Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
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 | 1201 Lake Robbins Drive | ||
Entity Address, City or Town | The Woodlands, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | (832) | ||
Local Phone Number | 636-6000 | ||
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 | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6.2 | ||
Entity Common Units Outstanding | 443,971,409 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001423902 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
WES Operating [Member] | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
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 | 1201 Lake Robbins Drive | ||
Entity Address, City or Town | The Woodlands, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | (832) | ||
Local Phone Number | 636-6000 | ||
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 | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0001414475 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues and Other | ||||
Revenues and other | $ 2,746,174 | $ 2,299,658 | $ 2,429,614 | |
Equity income, net – affiliates | 237,518 | 195,469 | 115,141 | |
Operating expenses | ||||
Cost of product | [1] | 444,247 | 415,505 | 953,792 |
Operation and maintenance | [1] | 641,219 | 480,861 | 345,617 |
General and administrative | [1] | 114,591 | 67,195 | 53,949 |
Property and other taxes | 61,352 | 51,848 | 53,147 | |
Depreciation and amortization | 483,255 | 389,164 | 318,771 | |
Impairments | 6,279 | 230,584 | 180,051 | |
Total operating expenses | 1,750,943 | 1,635,157 | 1,905,327 | |
Gain (loss) on divestiture and other, net | [2],[3] | (1,406) | 1,312 | 132,388 |
Proceeds from business interruption insurance claims | 0 | 0 | 29,882 | |
Operating income (loss) | 1,231,343 | 861,282 | 801,698 | |
Interest income – affiliates | 16,900 | 16,900 | 16,900 | |
Interest expense | [4] | (303,286) | (183,831) | (142,520) |
Other income (expense), net | [5] | (123,785) | (4,763) | 1,384 |
Income (loss) before income taxes | 821,172 | 689,588 | 677,462 | |
Income tax expense (benefit) | 13,472 | 58,934 | (59,923) | |
Net income (loss) | 807,700 | 630,654 | 737,385 | |
Net income (loss) attributable to noncontrolling interests | 110,459 | 79,083 | 196,595 | |
Net income (loss) attributable to Western Midstream Partners, LP | 697,241 | 551,571 | 540,790 | |
Limited partners' interest in net income (loss): | ||||
Net income (loss) attributable to Western Midstream Partners, LP | 697,241 | 551,571 | 540,790 | |
Pre-acquisition net (income) loss allocated to Anadarko | (29,279) | (182,142) | (164,183) | |
General partner interest in net (income) loss | (5,637) | 0 | 0 | |
Limited partners' interest in net income (loss) | [6] | 662,325 | 369,429 | 376,607 |
Affiliates [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,607,396 | 1,353,711 | 1,539,105 | |
Operating expenses | ||||
Cost of product | 254,771 | 168,535 | 74,560 | |
Operation and maintenance | 146,990 | 115,948 | 82,249 | |
General and administrative | 101,485 | 49,672 | 43,221 | |
Total operating expenses | 503,246 | 334,155 | 200,030 | |
Interest expense | (1,970) | (6,746) | (224) | |
Affiliates [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,441,875 | 1,070,066 | 769,305 | |
Affiliates [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 7,062 | 3,339 | 0 | |
Affiliates [Member] | Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 158,459 | 280,306 | 753,724 | |
Affiliates [Member] | Other [Member] | ||||
Revenues and Other | ||||
Revenues and other | 0 | 0 | 16,076 | |
Third Parties [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,138,778 | 945,947 | 890,509 | |
Operating expenses | ||||
Interest expense | (301,316) | (177,085) | (142,296) | |
Third Parties [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 946,316 | 835,662 | 588,571 | |
Third Parties [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 63,065 | 85,446 | 0 | |
Third Parties [Member] | Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 127,929 | 22,714 | 297,486 | |
Third Parties [Member] | Other [Member] | ||||
Revenues and Other | ||||
Revenues and other | $ 1,468 | $ 2,125 | $ 4,452 | |
Limited Partner [Member] | ||||
Limited partners' interest in net income (loss): | ||||
Net income (loss) per common unit - basic and diluted | [6] | $ 1.59 | $ 1.69 | $ 1.72 |
Weighted-average common units outstanding - basic and diluted | 415,794 | 218,936 | 218,931 | |
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $101.5 million , $49.7 million , and $43.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | |||
[2] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[3] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[4] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . | |||
[5] | Includes losses associated with the interest-rate swap agreements for the years ended December 31, 2019 and 2018. See Note 13 . | |||
[6] | See Note 1 . |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cost of product | [1] | $ 444,247 | $ 415,505 | $ 953,792 |
Operation and maintenance | [1] | 641,219 | 480,861 | 345,617 |
General and administrative | [1] | 114,591 | 67,195 | 53,949 |
Interest expense | [2] | (303,286) | (183,831) | (142,520) |
Affiliates [Member] | ||||
Cost of product | 254,771 | 168,535 | 74,560 | |
Operation and maintenance | 146,990 | 115,948 | 82,249 | |
General and administrative | 101,485 | 49,672 | 43,221 | |
Interest expense | $ (1,970) | $ (6,746) | $ (224) | |
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $101.5 million , $49.7 million , and $43.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | |||
[2] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets | |||||
Cash and cash equivalents | $ 99,962 | $ 92,142 | $ 79,588 | $ 359,072 | |
Accounts receivable, net | [1] | 260,512 | 221,164 | ||
Other current assets | [2] | 41,938 | 31,458 | ||
Total current assets | 402,412 | 344,764 | |||
Note receivable - Anadarko | 260,000 | 260,000 | |||
Property, plant, and equipment | |||||
Cost | 12,355,671 | 11,258,773 | |||
Less accumulated depreciation | 3,290,740 | 2,848,420 | |||
Net property, plant, and equipment | 9,064,931 | 8,410,353 | |||
Goodwill | 445,800 | 445,800 | |||
Other intangible assets | 809,391 | 841,408 | |||
Equity investments | 1,285,717 | 1,092,088 | 817,352 | ||
Other assets | [3] | 78,202 | 62,792 | ||
Total assets | 12,346,453 | 11,457,205 | |||
Current liabilities | |||||
Accounts and imbalance payables | 293,128 | 443,343 | |||
Short-term debt | [4] | 7,873 | 28,000 | ||
Accrued ad valorem taxes | 35,160 | 36,986 | |||
Accrued liabilities | [5] | 149,793 | 129,148 | ||
Total current liabilities | 485,954 | 637,477 | |||
Long-term liabilities | |||||
Long-term debt | 7,951,565 | 4,787,381 | |||
APCWH Note Payable | [6] | 0 | 427,493 | ||
Deferred income taxes | 18,899 | 280,017 | |||
Asset retirement obligations | 336,396 | 300,024 | |||
Other liabilities | [7] | 208,346 | 132,130 | ||
Total long-term liabilities | 8,515,206 | 5,927,045 | |||
Total liabilities | 9,001,160 | 6,564,522 | |||
Equity and partners' capital | |||||
Common units (443,971,409 and 218,937,797 units issued and outstanding at December 31, 2019 and 2018, respectively) | 3,209,947 | 951,888 | |||
General partner units (9,060,641 and zero units issued and outstanding at December 31, 2019 and 2018, respectively) | [8] | (14,224) | 0 | ||
Net investment by Anadarko | 0 | 1,388,018 | |||
Total partners' capital | 3,195,723 | 2,339,906 | |||
Noncontrolling interests | 149,570 | 2,552,777 | |||
Total equity and partners' capital | 3,345,293 | 4,892,683 | $ 4,995,050 | $ 4,872,656 | |
Total liabilities, equity and partners' capital | $ 12,346,453 | $ 11,457,205 | |||
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.3 million and $72.6 million as of December 31, 2019 and 2018, respectively. | ||||
[2] | Other current assets includes affiliate amounts of $5.0 million and $3.7 million as of December 31, 2019 | ||||
[3] | Other assets includes affiliate amounts of $60.2 million and $42.2 million as of December 31, 2019 and 2018, respectively. Other assets also includes $4.5 million and $5.3 million of NGLs line fill as of December 31, 2019 and 2018, respectively. | ||||
[4] | As of December 31, 2019 , all amounts are considered affiliate. See Note 14 . | ||||
[5] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. | ||||
[6] | See Note 1 and Note 6 . | ||||
[7] | Other liabilities includes affiliate amounts of $97.8 million and $47.8 million as of December 31, 2019 and 2018, respectively. | ||||
[8] | See Note 1 . |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Common units issued | 443,971,409 | 218,937,797 | |
Common units outstanding | 443,971,409 | 218,937,797 | |
General partner units issued | 9,060,641 | 0 | |
General partner units outstanding | 9,060,641 | 0 | |
Accounts receivable, net | [1] | $ 260,512 | $ 221,164 |
Other current assets | [2] | 41,938 | 31,458 |
Other assets | [3] | 78,202 | 62,792 |
Accrued liabilities | [4] | 149,793 | 129,148 |
Other liabilities | [5] | 208,346 | 132,130 |
Natural-Gas Liquids [Member] | |||
NGLs line fill inventory | 4,500 | 5,300 | |
Affiliates [Member] | |||
Accounts receivable, net | 113,300 | 72,600 | |
Other current assets | 5,000 | 3,700 | |
Other assets | 60,200 | 42,200 | |
Accrued liabilities | 3,100 | 2,200 | |
Other liabilities | $ 97,800 | $ 47,800 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.3 million and $72.6 million as of December 31, 2019 and 2018, respectively. | ||
[2] | Other current assets includes affiliate amounts of $5.0 million and $3.7 million as of December 31, 2019 | ||
[3] | Other assets includes affiliate amounts of $60.2 million and $42.2 million as of December 31, 2019 and 2018, respectively. Other assets also includes $4.5 million and $5.3 million of NGLs line fill as of December 31, 2019 and 2018, respectively. | ||
[4] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. | ||
[5] | Other liabilities includes affiliate amounts of $97.8 million and $47.8 million as of December 31, 2019 and 2018, respectively. |
Consolidated Statements of Equi
Consolidated Statements of Equity and Partners' Capital - USD ($) $ in Thousands | Total | Chipeta [Member] | WES Operating [Member] | Net Investment by Anadarko [Member] | Common Units [Member] | General Partner [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member]Chipeta [Member] | Noncontrolling Interests [Member]WES Operating [Member] | |
Balance at Dec. 31, 2016 | $ 4,872,656 | $ 761,890 | $ 1,048,143 | $ 0 | $ 3,062,623 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | 737,385 | 164,183 | 376,607 | 196,595 | ||||||
Above-market component of swap agreements with Anadarko | [1] | 58,551 | 58,551 | |||||||
WES Operating equity transactions, net | [2] | (183) | 6,615 | (6,798) | ||||||
Distributions to noncontrolling interest owners | $ (13,569) | $ (355,623) | $ (13,569) | $ (355,623) | ||||||
Distributions to Partnership unitholders | (441,967) | (441,967) | ||||||||
Acquisitions from affiliates | 0 | (1,263) | 1,263 | |||||||
Revision to Deferred purchase price obligation - Anadarko | [3] | 4,165 | 4,165 | |||||||
Contributions of equity-based compensation from Anadarko/Occidental | 4,587 | 4,587 | ||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | 126,866 | 126,866 | ||||||||
Net contributions (distributions) of other assets | 3,189 | 3,189 | ||||||||
Adjustments of net deferred tax liabilities | (1,505) | (1,505) | ||||||||
Other | 498 | (28) | 526 | |||||||
Balance at Dec. 31, 2017 | 4,995,050 | 1,050,171 | 1,061,125 | 0 | 2,883,754 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | 630,654 | 182,142 | 369,429 | 79,083 | ||||||
Above-market component of swap agreements with Anadarko | [1] | 51,618 | 51,618 | |||||||
WES Operating equity transactions, net | [2] | 0 | (19,577) | 19,577 | ||||||
Distributions to noncontrolling interest owners | (13,529) | (386,326) | (13,529) | (386,326) | ||||||
Distributions to Partnership unitholders | (502,457) | (502,457) | ||||||||
Contributions of equity-based compensation from Anadarko/Occidental | 5,741 | 5,741 | ||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | 97,755 | 97,755 | ||||||||
Net contributions (distributions) of other assets | 58,835 | 58,835 | ||||||||
Adjustments of net deferred tax liabilities | (1,514) | (1,514) | ||||||||
Other | 606 | 209 | 397 | |||||||
Balance at Dec. 31, 2018 | 4,892,683 | 1,388,018 | 951,888 | 0 | 2,552,777 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Cumulative effect of accounting change | [4] | (43,750) | 629 | (14,200) | (30,179) | |||||
Net income (loss) | 807,700 | 29,279 | 662,325 | 5,637 | 110,459 | |||||
Above-market component of swap agreements with Anadarko | [1] | 7,407 | 7,407 | |||||||
WES Operating equity transactions, net | [2] | 0 | (755,197) | 755,197 | ||||||
Distributions to noncontrolling interest owners | $ (9,663) | $ (118,225) | $ (9,663) | $ (118,225) | ||||||
Distributions to Partnership unitholders | (969,073) | (969,073) | ||||||||
Acquisitions from affiliates | [5] | (2,007,501) | (2,149,218) | 112,872 | 28,845 | |||||
Contributions of equity-based compensation from Anadarko/Occidental | 13,968 | 13,968 | ||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | 458,819 | 458,819 | ||||||||
Net contributions (distributions) of other assets | (90) | (90) | ||||||||
Adjustments of net deferred tax liabilities | 268,727 | 273,102 | (4,375) | |||||||
Other | 541 | 561 | (20) | |||||||
Cumulative impact of the Merger transactions | [6] | 0 | 3,169,800 | (3,169,800) | ||||||
Issuance of general partner units | [6] | 0 | 19,861 | (19,861) | ||||||
Balance at Dec. 31, 2019 | $ 3,345,293 | $ 0 | $ 3,209,947 | $ (14,224) | $ 149,570 | |||||
[1] | See Note 6 . | |||||||||
[2] | For the years ended December 31, 2019, 2018, and 2017, the $(755.2) million , $(19.6) million , and $6.6 million increase ( decrease ) to partners’ capital, respectively, together with net income (loss) attributable to Western Midstream Partners, LP, totaled $(58.0) million , $532.0 million , and $547.4 million , respectively. | |||||||||
[3] | See Note 3 . | |||||||||
[4] | Includes the adoption of Revenue from Contracts with Customers (Topic 606) on January 1, 2018. See Note 1 . | |||||||||
[5] | The amounts allocated to common unitholders and noncontrolling interests represent a non-cash investing activity related to the assets and liabilities assumed in the AMA acquisition. | |||||||||
[6] | See Note 1 . |
Consolidated Statements of Eq_2
Consolidated Statements of Equity and Partners' Capital (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
WES Operating equity transactions, net | [1] | $ 0 | $ 0 | $ (183) |
Combined change in Partners' Capital from WES Operating equity transactions, net and net income (loss) attributable to Western Midstream Partners, LP | (58,000) | 532,000 | 547,400 | |
Common Units [Member] | ||||
WES Operating equity transactions, net | [1] | $ (755,197) | $ (19,577) | $ 6,615 |
[1] | For the years ended December 31, 2019, 2018, and 2017, the $(755.2) million , $(19.6) million , and $6.6 million increase ( decrease ) to partners’ capital, respectively, together with net income (loss) attributable to Western Midstream Partners, LP, totaled $(58.0) million , $532.0 million , and $547.4 million , respectively. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 807,700 | $ 630,654 | $ 737,385 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 483,255 | 389,164 | 318,771 | |
Impairments | 6,279 | 230,584 | 180,051 | |
Non-cash equity-based compensation expense | 15,494 | 6,431 | 5,169 | |
Deferred income taxes | 7,609 | 139,048 | (53,138) | |
Accretion and amortization of long-term obligations, net | 8,441 | 5,943 | 4,932 | |
Equity income, net – affiliates | (237,518) | (195,469) | (115,141) | |
Distributions from equity-investment earnings – affiliates | 234,572 | 187,392 | 117,093 | |
(Gain) loss on divestiture and other, net | [1],[2] | 1,406 | (1,312) | (132,388) |
(Gain) loss on interest-rate swaps | 125,334 | 7,972 | 0 | |
Cash paid to settle interest-rate swaps | (107,685) | 0 | 0 | |
Lower of cost or market inventory adjustments | 236 | 752 | 145 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (45,033) | (60,502) | (16,244) | |
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (30,866) | 45,605 | (937) | |
Change in other items, net | 54,876 | (38,087) | (2,983) | |
Net cash provided by operating activities | 1,324,100 | 1,348,175 | 1,042,715 | |
Cash flows from investing activities | ||||
Capital expenditures | (1,188,829) | (1,948,595) | (1,028,319) | |
Investments in equity affiliates | (128,393) | (133,629) | (2,884) | |
Distributions from equity investments in excess of cumulative earnings – affiliates | 30,256 | 29,585 | 31,659 | |
Proceeds from property insurance claims | 0 | 0 | 22,977 | |
Net cash used in investing activities | (3,387,853) | (2,210,813) | (1,133,324) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | [3] | 4,169,695 | 2,671,337 | 468,803 |
Repayments of debt | [4] | (1,467,595) | (1,040,000) | 0 |
Increase (decrease) in outstanding checks | 1,571 | (3,206) | 5,593 | |
Registration expenses related to the issuance of Partnership common units | (855) | 0 | 0 | |
Distributions to Partnership unitholders | [5] | (969,073) | (502,457) | (441,967) |
Net contributions from (distributions to) Anadarko | 458,819 | 97,755 | 126,866 | |
Above-market component of swap agreements with Anadarko | [5] | 7,407 | 51,618 | 58,551 |
Finance lease payments – affiliates | (508) | |||
Net cash provided by (used in) financing activities | 2,071,573 | 875,192 | (188,875) | |
Net increase (decrease) in cash and cash equivalents | 7,820 | 12,554 | (279,484) | |
Cash and cash equivalents at beginning of period | 92,142 | 79,588 | 359,072 | |
Cash and cash equivalents at end of period | 99,962 | 92,142 | 79,588 | |
Supplemental disclosures | ||||
Accretion expense and revisions to the Deferred purchase price obligation – Anadarko | [6] | 0 | 0 | (4,094) |
Net distributions to (contributions from) Anadarko of other assets | 90 | (58,835) | (3,189) | |
Interest paid, net of capitalized interest | 293,795 | 140,720 | 136,624 | |
Taxes paid (reimbursements received) | 96 | 2,408 | 1,194 | |
Accrued capital expenditures | 140,954 | 274,632 | 312,720 | |
Fair value of properties and equipment from non-cash third-party transactions | [6] | 0 | 0 | 551,453 |
Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | (9,663) | (13,529) | (13,569) | |
WES Operating [Member] | ||||
Cash flows from financing activities | ||||
Distributions to noncontrolling interest owner | (118,225) | (386,326) | (355,623) | |
WES Operating [Member] | ||||
Cash flows from operating activities | ||||
Net income (loss) | 814,685 | 636,526 | 742,401 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 483,255 | 389,164 | 318,771 | |
Impairments | 6,279 | 230,584 | 180,051 | |
Non-cash equity-based compensation expense | 14,235 | 6,153 | 4,922 | |
Deferred income taxes | 7,609 | 139,048 | (53,138) | |
Accretion and amortization of long-term obligations, net | 8,421 | 5,142 | 4,254 | |
Equity income, net – affiliates | (237,518) | (195,469) | (115,141) | |
Distributions from equity-investment earnings – affiliates | 234,572 | 187,392 | 117,093 | |
(Gain) loss on divestiture and other, net | [7],[8] | 1,406 | (1,312) | (132,388) |
(Gain) loss on interest-rate swaps | 125,334 | 7,972 | 0 | |
Cash paid to settle interest-rate swaps | (107,685) | 0 | 0 | |
Lower of cost or market inventory adjustments | 236 | 752 | 145 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (44,939) | (60,460) | (16,177) | |
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (29,745) | 44,424 | (947) | |
Change in other items, net | 56,044 | (37,802) | (3,048) | |
Net cash provided by operating activities | 1,332,189 | 1,352,114 | 1,046,798 | |
Cash flows from investing activities | ||||
Capital expenditures | (1,188,829) | (1,948,595) | (1,028,319) | |
Investments in equity affiliates | (128,393) | (133,629) | (2,884) | |
Distributions from equity investments in excess of cumulative earnings – affiliates | 30,256 | 29,585 | 31,659 | |
Proceeds from property insurance claims | 0 | 0 | 22,977 | |
Net cash used in investing activities | (3,387,853) | (2,210,813) | (1,133,324) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | [9] | 4,169,695 | 2,671,344 | 468,803 |
Repayments of debt | [10] | (1,439,595) | (1,040,000) | 0 |
Increase (decrease) in outstanding checks | 1,571 | (3,206) | 5,593 | |
Proceeds from the issuance of common units, net of offering expenses | 0 | 0 | (183) | |
Distributions to Partnership unitholders | [11] | (1,124,388) | (893,649) | (801,300) |
Net contributions from (distributions to) Anadarko | 458,819 | 97,755 | 126,866 | |
Above-market component of swap agreements with Anadarko | [11] | 7,407 | 51,618 | 58,551 |
Net cash provided by (used in) financing activities | 2,063,338 | 870,333 | (192,585) | |
Net increase (decrease) in cash and cash equivalents | 7,674 | 11,634 | (279,111) | |
Cash and cash equivalents at beginning of period | 90,448 | 78,814 | 357,925 | |
Cash and cash equivalents at end of period | 98,122 | 90,448 | 78,814 | |
Supplemental disclosures | ||||
Accretion expense and revisions to the Deferred purchase price obligation – Anadarko | [12] | 0 | 0 | (4,094) |
Net distributions to (contributions from) Anadarko of other assets | 90 | (58,835) | (3,189) | |
Interest paid, net of capitalized interest | 293,561 | 139,482 | 135,079 | |
Taxes paid (reimbursements received) | 96 | 2,408 | 1,194 | |
Accrued capital expenditures | 140,954 | 274,632 | 312,720 | |
Fair value of properties and equipment from non-cash third-party transactions | [12] | 0 | 0 | 551,453 |
WES Operating [Member] | Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | (9,663) | (13,529) | (13,569) | |
Affiliates [Member] | ||||
Cash flows from investing activities | ||||
Contributions in aid of construction costs from affiliates | 0 | 0 | 1,387 | |
Acquisitions | (2,007,926) | (254) | (3,910) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 11,000 | 321,800 | ||
Repayments of debt | (439,600) | |||
Settlement of the Deferred purchase price obligation – Anadarko | [6] | 0 | 0 | (37,346) |
Distributions to Partnership unitholders | (566,868) | (400,194) | (360,523) | |
Finance lease payments – affiliates | (508) | 0 | 0 | |
Affiliates [Member] | WES Operating [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Partnership unitholders | (19,768) | (7,583) | (7,100) | |
Affiliates [Member] | WES Operating [Member] | ||||
Cash flows from investing activities | ||||
Contributions in aid of construction costs from affiliates | 0 | 0 | 1,387 | |
Acquisitions | (2,007,926) | (254) | (3,910) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 11,000 | 321,800 | ||
Repayments of debt | (439,600) | |||
Settlement of the Deferred purchase price obligation – Anadarko | [12] | 0 | 0 | (37,346) |
Distributions to Partnership unitholders | (1,025,931) | (514,906) | (452,777) | |
Finance lease payments – affiliates | (508) | 0 | 0 | |
Third Parties [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions | (93,303) | (161,858) | (177,798) | |
Proceeds from the sale of assets | 342 | 3,938 | 23,564 | |
Third Parties [Member] | WES Operating [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions | (93,303) | (161,858) | (177,798) | |
Proceeds from the sale of assets | $ 342 | $ 3,938 | $ 23,564 | |
[1] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[2] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[3] | For the years ended December 31, 2019 and 2018, includes $11.0 million and $321.8 million | |||
