | 52,986 | 59,506 |
WES Operating [Member] | ||
NGLs inventory | 2,557 | 3,797 |
Imbalance receivables | 5,056 | 32,658 |
Prepaid insurance | 18,571 | 11,139 |
Contract assets | 9,595 | 3,381 |
Other | 14,689 | 6,316 |
Total other current assets | $ 50,468 | $ 57,291 |
Selected Components of Workin_5
Selected Components of Working Capital - Accrued Liabilities Table (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued interest expense | $ 124,937 | $ 110,486 |
Short-term asset retirement obligations | 7,606 | 10,493 |
Short-term remediation and reclamation obligations | 5,490 | 5,383 |
Income taxes payable | 2,908 | 2,428 |
Contract liabilities | 16,866 | 20,903 |
Accrued payroll and benefits | 55,237 | 44,855 |
Other | 49,528 | 60,092 |
Total accrued liabilities | 262,572 | 254,640 |
WES Operating [Member] | ||
Accrued interest expense | 124,937 | 110,486 |
Short-term asset retirement obligations | 7,606 | 10,493 |
Short-term remediation and reclamation obligations | 5,490 | 5,383 |
Income taxes payable | 2,908 | 2,428 |
Contract liabilities | 16,866 | 20,903 |
Accrued payroll and benefits | 2,243 | 0 |
Other | 43,411 | 47,596 |
Total accrued liabilities | $ 203,461 | $ 197,289 |
Asset Retirement Obligations -
Asset Retirement Obligations - Asset Retirement Obligations Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of asset retirement obligations at beginning of year | $ 300,514 | $ 308,209 |
Liabilities incurred | 34,929 | 10,513 |
Liabilities settled | (11,273) | (10,115) |
Accretion expense | 15,040 | 14,474 |
Revisions in estimated liabilities | 27,581 | (22,567) |
Carrying amount of asset retirement obligations at end of year | $ 366,791 | $ 300,514 |
Debt and Interest Expense - Deb
Debt and Interest Expense - Debt Outstanding Table (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Finance leases - short-term debt | $ 7,436 | $ 2,659 |
Total short-term debt, principal | 621,321 | 215,797 |
Total short-term debt, carrying value | 617,748 | 215,780 |
Finance leases - long-term debt | 28,668 | 4,160 |
Total long-term debt, carrying value | 7,283,556 | 6,569,582 |
Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt, fair value | 617,748 | 217,482 |
Long-Term Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt, principal | 7,356,091 | 6,633,271 |
Total long-term debt, carrying value | 7,283,556 | 6,569,582 |
Long-Term Debt Obligations [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 7,011,688 | 5,897,794 |
WES Operating [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt, carrying value | 617,748 | 215,780 |
Total long-term debt, carrying value | 7,283,556 | 6,569,582 |
WES Operating [Member] | Commercial Paper Program | Commercial Paper Program | ||
Debt Instrument [Line Items] | ||
Principal | 613,885 | |
Commercial paper, carrying value | 610,312 | |
WES Operating [Member] | Commercial Paper Program | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | Commercial Paper Program | ||
Debt Instrument [Line Items] | ||
Short-term debt, fair value | 610,312 | |
WES Operating [Member] | Finance Lease Liability, Short Term [Member] | ||
Debt Instrument [Line Items] | ||
Finance leases - short-term debt | 7,436 | 2,659 |
WES Operating [Member] | Finance Lease Liability, Short Term [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Finance leases - short-term debt | 7,436 | 2,659 |
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 0 | 375,000 |
Long-term debt, carrying value | 0 | 375,000 |
WES Operating [Member] | RCF [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 0 | 375,000 |
WES Operating [Member] | Finance Lease Liability, Long Term [Member] | ||
Debt Instrument [Line Items] | ||
Finance leases - long-term debt | 28,668 | 4,160 |
WES Operating [Member] | Finance Lease Liability, Long Term [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Finance leases - long-term debt | $ 28,668 | 4,160 |
WES Operating [Member] | Senior Notes [Member] | Floating-Rate Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 213,138 | |
Short-term debt, carrying value | 213,121 | |
WES Operating [Member] | Senior Notes [Member] | Floating-Rate Senior Notes due 2023 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt, fair value | 214,823 | |
WES Operating [Member] | Senior Notes [Member] | 3.100% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 3.10% | |
Principal | $ 666,481 | 730,706 |
Long-term debt, carrying value | 665,145 | 727,953 |
WES Operating [Member] | Senior Notes [Member] | 3.100% Senior Notes due 2025 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 650,765 | 692,491 |
WES Operating [Member] | Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 3.95% | |
Principal | $ 349,163 | 399,163 |
Long-term debt, carrying value | 347,938 | 396,825 |
WES Operating [Member] | Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 341,415 | 379,107 |