[4] | For the year ended December 31, 2019, includes a $439.6 million repayment to settle the APCWH Note Payable. See Note 6 . | |||
[5] | See Note 6 . | |||
[6] | See Note 3. | |||
[7] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[8] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[9] | For the years ended December 31, 2019 and 2018, includes $11.0 million and $321.8 million of borrowings, respectively, under the APCWH Note Payable. | |||
[10] | For the year ended December 31, 2019, includes a $439.6 million repayment to settle the APCWH Note Payable. See Note 6 . | |||
[11] | See Note 6 . | |||
[12] | See Note 3. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Borrowings, net of debt issuance costs | [1] | $ 4,169,695 | $ 2,671,337 | $ 468,803 |
Repayments of debt | [2] | 1,467,595 | 1,040,000 | $ 0 |
Affiliates [Member] | ||||
Borrowings, net of debt issuance costs | 11,000 | $ 321,800 | ||
Repayments of debt | $ 439,600 | |||
[1] | For the years ended December 31, 2019 and 2018, includes $11.0 million and $321.8 million | |||
[2] | For the year ended December 31, 2019, includes a $439.6 million repayment to settle the APCWH Note Payable. See Note 6 . |
Consolidated Statements of Op_3
Consolidated Statements of Operations - WES Operating - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues and Other | ||||
Revenues and other | $ 2,746,174 | $ 2,299,658 | $ 2,429,614 | |
Equity income, net – affiliates | 237,518 | 195,469 | 115,141 | |
Operating expenses | ||||
Cost of product | [1] | 444,247 | 415,505 | 953,792 |
Operation and maintenance | [1] | 641,219 | 480,861 | 345,617 |
General and administrative | [1] | 114,591 | 67,195 | 53,949 |
Property and other taxes | 61,352 | 51,848 | 53,147 | |
Depreciation and amortization | 483,255 | 389,164 | 318,771 | |
Impairments | 6,279 | 230,584 | 180,051 | |
Total operating expenses | 1,750,943 | 1,635,157 | 1,905,327 | |
Gain (loss) on divestiture and other, net | [2],[3] | (1,406) | 1,312 | 132,388 |
Proceeds from business interruption insurance claims | 0 | 0 | 29,882 | |
Operating income (loss) | 1,231,343 | 861,282 | 801,698 | |
Interest income – affiliates | 16,900 | 16,900 | 16,900 | |
Interest expense | [4] | (303,286) | (183,831) | (142,520) |
Other income (expense), net | [5] | (123,785) | (4,763) | 1,384 |
Income (loss) before income taxes | 821,172 | 689,588 | 677,462 | |
Income tax expense (benefit) | 13,472 | 58,934 | (59,923) | |
Net income (loss) | 807,700 | 630,654 | 737,385 | |
Net income (loss) attributable to noncontrolling interest | 110,459 | 79,083 | 196,595 | |
Net income (loss) attributable to Western Midstream Operating, LP | 697,241 | 551,571 | 540,790 | |
Limited partners' interest in net income (loss): | ||||
Net income (loss) attributable to Western Midstream Operating, LP | 697,241 | 551,571 | 540,790 | |
Pre-acquisition net (income) loss allocated to Anadarko | (29,279) | (182,142) | (164,183) | |
General partner interest in net (income) loss | (5,637) | 0 | 0 | |
Limited partners' interest in net income (loss) | [6] | (662,325) | (369,429) | (376,607) |
Affiliates [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,607,396 | 1,353,711 | 1,539,105 | |
Operating expenses | ||||
Cost of product | 254,771 | 168,535 | 74,560 | |
Operation and maintenance | 146,990 | 115,948 | 82,249 | |
General and administrative | 101,485 | 49,672 | 43,221 | |
Total operating expenses | 503,246 | 334,155 | 200,030 | |
Interest expense | (1,970) | (6,746) | (224) | |
Affiliates [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,441,875 | 1,070,066 | 769,305 | |
Affiliates [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 7,062 | 3,339 | 0 | |
Affiliates [Member] | Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 158,459 | 280,306 | 753,724 | |
Affiliates [Member] | Other [Member] | ||||
Revenues and Other | ||||
Revenues and other | 0 | 0 | 16,076 | |
Third Parties [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,138,778 | 945,947 | 890,509 | |
Operating expenses | ||||
Interest expense | (301,316) | (177,085) | (142,296) | |
Third Parties [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 946,316 | 835,662 | 588,571 | |
Third Parties [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 63,065 | 85,446 | 0 | |
Third Parties [Member] | Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 127,929 | 22,714 | 297,486 | |
Third Parties [Member] | Other [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,468 | 2,125 | 4,452 | |
WES Operating [Member] | ||||
Revenues and Other | ||||
Revenues and other | 2,746,174 | 2,299,658 | 2,429,614 | |
Equity income, net – affiliates | 237,518 | 195,469 | 115,141 | |
Operating expenses | ||||
Cost of product | [7] | 444,247 | 415,505 | 953,792 |
Operation and maintenance | [7] | 641,219 | 480,861 | 345,617 |
General and administrative | [7] | 107,772 | 63,166 | 51,077 |
Property and other taxes | 61,352 | 51,848 | 53,147 | |
Depreciation and amortization | 483,255 | 389,164 | 318,771 | |
Impairments | 6,279 | 230,584 | 180,051 | |
Total operating expenses | 1,744,124 | 1,631,128 | 1,902,455 | |
Gain (loss) on divestiture and other, net | [8],[9] | (1,406) | 1,312 | 132,388 |
Proceeds from business interruption insurance claims | 0 | 0 | 29,882 | |
Operating income (loss) | 1,238,162 | 865,311 | 804,570 | |
Interest income – affiliates | 16,900 | 16,900 | 16,900 | |
Interest expense | [10] | (303,041) | (181,796) | (140,291) |
Other income (expense), net | [11] | (123,864) | (4,955) | 1,299 |
Income (loss) before income taxes | 828,157 | 695,460 | 682,478 | |
Income tax expense (benefit) | 13,472 | 58,934 | (59,923) | |
Net income (loss) | 814,685 | 636,526 | 742,401 | |
Net income (loss) attributable to noncontrolling interest | 7,095 | 8,609 | 10,735 | |
Net income (loss) attributable to Western Midstream Operating, LP | 807,590 | 627,917 | 731,666 | |
Limited partners' interest in net income (loss): | ||||
Net income (loss) attributable to Western Midstream Operating, LP | 807,590 | 627,917 | 731,666 | |
Pre-acquisition net (income) loss allocated to Anadarko | (29,279) | (182,142) | (164,183) | |
General partner interest in net (income) loss | [12] | 0 | (346,538) | (303,835) |
WES Operating [Member] | Series A Preferred Units [Member] | ||||
Limited partners' interest in net income (loss): | ||||
Limited partners' interest in net income (loss) | [12] | 0 | 0 | (42,373) |
WES Operating [Member] | Common Units [Member] | ||||
Limited partners' interest in net income (loss): | ||||
Limited partners' interest in net income (loss) | $ (84,334) | $ (192,066) | ||
Net income (loss) per common unit - basic and diluted | [12] | $ 0.55 | $ 1.30 | |
WES Operating [Member] | Common and Class C Units [Member] | ||||
Limited partners' interest in net income (loss): | ||||
Limited partners' interest in net income (loss) | [12] | (778,311) | $ (99,237) | $ (221,275) |
WES Operating [Member] | Affiliates [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,607,396 | 1,353,711 | 1,539,105 | |
Operating expenses | ||||
Cost of product | 254,800 | 168,500 | 74,600 | |
Operation and maintenance | 147,000 | 115,900 | 82,200 | |
General and administrative | 99,613 | 48,819 | 42,411 | |
Interest expense | (2,000) | (6,700) | (200) | |
WES Operating [Member] | Affiliates [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,441,875 | 1,070,066 | 769,305 | |
WES Operating [Member] | Affiliates [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 7,062 | 3,339 | 0 | |
WES Operating [Member] | Affiliates [Member] | Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 158,459 | 280,306 | 753,724 | |
WES Operating [Member] | Affiliates [Member] | Other [Member] | ||||
Revenues and Other | ||||
Revenues and other | 0 | 0 | 16,076 | |
WES Operating [Member] | Third Parties [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,138,778 | 945,947 | 890,509 | |
WES Operating [Member] | Third Parties [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 946,316 | 835,662 | 588,571 | |
WES Operating [Member] | Third Parties [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 63,065 | 85,446 | 0 | |
WES Operating [Member] | Third Parties [Member] | Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 127,929 | 22,714 | 297,486 | |
WES Operating [Member] | Third Parties [Member] | Other [Member] | ||||
Revenues and Other | ||||
Revenues and other | $ 1,468 | $ 2,125 | $ 4,452 | |
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $101.5 million , $49.7 million , and $43.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | |||
[2] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[3] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[4] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . | |||
[5] | Includes losses associated with the interest-rate swap agreements for the years ended December 31, 2019 and 2018. See Note 13 . | |||
[6] | See Note 1 . | |||
[7] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $99.6 million , $48.8 million , and $42.4 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | |||
[8] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[9] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[10] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . | |||
[11] | Includes losses associated with the interest-rate swap agreements for the years ended December 31, 2019 and 2018. See Note 13 . | |||
[12] | See Note 5 for the calculation of net income (loss) per common unit. |
Consolidated Statements of Op_4
Consolidated Statements of Operations - WES Operating (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cost of product | [1] | $ 444,247 | $ 415,505 | $ 953,792 |
Operation and maintenance | [1] | 641,219 | 480,861 | 345,617 |
General and administrative | [1] | 114,591 | 67,195 | 53,949 |
Interest expense | [2] | (303,286) | (183,831) | (142,520) |
Affiliates [Member] | ||||
Cost of product | 254,771 | 168,535 | 74,560 | |
Operation and maintenance | 146,990 | 115,948 | 82,249 | |
General and administrative | 101,485 | 49,672 | 43,221 | |
Interest expense | (1,970) | (6,746) | (224) | |
WES Operating [Member] | ||||
Cost of product | [3] | 444,247 | 415,505 | 953,792 |
Operation and maintenance | [3] | 641,219 | 480,861 | 345,617 |
General and administrative | [3] | 107,772 | 63,166 | 51,077 |
Interest expense | [4] | (303,041) | (181,796) | (140,291) |
WES Operating [Member] | Affiliates [Member] | ||||
Cost of product | 254,800 | 168,500 | 74,600 | |
Operation and maintenance | 147,000 | 115,900 | 82,200 | |
General and administrative | 99,613 | 48,819 | 42,411 | |
Interest expense | $ (2,000) | $ (6,700) | $ (200) | |
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $101.5 million , $49.7 million , and $43.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | |||
[2] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . | |||
[3] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $99.6 million , $48.8 million , and $42.4 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | |||
[4] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . |
Consolidated Balance Sheets - W
Consolidated Balance Sheets - WES Operating - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets | |||
Cash and cash equivalents | $ 99,962 | $ 92,142 | |
Accounts receivable, net | [1] | 260,512 | 221,164 |
Other current assets | [2] | 41,938 | 31,458 |
Total current assets | 402,412 | 344,764 | |
Note receivable - Anadarko | 260,000 | 260,000 | |
Property, plant, and equipment | |||
Cost | 12,355,671 | 11,258,773 | |
Less accumulated depreciation | 3,290,740 | 2,848,420 | |
Net property, plant, and equipment | 9,064,931 | 8,410,353 | |
Goodwill | 445,800 | 445,800 | |
Other intangible assets | 809,391 | 841,408 | |
Equity investments | 1,285,717 | 1,092,088 | |
Other assets | [3] | 78,202 | 62,792 |
Total assets | 12,346,453 | 11,457,205 | |
Current liabilities | |||
Accounts and imbalance payables | 293,128 | 443,343 | |
Short-term debt | [4] | 7,873 | 28,000 |
Accrued ad valorem taxes | 35,160 | 36,986 | |
Accrued liabilities | [5] | 149,793 | 129,148 |
Total current liabilities | 485,954 | 637,477 | |
Long-term liabilities | |||
Long-term debt | 7,951,565 | 4,787,381 | |
APCWH Note Payable | [6] | 0 | 427,493 |
Deferred income taxes | 18,899 | 280,017 | |
Asset retirement obligations | 336,396 | 300,024 | |
Other liabilities | [7] | 208,346 | 132,130 |
Total long-term liabilities | 8,515,206 | 5,927,045 | |
Total liabilities | 9,001,160 | 6,564,522 | |
Equity and partners' capital | |||
Common units and Class C units | 3,209,947 | 951,888 | |
General partner units (zero and 2,583,068 units issued and outstanding at December 31, 2019 and 2018, respectively) | [8] | (14,224) | 0 |
Net investment by Anadarko | 0 | 1,388,018 | |
Total partners' capital | 3,195,723 | 2,339,906 | |
Noncontrolling interest | 149,570 | 2,552,777 | |
Total equity and partners' capital | 3,345,293 | 4,892,683 | |
Total liabilities, equity and partners' capital | 12,346,453 | 11,457,205 | |
WES Operating [Member] | |||
Current assets | |||
Cash and cash equivalents | 98,122 | 90,448 | |
Accounts receivable, net | [9] | 260,748 | 221,373 |
Other current assets | [10] | 39,914 | 30,583 |
Total current assets | 398,784 | 342,404 | |
Note receivable - Anadarko | 260,000 | 260,000 | |
Property, plant, and equipment | |||
Cost | 12,355,671 | 11,258,773 | |
Less accumulated depreciation | 3,290,740 | 2,848,420 | |
Net property, plant, and equipment | 9,064,931 | 8,410,353 | |
Goodwill | 445,800 | 445,800 | |
Other intangible assets | 809,391 | 841,408 | |
Equity investments | 1,285,717 | 1,092,088 | |
Other assets | [11] | 78,202 | 62,792 |
Total assets | 12,342,825 | 11,454,845 | |
Current liabilities | |||
Accounts and imbalance payables | 293,128 | 443,343 | |
Short-term debt | [12] | 7,873 | 0 |
Accrued ad valorem taxes | 35,160 | 36,986 | |
Accrued liabilities | [13] | 149,639 | 127,874 |
Total current liabilities | 485,800 | 608,203 | |
Long-term liabilities | |||
Long-term debt | 7,951,565 | 4,787,381 | |
APCWH Note Payable | [14] | 0 | 427,493 |
Deferred income taxes | 18,899 | 280,017 | |
Asset retirement obligations | 336,396 | 300,024 | |
Other liabilities | [15] | 208,346 | 132,130 |
Total long-term liabilities | 8,515,206 | 5,927,045 | |
Total liabilities | 9,001,006 | 6,535,248 | |
Equity and partners' capital | |||
General partner units (zero and 2,583,068 units issued and outstanding at December 31, 2019 and 2018, respectively) | [16] | 0 | 206,862 |
Net investment by Anadarko | 0 | 1,388,018 | |
Total partners' capital | 3,286,620 | 4,861,830 | |
Noncontrolling interest | 55,199 | 57,767 | |
Total equity and partners' capital | 3,341,819 | 4,919,597 | |
Total liabilities, equity and partners' capital | 12,342,825 | 11,454,845 | |
WES Operating [Member] | Common Units [Member] | |||
Equity and partners' capital | |||
Common units and Class C units | 3,286,620 | 2,475,540 | |
WES Operating [Member] | Class C Units [Member] | |||
Equity and partners' capital | |||
Common units and Class C units | [16] | $ 0 | $ 791,410 |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.3 million and $72.6 million as of December 31, 2019 and 2018, respectively. | ||
[2] | Other current assets includes affiliate amounts of $5.0 million and $3.7 million as of December 31, 2019 | ||
[3] | Other assets includes affiliate amounts of $60.2 million and $42.2 million as of December 31, 2019 and 2018, respectively. Other assets also includes $4.5 million and $5.3 million of NGLs line fill as of December 31, 2019 and 2018, respectively. | ||
[4] | As of December 31, 2019 , all amounts are considered affiliate. See Note 14 . | ||
[5] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. | ||
[6] | See Note 1 and Note 6 . | ||
[7] | Other liabilities includes affiliate amounts of $97.8 million and $47.8 million as of December 31, 2019 and 2018, respectively. | ||
[8] | See Note 1 . | ||
[9] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.6 million and $72.8 million as of December 31, 2019 and 2018, respectively. | ||
[10] | Other current assets includes affiliate amounts of $5.0 million and $3.7 million as of December 31, 2019 and 2018, respectively. | ||
[11] | Other assets includes affiliate amounts of $60.2 million and $42.2 million as of December 31, 2019 and 2018, respectively. Other assets also includes $4.5 million and $5.3 million of NGLs line fill as of December 31, 2019 and 2018, respectively. | ||
[12] | As of December 31, 2019 , all amounts are considered affiliate. See Note 14 . | ||
[13] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. | ||
[14] | See Note 1 and Note 6 . | ||
[15] | Other liabilities includes affiliate amounts of $97.8 million and $47.8 million as of December 31, 2019 and 2018, respectively. | ||
[16] | Immediately prior to the closing of the Merger (as defined in Note 1 ), all outstanding general partner units converted into a non-economic general partner interest in WES Operating and WES Operating common units and all outstanding Class C units converted into WES Operating common units on a one -for-one basis. |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - WES Operating (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Common units issued | 443,971,409 | 218,937,797 | |
Common units outstanding | 443,971,409 | 218,937,797 | |
General partner units issued | 9,060,641 | 0 | |
General partner units outstanding | 9,060,641 | 0 | |
Accounts receivable, net | [1] | $ 260,512 | $ 221,164 |
Other current assets | [2] | 41,938 | 31,458 |
Other assets | [3] | 78,202 | 62,792 |
Accrued liabilities | [4] | 149,793 | 129,148 |
Other liabilities | [5] | 208,346 | 132,130 |
Natural-Gas Liquids [Member] | |||
NGLs line fill inventory | 4,500 | 5,300 | |
Affiliates [Member] | |||
Accounts receivable, net | 113,300 | 72,600 | |
Other current assets | 5,000 | 3,700 | |
Other assets | 60,200 | 42,200 | |
Accrued liabilities | 3,100 | 2,200 | |
Other liabilities | $ 97,800 | $ 47,800 | |
WES Operating [Member] | |||
General partner units issued | 0 | 2,583,068 | |
General partner units outstanding | 0 | 2,583,068 | |
Accounts receivable, net | [6] | $ 260,748 | $ 221,373 |
Other current assets | [7] | 39,914 | 30,583 |
Other assets | [8] | 78,202 | 62,792 |
Accrued liabilities | [9] | 149,639 | 127,874 |
Other liabilities | [10] | $ 208,346 | $ 132,130 |
WES Operating [Member] | Common Units [Member] | |||
Common units issued | 318,675,578 | 152,609,285 | |
Common units outstanding | 318,675,578 | 152,609,285 | |
WES Operating [Member] | Class C Units [Member] | |||
Common units issued | 0 | 14,372,665 | |
Common units outstanding | 0 | 14,372,665 | |
WES Operating [Member] | Natural-Gas Liquids [Member] | |||
NGLs line fill inventory | $ 4,500 | $ 5,300 | |
WES Operating [Member] | Affiliates [Member] | |||
Accounts receivable, net | 113,600 | 72,800 | |
Other current assets | 5,000 | 3,700 | |
Other assets | 60,200 | 42,200 | |
Accrued liabilities | 3,100 | 2,200 | |
Other liabilities | $ 97,800 | $ 47,800 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.3 million and $72.6 million as of December 31, 2019 and 2018, respectively. | ||
[2] | Other current assets includes affiliate amounts of $5.0 million and $3.7 million as of December 31, 2019 | ||
[3] | Other assets includes affiliate amounts of $60.2 million and $42.2 million as of December 31, 2019 and 2018, respectively. Other assets also includes $4.5 million and $5.3 million of NGLs line fill as of December 31, 2019 and 2018, respectively. | ||
[4] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. | ||
[5] | Other liabilities includes affiliate amounts of $97.8 million and $47.8 million as of December 31, 2019 and 2018, respectively. | ||
[6] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.6 million and $72.8 million as of December 31, 2019 and 2018, respectively. | ||
[7] | Other current assets includes affiliate amounts of $5.0 million and $3.7 million as of December 31, 2019 and 2018, respectively. | ||
[8] | Other assets includes affiliate amounts of $60.2 million and $42.2 million as of December 31, 2019 and 2018, respectively. Other assets also includes $4.5 million and $5.3 million of NGLs line fill as of December 31, 2019 and 2018, respectively. | ||
[9] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. | ||
[10] | Other liabilities includes affiliate amounts of $97.8 million and $47.8 million as of December 31, 2019 and 2018, respectively. |
Consolidated Statements of Eq_3
Consolidated Statements of Equity and Partners' Capital - WES Operating - USD ($) $ in Thousands | Total | Chipeta [Member] | Net Investment by Anadarko [Member] | Common Units [Member] | General Partner [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member]Chipeta [Member] | WES Operating [Member] | WES Operating [Member]Chipeta [Member] | WES Operating [Member]Net Investment by Anadarko [Member] | WES Operating [Member]Common Units [Member] | WES Operating [Member]Class C Units [Member] | WES Operating [Member]Series A Preferred Units [Member] | WES Operating [Member]General Partner [Member] | WES Operating [Member]Noncontrolling Interest [Member] | WES Operating [Member]Noncontrolling Interest [Member]Chipeta [Member] | |||||||||||
Balance at Dec. 31, 2016 | $ 4,872,656 | $ 761,890 | $ 1,048,143 | $ 0 | $ 3,062,623 | $ 4,897,669 | $ 761,890 | $ 2,536,872 | $ 750,831 | $ 639,545 | $ 143,968 | $ 64,563 | |||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||||||||||||
Net income (loss) | 737,385 | 164,183 | 376,607 | 196,595 | 742,401 | 164,183 | 231,405 | 24,790 | 7,453 | 303,835 | 10,735 | ||||||||||||||||
Above-market component of swap agreements with Anadarko | 58,551 | [1] | 58,551 | [1] | 58,551 | [2] | 58,551 | [2] | |||||||||||||||||||
Conversion of Series A Preferred units into common units | [3] | 0 | 686,936 | (686,936) | |||||||||||||||||||||||
Amortization of beneficial conversion feature of Class C units and Series A Preferred units | 0 | (66,718) | 4,419 | 62,299 | |||||||||||||||||||||||
Distributions to noncontrolling interest owners | $ (13,569) | $ (13,569) | $ (13,569) | $ (13,569) | |||||||||||||||||||||||
Distributions to WES Operating unitholders | (441,967) | (441,967) | (801,300) | (510,228) | (22,361) | (268,711) | |||||||||||||||||||||
Acquisitions from affiliates | 0 | (1,263) | 1,263 | 0 | (1,263) | 1,263 | |||||||||||||||||||||
Revision to Deferred purchase price obligation - Anadarko | 4,165 | [4] | 4,165 | [4] | 4,165 | [5] | 4,165 | [5] | |||||||||||||||||||
Contributions of equity-based compensation from Anadarko/Occidental | 4,587 | 4,587 | 4,563 | 4,473 | 90 | ||||||||||||||||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | 126,866 | 126,866 | 126,866 | 126,866 | |||||||||||||||||||||||
Net contributions (distributions) of other assets | 3,189 | 3,189 | 3,189 | 3,139 | 50 | ||||||||||||||||||||||
Adjustments of net deferred tax liabilities | (1,505) | (1,505) | (1,505) | (1,505) | |||||||||||||||||||||||
Other | 498 | (28) | 526 | 152 | 152 | ||||||||||||||||||||||
Balance at Dec. 31, 2017 | 4,995,050 | 1,050,171 | 1,061,125 | 0 | 2,883,754 | 5,021,182 | 1,050,171 | 2,950,010 | 780,040 | 0 | 179,232 | 61,729 | |||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||||||||||||
Net income (loss) | 630,654 | 182,142 | 369,429 | 79,083 | 636,526 | 182,142 | 87,581 | 11,656 | 346,538 | 8,609 | |||||||||||||||||
Above-market component of swap agreements with Anadarko | 51,618 | [1] | 51,618 | [1] | 51,618 | [2] | 51,618 | [2] | |||||||||||||||||||
Amortization of beneficial conversion feature of Class C units and Series A Preferred units | 0 | (3,247) | 3,247 | ||||||||||||||||||||||||
Distributions to noncontrolling interest owners | (13,529) | (13,529) | (13,529) | (13,529) | |||||||||||||||||||||||
Distributions to WES Operating unitholders | (502,457) | (502,457) | (893,649) | (575,323) | (318,326) | ||||||||||||||||||||||
Contributions of equity-based compensation from Anadarko/Occidental | 5,741 | 5,741 | 5,727 | 5,613 | 114 | ||||||||||||||||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | 97,755 | 97,755 | 97,755 | 97,755 | |||||||||||||||||||||||
Net contributions (distributions) of other assets | 58,835 | 58,835 | 58,835 | 58,835 | |||||||||||||||||||||||
Adjustments of net deferred tax liabilities | (1,514) | (1,514) | (1,514) | (1,514) | |||||||||||||||||||||||
Other | 606 | 209 | 397 | 396 | 396 | ||||||||||||||||||||||
Balance at Dec. 31, 2018 | 4,892,683 | 1,388,018 | 951,888 | 0 | 2,552,777 | 4,919,597 | 1,388,018 | 2,475,540 | 791,410 | 0 | 206,862 | 57,767 | |||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||||||||||||
Cumulative effect of accounting change | (43,750) | [6] | 629 | [6] | (14,200) | [6] | (30,179) | [6] | (43,750) | [7] | 629 | [7] | (41,108) | [7] | (3,533) | [7] | (696) | [7] | 958 | [7] | |||||||
Net income (loss) | 807,700 | 29,279 | 662,325 | 5,637 | 110,459 | 814,685 | 29,279 | 765,678 | 10,636 | 1,997 | 7,095 | ||||||||||||||||
Above-market component of swap agreements with Anadarko | 7,407 | [1] | 7,407 | [1] | 7,407 | [2] | 7,407 | [2] | |||||||||||||||||||
Amortization of beneficial conversion feature of Class C units and Series A Preferred units | 0 | (542) | 542 | ||||||||||||||||||||||||
Distributions to noncontrolling interest owners | $ (9,663) | $ (9,663) | $ (9,663) | $ (9,663) | |||||||||||||||||||||||
Distributions to WES Operating unitholders | (969,073) | (969,073) | (1,124,388) | (1,039,158) | (85,230) | ||||||||||||||||||||||
Acquisitions from affiliates | (2,007,501) | [8] | (2,149,218) | [8] | 112,872 | [8] | 28,845 | [8] | (2,007,501) | [9] | (2,149,218) | [9] | 141,717 | [9] | |||||||||||||
Contributions of equity-based compensation from Anadarko/Occidental | 13,968 | 13,968 | 13,957 | 13,938 | 19 | ||||||||||||||||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | 458,819 | 458,819 | 458,819 | 458,819 | |||||||||||||||||||||||
Net contributions (distributions) of other assets | (90) | (90) | (90) | (90) | |||||||||||||||||||||||
Adjustments of net deferred tax liabilities | 268,727 | 273,102 | (4,375) | 268,727 | 273,102 | (4,375) | |||||||||||||||||||||
Other | 541 | 561 | (20) | 269 | 269 | ||||||||||||||||||||||
Cumulative impact of the Merger transactions | 0 | [10] | 3,169,800 | [10] | (3,169,800) | [10] | 0 | [11] | 926,236 | [11] | (802,588) | [11] | (123,648) | [11] | |||||||||||||
Balance at Dec. 31, 2019 | $ 3,345,293 | $ 0 | $ 3,209,947 | $ (14,224) | $ 149,570 | $ 3,341,819 | $ 0 | $ 3,286,620 | $ 0 | $ 0 | $ 0 | $ 55,199 | |||||||||||||||
[1] | See Note 6 . | ||||||||||||||||||||||||||
[2] | See Note 6 . | ||||||||||||||||||||||||||
[3] | See Note 5 . | ||||||||||||||||||||||||||
[4] | See Note 3 . | ||||||||||||||||||||||||||
[5] | See Note 3 . | ||||||||||||||||||||||||||
[6] | Includes the adoption of Revenue from Contracts with Customers (Topic 606) on January 1, 2018. See Note 1 . | ||||||||||||||||||||||||||
[7] | Includes the adoption of Revenue from Contracts with Customers (Topic 606) on January 1, 2018. See Note 1 . | ||||||||||||||||||||||||||
[8] | The amounts allocated to common unitholders and noncontrolling interests represent a non-cash investing activity related to the assets and liabilities assumed in the AMA acquisition. | ||||||||||||||||||||||||||
[9] | The amount allocated to common unitholders represents a non-cash investing activity related to the assets and liabilities assumed in the AMA acquisition. | ||||||||||||||||||||||||||
[10] | See Note 1 . | ||||||||||||||||||||||||||
[11] | See Note 1 . |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows - WES Operating - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 807,700 | $ 630,654 | $ 737,385 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 483,255 | 389,164 | 318,771 | |
Impairments | 6,279 | 230,584 | 180,051 | |
Non-cash equity-based compensation expense | 15,494 | 6,431 | 5,169 | |
Deferred income taxes | 7,609 | 139,048 | (53,138) | |
Accretion and amortization of long-term obligations, net | 8,441 | 5,943 | 4,932 | |
Equity income, net – affiliates | (237,518) | (195,469) | (115,141) | |
Distributions from equity-investment earnings – affiliates | 234,572 | 187,392 | 117,093 | |
(Gain) loss on divestiture and other, net | [1],[2] | 1,406 | (1,312) | (132,388) |
(Gain) loss on interest-rate swaps | 125,334 | 7,972 | 0 | |
Cash paid to settle interest-rate swaps | (107,685) | 0 | 0 | |
Lower of cost or market inventory adjustments | 236 | 752 | 145 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (45,033) | (60,502) | (16,244) | |
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (30,866) | 45,605 | (937) | |
Change in other items, net | 54,876 | (38,087) | (2,983) | |
Net cash provided by operating activities | 1,324,100 | 1,348,175 | 1,042,715 | |
Cash flows from investing activities | ||||
Capital expenditures | (1,188,829) | (1,948,595) | (1,028,319) | |
Investments in equity affiliates | (128,393) | (133,629) | (2,884) | |
Distributions from equity investments in excess of cumulative earnings – affiliates | 30,256 | 29,585 | 31,659 | |
Proceeds from property insurance claims | 0 | 0 | 22,977 | |
Net cash used in investing activities | (3,387,853) | (2,210,813) | (1,133,324) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | [3] | 4,169,695 | 2,671,337 | 468,803 |
Repayments of debt | [4] | (1,467,595) | (1,040,000) | 0 |
Increase (decrease) in outstanding checks | 1,571 | (3,206) | 5,593 | |
Distributions to WES Operating unitholders | [5] | (969,073) | (502,457) | (441,967) |
Net contributions from (distributions to) Anadarko | 458,819 | 97,755 | 126,866 | |
Above-market component of swap agreements with Anadarko | [5] | 7,407 | 51,618 | 58,551 |
Finance lease payments – affiliates | (508) | |||
Net cash provided by (used in) financing activities | 2,071,573 | 875,192 | (188,875) | |
Net increase (decrease) in cash and cash equivalents | 7,820 | 12,554 | (279,484) | |
Cash and cash equivalents at beginning of period | 92,142 | 79,588 | 359,072 | |
Cash and cash equivalents at end of period | 99,962 | 92,142 | 79,588 | |
Supplemental disclosures | ||||
Accretion expense and revisions to the Deferred purchase price obligation – Anadarko | [6] | 0 | 0 | (4,094) |
Net distributions to (contributions from) Anadarko of other assets | 90 | (58,835) | (3,189) | |
Interest paid, net of capitalized interest | 293,795 | 140,720 | 136,624 | |
Taxes paid (reimbursements received) | 96 | 2,408 | 1,194 | |
Accrued capital expenditures | 140,954 | 274,632 | 312,720 | |
Fair value of properties and equipment from non-cash third-party transactions | [6] | 0 | 0 | 551,453 |
Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | (9,663) | (13,529) | (13,569) | |
Affiliates [Member] | ||||
Cash flows from investing activities | ||||
Contributions in aid of construction costs from affiliates | 0 | 0 | 1,387 | |
Acquisitions | (2,007,926) | (254) | (3,910) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 11,000 | 321,800 | ||
Repayments of debt | (439,600) | |||
Settlement of the Deferred purchase price obligation – Anadarko | [6] | 0 | 0 | (37,346) |
Distributions to WES Operating unitholders | (566,868) | (400,194) | (360,523) | |
Finance lease payments – affiliates | (508) | 0 | 0 | |
Third Parties [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions | (93,303) | (161,858) | (177,798) | |
Proceeds from the sale of assets | 342 | 3,938 | 23,564 | |
WES Operating [Member] | ||||
Cash flows from operating activities | ||||
Net income (loss) | 814,685 | 636,526 | 742,401 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 483,255 | 389,164 | 318,771 | |
Impairments | 6,279 | 230,584 | 180,051 | |
Non-cash equity-based compensation expense | 14,235 | 6,153 | 4,922 | |
Deferred income taxes | 7,609 | 139,048 | (53,138) | |
Accretion and amortization of long-term obligations, net | 8,421 | 5,142 | 4,254 | |
Equity income, net – affiliates | (237,518) | (195,469) | (115,141) | |
Distributions from equity-investment earnings – affiliates | 234,572 | 187,392 | 117,093 | |
(Gain) loss on divestiture and other, net | [7],[8] | 1,406 | (1,312) | (132,388) |
(Gain) loss on interest-rate swaps | 125,334 | 7,972 | 0 | |
Cash paid to settle interest-rate swaps | (107,685) | 0 | 0 | |
Lower of cost or market inventory adjustments | 236 | 752 | 145 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (44,939) | (60,460) | (16,177) | |
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (29,745) | 44,424 | (947) | |
Change in other items, net | 56,044 | (37,802) | (3,048) | |
Net cash provided by operating activities | 1,332,189 | 1,352,114 | 1,046,798 | |
Cash flows from investing activities | ||||
Capital expenditures | (1,188,829) | (1,948,595) | (1,028,319) | |
Investments in equity affiliates | (128,393) | (133,629) | (2,884) | |
Distributions from equity investments in excess of cumulative earnings – affiliates | 30,256 | 29,585 | 31,659 | |
Proceeds from property insurance claims | 0 | 0 | 22,977 | |
Net cash used in investing activities | (3,387,853) | (2,210,813) | (1,133,324) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | [9] | 4,169,695 | 2,671,344 | 468,803 |
Repayments of debt | [10] | (1,439,595) | (1,040,000) | 0 |
Increase (decrease) in outstanding checks | 1,571 | (3,206) | 5,593 | |
Proceeds from the issuance of common units, net of offering expenses | 0 | 0 | (183) | |
Distributions to WES Operating unitholders | [11] | (1,124,388) | (893,649) | (801,300) |
Net contributions from (distributions to) Anadarko | 458,819 | 97,755 | 126,866 | |
Above-market component of swap agreements with Anadarko | [11] | 7,407 | 51,618 | 58,551 |
Net cash provided by (used in) financing activities | 2,063,338 | 870,333 | (192,585) | |
Net increase (decrease) in cash and cash equivalents | 7,674 | 11,634 | (279,111) | |
Cash and cash equivalents at beginning of period | 90,448 | 78,814 | 357,925 | |
Cash and cash equivalents at end of period | 98,122 | 90,448 | 78,814 | |
Supplemental disclosures | ||||
Accretion expense and revisions to the Deferred purchase price obligation – Anadarko | [12] | 0 | 0 | (4,094) |
Net distributions to (contributions from) Anadarko of other assets | 90 | (58,835) | (3,189) | |
Interest paid, net of capitalized interest | 293,561 | 139,482 | 135,079 | |
Taxes paid (reimbursements received) | 96 | 2,408 | 1,194 | |
Accrued capital expenditures | 140,954 | 274,632 | 312,720 | |
Fair value of properties and equipment from non-cash third-party transactions | [12] | 0 | 0 | 551,453 |
WES Operating [Member] | Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | (9,663) | (13,529) | (13,569) | |
WES Operating [Member] | Affiliates [Member] | ||||
Cash flows from investing activities | ||||
Contributions in aid of construction costs from affiliates | 0 | 0 | 1,387 | |
Acquisitions | (2,007,926) | (254) | (3,910) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 11,000 | 321,800 | ||
Repayments of debt | (439,600) | |||
Settlement of the Deferred purchase price obligation – Anadarko | [12] | 0 | 0 | (37,346) |
Distributions to WES Operating unitholders | (1,025,931) | (514,906) | (452,777) | |
Finance lease payments – affiliates | (508) | 0 | 0 | |
WES Operating [Member] | Third Parties [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions | (93,303) | (161,858) | (177,798) | |
Proceeds from the sale of assets | $ 342 | $ 3,938 | $ 23,564 | |
[1] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[2] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[3] | For the years ended December 31, 2019 and 2018, includes $11.0 million and $321.8 million | |||
[4] | For the year ended December 31, 2019, includes a $439.6 million repayment to settle the APCWH Note Payable. See Note 6 . | |||
[5] | See Note 6 . | |||
[6] | See Note 3. | |||
[7] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[8] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | |||
[9] | For the years ended December 31, 2019 and 2018, includes $11.0 million and $321.8 million of borrowings, respectively, under the APCWH Note Payable. | |||
[10] | For the year ended December 31, 2019, includes a $439.6 million repayment to settle the APCWH Note Payable. See Note 6 . | |||
[11] | See Note 6 . | |||
[12] | See Note 3. |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows - WES Operating (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Borrowings, net of debt issuance costs | [1] | $ 4,169,695 | $ 2,671,337 | $ 468,803 |
Repayments of debt | [2] | 1,467,595 | 1,040,000 | 0 |
WES Operating [Member] | ||||
Borrowings, net of debt issuance costs | [3] | 4,169,695 | 2,671,344 | 468,803 |
Repayments of debt | [4] | 1,439,595 | 1,040,000 | $ 0 |
Affiliates [Member] | ||||
Borrowings, net of debt issuance costs | 11,000 | 321,800 | ||
Repayments of debt | 439,600 | |||
Affiliates [Member] | WES Operating [Member] | ||||
Borrowings, net of debt issuance costs | 11,000 | $ 321,800 | ||
Repayments of debt | $ 439,600 | |||
[1] | For the years ended December 31, 2019 and 2018, includes $11.0 million and $321.8 million | |||
[2] | For the year ended December 31, 2019, includes a $439.6 million repayment to settle the APCWH Note Payable. See Note 6 . | |||
[3] | For the years ended December 31, 2019 and 2018, includes $11.0 million and $321.8 million of borrowings, respectively, under the APCWH Note Payable. | |||
[4] | For the year ended December 31, 2019, includes a $439.6 million repayment to settle the APCWH Note Payable. See Note 6 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General. Western Midstream Partners, LP (formerly Western Gas Equity Partners, LP) is a Delaware master limited partnership formed in September 2012. Western Midstream Operating, LP (formerly Western Gas Partners, LP, and together with its subsidiaries, “WES Operating”) is a Delaware limited partnership formed by Anadarko Petroleum Corporation 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. “Anadarko” refers to Anadarko Petroleum Corporation and its subsidiaries, excluding Western Midstream Holdings, LLC. Anadarko became a wholly owned subsidiary of Occidental Petroleum Corporation as a result of Occidental Petroleum Corporation’s acquisition by merger of Anadarko on August 8, 2019. 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. “Affiliates” refers to Occidental and the Partnership’s equity interests in Fort Union Gas Gathering, LLC (“Fort Union”), White Cliffs Pipeline, LLC (“White Cliffs”), Rendezvous Gas Services, LLC (“Rendezvous”), Enterprise EF78 LLC (the “Mont Belvieu JV”), Texas Express Pipeline LLC (“TEP”), Texas Express Gathering LLC (“TEG”), Front Range Pipeline LLC (“FRP”), Whitethorn Pipeline Company LLC (“Whitethorn LLC”), Cactus II Pipeline LLC (“Cactus II”), Saddlehorn Pipeline Company, LLC (“Saddlehorn”), Panola Pipeline Company, LLC (“Panola”), Mi Vida JV LLC (“Mi Vida”), Ranch Westex JV LLC (“Ranch Westex”), and Red Bluff Express Pipeline, LLC (“Red Bluff Express”). See Note 3 . The interests in TEP, TEG, and FRP are referred to collectively as the “TEFR Interests.” “MGR assets” refers to the Red Desert complex and the Granger straddle plant. The “West Texas complex” refers to the Delaware Basin Midstream, LLC (“DBM”) complex and DBJV and Haley systems. 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 as an agent for its customers under certain contracts. The Partnership provides the above-described midstream services for Occidental and third-party customers. As of December 31, 2019 , the Partnership’s assets and investments consisted of the following: Wholly Owned and Operated Operated Interests Non-Operated Interests Equity Interests Gathering systems (1) 17 2 3 2 Treating facilities 37 3 — 3 Natural-gas processing plants/trains 25 3 — 5 NGLs pipelines 2 — — 4 Natural-gas pipelines 5 — — 1 Crude-oil pipelines 3 1 — 3 (1) Includes the DBM water systems. These assets and investments are located in the Rocky Mountains (Colorado, Utah, and Wyoming), North-central Pennsylvania, Texas, and New Mexico. Latham Train I, a processing train that is part of the DJ Basin complex, commenced operations in the fourth quarter of 2019. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) December 2019 Agreements . On December 31, 2019, (i) the Partnership and certain of its subsidiaries, including WES Operating and WES Operating GP, entered into the below-described agreements with Occidental and/or certain of its subsidiaries, including Anadarko, and (ii) WES Operating also entered into the below-described amendments to its debt agreements (collectively referred to as the “ December 2019 Agreements ”). • Exchange Agreement. Western Gas Resources, Inc. (“WGRI”), the general partner, and the Partnership entered into a partnership interests exchange agreement (the “Exchange Agreement”), pursuant to which the Partnership canceled the non-economic general partner interest in the Partnership and simultaneously issued a 2.0% general partner interest to the general partner in exchange for which WGRI transferred 9,060,641 common units to the Partnership, which immediately canceled such units on receipt. • Services, Secondment, and Employee Transfer Agreement. Occidental, Anadarko, and WES Operating GP entered into an amended and restated Services, Secondment, and Employee Transfer Agreement (the “Services Agreement”), pursuant to which Occidental, Anadarko, and their subsidiaries will (i) second certain personnel employed by Occidental to WES Operating GP, in exchange for which WES Operating GP will pay a monthly secondment and shared services fee to Occidental equivalent to the direct cost of the seconded employees and (ii) continue to provide certain administrative and operational services to the Partnership for up to a two-year transition period. The Services Agreement also includes provisions governing the transfer of certain employees to the Partnership and the assumption by the Partnership of liabilities relating to those employees at the time of their transfer. In January 2020, pursuant to the Services Agreement, Occidental made a one-time cash contribution of $20.0 million to the Partnership for anticipated transition costs required to establish stand-alone human resources and information technology functions. • RCF amendment. WES Operating entered into an amendment to its $2.0 billion senior unsecured revolving credit facility (“RCF”) to, among other things, (i) effective on February 14, 2020, exercise the final one-year extension option to extend the maturity date of the RCF to February 14, 2025, for the extending lenders, and (ii) modify the change of control definition to provide, among other things, that, subject to certain conditions, if the limited partners of the Partnership elect to remove the general partner as the general partner of the Partnership in accordance with the terms of the partnership agreement, then such removal will not constitute a change of control under the RCF. • Term loan facility amendment. WES Operating entered into an amendment of its $3.0 billion senior unsecured credit facility (“Term loan facility”) to, among other things, modify the change of control definition to provide, among other things, that, subject to certain conditions, if the limited partners of the Partnership elect to remove the general partner as the general partner of the Partnership in accordance with the terms of the partnership agreement, then such removal will not constitute a change of control under the Term loan facility. • Termination of debt-indemnification agreements. WES Operating GP and certain wholly owned subsidiaries of Occidental mutually terminated the debt-indemnification agreements related to indebtedness incurred by WES Operating. • Termination of omnibus agreements. The Partnership and WES Operating entered into agreements with Occidental to terminate the WES and WES Operating omnibus agreements. See Note 6 . 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Merger transactions . On February 28, 2019, the Partnership, WES Operating, Anadarko, and certain of their affiliates completed the transactions contemplated by the Contribution Agreement and Agreement and Plan of Merger (the “Merger Agreement”) dated November 7, 2018, pursuant to which, among other things, Clarity Merger Sub, LLC, a wholly owned subsidiary of the Partnership, merged with and into WES Operating, with WES Operating continuing as the surviving entity and as a subsidiary of the Partnership (the “Merger”). In connection with the Merger closing, (i) the common units of WES Operating, which previously traded under the symbol “WES,” ceased to trade on the New York Stock Exchange (“NYSE”), (ii) the common units of the Partnership, which previously traded under the symbol “WGP,” began to trade on the NYSE under the symbol “WES,” (iii) the Partnership changed its name from Western Gas Equity Partners, LP to Western Midstream Partners, LP, and (iv) WES Operating changed its name from Western Gas Partners, LP to Western Midstream Operating, LP. The Merger Agreement also provided that the Partnership, WES Operating, and Anadarko cause their respective affiliates to execute the following transactions, among others, immediately prior to the Merger becoming effective in the following order: (1) Anadarko E&P Onshore LLC and WGR Asset Holding Company LLC (“WGRAH”) (the “Contributing Parties”) contribute to WES Operating, and WES Operating subsequently contributes to WGR Operating, LP, Kerr-McGee Gathering LLC, and DBM (each wholly owned by WES Operating), all of their interests in each of Anadarko Wattenberg Oil Complex LLC, Anadarko DJ Oil Pipeline LLC, Anadarko DJ Gas Processing LLC, Wamsutter Pipeline LLC, DBM Oil Services, LLC, Anadarko Pecos Midstream LLC, Anadarko Mi Vida LLC, and APC Water Holdings 1, LLC (“APCWH”) in exchange for aggregate consideration of $1.814 billion of cash, less the outstanding amount payable pursuant to an intercompany note (the “APCWH Note Payable”) assumed by WES Operating in connection with the transfer, and 45,760,201 WES Operating common units; (2) APC Midstream Holdings, LLC (“AMH”) transfers its interests in Saddlehorn and Panola to WES Operating in exchange for $193.9 million of cash; (3) WES Operating contributes cash in an amount equal to the outstanding balance of the APCWH Note Payable immediately prior to the effective time of the Merger to APCWH, which in turn uses the contributed cash to satisfy the APCWH Note Payable to Anadarko; (4) the WES Operating Class C units convert into WES Operating common units on a one -for-one basis; and (5) WES Operating and WES Operating GP convert the incentive distribution rights (“IDRs”) and the 2,583,068 general partner units in WES Operating held by WES Operating GP into a non-economic general partner interest in WES Operating and 105,624,704 WES Operating common units. The 45,760,201 WES Operating common units issued to the Contributing Parties, less 6,375,284 WES Operating common units retained by WGRAH, convert into the right to receive an aggregate of 55,360,984 common units of the Partnership at Merger completion. Each WES Operating common unit issued and outstanding immediately prior to the closing of the Merger (other than WES Operating common units owned by the Partnership and WES Operating GP, and certain common units held by subsidiaries of Anadarko) converts into the right to receive 1.525 common units of the Partnership. See Note 13 for additional information. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of presentation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The consolidated financial statements include the accounts of the Partnership and entities in which it holds a controlling financial interest, including WES Operating and WES Operating GP. 