WES Operating [Member] | Senior Notes [Member] | 4.650% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 4.65% | |
Principal | $ 467,204 | 474,242 |
Long-term debt, carrying value | 465,705 | 472,161 |
WES Operating [Member] | Senior Notes [Member] | 4.650% Senior Notes due 2026 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 459,617 | 452,201 |
WES Operating [Member] | Senior Notes [Member] | 4.500% Senior Notes due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 4.50% | |
Principal | $ 357,094 | 400,000 |
Long-term debt, carrying value | 354,665 | 396,698 |
WES Operating [Member] | Senior Notes [Member] | 4.500% Senior Notes due 2028 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 346,121 | 368,346 |
WES Operating [Member] | Senior Notes [Member] | 4.750% Senior Notes due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 4.75% | |
Principal | $ 382,888 | 400,000 |
Long-term debt, carrying value | 380,747 | 397,340 |
WES Operating [Member] | Senior Notes [Member] | 4.750% Senior Notes due 2028 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 374,767 | 368,141 |
WES Operating [Member] | Senior Notes [Member] | 6.350% Senior Notes due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 6.35% | |
Principal | $ 600,000 | 0 |
Long-term debt, carrying value | 593,069 | 0 |
WES Operating [Member] | Senior Notes [Member] | 6.350% Senior Notes due 2029 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 626,994 | 0 |
WES Operating [Member] | Senior Notes [Member] | 4.050% Senior Notes due 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 4.05% | |
Principal | $ 1,104,593 | 1,200,000 |
Long-term debt, carrying value | 1,097,609 | 1,191,345 |
WES Operating [Member] | Senior Notes [Member] | 4.050% Senior Notes due 2030 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 1,036,097 | 1,053,038 |
WES Operating [Member] | Senior Notes [Member] | 6.150% Senior Notes due 2033 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 6.15% | |
Principal | $ 750,000 | 0 |
Long-term debt, carrying value | 741,125 | 0 |
WES Operating [Member] | Senior Notes [Member] | 6.150% Senior Notes due 2033 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 780,203 | 0 |
WES Operating [Member] | Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 5.45% | |
Principal | $ 600,000 | 600,000 |
Long-term debt, carrying value | 594,031 | 593,878 |
WES Operating [Member] | Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 545,154 | 503,742 |
WES Operating [Member] | Senior Notes [Member] | 5.300% Senior Notes due 2048 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 5.30% | |
Principal | $ 700,000 | 700,000 |
Long-term debt, carrying value | 687,735 | 687,494 |
WES Operating [Member] | Senior Notes [Member] | 5.300% Senior Notes due 2048 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 614,082 | 580,570 |
WES Operating [Member] | Senior Notes [Member] | 5.500% Senior Notes due 2048 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 5.50% | |
Principal | $ 350,000 | 350,000 |
Long-term debt, carrying value | 342,913 | 342,783 |
WES Operating [Member] | Senior Notes [Member] | 5.500% Senior Notes due 2048 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 312,365 | 291,194 |
WES Operating [Member] | Senior Notes [Member] | 5.250% Senior Notes due 2050 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 5.25% | |
Principal | $ 1,000,000 | 1,000,000 |
Long-term debt, carrying value | 984,206 | 983,945 |
WES Operating [Member] | Senior Notes [Member] | 5.250% Senior Notes due 2050 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 895,440 | $ 829,804 |
Debt and Interest Expense - D_2
Debt and Interest Expense - Debt Activity Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Debt Outstanding [Roll Forward] | |||
Beginning balance | $ 6,785,362 | $ 6,906,548 | |
Commercial paper borrowings | 609,916 | 0 | $ 0 |
Ending balance | 7,901,304 | 6,785,362 | 6,906,548 |
WES Operating [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Commercial paper borrowings | 609,916 | 0 | $ 0 |
Other | (8,829) | 5,967 | |
WES Operating [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | (276,700) | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
RCF borrowings | 1,120,000 | 1,390,000 | |
Repayments of RCF borrowings | (1,495,000) | (1,015,000) | |
WES Operating [Member] | 4.000% Senior Notes due 2022 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (502,246) | ||
Senior note, interest rate | 4% | ||
WES Operating [Member] | 3.100% Senior Notes due 2025 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (64,225) | $ (1,400) | |
Senior note, interest rate | 3.10% | ||
WES Operating [Member] | Commercial Paper Program | Commercial Paper Program | |||
Changes in Debt Outstanding [Roll Forward] | |||
Commercial paper borrowings | $ 610,312 | ||