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: 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 50.00 % Ranch Westex 50.00 % FRP 33.33 % Red Bluff Express 30.00 % Mont Belvieu JV 25.00 % Rendezvous 22.00 % TEP 20.00 % TEG 20.00 % Whitethorn LLC 20.00 % Saddlehorn 20.00 % Cactus II 15.00 % Panola 15.00 % Fort Union 14.81 % 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, in addition to the noncontrolling interests noted 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 and Note 5 ), (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) the senior secured revolving credit facility (“WGP RCF”) until its repayment in March 2019. See Note 13 . 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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, 2019 (see Note 10 ). 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; therefore, the Partnership’s prior asset acquisitions from Anadarko were classified as transfers of net assets between entities under common control. As such, assets acquired from Anadarko initially were recorded at Anadarko’s historic carrying value, which did not equate to the total acquisition price paid by the Partnership. Further, subsequent to asset acquisitions from Anadarko, the Partnership was required to recast its financial statements to include the activities of acquired assets from the date of common control. For reporting periods that required recast, the consolidated financial statements for periods prior to the acquisition of assets from Anadarko were prepared from Anadarko’s historical cost-basis accounts and may not be necessarily indicative of the actual results of operations that would have occurred if the Partnership had owned the assets during the periods reported. Net income (loss) attributable to the assets acquired from Anadarko for periods prior to the Partnership’s acquisition of such assets was not allocated to the limited partners. 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, and certain prior-period amounts have been reclassified to conform to the current-year presentation. Noncontrolling interests. For periods subsequent to Merger completion, 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% Occidental subsidiary-owned limited partner interest in WES Operating. For periods prior to Merger completion, the Partnership’s noncontrolling interests in the consolidated financial statements consisted of (i) the 25% third-party interest in Chipeta, (ii) the publicly held limited partner interests in WES Operating, (iii) the common units issued by WES Operating to subsidiaries of Anadarko as part of the consideration paid for prior acquisitions from Anadarko, (iv) the Class C units issued by WES Operating to a subsidiary of Anadarko as part of the funding for the acquisition of DBM, and (v) the WES Operating Series A Preferred units issued to private investors as part of the funding of the Springfield acquisition, until converted into WES Operating common units in 2017. For all periods presented, WES Operating’s noncontrolling interest in the consolidated financial statements consisted of the 25% third-party interest in Chipeta. See Note 5 . When WES Operating issues equity, the carrying amount of the noncontrolling interest reported by the Partnership is adjusted to reflect the noncontrolling ownership interest in WES Operating. The resulting impact of such noncontrolling interest adjustment on the Partnership’s interest in WES Operating is reflected as an adjustment to the Partnership’s partners’ capital. Shutdown of gathering systems. In May 2018, after assessing a number of factors, and with safety and protection of the environment as the primary focus, the Partnership decided to permanently cease operations at the Kitty Draw gathering system in Wyoming (part of the Hilight system) and the Third Creek gathering system in Colorado (part of the DJ Basin complex). Results for the year ended December 31, 2018, reflect (i) an accrual of $10.9 million in anticipated costs associated with the system shutdowns, recorded as a reduction in affiliate Product sales in the consolidated statements of operations, and (ii) impairment expense of $134.0 million associated with reducing the net book value of the gathering systems and recording an additional asset retirement obligation. During the year ended December 31, 2019, $6.1 million of the accrual related to the Kitty Draw gathering system shutdown was reversed due to producer settlements being less than initial estimates. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 multiples 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 sales prices, estimates of future throughput, capital and operating costs and the timing thereof, economic and regulatory climates, and other factors. A multiples 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 prices, costs, and other factors, and are consistent with assumptions used in the Partnership’s business plans and investment decisions. 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, initial recognition of asset retirement obligations, and initial recognition of environmental obligations assumed in a third-party acquisition. Impairment analyses for long-lived assets, goodwill and other intangibles, and the initial recognition of asset retirement obligations and environmental 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. See Note 13 . The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable 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. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Allowance for uncollectible accounts. Exposure to bad debts is analyzed on a customer-by-customer basis for affiliate and third-party accounts receivable and the Partnership may establish credit limits for significant affiliate and third-party customers. The allowance for uncollectible accounts was immaterial at December 31, 2019 and 2018 . 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 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, 2019 , imbalance receivables and payables were $4.7 million and $2.7 million , respectively. As of December 31, 2018 , imbalance receivables and payables were $9.0 million and $9.6 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 inventories 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 line-fill inventory and NGLs inventory are reported in Other assets and Other current assets, respectively, on the consolidated balance sheets. See Note 11 . Property, plant, and equipment. Property, plant, and equipment generally is stated at the lower of historical cost less accumulated depreciation or fair value if impaired. Because prior acquisitions of assets from Anadarko were transfers of net assets between entities under common control, the assets acquired initially were 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. However, subsequent events could cause a change in estimates, 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 evaluates the ability to recover the carrying amount of its long-lived assets to determine whether its long-lived assets have been impaired. Impairments exist when the carrying amount of an asset exceeds estimates of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. When alternative courses of action to recover the carrying amount of a long-lived asset are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence. If the carrying amount of the long-lived asset is not recoverable based on the estimated future undiscounted cash flows, the impairment loss is measured as the excess of the asset’s carrying amount over its estimated fair value, such that the asset’s carrying amount is adjusted to its estimated fair value with an offsetting charge to impairment expense. Refer to Note 8 for a description of impairments recorded during the years ended December 31, 2019 , 2018 , and 2017 . 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Insurance recoveries. Involuntary conversions result from the loss of an asset because of unforeseen events (e.g., destruction due to fire). Some of these events are insurable and result in property damage insurance recovery. Amounts that are received from insurance carriers are net of any deductibles related to the covered event. A receivable is recorded from insurance to the extent a loss is recognized from an involuntary conversion event and the likelihood of recovering such loss is deemed probable. To the extent that any insurance claim receivables are later judged not probable of recovery (e.g., due to new information), such amounts are expensed. A gain on involuntary conversion is recognized when the amount received from insurance exceeds the net book value of the retired asset(s). In addition, gains related to insurance recoveries are not recognized until all contingencies related to such proceeds have been resolved; that is, a cash payment is received from the insurance carrier or there is a binding settlement agreement with the carrier that clearly states that a payment will be made. To the extent that an asset is rebuilt, the associated expenditures are capitalized, as appropriate, on the consolidated balance sheets and presented as Capital expenditures in the consolidated statements of cash flows. With respect to business interruption insurance claims, income is recognized only when cash proceeds are received from insurers, which are presented in the consolidated statements of operations as a component of Operating income (loss). In December 2015, there was an initial fire and secondary explosion at the processing facility within the DBM complex. The majority of the damage from the incident was to the liquid-handling facilities and the amine-treating units at the inlet of the complex. During the year ended December 31, 2017, a $5.7 million loss was recorded in Gain (loss) on divestiture and other, net in the consolidated statements of operations, related to a change in the Partnership’s estimate of the amount that would be recovered under the property insurance claim based on continued discussions with insurers. During the second quarter of 2017, the Partnership reached a settlement with insurers and final proceeds were received. During the year ended December 31, 2017, the Partnership received $52.9 million in cash proceeds from insurers, including $29.9 million in proceeds from business interruption insurance claims and $23.0 million in proceeds from property insurance claims. 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. Once construction of an asset subject to interest capitalization is substantially complete, the associated capitalized interest is expensed through depreciation or impairment. 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 has allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment 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 amount, 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 amount, then a quantitative assessment must be performed. If the quantitative assessment indicates that the carrying amount 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 impairment expense. See Note 9 . Other intangible assets. The Partnership assesses intangible assets, as described in Note 9 , for impairment together with related underlying long-lived assets whenever events or changes in circumstances indica |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Revenue from customers Service revenues – fee based $ 2,388,191 $ 1,905,728 Service revenues – product based 70,127 88,785 Product sales 287,055 310,895 Total revenue from customers 2,745,373 2,305,408 Revenue from other than customers Net gains (losses) on commodity-price swap agreements (667 ) (7,875 ) Other 1,468 2,125 Total revenues and other $ 2,746,174 $ 2,299,658 2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $362.6 million and $214.3 million as of December 31, 2019 and 2018 , respectively. Contract assets primarily relate to accrued deficiency fees the Partnership expects to charge customers once the related performance periods are completed and revenue accrued but not yet billed under cost-of-service contracts with fixed and variable fees. The following table summarizes current-period activity related to contract assets from contracts with customers: thousands Balance at December 31, 2018 $ 47,621 Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period (4,841 ) Additional estimated revenues recognized 14,698 Cumulative catch-up adjustment for change in estimated consideration due to an annual cost-of-service rate update 9,879 Balance at December 31, 2019 $ 67,357 Contract assets at December 31, 2019 Other current assets $ 7,129 Other assets 60,228 Total contract assets from contracts with customers $ 67,357 Contract liabilities primarily relate to (i) 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, (ii) fixed and variable fees under cost-of-service contracts that are received from customers for which revenue recognition is deferred, and (iii) aid-in-construction payments received from customers that must be recognized over the expected period of customer benefit. The following table summarizes current-period activity related to contract liabilities from contracts with customers: thousands Balance at December 31, 2018 $ 145,624 Cash received or receivable, excluding revenues recognized during the period 75,166 Revenues recognized that were included in the contract liability balance at the beginning of the period (12,110 ) Cumulative catch-up adjustment for change in estimated consideration due to an annual cost-of-service rate update 13,594 Balance at December 31, 2019 $ 222,274 Contract liabilities at December 31, 2019 Accrued liabilities $ 19,659 Other liabilities 202,615 Total contract liabilities from contracts with customers $ 222,274 2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) 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, 2019 , are presented in the following table. The Partnership applies the optional exemptions in 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 2020 $ 736,055 2021 776,068 2022 1,030,527 2023 973,799 2024 943,514 Thereafter 3,534,725 Total $ 7,994,688 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Acquisitions and Divestitures | 3. ACQUISITIONS AND DIVESTITURES AMA acquisition. In February 2019, WES Operating acquired the following assets from Anadarko (see Note 1 ), which collectively are referred to as the Anadarko Midstream Assets (“AMA”): • Wattenberg processing plant. The Wattenberg processing plant consists of a cryogenic train (with capacity of 190 million cubic feet per day (“MMcf/d”)) and a refrigeration train (with capacity of 80 MMcf/d) located in Adams County, Colorado, now part of the DJ Basin complex. • Wamsutter pipeline. The Wamsutter pipeline is a crude-oil gathering pipeline located in Sweetwater County, Wyoming and delivers crude oil into MPLX LP’s SLC Core Pipeline System (formerly referred to as the Wamsutter Pipeline System). • DJ Basin oil system. The DJ Basin oil system consists of (i) a crude-oil gathering system, (ii) a centralized oil stabilization facility (“COSF”), and (iii) a 12 -mile crude-oil pipeline, located in Weld County, Colorado. The COSF consists of Trains I through VI with total capacity of 155 thousand barrels per day (“MBbls/d”) and two storage tanks with total capacity of 500,000 barrels. Train VI commenced operations in 2018. The pipeline connects the COSF to Tampa Rail. • DBM oil system. The DBM oil system consists of (i) a crude-oil gathering system, (ii) three central production facilities (“CPFs”), which include ten processing trains with total capacity of 75 MBbls/d, (iii) three storage tanks with total capacity of 30,000 barrels, (iv) a 14 -mile crude-oil pipeline, and (v) two regional oil treating facilities (“ROTFs”), which include four trains with total capacity of 120 MBbls/d, located in Reeves and Loving Counties, Texas. The ROTFs commenced operations in 2018. The pipeline transports crude oil from the DBM oil system and one third-party CPF into Plains All American Pipeline. • APC water systems. The APC water systems consist of five produced-water disposal systems with total capacity of 565 MBbls/d, located in Reeves, Loving, and Ward Counties, Texas, which are now part of the DBM water systems. One produced-water disposal system commenced operations in 2017 and the other four commenced operations in 2018. 3. ACQUISITIONS AND DIVESTITURES (CONTINUED) • A 20% interest in Saddlehorn. Saddlehorn owns (i) a crude-oil and condensate pipeline (excluding pipeline capacity leased by Saddlehorn) that originates in Laramie County, Wyoming, and terminates in Cushing, Oklahoma, and (ii) four storage tanks with total capacity of 300,000 barrels. The Saddlehorn interest is accounted for under the equity method of accounting and the pipeline is operated by a third party. • A 15% interest in Panola. Panola owns a 248 -mile NGLs pipeline that originates in Panola County, Texas, and terminates in Mont Belvieu, Texas. The Panola interest is accounted for under the equity method of accounting and the pipeline is operated by a third party. • A 50% interest in Mi Vida. Mi Vida owns a cryogenic gas processing plant (with capacity of 200 MMcf/d) located in Ward County, Texas. The interest in Mi Vida is accounted for under the equity method of accounting and the processing plant is operated by a third party. • A 50% interest in Ranch Westex. Ranch Westex owns a processing plant consisting of a cryogenic train (with capacity of 100 MMcf/d) and a refrigeration train (with capacity of 25 MMcf/d), located in Ward County, Texas. The interest in Ranch Westex is accounted for under the equity method of accounting and the processing plant is operated by a third party. Red Bluff Express acquisition. In January 2019, the Partnership acquired a 30% interest in Red Bluff Express, which owns a natural-gas pipeline operated by a third party that connects processing plants in Reeves and Loving Counties, Texas, to the WAHA hub in Pecos County, Texas. The Partnership acquired its 30% interest from a third party via an initial net investment of $92.5 million , which represented its share of costs incurred up to the date of acquisition. The initial investment was funded with cash on hand and the interest in Red Bluff Express is accounted for under the equity method of accounting. See Note 10 . Whitethorn LLC acquisition. In June 2018, the Partnership acquired a 20% interest in Whitethorn LLC, which owns a crude-oil and condensate pipeline that originates in Midland, Texas, and terminates in Sealy, Texas (the “Midland-to-Sealy pipeline”) and related storage facilities (collectively referred to as “Whitethorn”). A third party operates Whitethorn and oversees the related commercial activities. In connection with its investment in Whitethorn LLC, the Partnership shares proportionally in the commercial activities. The Partnership acquired its 20% interest via a $150.6 million net investment, which was funded with cash on hand and is accounted for under the equity method. See Note 10 . Cactus II acquisition. In June 2018, the Partnership acquired a 15% interest in Cactus II, which owns a crude-oil pipeline operated by a third party (the “Cactus II pipeline”) connecting West Texas to the Corpus Christi area. The Cactus II pipeline began delivering crude oil during the third quarter of 2019 and is expected to become fully operational in the first quarter of 2020. The Partnership acquired its 15% interest from a third party via an initial net investment of $12.1 million , which represented its share of costs incurred up to the date of acquisition. The initial investment was funded with cash on hand and the interest in Cactus II is accounted for under the equity method of accounting. See Note 10 . Property exchange. In March 2017, the Partnership acquired an additional 50% interest in the Delaware Basin JV Gathering LLC (“DBJV”) system (the “Additional DBJV System Interest”) from a third party in exchange for (a) the Partnership’s 33.75% non-operated interest in two natural-gas gathering systems located in northern Pennsylvania (the “Non-Operated Marcellus Interest”), commonly referred to as the Liberty and Rome systems, and (b) $155.0 million of cash consideration (collectively, the “Property Exchange”). The Partnership previously held a 50% interest in, and operated, the DBJV system. The Property Exchange was accounted for as a non-monetary transaction whereby the acquired Additional DBJV System Interest was recorded at the fair value of the divested Non-Operated Marcellus Interest plus the $155.0 million of cash consideration. The Property Exchange resulted in a net gain of $125.7 million recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. Results of operations attributable to the Property Exchange were included in the consolidated statements of operations beginning on the acquisition date in the first quarter of 2017. 3. ACQUISITIONS AND DIVESTITURES (CONTINUED) DBJV acquisition - Deferred purchase price obligation - Anadarko. Prior to WES Operating’s agreement with Anadarko to settle the deferred purchase price obligation early, the consideration that would have been paid for the March 2015 acquisition of DBJV from Anadarko consisted of a cash payment to Anadarko due on March 31, 2020. In May 2017, WES Operating reached an agreement with Anadarko to settle this obligation with a cash payment to Anadarko of $37.3 million , which was equal to the estimated net present value of the obligation at March 31, 2017. Newcastle system divestiture. In December 2018, the Newcastle system, located in Northeast Wyoming, was sold to a third party for $3.2 million , resulting in a net gain on sale of $0.6 million recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. The Partnership previously held a 50% interest in, and operated, the Newcastle system. Helper and Clawson systems divestiture. In June 2017, the Helper and Clawson systems, located in Utah, were sold to a third party, resulting in a net gain on sale of $16.3 million recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. |
Partnership Distributions
Partnership Distributions | 12 Months Ended |
Dec. 31, 2019 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Partnership Distributions | 4. PARTNERSHIP DISTRIBUTIONS Partnership distributions. The partnership agreement requires the Partnership to distribute all of its available cash (as defined in its partnership agreement) to unitholders of record on the applicable record date within 55 days following each quarter’s end. The Board of Directors 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 2017 (1) March 31 $ 0.49125 $ 107,549 May 2017 June 30 0.52750 115,487 August 2017 September 30 0.53750 117,677 November 2017 December 31 0.54875 120,140 February 2018 2018 (1) March 31 $ 0.56875 $ 124,518 May 2018 June 30 0.58250 127,531 August 2018 September 30 0.59500 130,268 November 2018 December 31 0.60250 131,910 February 2019 2019 March 31 $ 0.61000 $ 276,324 May 2019 June 30 0.61800 279,959 August 2019 September 30 0.62000 280,880 November 2019 December 31 (2) 0.62200 281,786 February 2020 (1) The 2017 and 2018 distributions were declared and paid prior to the closing of the Merger. (2) The Board of Directors declared a cash distribution to the Partnership’s unitholders for the fourth quarter of 2019 of $0.62200 per unit, or $281.8 million in aggregate. The cash distribution was paid on February 13, 2020 , to unitholders of record at the close of business on January 31, 2020 , including the general partner units that were issued on December 31, 2019 (see Note 1 ). Following the transactions contemplated by the Exchange Agreement, the general partner is entitled to 2.0% of all quarterly distributions beginning with the cash distribution declared for the fourth quarter of 2019. 4. PARTNERSHIP DISTRIBUTIONS (CONTINUED) Available cash. The amount of available cash (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 reserves to fund future capital expenditures; to comply with applicable laws, debt instruments, or other agreements; or 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. Working capital borrowings generally 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. WES Operating partnership distributions. For the below-presented periods, WES Operating paid the cash distributions to WES Operating’s common and general partner unitholders as follows: thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Distribution 2017 March 31 $ 0.875 $ 188,753 May 2017 June 30 0.890 207,491 August 2017 September 30 0.905 212,038 November 2017 December 31 0.920 216,586 February 2018 2018 March 31 $ 0.935 $ 221,133 May 2018 June 30 0.950 225,691 August 2018 September 30 0.965 230,239 November 2018 December 31 0.980 234,787 February 2019 Immediately prior to the closing of the Merger, the WES Operating IDRs and general partner units were converted into WES Operating common units and a non-economic general partner interest in WES Operating, and at Merger completion, all WES Operating common units held by the public and subsidiaries of Anadarko (other than common units held by the Partnership, WES Operating GP, and 6.4 million common units held by a subsidiary of Anadarko) were converted into common units of the Partnership. Beginning first quarter of 2019, WES Operating makes cash distributions to the Partnership and WGRAH, a subsidiary of Occidental, in respect of their proportionate share of limited partner interests in WES Operating. For the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019 WES Operating distributed $283.3 million , $288.1 million , and $289.7 million , respectively, to its limited partners. For the quarter ended December 31, 2019 , WES Operating distributed $290.3 million to its limited partners. See Note 5 . WES Operating Class C unit distributions. Prior to the closing of the Merger, WES Operating’s Class C units received quarterly distributions at an equivalent rate to WES Operating’s publicly traded common units. The Class C unit distributions were paid-in-kind with additional Class C Units (“PIK Class C units”) and were disregarded with respect to WES Operating’s distributions of available cash. The number of PIK Class C units issued in connection with a distribution payable on the Class C units was determined by dividing the corresponding distribution attributable to the Class C units by the volume-weighted average price of WES Operating’s common units for the ten days immediately preceding the payment date of the common unit distribution, less a 6% discount. WES Operating recorded the PIK Class C unit distributions at fair value at the time of issuance. This Level-2 fair value measurement used WES Operating’s unit price as a significant input in the determination of the fair value. See Note 5 for further discussion of the Class C units. In February 2019, immediately prior to the closing of the Merger, all outstanding Class C units converted into WES Operating common units on a one -for-one basis (see Note 1 ). 4. PARTNERSHIP DISTRIBUTIONS (CONTINUED) WES Operating Series A Preferred unit distributions. As further described in Note 5 , WES Operating issued Series A Preferred units representing limited partner interests in WES Operating to private investors in 2016. The Series A Preferred unitholders received quarterly distributions of cash equal to $0.68 per Series A Preferred unit, subject to certain adjustments. On March 1, 2017, 50% of the outstanding Series A Preferred units converted into WES Operating common units on a one -for-one basis, and on May 2, 2017, all remaining Series A Preferred units converted into WES Operating common units on a one -for-one basis. Such converted WES Operating common units were entitled to distributions made to WES Operating common unitholders with respect to the quarter during which the applicable conversion occurred and did not include a prorated Series A Preferred unit distribution. For the quarter ended March 31, 2017, the WES Operating Series A Preferred unitholders received an aggregate cash distribution of $7.5 million (paid in May 2017). WES Operating’s general partner interest and incentive distribution rights. Prior to the closing of the Merger, WES Operating GP was entitled to 1.5% of all quarterly distributions that WES Operating made prior to its liquidation, and as the former holder of the IDRs, was entitled to incentive distributions at the maximum distribution-sharing percentage of 48.0% for all prior periods presented. Immediately prior to the closing of the Merger, the IDRs and the general partner units converted into WES Operating common units and a non-economic general partner interest in WES Operating (see Note 1 ). |
Equity and Partners' Capital
Equity and Partners' Capital | 12 Months Ended |
Dec. 31, 2019 | |
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 NYSE under the symbol “WES.” As of December 31, 2019 , Occidental held 242,136,976 common units, representing a 53.4% 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 2.0% general partner interest in the Partnership (see Note 1 ). The public held 201,834,433 common units, representing a 44.6% limited partner interest in the Partnership. In February 2019, the Partnership issued common units in connection with the closing of the Merger (see Note 1 ) as follows: Partnership common units outstanding prior to the Merger 218,937,797 WES Operating common units outstanding prior to the Merger 152,609,285 WES Operating Class C units outstanding prior to the Merger 14,681,388 Less: WES Operating common units owned by the Partnership (50,132,046 ) WES Operating common units subject to conversion into Partnership common units 117,158,627 Exchange ratio per unit 1.525 Partnership common units issued for WES Operating common units (1) 178,692,081 WES Operating common units issued as part of the AMA acquisition 45,760,201 Less: WES Operating common units retained by a subsidiary of Anadarko (6,375,284 ) WES Operating acquisition common units subject to conversion into Partnership common units 39,384,917 Conversion ratio per unit 1.4056 Partnership common units issued for WES Operating acquisition common units 55,360,984 Partnership common units outstanding at February 28, 2019 452,990,862 (1) Total Partnership units issued at Merger completion exceeds the calculation of such units using the exchange ratio due to the rounding convention described in the Merger Agreement. 5. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) Holdings of WES Operating equity. As of December 31, 2019 , (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 ). WES Operating interests. The following table summarizes WES Operating’s units issued during the years ended December 31, 2019 and 2018: Common Units Class C Units General Partner Units Total Balance at December 31, 2017 152,602,105 13,243,883 2,583,068 168,429,056 PIK Class C units — 1,128,782 — 1,128,782 Vesting of Long-Term Incentive Plan Awards 7,180 — — 7,180 Balance at December 31, 2018 152,609,285 14,372,665 2,583,068 169,565,018 PIK Class C units — 308,723 — 308,723 Conversion of Class C units 14,681,388 (14,681,388 ) — — IDR and General partner unit conversion 105,624,704 — (2,583,068 ) 103,041,636 Units issued as part of the AMA acquisition 45,760,201 — — 45,760,201 Balance at December 31, 2019 (1) 318,675,578 — — 318,675,578 (1) All WES Operating common units that converted into the Partnership’s common units at closing of the Merger were canceled and an equivalent amount of the canceled WES Operating common units were issued to the Partnership. See Note 1 for further details on the units issued and converted in connection with the closing of the Merger. WES Operating Class C units. In November 2014, WES Operating issued 10,913,853 Class C units to AMH, pursuant to a Unit Purchase Agreement with Anadarko and AMH. The Class C units were issued to partially fund the acquisition of DBM. The Class C units were issued at a discount to the then-current market price of the common units into which they were convertible. This discount, totaling $34.8 million , represented a beneficial conversion feature, and at issuance, was reflected as an increase to WES Operating common unitholders’ capital and a decrease to Class C unitholder capital to reflect the fair value of the Class C units at issuance. The beneficial conversion feature was considered a non-cash distribution that was recognized from the date of issuance through the date of conversion, resulting in an increase to Class C unitholder capital and a decrease to WES Operating common unitholders’ capital as amortized. The beneficial conversion feature was amortized assuming an extended conversion date of March 1, 2020, using the effective yield method. The impact of the beneficial conversion feature amortization was included in the calculation of earnings per unit (see WES Operating’s net income (loss) per common unit below). All outstanding Class C units converted into WES Operating common units on a one -for-one basis immediately prior to the closing of the Merger (see Note 1 ). 5. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) WES Operating Series A Preferred units. In 2016, WES Operating issued 21,922,831 Series A Preferred units to private investors, generating proceeds of $686.9 million (net of fees and expenses, but including a 2.0% transaction fee paid to the private investors). The Series A Preferred units were issued at a discount to the then-current market price of the common units into which they were convertible. This discount, totaling $93.4 million , represented a beneficial conversion feature, and at issuance, was reflected as an increase to WES Operating common unitholders’ capital and a decrease to Series A Preferred unitholders’ capital to reflect the fair value of the Series A Preferred units on the date of issuance. The beneficial conversion feature was considered a non-cash distribution that was recognized from the date of issuance through the date of conversion, resulting in an increase to Series A Preferred unitholders’ capital and a decrease to WES Operating common unitholders’ capital as amortized. The beneficial conversion feature was amortized using the effective yield method. The impact of the beneficial conversion feature amortization was also included in the calculation of earnings per unit (see WES Operating’s net income (loss) per common unit below). For the year ended December 31, 2017, the amortization for the beneficial conversion feature of the Series A Preferred units was $62.3 million . Pursuant to an agreement between WES Operating and the holders of the Series A Preferred units, 50% of the Series A Preferred units converted into WES Operating common units on a one -for-one basis on March 1, 2017, and all remaining Series A Preferred units converted into WES Operating common units on a one -for-one basis on May 2, 2017. Partnership’s net income (loss) per common unit. As of December 31, 2019, following the transactions contemplated to the Exchange Agreement, 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. Specifically, net income equal to the amount of available cash (as defined by the partnership agreement) was allocated to the common and general partner unitholders consistent with actual cash distributions and capital account allocations. Undistributed earnings (net income in excess of distributions) or undistributed losses (available cash in excess of net income) were then allocated to the common and general partner unitholders in accordance with their weighted-average ownership percentage during each period. 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. Net income (loss) attributable to assets acquired from Anadarko for periods prior to the acquisition of such assets was not allocated to the limited partners when calculating net income (loss) per common unit. For periods prior to the Merger, dilutive net income (loss) per common unit was calculated by dividing the limited partners’ interest in net income (loss) adjusted for distributions on the WES Operating Series A Preferred units and a reallocation of the limited partners’ interest in net income (loss) assuming, prior to the actual conversion, conversion of the WES Operating Series A Preferred units into WES Operating common units, by the weighted-average number of the Partnership’s common units outstanding during the period. As of May 2, 2017, all WES Operating Series A Preferred units were converted into WES Operating common units on a one -for-one basis. The impact of the WES Operating Series A Preferred units assuming, prior to the actual conversion, conversion to WES Operating common units would be anti-dilutive for the year ended December 31, 2017. 5. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) WES Operating’s net income (loss) per common unit. For periods subsequent to the closing of the Merger, net income (loss) per common unit for WES Operating is not calculated as it no longer has publicly traded units. For periods prior to the closing of the Merger, Net income (loss) attributable to Western Midstream Operating, LP earned on and subsequent to the date of acquisition of the Partnership’s assets was allocated in the below-described manner. Net income (loss) attributable to assets acquired from Anadarko for periods prior to the acquisition of such assets was not allocated to the unitholders for purposes of calculating net income (loss) per common unit. WES Operating GP. The general partner’s allocation was equal to cash distributions plus its portion of undistributed earnings or losses. Specifically, net income equal to the amount of available cash (as defined by WES Operating’s partnership agreement) was allocated to the general partner consistent with actual cash distributions and capital account allocations, including incentive distributions. Undistributed earnings (net income in excess of distributions) or undistributed losses (available cash in excess of net income) were then allocated to the general partner in accordance with its weighted-average ownership percentage during each period. WES Operating Series A Preferred unitholders. The Series A Preferred units were not considered a participating security as they only had distribution rights up to the specified per-unit quarterly distribution and had no rights to WES Operating’s undistributed earnings and losses. As such, the Series A Preferred unitholders’ allocation was equal to their cash distribution plus the amortization of the Series A Preferred units beneficial conversion feature (see WES Operating Series A Preferred units above). WES Operating Common and Class C unitholders. The Class C units were considered a participating security because they participated in distributions with common units according to a predetermined formula (see Note 4 ). The common and Class C unitholders’ allocation was equal to their cash distributions plus their respective allocations of undistributed earnings or losses. Specifically, net income equal to the amount of available cash (as defined by the WES Operating partnership agreement) was allocated to the common and Class C unitholders consistent with actual cash distributions and capital account allocations. Undistributed earnings or undistributed losses were then allocated to the common and Class C unitholders in accordance with their respective weighted-average ownership percentages during each period. The common unitholder allocation also included the impact of the amortization of the Class C units beneficial conversion feature. Similarly, the Class C unitholder allocation was impacted by the amortization of the Class C units beneficial conversion feature (see WES Operating Class C units above). Calculation of net income (loss) per unit. Basic net income (loss) per common unit was calculated by dividing the net income (loss) attributable to common unitholders by the weighted-average number of common units outstanding during the period. The common units issued in connection with acquisitions and equity offerings were included on a weighted-average basis for the periods these units were outstanding. Diluted net income (loss) per common unit was calculated by dividing the sum of (i) the net income (loss) attributable to common units adjusted for distributions on the Series A Preferred units and a reallocation of the common and Class C limited partners’ interest in net income (loss) assuming, prior to the actual conversion, conversion of the Series A Preferred units into common units, and (ii) the net income (loss) attributable to the Class C units as a participating security, by the sum of the weighted-average number of common units outstanding plus the dilutive effect of the (i) weighted-average number of outstanding Class C units and (ii) the weighted-average number of common units outstanding assuming, prior to the actual conversion, conversion of the Series A Preferred units. 5. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) The following table illustrates the calculation of WES Operating’s net income (loss) per common unit: Year Ended December 31, thousands except per-unit amounts 2018 2017 Net income (loss) attributable to Western Midstream Operating, LP $ 627,917 $ 731,666 Pre-acquisition net (income) loss allocated to Anadarko (182,142 ) (164,183 ) Series A Preferred units interest in net (income) loss (1) — (42,373 ) General partner interest in net (income) loss (346,538 ) (303,835 ) Common and Class C limited partners’ interest in net income (loss) $ 99,237 $ 221,275 Net income (loss) allocable to common units (1) $ 84,334 $ 192,066 Net income (loss) allocable to Class C units (1) 14,903 29,209 Common and Class C limited partners’ interest in net income (loss) $ 99,237 $ 221,275 Net income (loss) per unit Common units – basic and diluted (2) $ 0.55 $ 1.30 Weighted-average units outstanding Common units – basic and diluted 152,606 147,194 Excluded due to anti-dilutive effect: Class C units (2) 13,795 12,776 Series A Preferred units assuming conversion to common units (2) — 5,406 (1) Adjusted to reflect amortization of the beneficial conversion features. (2) The impact of Class C units would be anti-dilutive for the periods presented and the conversion of Series A Preferred units would be anti-dilutive for the year ended December 31, 2017. On March 1, 2017, 50% of the outstanding Series A Preferred units converted into common units on a one -for-one basis, and on May 2, 2017, all remaining Series A Preferred units converted into common units on a one -for-one basis. |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | |
Transactions with Affiliates | 6. TRANSACTIONS WITH AFFILIATES Affiliate transactions. Affiliate revenues include (i) income from the Partnership’s investments accounted for under the equity method of accounting (see Note 10 ) and (ii) amounts earned by the Partnership from services provided to Occidental and from the sale of natural gas, condensate, and NGLs to Occidental. Occidental sells natural gas and NGLs as an agent on behalf of either the Partnership or the Partnership’s customers. When product sales are on the Partnership’s customers’ behalf, the Partnership recognizes associated service revenues and cost of product expense. When product sales are on the Partnership’s behalf, the Partnership recognizes product sales revenues based on Occidental’s sales price to the third party and records the associated cost of product expense. In addition, the Partnership purchases natural gas from an affiliate of Occidental pursuant to gas purchase agreements. Operation and maintenance expense includes amounts accrued for or paid to affiliates for the operation of the Partnership’s assets and for services provided to affiliates, including field labor, measurement and analysis, and other disbursements. A portion of general and administrative expense is paid by Occidental, which results in affiliate transactions pursuant to the reimbursement provisions of the Partnership’s and WES Operating’s agreements with Occidental. Affiliate expenses do not bear a direct relationship to affiliate revenues, and third-party expenses do not bear a direct relationship to third-party revenues. December 2019 Agreements . As discussed in more detail in Note 1 , on December 31, 2019, the Partnership and certain of its subsidiaries, including WES Operating and WES Operating GP, entered into agreements with Occidental and/or certain of its subsidiaries, including Anadarko. Merger transactions. As discussed in more detail in Note 1 , on February 28, 2019, the Partnership, WES Operating, Anadarko, and certain of their affiliates completed the Merger and the other transactions contemplated in the Merger Agreement, which included the acquisition of AMA from Anadarko. See Note 3 . Cash management. Occidental operates a cash management system for its subsidiaries’ separate bank accounts, including accounts for the Partnership and WES Operating. Prior to the acquisition of assets from Anadarko, third-party sales and purchases related to such assets were received or paid in cash by Anadarko within its centralized cash management system. Outstanding affiliate balances as of the dates of acquisition were settled entirely through an adjustment to net investment by Anadarko in connection with the acquisitions. Subsequent to asset acquisitions from Anadarko, transactions related to the acquired assets were cash-settled directly by the Partnership with third parties and Anadarko affiliates. Chipeta cash-settles its transactions directly with third parties, Occidental, and other subsidiaries of the Partnership. Note receivable - Anadarko. In May 2008, WES Operating loaned $260.0 million to Anadarko in exchange for a 30-year note bearing interest at a fixed annual rate of 6.50% , payable quarterly and classified as Interest income – affiliates in the consolidated statements of operations. The fair value of the Anadarko note receivable was $337.7 million and $279.6 million at December 31, 2019 and 2018 , respectively. Following Occidental’s acquisition by merger of Anadarko, the fair value of the Anadarko note receivable reflects consideration of Occidental’s credit risk and any premium or discount for the differential between the stated interest rate and quarter-end market interest rate, based on quoted market prices of similar debt instruments. Accordingly, the fair value of the note receivable is measured using Level-2 fair value inputs. APCWH Note Payable. In June 2017, APCWH entered into an eight-year note payable agreement with Anadarko, which was repaid at the Merger completion date. See Note 1 and Note 13 . 