WES Operating [Member] | 6.350% Senior Notes due 2029 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Proceeds from issuance senior notes | $ 600,000 | ||
Senior note, interest rate | 6.35% | ||
WES Operating [Member] | 6.150% Senior Notes due 2033 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Proceeds from issuance senior notes | $ 750,000 | ||
Senior note, interest rate | 6.15% | ||
WES Operating [Member] | Floating-Rate Senior Notes due 2023 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (213,138) | ||
WES Operating [Member] | 3.950% Senior Notes due 2025 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (50,000) | ||
Senior note, interest rate | 3.95% | ||
WES Operating [Member] | 4.650% Senior Notes due 2026 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (7,038) | ||
Senior note, interest rate | 4.65% | ||
WES Operating [Member] | 4.500% Senior Notes due 2028 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (42,906) | ||
Senior note, interest rate | 4.50% | ||
WES Operating [Member] | 4.750% Senior Notes due 2028 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (17,112) | ||
Senior note, interest rate | 4.75% | ||
WES Operating [Member] | 4.050% Senior Notes due 2030 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (95,407) | ||
Senior note, interest rate | 4.05% | ||
WES Operating [Member] | Finance Lease Liability [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Finance lease liabilities | $ 29,285 | $ 1,493 |
Debt and Interest Expense - Int
Debt and Interest Expense - Interest Expense Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instruments [Abstract] | |||
Long-term and short-term debt | $ (348,393) | $ (326,949) | $ (366,570) |
Finance lease liabilities | (1,083) | (414) | (861) |
Commitment fees and amortization of debt-related costs | (12,395) | (12,212) | (12,705) |
Capitalized interest | 13,643 | 5,636 | 3,624 |
Interest expense | $ (348,228) | $ (333,939) | $ (376,512) |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Gain (loss) on early extinguishment of debt | $ 15,378,000 | $ 91,000 | $ (24,944,000) |
WES Operating [Member] | |||
Debt Instrument [Line Items] | |||
Gain (loss) on early extinguishment of debt | 15,378,000 | 91,000 | $ (24,944,000) |
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | 0 | $ 375,000,000 | |
Facility, maximum borrowing capacity | 2,000,000,000 | ||
Facility, expandable maximum borrowing capacity | 2,500,000,000 | ||
Facility, outstanding borrowings | 0 | ||
Facility, outstanding letters of credit | 5,100,000 | ||
Facility, available borrowing capacity | $ 1,400,000,000 | ||
Facility, interest rate at period end | 6.65% | 5.92% | |
Facility, fee rate | 0.20% | 0.25% | |
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Alternate Base Rate, Percentage Above Federal Funds Effective Rate [Member] | |||
Debt Instrument [Line Items] | |||
Facility, applicable margin added | 0.50% | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Alternate Base Rate, Percentage Above Adjusted Term SOFR [Member] | |||
Debt Instrument [Line Items] | |||
Facility, applicable margin added | 1% | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Facility, applicable margin added | 0.125% | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Percentage Margin Above Adjusted Term SOFR [Member] | |||
Debt Instrument [Line Items] | |||
Facility, applicable margin added | 1% | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Facility, applicable margin added | 0% | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Facility, applicable margin added | 0.30% | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Percentage Margin Above Adjusted Term SOFR [Member] | |||
Debt Instrument [Line Items] | |||
Facility, applicable margin added | 1.70% | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Facility, applicable margin added | 0.70% | ||
WES Operating [Member] | Commercial Paper Program | Commercial Paper Program | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 613,885,000 | ||
Facility, maximum borrowing capacity | $ 2,000,000,000 | ||
Commercial paper, weighted average interest rate | 6.23% | ||
WES Operating [Member] | Commercial Paper Program | Commercial Paper Program | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper, term | 397 days | ||
WES Operating [Member] | Commercial Paper Program | Commercial Paper Program | Weighted Average [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper, term | 34 days | ||
WES Operating [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of senior notes | $ 276,700,000 | ||
Gain (loss) on early extinguishment of debt | $ 15,400,000 | ||
WES Operating [Member] | Senior Notes [Member] | 3.100% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 3.10% | ||
Senior note, effective interest rate | 3.29% | 3.79% | |
Principal amount | $ 666,481,000 | $ 730,706,000 | |