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) Commodity-price swap agreements. WES Operating entered into commodity-price swap agreements with Anadarko to mitigate exposure to the commodity-price risk inherent in WES Operating’s percent-of-proceeds, percent-of-product, and keep-whole natural-gas processing contracts. Notional volumes for each product-based commodity-price swap agreement were not specifically defined. Instead, the commodity-price swap agreements applied to the actual volumes of natural gas, condensate, and NGLs purchased and sold. The commodity-price swap agreements did not satisfy the definition of a derivative financial instrument and, therefore did not require fair-value measurement. Net gains (losses) on commodity-price swap agreements were $(0.7) million (due to settlement of 2018 activity in 2019), $(7.9) million , and $0.6 million for the years ended December 31, 2019, 2018, and 2017, respectively, and are reported in the consolidated statements of operations as affiliate Product sales in 2019 and 2018 and as affiliate Product sales and Cost of product in 2017. These commodity-price swap agreements expired without renewal on December 31, 2018. Revenues or costs attributable to volumes sold and purchased under the commodity-price swap agreements for the DJ Basin complex and the MGR assets were recognized in the consolidated statements of operations at the applicable market price in the tables below. A capital contribution from Anadarko was recorded in the consolidated statements of equity and partners’ capital for an amount equal to (i) the amount by which the swap price for product sales exceeds the applicable market price in the tables below, minus (ii) the amount by which the swap price for product purchases exceeds the applicable market price in the tables below. For the years ended December 31, 2019, 2018, and 2017, the capital contributions from Anadarko were $7.4 million , $51.6 million , and $58.6 million , respectively. The tables below summarize the swap prices compared to the forward market prices: DJ Basin Complex per barrel except natural gas 2017 - 2018 Swap Prices 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 18.41 $ 5.09 $ 5.41 Propane 47.08 18.85 28.72 Isobutane 62.09 26.83 32.92 Normal butane 54.62 26.20 32.71 Natural gasoline 72.88 41.84 48.04 Condensate 76.47 45.40 49.36 Natural gas (per MMBtu) 5.96 3.05 2.21 MGR Assets per barrel except natural gas 2017 - 2018 Swap Prices 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 23.11 $ 4.08 $ 2.52 Propane 52.90 19.24 25.83 Isobutane 73.89 25.79 30.03 Normal butane 64.93 25.16 29.82 Natural gasoline 81.68 45.01 47.25 Condensate 81.68 53.55 56.76 Natural gas (per MMBtu) 4.87 3.05 2.21 (1) Represents the New York Mercantile Exchange forward strip price as of December 1, 2016 and December 20, 2017, for the 2017 Market Prices and 2018 Market Prices, respectively, adjusted for product specification, location, basis, and, in the case of NGLs, transportation and fractionation costs. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) Gathering and processing agreements. The Partnership has significant gathering and processing arrangements with affiliates of Occidental on most of its systems. Natural-gas throughput (excluding equity-investment throughput) attributable to production owned or controlled by Occidental was 38% , 36% , and 39% for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Crude-oil, NGLs, and produced-water throughput (excluding equity-investment throughput) attributable to production owned or controlled by Occidental was 83% , 85% , and 81% for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Commodity purchase and sale agreements. The Partnership sells a significant amount of its natural gas and NGLs to Anadarko Energy Services Company (“AESC”), Occidental’s marketing affiliate that acts as the Partnership’s agent for third-party sales. In addition, the Partnership purchases natural gas from AESC pursuant to purchase agreements. Marketing Transition Services Agreement. Effective December 31, 2019, certain subsidiaries of Anadarko entered into a transition services agreement (the “Marketing Transition Services Agreement”) to provide certain marketing-related services to certain of the Partnership’s subsidiaries through December 31, 2020, subject to the Partnership’s subsidiaries’ option to extend such services for an additional six-month period. Shared services agreements. Pursuant to the agreements discussed below, Occidental performs centralized corporate functions for the Partnership and WES Operating such as legal; accounting; treasury; cash management; investor relations; insurance administration and claims processing; risk management; health, safety, and environmental; information technology; human resources; credit; payroll; internal audit; tax; and marketing and midstream administration. WES omnibus agreement. Prior to December 31, 2019, the Partnership had an omnibus agreement with Occidental and the general partner (the “WES omnibus agreement”) that governed (i) the Partnership’s obligation to reimburse Occidental for expenses incurred or payments made on its behalf in connection with Occidental’s provision of general and administrative services provided to the Partnership, including certain public company expenses and general and administrative expenses; (ii) the Partnership’s obligation to pay Occidental, in quarterly installments, an administrative services fee of $250,000 per year, which was subject to an annual increase pursuant to the omnibus agreement; and (iii) the Partnership’s obligation to reimburse Occidental for all insurance coverage expenses it incurred or payments it made on the Partnership’s behalf. The WES omnibus agreement was terminated as part of the December 2019 Agreements (see Note 1 ). The following table summarizes the amounts the Partnership reimbursed to Occidental, separate from, and in addition to, those reimbursed by WES Operating: Year Ended December 31, thousands 2019 2018 2017 General and administrative expenses $ 604 $ 269 $ 263 Public company expenses 4,089 2,895 1,821 Total reimbursement $ 4,693 $ 3,164 $ 2,084 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) WES Operating omnibus agreement. Prior to December 31, 2019, WES Operating had a separate omnibus agreement with Occidental and WES Operating GP (the “WES Operating omnibus agreement”) that governed (i) Occidental’s obligation to indemnify WES Operating for certain liabilities and WES Operating’s obligation to indemnify Occidental for certain liabilities, (ii) WES Operating’s obligation to reimburse Occidental for expenses incurred or payments made on its behalf in conjunction with Occidental’s provision of general and administrative services provided to WES Operating, including salary and benefits of Occidental personnel, public company expenses, general and administrative expenses, and salaries and benefits of WES Operating’s executive management who were employees of Occidental, and (iii) WES Operating’s obligation to reimburse Anadarko for all insurance coverage expenses it incurred or payments it made with respect to WES Operating’s assets. Occidental, in accordance with the partnership agreement and the WES Operating omnibus agreement, determined, in its reasonable discretion, amounts to be reimbursed by WES Operating in exchange for services provided under the WES Operating omnibus agreement. The WES Operating omnibus agreement was terminated as part of the December 2019 Agreements (see Note 1 ). The following table summarizes the amounts WES Operating reimbursed to Occidental pursuant to the WES Operating omnibus agreement: Year Ended December 31, thousands 2019 2018 2017 General and administrative expenses $ 84,039 $ 35,077 $ 31,733 Public company expenses 4,065 15,409 9,379 Total reimbursement $ 88,104 $ 50,486 $ 41,112 Services and secondment agreement. Pursuant to the services and secondment agreement, which was amended and restated on December 31, 2019, and is now referred to as the Services Agreement, specified employees of Occidental are seconded to WES Operating GP to provide, under the direction, supervision, and control of the general partner, operating, routine maintenance, and other services with respect to the assets owned and operated by the Partnership. Occidental is reimbursed for the services provided by the seconded employees. The consolidated financial statements include costs allocated by Occidental for expenses incurred under the services and secondment agreement for periods including and subsequent to the Partnership’s prior asset acquisitions from Anadarko. Pursuant to the Services Agreement, Occidental (i) seconds certain personnel employed by Occidental to WES Operating GP, in exchange for which WES Operating GP pays a monthly secondment and shared services fee to Occidental equivalent to the direct cost of the seconded employees and (ii) continues to provide certain administrative and operational services to the Partnership. The initial term of the Services Agreement is two years and will automatically extend for additional six-month periods unless either party provides a 30-day written notice of termination prior to the initial two-year or additional six-month period expires. However, the Services Agreement provides for the transfer of certain employees to the Partnership, which is anticipated to occur prior to the end of 2020. For additional information on the Services Agreement, see Note 1 . Allocation of costs. For periods prior to the acquisition of assets from Anadarko, the consolidated financial statements include costs allocated by Anadarko in the form of a management services fee. This management services fee was allocated based on the proportionate share of Anadarko’s revenues and expenses or other contractual arrangements. Management believes these allocation methodologies were reasonable. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) Excluding the Partnership’s management team, who became employees of the Partnership on December 31, 2019, pursuant to the Services Agreement, the employees supporting the Partnership’s operations are employees of Occidental. Occidental allocates costs to the Partnership for its share of personnel costs, including costs associated with equity-based compensation plans, non-contributory defined benefit pension and postretirement plans, and defined contribution savings plans. In general, reimbursement to Occidental is either (i) on an actual basis for direct expenses Occidental and the general partner incur on the Partnership’s behalf, or (ii) based on an allocation of salaries and related employee benefits between WES Operating, WES Operating GP, and Occidental, based on estimates of time spent on each entity’s business and affairs. Most general and administrative expenses charged by Occidental are on an actual basis, and no general and administrative expenses, direct or allocable, include a mark-up or subsidy component. With respect to allocated costs, management believes the allocation method employed by Occidental is reasonable. Although it is not practicable to determine what the amount of these direct and allocated costs would be if the Partnership were to directly obtain these services, management believes that aggregate costs charged by Occidental are reasonable. Tax sharing agreements. The Partnership and WES Operating have tax sharing agreements with Occidental, pursuant to which Occidental is reimbursed for the Partnership’s and WES Operating’s estimated share of taxes from all forms of taxation, excluding taxes imposed by the United States. Taxes for which Occidental is reimbursed include state taxes attributable to the Partnership’s and WES Operating’s income that are directly borne by Occidental through its filing of a combined or consolidated tax return. Taxes related to assets previously acquired from Anadarko were reimbursed in periods beginning on and subsequent to the acquisition of such assets. Occidental may use its own tax attributes to reduce or eliminate the tax liability of its combined or consolidated group, which may include the Partnership and WES Operating as members. However, under this circumstance, the Partnership and WES Operating nevertheless are required to reimburse Occidental for the allocable share of taxes that would have been owed had the tax attributes not been available to Occidental. Indemnification agreements. Prior to December 31, 2019, WES Operating GP was indemnified by wholly owned subsidiaries of Occidental against any claims made against WES Operating GP for WES Operating’s long-term debt and/or borrowings under the RCF and Term loan facility. These indemnification agreements were terminated as part of the December 2019 Agreements (see Note 1 ). LTIPs. The general partner has the authority to grant equity compensation awards under the Western Gas Partners, LP 2017 Long-Term Incentive Plan (assumed by the Partnership in connection with the Merger) and the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan (collectively referred to as the “LTIPs”) to its independent directors, executive officers, and Occidental employees performing services for the Partnership from time to time. Phantom units awarded to the independent directors vest one year from the grant date, while all other phantom unit awards are subject to ratable vesting over a three-year service period. The following table summarizes award activity under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan for the years ended December 31, 2019 , 2018 , and 2017 : 2019 2018 2017 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Phantom units outstanding at beginning of year $ 35.08 7,128 $ 43.39 5,763 $ 39.78 5,658 Granted 29.75 25,212 35.08 7,128 43.39 5,763 Vested 31.62 (44,572 ) 43.39 (5,763 ) 39.78 (5,658 ) Converted (1) 33.46 12,232 — — — — Phantom units outstanding at end of year — — 35.08 7,128 43.39 5,763 (1) At closing of the Merger, WES Operating phantom units awarded under the Western Gas Partners, LP 2017 Long-Term Incentive Plan converted into phantom units of the Partnership under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) The following table summarizes award activity under the Western Gas Partners, LP 2017 Long-Term Incentive Plan, which was assumed by the Partnership in connection with the Merger, for the years ended December 31, 2019 , 2018 , and 2017 : 2019 2018 2017 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Phantom units outstanding at beginning of year $ 49.88 8,020 $ 55.73 7,180 $ 49.30 7,304 Granted — — 49.88 8,020 55.73 7,180 Vested — — 55.73 (7,180 ) 49.30 (7,304 ) Converted (1) 49.88 (8,020 ) — — — — Phantom units outstanding at end of year — — 49.88 8,020 55.73 7,180 (1) At closing of the Merger, WES Operating phantom units awarded under the Western Gas Partners, LP 2017 Long-Term Incentive Plan converted into phantom units of the Partnership under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan. Compensation expense for the LTIPs is recognized over the vesting period and was $1.0 million , $0.7 million , and $0.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Incentive Plans. General and administrative expense includes 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 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 $12.9 million , $6.6 million , and $4.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Portions of these amounts are reflected as contributions to partners’ capital in the consolidated statements of equity and partners’ capital. As of December 31, 2019 , $7.9 million of estimated unrecognized compensation expense attributable to the Incentive Plans will be allocated to the Partnership over a weighted-average period of 1.8 years . Affiliate purchases. During the third quarter of 2019, the Partnership purchased $18.4 million of materials and supplies inventory from Occidental, which is included in Other current assets on the consolidated balance sheets. Affiliate asset contributions. The following table summarizes affiliate contributions of other assets to the Partnership: Year Ended December 31, thousands 2019 2018 2017 Cash consideration paid $ (425 ) $ (254 ) $ (3,910 ) Net carrying value 335 59,089 5,283 Partners’ capital adjustment $ (90 ) $ 58,835 $ 1,373 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) Summary of affiliate transactions. The following table summarizes material affiliate transactions included in the Partnership’s consolidated financial statements: Year ended December 31, thousands 2019 2018 2017 Revenues and other (1) $ 1,607,396 $ 1,353,711 $ 1,539,105 Equity income, net – affiliates (1) 237,518 195,469 115,141 Operating expenses Cost of product (1) 254,771 168,535 74,560 Operation and maintenance (1) 146,990 115,948 82,249 General and administrative (2) 101,485 49,672 43,221 Total operating expenses 503,246 334,155 200,030 Interest income (3) 16,900 16,900 16,900 Interest expense (4) 1,970 6,746 224 APCWH Note Payable borrowings 11,000 321,780 98,813 Repayment of APCWH Note Payable 439,595 — — Settlement of the Deferred purchase price obligation – Anadarko (5) — — (37,346 ) Distributions to Partnership unitholders (6) 566,868 400,194 360,523 Distributions to WES Operating unitholders (7) 19,768 7,583 7,100 Above-market component of swap agreements with Anadarko 7,407 51,618 58,551 (1) Represents amounts earned or incurred on and subsequent to the date of the acquisition of assets from Anadarko, and amounts earned or incurred by Anadarko on a historical basis for periods prior to the acquisition of such assets. (2) Represents general and administrative expense incurred on and subsequent to the date of the acquisition of assets from Anadarko, and a management services fee for expenses incurred by Anadarko for periods prior to the acquisition of such assets. These amounts include equity-based compensation expense allocated to the Partnership by Occidental (see LTIPs and Incentive Plans within this Note 6 ) and amounts charged by Occidental under the WES and WES Operating omnibus agreements. (3) Represents interest income recognized on the Anadarko note receivable. (4) Includes amounts related to finance leases and the APCWH Note Payable (see Note 1 and Note 13 ). (5) Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation – Anadarko (see Note 3 ). (6) Represents distributions paid to Occidental pursuant to the partnership agreement of the Partnership (see Note 4 and Note 5 ). (7) Represents distributions paid to certain subsidiaries of Occidental pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5 ). The following table summarizes material affiliate transactions for WES Operating (which are included in the Partnership’s consolidated financial statements) to the extent the amounts differ from the Partnership’s consolidated financial statements: Year ended December 31, thousands 2019 2018 2017 General and administrative (1) $ 99,613 $ 48,819 $ 42,411 Distributions to WES Operating unitholders (2) 1,025,931 514,906 452,777 (1) Represents general and administrative expense incurred on and subsequent to the date of the acquisition of assets from Anadarko, and a management services fee for expenses incurred by Anadarko for periods prior to the acquisition of such assets. These amounts include equity-based compensation expense allocated to WES Operating by Occidental (see LTIPs and Incentive Plans within this Note 6 ) and amounts charged by Occidental pursuant to the WES Operating omnibus agreement. (2) Represents distributions paid to the Partnership and certain subsidiaries of Occidental pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5 ). For the year ended December 31, 2019 , includes distributions to the Partnership and a subsidiary of Occidental related to the repayment of the WGP RCF (see Note 13 ). 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) Concentration of credit risk. Occidental was the only customer from which revenues exceeded 10% of consolidated revenues for all periods presented in the consolidated statements of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES The Partnership is not a taxable entity for U.S. federal income tax purposes. Income attributable to the AMA assets prior to and including February 2019 was subject to federal and state income tax. Following the adoption of the U.S. Tax Cuts and Jobs Act signed into law on December 22, 2017, AMA recognized a one-time deferred tax benefit of $87.3 million due to the remeasurement of its U.S. deferred tax assets and liabilities based on the reduction of the corporate tax rate from 35% to 21% . During 2018, the accounting for the income tax effects related to the adoption of the Tax Reform Legislation was completed before the end of the measurement period. No additional adjustments to the provisional amount recorded in 2017 were recognized. The federal tax benefit is included in the Deferred income taxes balance as presented on the consolidated balance sheets. The components of income tax expense (benefit) are as follows: Year Ended December 31, thousands 2019 2018 2017 Current income tax expense (benefit) Federal income tax expense (benefit) $ 5,550 $ (79,264 ) $ (9,207 ) State income tax expense (benefit) 313 (850 ) 2,422 Total current income tax expense (benefit) 5,863 (80,114 ) (6,785 ) Deferred income tax expense (benefit) Federal income tax expense (benefit) 2,782 133,044 (55,835 ) State income tax expense (benefit) 4,827 6,004 2,697 Total deferred income tax expense (benefit) 7,609 139,048 (53,138 ) Total income tax expense (benefit) $ 13,472 $ 58,934 $ (59,923 ) 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 2019 2018 2017 Income (loss) before income taxes $ 821,172 $ 689,588 $ 677,462 Statutory tax rate — % — % — % Tax computed at statutory rate $ — $ — $ — Adjustments resulting from: U.S. federal tax reform — — (87,306 ) Federal taxes on pre-acquisition income attributable to assets acquired from Anadarko 8,332 54,243 22,353 State taxes on pre-acquisition income attributable to assets acquired from Anadarko (net of federal benefit) — 1,745 164 Texas margin tax expense (benefit) 5,140 2,946 4,866 Income tax expense (benefit) $ 13,472 $ 58,934 $ (59,923 ) Effective tax rate 2 % 9 % (9 )% 7. INCOME TAXES (CONTINUED) The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows: December 31, thousands 2019 2018 Depreciable property $ (18,642 ) $ (280,377 ) Credit carryforwards — 497 Other intangible assets (678 ) (299 ) Other 421 162 Net long-term deferred income tax liabilities $ (18,899 ) $ (280,017 ) |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | 8. PROPERTY, PLANT, AND EQUIPMENT A summary of the historical cost of property, plant, and equipment is as follows: December 31, thousands Estimated Useful Life 2019 2018 Land n/a $ 9,495 $ 5,298 Gathering systems – pipelines 30 years 5,092,004 4,764,099 Gathering systems – compressors 15 years 1,929,377 1,712,939 Processing complexes and treating facilities 25 years 3,237,801 2,844,337 Transportation pipeline and equipment 6 to 45 years 173,572 172,558 Produced-water disposal systems 20 years 754,774 629,946 Assets under construction n/a 486,584 604,265 Other 3 to 40 years 672,064 525,331 Total property, plant, and equipment 12,355,671 11,258,773 Less accumulated depreciation 3,290,740 2,848,420 Net property, plant, and equipment $ 9,064,931 $ 8,410,353 The cost of property classified as “Assets under construction” is excluded from capitalized costs being depreciated. These amounts represent property that is not yet placed into productive service as of the respective balance sheet date. Impairments. During the year ended December 31, 2019 , the Partnership recognized impairments of $6.3 million , primarily at the DJ Basin complex due to impairments of rights-of-way and cancellation of projects. During the year ended December 31, 2018, the Partnership recognized impairments of $230.6 million , including impairments of $125.9 million at the Third Creek gathering system and $8.1 million at the Kitty Draw gathering system. These assets were impaired to estimated salvage values of $1.8 million and zero , respectively, using the market approach and Level-3 fair value inputs, due to the shutdown of these systems in May 2018. During 2018, the Partnership also recognized impairments of $38.7 million and $34.6 million at the Hilight and MIGC systems, respectively. These assets were impaired to estimated fair values of $4.9 million and $15.2 million , respectively, using the income approach and Level-3 fair value inputs, due to a reduction in estimated future cash flows. The remaining $23.3 million of impairments primarily was related to (i) a $10.9 million impairment at the GNB NGL pipeline, which was impaired to estimated fair value of $10.0 million using the income approach and Level-3 fair value inputs, and (ii) a $5.6 million impairment related to an idle facility at the Chipeta complex, which was impaired to estimated salvage value of $1.5 million using the market approach and Level-3 fair value inputs. 8. PROPERTY, PLANT, AND EQUIPMENT (CONTINUED) During the year ended December 31, 2017, the Partnership recognized impairments of $180.1 million , including an impairment of $158.8 million at the Granger complex, which was impaired to estimated fair value of $48.5 million using the income approach and Level-3 fair value inputs, due to a reduced throughput fee as a result of a producer’s bankruptcy. The remaining $21.3 million of impairments primarily was related to (i) an $8.2 million impairment due to the cancellation of a plant project at the Hilight system, (ii) a $3.7 million impairment at the Granger straddle plant, which was impaired to estimated salvage value of $0.6 million using the income approach and Level-3 fair value inputs, (iii) a $3.1 million impairment of the Fort Union equity investment, (iv) a $2.0 million impairment of an idle facility in northeast Wyoming, which was impaired to estimated salvage value of $0.4 million using the market approach and Level-3 fair value inputs, and (v) the cancellation of a pipeline project in West Texas. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | 9. GOODWILL AND 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. In addition, goodwill represents the allocated historic carrying value of midstream goodwill attributed to the Partnership’s assets previously acquired from Anadarko. The carrying value of Anadarko’s midstream goodwill at the time the assets were acquired from Anadarko, represented the excess of the purchase price paid to a third party over the estimated fair value of the identifiable assets acquired and liabilities assumed by Anadarko. Accordingly, the Partnership’s allocated goodwill balance does not represent, and in some cases is significantly different from, the difference between the consideration the Partnership paid for its acquisitions from Anadarko and the fair value of such net assets on their respective acquisition dates. Goodwill is evaluated for impairment annually (see Note 1 ). The Partnership’s annual qualitative goodwill impairment assessment as of October 1, 2019 , indicated no impairment. Qualitative factors also were assessed in the fourth quarter of 2019 to review any changes in circumstances subsequent to the annual test. This assessment also indicated no impairment. Other intangible assets. The intangible asset balance on the consolidated balance sheets includes the fair value, net of amortization, of (i) contracts assumed in connection with the Platte Valley and Wattenberg processing plant acquisitions in 2011, which are being amortized on a straight-line basis over 38 years , (ii) interconnect agreements at Chipeta entered into in November 2012, which are being amortized on a straight-line basis over 10 years , and (iii) 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 intangible assets for impairment together with related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Property, plant, and equipment in Note 1 for further discussion of management’s process to evaluate potential impairment of long-lived assets. No intangible asset impairment has been recognized in these consolidated financial statements. The following table presents the gross carrying amount and accumulated amortization of other intangible assets: December 31, thousands 2019 2018 Gross carrying amount $ 979,863 $ 979,863 Accumulated amortization (170,472 ) (138,455 ) Other intangible assets $ 809,391 $ 841,408 Amortization expense for intangible assets was $32.0 million , $30.8 million , and $30.7 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Intangible asset amortization recorded in each of the next five years is estimated to be $32.0 million for the years ended December 31, 2020 to December 31, 2022, and $31.7 million for the years ended December 31, 2023 and 2024 . |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | 10. EQUITY INVESTMENTS The following tables present the equity-investments activity for the years ended December 31, 2019 and 2018: thousands Balance at December 31, 2017 Acquisitions Equity income, net Contributions (1) Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2018 Fort Union $ 7,030 $ — $ (1,433 ) $ — $ (194 ) $ (3,144 ) $ 2,259 White Cliffs 44,945 — 11,841 1,278 (11,259 ) (3,785 ) 43,020 Rendezvous 42,528 — 767 — (2,709 ) (2,745 ) 37,841 Mont Belvieu JV 110,299 — 29,200 — (29,239 ) (5,311 ) 104,949 TEG 15,879 — 4,290 3,720 (4,368 ) (163 ) 19,358 TEP 178,975 — 37,963 11,980 (33,552 ) (2,168 ) 193,198 FRP 166,555 — 23,308 14,980 (23,481 ) (4,926 ) 176,436 Whitethorn LLC — 150,563 47,088 7,069 (39,497 ) (3,365 ) 161,858 Cactus II — 12,052 — 94,308 — — 106,360 Saddlehorn 109,227 — 15,833 294 (16,017 ) (830 ) 108,507 Panola 23,625 — 2,200 — (2,200 ) (856 ) 22,769 Mi Vida 64,988 — 13,734 — (14,000 ) (91 ) 64,631 Ranch Westex 53,301 — 10,678 — (10,876 ) (2,201 ) 50,902 Total $ 817,352 $ 162,615 $ 195,469 $ 133,629 $ (187,392 ) $ (29,585 ) $ 1,092,088 thousands Balance at December 31, 2018 Acquisitions Equity income, net Contributions (1) Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2019 Fort Union $ 2,259 $ — $ (2,232 ) $ — $ — $ (637 ) $ (610 ) White Cliffs 43,020 — 9,500 5,414 (8,918 ) (3,139 ) 45,877 Rendezvous 37,841 — 769 — (2,710 ) (2,936 ) 32,964 Mont Belvieu JV 104,949 — 28,412 — (28,451 ) (1,874 ) 103,036 TEG 19,358 — 4,088 — (4,110 ) (1,137 ) 18,199 TEP 193,198 — 30,871 12,220 (32,733 ) — 203,556 FRP 176,436 — 32,617 30,175 (31,446 ) — 207,782 Whitethorn LLC 161,858 — 74,548 10,332 (74,856 ) (10,217 ) 161,665 Cactus II 106,360 — 10,755 56,252 (1,202 ) — 172,165 Saddlehorn 108,507 — 25,524 3,550 (24,726 ) — 112,855 Panola 22,769 — 2,136 — (2,137 ) (985 ) 21,783 Mi Vida 64,631 — 10,655 — (12,077 ) (5,402 ) 57,807 Ranch Westex 50,902 — 6,812 — (8,143 ) (2,893 ) 46,678 Red Bluff Express — 92,546 3,063 10,450 (3,063 ) (1,036 ) 101,960 Total $ 1,092,088 $ 92,546 $ 237,518 $ 128,393 $ (234,572 ) $ (30,256 ) $ 1,285,717 (1) Includes capitalized interest of $1.4 million and $3.6 million for the years ended December 31, 2018 and 2019, respectively, related to the construction of the Cactus II pipeline. (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. 10. EQUITY INVESTMENTS (CONTINUED) The investment balance in Fort Union at December 31, 2019 , is $3.1 million less than the Partnership’s underlying equity in Fort Union’s net assets due to an impairment loss recognized by the Partnership in 2017 for its investment in Fort Union. The investment balance in Rendezvous at December 31, 2019 , includes $32.4 million for the purchase price allocated to the investment in Rendezvous in excess of the historic cost basis of 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 is being amortized to Equity income, net – affiliates over the remaining estimated useful life of those facilities. The investment balance in White Cliffs at December 31, 2019 , is $5.8 million less than the Partnership’s underlying equity in White Cliffs’ net assets, primarily due to the Partnership recording the acquisition of its initial 0.4% interest in White Cliffs at Anadarko’s historic carrying value. This difference is being amortized to Equity income, net – affiliates over the remaining estimated useful life of the White Cliffs pipeline. The investment balance in Whitethorn LLC at December 31, 2019 , is $37.3 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 is being amortized to Equity income, net – affiliates over the remaining estimated useful life of Whitethorn. 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. The following tables present the summarized combined financial information for equity investments (amounts represent 100% of investee financial information): Year Ended December 31, thousands 2019 2018 2017 Revenues $ 1,687,116 $ 1,300,921 $ 877,020 Operating income 1,107,664 876,910 542,390 Net income 1,108,173 874,587 540,538 December 31, thousands 2019 2018 Current assets $ 433,390 $ 297,143 Property, plant, and equipment, net 5,754,160 4,251,020 Other assets 175,231 81,769 Total assets $ 6,362,781 $ 4,629,932 Current liabilities 223,171 $ 101,729 Non-current liabilities 27,024 42,431 Equity 6,112,586 4,485,772 Total liabilities and equity $ 6,362,781 $ 4,629,932 |
Components of Working Capital
Components of Working Capital | 12 Months Ended |
Dec. 31, 2019 | |
Components Of Working Capital [Abstract] | |
Components of Working Capital | 11. COMPONENTS OF WORKING CAPITAL A summary of accounts receivable, net is as follows: The Partnership WES Operating December 31, December 31, thousands 2019 2018 2019 2018 Trade receivables, net $ 260,458 $ 221,119 $ 260,694 $ 221,328 Other receivables, net 54 45 54 45 Total accounts receivable, net $ 260,512 $ 221,164 $ 260,748 $ 221,373 A summary of other current assets is as follows: The Partnership WES Operating December 31, December 31, thousands 2019 2018 2019 2018 NGLs inventory $ 906 $ 1,203 $ 906 $ 1,203 Materials and supplies inventory 23,444 9,665 23,444 9,665 Imbalance receivables 4,690 9,035 4,690 9,035 Prepaid insurance 5,676 1,972 3,652 1,972 Contract assets 7,129 5,399 7,129 5,399 Other 93 4,184 93 3,309 Total other current assets $ 41,938 $ 31,458 $ 39,914 $ 30,583 A summary of accrued liabilities is as follows: The Partnership WES Operating December 31, December 31, thousands 2019 2018 2019 2018 Accrued interest expense $ 72,064 $ 70,968 $ 72,064 $ 70,959 Short-term asset retirement obligations 22,472 25,938 22,472 25,938 Short-term remediation and reclamation obligations 3,528 863 3,528 863 Income taxes payable 697 384 697 384 Contract liabilities 19,659 16,235 19,659 16,235 Other (1) 31,373 14,760 31,219 13,495 Total accrued liabilities $ 149,793 $ 129,148 $ 149,639 $ 127,874 (1) Includes amounts related to WES Operating’s interest-rate swap agreements as of December 31, 2019 and 2018 (see Note 13 ). Includes lease liabilities related to the implementation of ASU 2016-02, Leases (Topic 842) as of December 31, 2019 (see Note 1 ). |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Carrying amount of asset retirement obligations at beginning of year $ 325,962 $ 154,571 Liabilities incurred 27,360 34,558 Liabilities settled (17,104 ) (12,432 ) Accretion expense 13,599 7,909 Revisions in estimated liabilities 9,051 141,356 Carrying amount of asset retirement obligations at end of year $ 358,868 $ 325,962 The liabilities incurred for the year ended December 31, 2019 , represented additions in asset retirement obligations primarily due to capital expansions at the West Texas and DJ Basin complexes. Revisions in estimated liabilities for the year ended December 31, 2019 , primarily related to (i) changes in expected settlement costs at the West Texas and DJ Basin complexes and (ii) changes to the expected abandonment timing of transportation assets in Wyoming. The liabilities incurred for the year ended December 31, 2018 , represented additions in asset retirement obligations primarily due to capital expansions at the West Texas and DJ Basin complexes, the DBM water systems, and the DBM oil system. Revisions in estimated liabilities for the year ended December 31, 2018 , primarily included (i) $71.8 million related to changes in expected settlement costs and timing, primarily at the DJ Basin and West Texas complexes and the MGR assets, and (ii) $43.4 million related to the shutdown of the Third Creek gathering system during the second quarter of 2018. See Note 1 for further information. |
Debt and Interest Expense
Debt and Interest Expense | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
Debt and Interest Expense | 13. DEBT AND INTEREST EXPENSE WES Operating is the borrower for all outstanding debt, excluding the WGP RCF, and is expected to be the borrower for all future debt issuances. The following table presents the outstanding debt: December 31, 2019 December 31, 2018 thousands Principal Carrying Value Fair Value (1) Principal Carrying Value Fair Value (1) Short-term debt WGP RCF $ — $ — $ — $ 28,000 $ 28,000 $ 28,000 Finance lease liabilities (2) 7,873 7,873 7,873 — — — Total short-term debt $ 7,873 $ 7,873 $ 7,873 $ 28,000 $ 28,000 $ 28,000 Long-term debt 5.375% Senior Notes due 2021 $ 500,000 $ 498,168 $ 515,042 $ 500,000 $ 496,959 $ 515,990 4.000% Senior Notes due 2022 670,000 669,322 689,784 670,000 669,078 662,109 3.950% Senior Notes due 2025 500,000 493,830 504,968 500,000 492,837 466,135 4.650% Senior Notes due 2026 500,000 496,197 513,393 500,000 495,710 483,994 4.500% Senior Notes due 2028 400,000 395,113 390,920 400,000 394,631 377,475 4.750% Senior Notes due 2028 400,000 396,190 400,962 400,000 395,841 384,370 5.450% Senior Notes due 2044 600,000 593,470 533,710 600,000 593,349 522,386 5.300% Senior Notes due 2048 700,000 686,843 610,841 700,000 686,648 605,327 5.500% Senior Notes due 2048 350,000 342,432 310,198 350,000 342,328 311,536 RCF 380,000 380,000 380,000 220,000 220,000 220,000 Term loan facility 3,000,000 3,000,000 3,000,000 — — — APCWH Note Payable — — — 427,493 427,493 427,493 Total long-term debt $ 8,000,000 $ 7,951,565 $ 7,849,818 $ 5,267,493 $ 5,214,874 $ 4,976,815 (1) Fair value is measured using the market approach and Level-2 fair value inputs. (2) Amounts are considered affiliate. See Note 14 . 13. DEBT AND INTEREST EXPENSE (CONTINUED) Debt activity. The following table presents the debt activity for the years ended December 31, 2019 and 2018: thousands Carrying Value Balance at December 31, 2017 $ 3,591,678 RCF borrowings 540,000 APCWH Note Payable borrowings 321,780 Issuance of 4.500% Senior Notes due 2028 400,000 Issuance of 5.300% Senior Notes due 2048 700,000 Issuance of 4.750% Senior Notes due 2028 400,000 Issuance of 5.500% Senior Notes due 2048 350,000 Repayment of 2.600% Senior Notes due 2018 (350,000 ) Repayments of RCF borrowings (690,000 ) Other (20,584 ) Balance at December 31, 2018 $ 5,242,874 RCF borrowings 1,160,000 Term loan facility borrowings 3,000,000 APCWH Note Payable borrowings 11,000 Finance lease liabilities 7,873 Repayments of RCF borrowings (1,000,000 ) Repayment of WGP RCF borrowings (28,000 ) Repayment of APCWH Note Payable (439,595 ) Other 5,286 Balance at December 31, 2019 $ 7,959,438 WES Operating Senior Notes. At December 31, 2019 , WES Operating was in compliance with all covenants under the relevant governing indentures. WGP RCF. In February 2018, the Partnership voluntarily reduced the aggregate commitment of lenders under the WGP RCF to $35.0 million . The WGP R CF, which previously was available to purchase WES Operating common units and for general partnership purposes, matured in March 2019 and the $28.0 million of outstanding borrowings were repaid. Revolving credit facility. The RCF is expandable to a maximum of $2.5 billion and bears interest at the London Interbank Offered Rate (“LIBOR”), plus applicable margins ranging from 1.00% to 1.50% , 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) LIBOR plus 1.00% , in each case plus applicable margins currently ranging from zero to 0.50% , based on WES Operating’s senior unsecured debt rating. A required quarterly facility fee is paid ranging from 0.125% to 0.250% of the commitment amount (whether drawn or undrawn), which also is based on the senior unsecured debt rating. In December 2019, WES Operating entered into an amendment to the RCF to, among other things, exercise the final one-year extension option to extend the maturity date of the RCF from February 2024 to February 2025, for each extending lender. The maturity date with respect to each non-extending lender, whose commitments represent $100.0 million out of $2.0 billion of total commitments from all lenders, remains February 2024. See Note 1 . As of December 31, 2019 , there were $380.0 million of outstanding borrowings and $4.6 million of outstanding letters of credit, resulting in $1.6 billion of available borrowing capacity under the RCF. As of December 31, 2019 and 2018 , the interest rate on any outstanding RCF borrowings was 3.04% and 3.74% , respectively. The facility fee rate was 0.20% at December 31, 2019 and 2018 . At December 31, 2019 , WES Operating was in compliance with all covenants under the RCF. 13. DEBT AND INTEREST EXPENSE (CONTINUED) Term loan facility. In December 2018, WES Operating entered into the Term loan facility, the proceeds from which were used to fund substantially all of the cash portion of the consideration under the Merger Agreement and the payment of related transaction costs (see Note 1 ). The Term loan facility bears interest at LIBOR, plus applicable margins ranging from 1.000% to 1.625% , 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) LIBOR plus 1.00% , in each case as defined in the Term loan facility and plus applicable margins currently ranging from zero to 0.625% , based on WES Operating’s senior unsecured debt rating. Net cash proceeds received from future asset sales and debt or equity offerings must be used to repay amounts outstanding under the facility. In July 2019, WES Operating entered into an amendment to the Term loan facility to (i) extend the maturity date from February 2020 to December 2020, (ii) increase commitments available under the Term loan facility from $2.0 billion to $3.0 billion , the incremental $1.0 billion of which was subsequently drawn by WES Operating on September 13, 2019, and used to repay outstanding borrowings under the RCF, and (iii) modify the provision requiring that all debt issuance proceeds be used to repay the Term loan facility to allow for a $1.0 billion exclusion for debt-offering proceeds. As of December 31, 2019 , there were $3.0 billion of outstanding borrowings under the Term loan facility that were subject to an interest rate of 3.10% . WES Operating was in compliance with all covenants under the Term loan facility as of December 31, 2019 . The outstanding borrowings under the Term loan facility were classified as Long-term debt on the consolidated balance sheet at December 31, 2019. In January 2020, WES Operating repaid the outstanding borrowings under the Term loan facility with proceeds from the issuance of the Senior Notes and Floating Rate Notes (see Note 16 ). Prior to December 31, 2019, WES Operating GP was indemnified by wholly owned subsidiaries of Occidental against any claims made against WES Operating GP for WES Operating’s long-term debt and/or borrowings under the RCF and Term loan facility. These indemnification agreements were terminated as part of the December 2019 Agreements (see Note 1 ). APCWH Note Payable. In June 2017, in connection with funding the construction of the APC water systems that were acquired as part of the AMA acquisition, APCWH entered into an eight-year note payable agreement with Anadarko. This note payable had a maximum borrowing limit of $500.0 million , including accrued interest, which was payable at maturity at the applicable mid-term federal rate based on a quarterly compounding basis as determined by the U.S. Secretary of the Treasury. As of December 31, 2018 , the interest rate on the outstanding borrowings was 3.04% . The APCWH Note Payable was repaid at Merger completion. See Note 1 . Interest-rate swaps. In December 2018 and March 2019, WES Operating entered into interest-rate swap agreements with an aggregate notional principal amount of $750.0 million and $375.0 million , respectively, to manage interest-rate risk associated with anticipated debt issuances. Pursuant to these swap agreements, WES Operating received a floating interest rate indexed to the three-month LIBOR and paid a fixed interest rate. In November and December 2019, WES Operating entered into additional interest-rate swap agreements with an aggregate notional principal amount of $1,125.0 million . Pursuant to these swap agreements, WES Operating received a fixed interest rate and paid a floating interest rate indexed to the three-month LIBOR, effectively offsetting the swap agreements entered into in December 2018 and March 2019. In December 2019, all outstanding interest-rate swap agreements were cash-settled. As part of the settlement, WES Operating made cash payments of $107.7 million and recorded an accrued liability of $25.6 million to be paid quarterly in 2020. These cash payments were classified as cash flows from operating activities in the consolidated statement of cash flows. 13. DEBT AND INTEREST EXPENSE (CONTINUED) The Partnership did not apply hedge accounting and, therefore, gains and losses associated with the interest-rate swap agreements were recognized in earnings. For the years ended December 31, 2019 and 2018 , net losses of $125.3 million and $8.0 million , respectively, were recognized, which are included in Other income (expense), net in the consolidated statements of operations. Valuation of the interest-rate swaps was based on similar transactions observable in active markets and industry standard models that primarily rely on market-observable inputs. Inputs used to estimate fair value in industry standard models are categorized as Level-2 inputs because substantially all assumptions and inputs are observable in active markets throughout the full term of the instruments. Inputs used to estimate the fair value include market price curves, contract terms and prices, and credit risk adjustments. The fair value of the interest-rate swaps was a liability of $8.0 million at December 31, 2018, which is reported within Accrued liabilities on the consolidated balance sheets. Interest expense. The following table summarizes the amounts included in interest expense: Year Ended December 31, thousands 2019 2018 2017 Third parties Long-term and short-term debt $ (315,872 ) $ (200,454 ) $ (143,400 ) Amortization of debt issuance costs and commitment fees (12,424 ) (9,110 ) (7,970 ) Capitalized interest 26,980 32,479 9,074 Total interest expense – third parties (301,316 ) (177,085 ) (142,296 ) Affiliates APCWH Note Payable (1,833 ) (6,746 ) (153 ) Finance lease liabilities (137 ) — — Deferred purchase price obligation – Anadarko — — (71 ) Total interest expense – affiliates (1,970 ) (6,746 ) (224 ) Interest expense $ (303,286 ) $ (183,831 ) $ (142,520 ) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases | 14. LEASES Lessee. The Partnership has entered into operating leases that extend through 2028 for corporate offices, shared field offices, and equipment supporting the Partnership’s operations, with both Occidental and third parties as lessors. The Partnership also has subleased equipment from Occidental via finance leases extending through April 2020. The following table summarizes information related to the Partnership’s leases at December 31, 2019 : thousands except lease term and discount rate Operating Leases Finance Leases Assets Other assets $ 3,985 $ — Net property, plant, and equipment — 7,892 Total lease assets (1) $ 3,985 $ 7,892 Liabilities Accrued liabilities $ 1,805 $ — Short-term debt — 7,873 Other liabilities 3,035 — Total lease liabilities (1) $ 4,840 $ 7,873 Weighted-average remaining lease term (years) 5 — Weighted-average discount rate 4.7 % 2.9 % (1) Includes additions to ROU assets and lease liabilities of $8.5 million related to finance leases for the year ended December 31, 2019 . Lease expense charged to the Partnership was $56.5 million and $45.5 million for the years ended December 31, 2018 and 2017, respectively. The following table summarizes the Partnership’s lease cost for the year ended December 31, 2019 : thousands Year Ended Operating lease cost $ 6,932 Short-term lease cost 1,295 Variable lease cost 256 Sublease income (414 ) Finance lease cost Amortization of ROU assets 562 Interest on lease liabilities 137 Total lease cost $ 8,768 The following table summarizes cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019 : thousands Operating Leases Finance Leases Operating cash flows $ 7,042 $ 118 Financing cash flows — 508 14. LEASES (CONTINUED) The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2019 : thousands Operating Leases Finance Leases 2020 $ 1,969 $ 7,934 2021 612 — 2022 618 — 2023 625 — 2024 449 — Thereafter 1,209 — Total lease payments 5,482 7,934 Less portion representing imputed interest 642 61 Total lease liabilities $ 4,840 $ 7,873 The amounts in the table below represent contractual operating lease commitments at December 31, 2018 , that were assigned or otherwise charged to the Partnership pursuant to the reimbursement provisions of the omnibus agreement (see Note 1 ): thousands 2019 $ 8,711 2020 2,236 2021 460 2022 467 2023 473 Thereafter 1,547 Total lease payments $ 13,894 |