Repayments of senior notes | $ 64,225,000 | $ 1,400,000 | |
WES Operating [Member] | Senior Notes [Member] | 4.050% Senior Notes due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.05% | ||
Senior note, effective interest rate | 4.169% | 4.671% | |
Principal amount | $ 1,104,593,000 | $ 1,200,000,000 | |
Repayments of senior notes | $ 95,407,000 | ||
WES Operating [Member] | Senior Notes [Member] | 5.250% Senior Notes due 2050 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 5.25% | ||
Senior note, effective interest rate | 5.363% | 5.869% | |
Principal amount | $ 1,000,000,000 | $ 1,000,000,000 | |
WES Operating [Member] | Senior Notes [Member] | 6.350% Senior Notes due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 6.35% | ||
Principal amount | $ 600,000,000 | 0 | |
WES Operating [Member] | Senior Notes [Member] | 6.150% Senior Notes due 2033 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 6.15% | ||
Principal amount | $ 750,000,000 | $ 0 | |
WES Operating [Member] | Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4% | ||
Repayments of senior notes | $ 502,246,000 |
Leases - Summary of Leases Tabl
Leases - Summary of Leases Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating leases - Other assets | $ 84,279 | $ 67,087 |
Finance leases - Net property, plant, and equipment | 36,958 | 7,402 |
Operating leases - Accrued liabilities | 11,259 | 10,342 |
Operating leases - Other liabilities | 48,459 | 33,318 |
Operating leases - Total lease liabilities | 59,718 | 43,660 |
Finance leases - Short-term debt | 7,436 | 2,659 |
Finance leases - Long-term debt | 28,668 | 4,160 |
Finance leases - Total lease liabilities | $ 36,104 | $ 6,819 |
Operating leases - weighted-average remaining lease term (years) | 9 years | 8 years |
Operating leases - weighted-average discount rate | 4.60% | 4.50% |
Finance leases - weighted-average remaining lease term (years) | 6 years | 6 years |
Finance leases - weighted-average discount rate | 7.10% | 8.20% |
Operating leases - additions to ROU assets | $ 33,100 | $ 8,300 |
Operating leases - additions to lease liabilities | 33,100 | 8,300 |
Finance leases - additions to ROU assets and lease liabilities | $ 32,600 | $ 7,100 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant, and equipment, net | Property, plant, and equipment, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current, Other liabilities | Accrued Liabilities, Current, Other liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total short-term debt, carrying value | Total short-term debt, carrying value |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Long-term debt, Total short-term debt, carrying value | Long-term debt, Total short-term debt, carrying value |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 15,457 | $ 14,767 | $ 10,753 |
Short-term lease cost | 48,343 | 38,875 | 37,616 |
Variable lease cost | 3,930 | 5,611 | 2,628 |
Sublease income | (311) | (414) | (414) |
Amortization of ROU assets | 3,487 | 5,377 | 7,151 |
Interest on lease liabilities | 1,083 | 414 | 861 |
Total lease cost | $ 71,989 | $ 64,630 | $ 58,595 |
Leases - Cash Flow Activity Rel
Leases - Cash Flow Activity Related to Leases Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Cash Flows | |||
Operating leases | $ 14,217 | $ 13,616 | $ 5,805 |
Finance leases | 1,083 | 229 | 861 |
Financing Cash Flows | |||
Finance lease payments | $ 3,076 | $ 4,318 | $ 6,513 |
Leases - Lessee, Reconciliation
Leases - Lessee, Reconciliation of Operating and Finance Lease Liabilities Table (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 11,593 | |
2025 | 9,542 | |
2026 | 8,267 | |
2027 | 7,849 | |
2028 | 7,993 | |
Thereafter | 34,020 | |
Total lease payments | 79,264 | |
Less portion representing imputed interest | 19,546 | |
Total lease liabilities | 59,718 | $ 43,660 |
Finance Leases | ||
2024 | 7,670 | |
2025 | 10,527 | |
2026 | 9,274 | |
2027 | 5,814 | |
2028 | 5,659 | |
Thereafter | 3,795 | |
Total lease payments | 42,739 | |
Less portion representing imputed interest | 6,635 | |
Total lease liabilities | $ 36,104 | $ 6,819 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Leases [Abstract] | |
Operating lease, fixed-lease revenue | $ 175.8 |
Operating lease, variable-lease revenue | $ 3.5 |
Equity-Based Compensation - Awa
Equity-Based Compensation - Award Activity Tables (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Time-vested Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value at beginning of year | $ 21.33 | $ 16.97 | $ 15.69 |
Weighted-average grant-date fair value - units granted during the period | 28.19 | 26.11 | 17.86 |
Weighted-average grant-date fair value - units vested during the period | 19.66 | 16.84 | 14.82 |
Weighted-average grant-date fair value - units forfeited during the period | 25.73 | 21.12 | 16.83 |
Weighted-average grant-date fair value at end of year | $ 26.24 | $ 21.33 | $ 16.97 |
Non-vested units at beginning of year | 1,689,030 | 1,775,672 | 1,307,606 |
Units granted | 1,140,789 | 866,900 | 1,041,635 |
Units vested | (910,062) | (793,367) | (497,648) |
Units forfeited | (183,055) | (160,175) | (75,921) |
Non-vested units at end of year | 1,736,702 | 1,689,030 | 1,775,672 |
TUR Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value at beginning of year | $ 24.62 | $ 21.17 | $ 17.79 |
Weighted-average grant-date fair value - units granted during the period | 40.44 | 37.80 | 22.77 |
Weighted-average grant-date fair value - units vested during the period | 17.79 | 0 | 0 |
Weighted-average grant-date fair value - units forfeited during the period | 40.22 | 28.54 | 21.78 |
Weighted-average grant-date fair value at end of year | $ 32.22 | $ 24.62 | $ 21.17 |
Non-vested units at beginning of year | 388,817 | 325,217 | 108,481 |
Units granted | 231,395 | 94,173 | 237,720 |
Units vested | (155,052) | 0 | 0 |
Units forfeited | (1,631) | (30,573) | (20,984) |
Non-vested units at end of year | 463,529 | 388,817 | 325,217 |
ROA Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value at beginning of year | $ 18.12 | $ 16.01 | $ 16.27 |
Weighted-average grant-date fair value - units granted during the period | 28.48 | 25.95 | 15.88 |
Weighted-average grant-date fair value - units vested during the period | 16.27 | 0 | 0 |
Weighted-average grant-date fair value - units forfeited during the period | 28.38 | 19.74 | 15.96 |
Weighted-average grant-date fair value at end of year | $ 22.51 | $ 18.12 | $ 16.01 |
Non-vested units at beginning of year | 388,817 | 325,217 | 108,481 |
Units granted | 245,143 | 94,173 | 237,720 |
Units vested | (168,800) | 0 | 0 |
Units forfeited | (1,631) | (30,573) | (20,984) |
Non-vested units at end of year | 463,529 | 388,817 | 325,217 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 22, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of units vested | $ 23.4 | $ 21.7 | $ 8.5 | |
Unvested equity-based compensation expense | $ 41 | |||
Weighted-average term of unvested awards | 10 months 24 days | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation - payout percentage | 0% | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation - payout percentage | 200% | |||
Western Gas Partners, LP 2017 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units authorized under LTIP | 3,431,251 | |||
Units available under LTIP | 1,226,875 | |||
Western Midstream Partners, LP 2021 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units authorized under LTIP | 9,500,000 | 9,500,000 | ||
Units available under LTIP | 9,479,648 | |||
Executive Long-Term Incentive Plans [Member] | Time-vested Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 3 years | |||
Executive Long-Term Incentive Plans [Member] | TUR Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 3 years | |||
Executive Long-Term Incentive Plans [Member] | ROA Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 3 years | |||
Long-Term Incentive Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
In-kind distributions issued, number of units | 3,253 | 13,754 | 21,681 | |
Equity-based compensation, expense | $ 32 | $ 25.5 | $ 17.6 | |
Non-Executive Long-Term Incentive Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 3 years | |||
Independent Director Long-Term Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for remediation and reclamation obligations | $ 7.3 | $ 7.4 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current, Other liabilities | Accrued Liabilities, Current, Other liabilities |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 21, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | ||||
(Gain) loss on disposition of assets and other net | $ (10,102) | $ 103,676 | $ 44 | |
Proportionate Consolidation [Member] | Marcellus Interest Systems [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage ownership interest | 33.75% | |||
Equity Investments [Member] | Panola [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity-investment ownership percentage | 15% | |||
Equity Investments [Member] | Mont Belvieu JV [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity-investment ownership percentage | 25% | |||
Equity Investments [Member] | Whitethorn LLC [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity-investment ownership percentage | 20% | |||
Equity Investments [Member] | Saddlehorn [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity-investment ownership percentage | 20% | |||
Subsequent Event [Member] | Marcellus Interest systems, Panola, Mont Belvieu JV, Whitethorn, and Saddlehorn | ||||
Subsequent Event [Line Items] | ||||
Expected proceeds from sale of assets | $ 790,000 | |||
(Gain) loss on disposition of assets and other net | $ 300,000 |