Lessee, Finance Leases | 14. LEASES Lessee. The Partnership has entered into operating leases that extend through 2028 for corporate offices, shared field offices, and equipment supporting the Partnership’s operations, with both Occidental and third parties as lessors. The Partnership also has subleased equipment from Occidental via finance leases extending through April 2020. The following table summarizes information related to the Partnership’s leases at December 31, 2019 : thousands except lease term and discount rate Operating Leases Finance Leases Assets Other assets $ 3,985 $ — Net property, plant, and equipment — 7,892 Total lease assets (1) $ 3,985 $ 7,892 Liabilities Accrued liabilities $ 1,805 $ — Short-term debt — 7,873 Other liabilities 3,035 — Total lease liabilities (1) $ 4,840 $ 7,873 Weighted-average remaining lease term (years) 5 — Weighted-average discount rate 4.7 % 2.9 % (1) Includes additions to ROU assets and lease liabilities of $8.5 million related to finance leases for the year ended December 31, 2019 . Lease expense charged to the Partnership was $56.5 million and $45.5 million for the years ended December 31, 2018 and 2017, respectively. The following table summarizes the Partnership’s lease cost for the year ended December 31, 2019 : thousands Year Ended Operating lease cost $ 6,932 Short-term lease cost 1,295 Variable lease cost 256 Sublease income (414 ) Finance lease cost Amortization of ROU assets 562 Interest on lease liabilities 137 Total lease cost $ 8,768 The following table summarizes cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019 : thousands Operating Leases Finance Leases Operating cash flows $ 7,042 $ 118 Financing cash flows — 508 14. LEASES (CONTINUED) The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2019 : thousands Operating Leases Finance Leases 2020 $ 1,969 $ 7,934 2021 612 — 2022 618 — 2023 625 — 2024 449 — Thereafter 1,209 — Total lease payments 5,482 7,934 Less portion representing imputed interest 642 61 Total lease liabilities $ 4,840 $ 7,873 The amounts in the table below represent contractual operating lease commitments at December 31, 2018 , that were assigned or otherwise charged to the Partnership pursuant to the reimbursement provisions of the omnibus agreement (see Note 1 ): thousands 2019 $ 8,711 2020 2,236 2021 460 2022 467 2023 473 Thereafter 1,547 Total lease payments $ 13,894 |
Lessor, Operating Leases | Lessor. Effective December 31, 2019, an affiliate of Occidental and a wholly owned subsidiary of the Partnership, entered into an operating and maintenance agreement, pursuant to which Occidental provides operational and maintenance services with respect to a crude-oil gathering system and associated treating facilities owned by the Partnership through December 31, 2021. This agreement includes (i) fixed consideration, which is measured as the minimum-volume commitment for both gathering and treating, and (ii) variable consideration, which consists of all volumes above the minimum-volume commitment. Subsequent to the initial two-year term, the agreement provides for automatic one-year extensions, unless either party exercises its option to terminate the lease with advance notice. The following table presents the undiscounted cash flows expected to be received for all operating leases in effect as of December 31, 2019 . This presentation includes minimum fixed lease payments and does not include an estimate of variable lease consideration. thousands 2020 $ 157,582 2021 193,925 2022 — 2023 — 2024 — Thereafter — Total lease payments $ 351,507 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. 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, 2019 and 2018 , the consolidated balance sheets included $5.4 million and $1.7 million , respectively, of liabilities for remediation and reclamation obligations. The current portion of these amounts is included in Accrued liabilities and the long-term portion of these amounts is included in Other liabilities. The recorded obligations do not include any anticipated insurance recoveries. The majority of payments related to these obligations are expected to be made over the next five years. 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. See Note 11 and Note 12 . 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 short-term payment obligations, or commitments, related to its capital spending programs, and those of its unconsolidated affiliates, the majority of which is expected to be paid in the next twelve months. These commitments primarily relate to construction and expansion projects at the West Texas and DJ Basin complexes, DBM oil system, and DBM water systems. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENTS In January 2020, WES Operating issued the following notes: • $1.0 billion in aggregate principal amount of 3.100% Senior Notes due 2025, $1.2 billion in aggregate principal amount of 4.050% Senior Notes due 2030, and $1.0 billion in aggregate principal amount of 5.250% Senior Notes due 2050, offered to the public at prices of 99.962% , 99.900% , and 99.442% , respectively, of the face amount (collectively referred to as the “Senior Notes”). Interest is paid on each such series semi-annually on February 1 and August 1 of each year, beginning August 1, 2020; and • $300.0 million in aggregate principal amount of floating rate Senior Notes due 2023 (the “Floating Rate Notes”). Interest is paid quarterly in arrears on January 13, April 13, July 13, and October 13 of each year, beginning April 13, 2020. Interest will accrue from January 13, 2020 at a benchmark rate (which will initially be a three-month LIBOR rate) on the interest determination date plus 0.85% . The interest payable on the Senior Notes and Floating Rate Notes will be subject to adjustment from time to time if the credit rating assigned to the notes declines below certain specified levels or if it declines and subsequently increases. The net proceeds from the Senior Notes and Floating Rate Notes were used to repay the $3.0 billion outstanding borrowings under the Term loan facility, outstanding amounts under the RCF, and for general partnership purposes. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation policy | Noncontrolling interests. For periods subsequent to Merger completion, 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% Occidental subsidiary-owned limited partner interest in WES Operating. For periods prior to Merger completion, the Partnership’s noncontrolling interests in the consolidated financial statements consisted of (i) the 25% third-party interest in Chipeta, (ii) the publicly held limited partner interests in WES Operating, (iii) the common units issued by WES Operating to subsidiaries of Anadarko as part of the consideration paid for prior acquisitions from Anadarko, (iv) the Class C units issued by WES Operating to a subsidiary of Anadarko as part of the funding for the acquisition of DBM, and (v) the WES Operating Series A Preferred units issued to private investors as part of the funding of the Springfield acquisition, until converted into WES Operating common units in 2017. For all periods presented, WES Operating’s noncontrolling interest in the consolidated financial statements consisted of the 25% third-party interest in Chipeta. See Note 5 . When WES Operating issues equity, the carrying amount of the noncontrolling interest reported by the Partnership is adjusted to reflect the noncontrolling ownership interest in WES Operating. The resulting impact of such noncontrolling interest adjustment on the Partnership’s interest in WES Operating is reflected as an adjustment to the Partnership’s partners’ capital. Basis of presentation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The consolidated financial statements include the accounts of the Partnership and entities in which it holds a controlling financial interest, including WES Operating and WES Operating GP. 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: 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 50.00 % Ranch Westex 50.00 % FRP 33.33 % Red Bluff Express 30.00 % Mont Belvieu JV 25.00 % Rendezvous 22.00 % TEP 20.00 % TEG 20.00 % Whitethorn LLC 20.00 % Saddlehorn 20.00 % Cactus II 15.00 % Panola 15.00 % Fort Union 14.81 % 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, in addition to the noncontrolling interests noted 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 and Note 5 ), (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) the senior secured revolving credit facility (“WGP RCF”) until its repayment in March 2019. See Note 13 . |
Business combinations policy | 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, 2019 (see Note 10 ). 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; therefore, the Partnership’s prior asset acquisitions from Anadarko were classified as transfers of net assets between entities under common control. As such, assets acquired from Anadarko initially were recorded at Anadarko’s historic carrying value, which did not equate to the total acquisition price paid by the Partnership. Further, subsequent to asset acquisitions from Anadarko, the Partnership was required to recast its financial statements to include the activities of acquired assets from the date of common control. For reporting periods that required recast, the consolidated financial statements for periods prior to the acquisition of assets from Anadarko were prepared from Anadarko’s historical cost-basis accounts and may not be necessarily indicative of the actual results of operations that would have occurred if the Partnership had owned the assets during the periods reported. Net income (loss) attributable to the assets acquired from Anadarko for periods prior to the Partnership’s acquisition of such assets was not allocated to the limited partners. |
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, and certain prior-period amounts have been reclassified to conform to the current-year presentation. |
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 multiples 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 sales prices, estimates of future throughput, capital and operating costs and the timing thereof, economic and regulatory climates, and other factors. A multiples 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 prices, costs, and other factors, and are consistent with assumptions used in the Partnership’s business plans and investment decisions. 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, initial recognition of asset retirement obligations, and initial recognition of environmental obligations assumed in a third-party acquisition. Impairment analyses for long-lived assets, goodwill and other intangibles, and the initial recognition of asset retirement obligations and environmental 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. See Note 13 . The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable 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. |
Allowance for uncollectible accounts policy | Allowance for uncollectible accounts. Exposure to bad debts is analyzed on a customer-by-customer basis for affiliate and third-party accounts receivable and the Partnership may establish credit limits for significant affiliate and third-party customers. The allowance for uncollectible accounts was immaterial at December 31, 2019 and 2018 . |
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 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, 2019 , imbalance receivables and payables were $4.7 million and $2.7 million , respectively. As of December 31, 2018 , imbalance receivables and payables were $9.0 million and $9.6 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 inventories 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 line-fill inventory and NGLs inventory are reported in Other assets and Other current assets, respectively, on the consolidated balance sheets. See Note 11 . |
Property, plant, and equipment policy | Property, plant, and equipment. Property, plant, and equipment generally is stated at the lower of historical cost less accumulated depreciation or fair value if impaired. Because prior acquisitions of assets from Anadarko were transfers of net assets between entities under common control, the assets acquired initially were 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. However, subsequent events could cause a change in estimates, 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 evaluates the ability to recover the carrying amount of its long-lived assets to determine whether its long-lived assets have been impaired. Impairments exist when the carrying amount of an asset exceeds estimates of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. When alternative courses of action to recover the carrying amount of a long-lived asset are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence. If the carrying amount of the long-lived asset is not recoverable based on the estimated future undiscounted cash flows, the impairment loss is measured as the excess of the asset’s carrying amount over its estimated fair value, such that the asset’s carrying amount is adjusted to its estimated fair value with an offsetting charge to impairment expense. Refer to Note 8 for a description of impairments recorded during the years ended December 31, 2019 , 2018 , and 2017 . 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Insurance recoveries. Involuntary conversions result from the loss of an asset because of unforeseen events (e.g., destruction due to fire). Some of these events are insurable and result in property damage insurance recovery. Amounts that are received from insurance carriers are net of any deductibles related to the covered event. A receivable is recorded from insurance to the extent a loss is recognized from an involuntary conversion event and the likelihood of recovering such loss is deemed probable. To the extent that any insurance claim receivables are later judged not probable of recovery (e.g., due to new information), such amounts are expensed. A gain on involuntary conversion is recognized when the amount received from insurance exceeds the net book value of the retired asset(s). In addition, gains related to insurance recoveries are not recognized until all contingencies related to such proceeds have been resolved; that is, a cash payment is received from the insurance carrier or there is a binding settlement agreement with the carrier that clearly states that a payment will be made. To the extent that an asset is rebuilt, the associated expenditures are capitalized, as appropriate, on the consolidated balance sheets and presented as Capital expenditures in the consolidated statements of cash flows. With respect to business interruption insurance claims, income is recognized only when cash proceeds are received from insurers, which are presented in the consolidated statements of operations as a component of Operating income (loss). In December 2015, there was an initial fire and secondary explosion at the processing facility within the DBM complex. The majority of the damage from the incident was to the liquid-handling facilities and the amine-treating units at the inlet of the complex. During the year ended December 31, 2017, a $5.7 million loss was recorded in Gain (loss) on divestiture and other, net in the consolidated statements of operations, related to a change in the Partnership’s estimate of the amount that would be recovered under the property insurance claim based on continued discussions with insurers. During the second quarter of 2017, the Partnership reached a settlement with insurers and final proceeds were received. During the year ended December 31, 2017, the Partnership received $52.9 million in cash proceeds from insurers, including $29.9 million in proceeds from business interruption insurance claims and $23.0 million in proceeds from property insurance claims. |
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. Once construction of an asset subject to interest capitalization is substantially complete, the associated capitalized interest is expensed through depreciation or impairment. |
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 has allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment 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 amount, 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 amount, then a quantitative assessment must be performed. If the quantitative assessment indicates that the carrying amount 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 impairment expense. See Note 9 . |
Other intangible assets policy | Other intangible assets. The Partnership assesses intangible assets, as described in Note 9 , for impairment together with related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Property, plant, and equipment within this Note 1 for further discussion of management’s process to evaluate potential impairment of long-lived assets. |
Asset retirement obligations and environmental expenditures policy | Asset retirement obligations. A liability based on the estimated costs of retiring tangible long-lived assets is recognized as an asset retirement obligation in the period incurred. The liability is recognized at fair value, measured using discounted expected future cash outflows for the asset retirement obligation when the obligation originates, which generally is when an asset is acquired or constructed. The carrying amount of the associated asset is increased commensurate with the liability recognized. Over time, the discounted liability is adjusted to its expected settlement value through accretion expense, which is reported within Depreciation and amortization in the consolidated statements of operations. Subsequent to the initial recognition, the liability is also adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to property, plant, and equipment) until the obligation is settled. Revisions in estimated asset retirement obligations may result from changes in estimated inflation rates, discount rates, asset retirement costs, and the estimated timing of settling asset retirement obligations. See Note 12 . Environmental expenditures. The Partnership expenses environmental obligations related to conditions caused by past operations that do not generate current or future revenues. Environmental obligations related to operations that generate current or future revenues are expensed or capitalized, as appropriate. Liabilities are recorded when the necessity for environmental remediation or other potential environmental liabilities becomes probable and the costs can be reasonably estimated. Accruals for estimated losses from environmental-remediation obligations are recognized no later than at the time of the completion of the remediation feasibility study. 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 15 . |
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. |
Revenue and cost of product policy | Revenue and cost of product. On January 1, 2018, the Partnership adopted Revenue from Contracts with Customers (Topic 606) (“Topic 606”) and changed its accounting policy for revenue recognition as described below. The 2017 financial information was not adjusted and is reported under Revenue Recognition (Topic 605) . 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. 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. The Partnership also recognizes revenue and cost of product expense from marketing services performed on behalf of its customers by Occidental. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Partnership also receives Service revenues – fee based from contracts that have minimum-volume commitment demand fees and fees that require periodic rate redeterminations based on the related facility cost of service. These fees 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. 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. 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 and percent-of-product agreements 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 from product sales also is recognized, 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. When the product is sold to Occidental, Occidental is acting as the Partnership’s agent in the product sale, with the Partnership recognizing revenue and related cost of product expense associated with these marketing activities based on the Occidental sales price to the 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 as 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. |
Equity-based compensation policy | Equity-based compensation. The general partner awards phantom units under the Western Gas Partners, LP 2017 Long-Term Incentive Plan (assumed by the Partnership in connection with the Merger) and the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan to its independent directors, executive officers, and Occidental employees performing services for the Partnership from time to time. As of December 31, 2019 , the Western Gas Partners, LP 2017 Long-Term Incentive Plan and the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan had 3,419,020 and 2,911,985 units, respectively, available for future issuance. At vesting, each phantom unit under the Western Gas Partners, LP 2017 Long-Term Incentive Plan or the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan, the holder will receive common units of the Partnership, or, at the discretion of the general partner’s Board of Directors (the “Board of Directors”), cash in an amount equal to the market value of the common units on the vesting date. Equity-based compensation expense attributable to grants made under the plans impacts cash flows from operating activities only to the extent cash payments are made to a participant in lieu of issuance of the common units to the participant. Equity-based compensation expense attributable to awards granted under the plans is amortized over the vesting periods applicable to the awards. Additionally, general and administrative expense includes 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 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. Grants made under equity-based compensation plans result in equity-based compensation expense, which is determined by reference to the fair value of equity compensation. For equity-based awards ultimately settled through the issuance of units or stock, the fair value is measured as of the date of the relevant equity grant. Portions of these amounts are reflected as contributions to partners’ capital in the consolidated statements of equity and partners’ capital. Any unrecognized compensation expense attributable to these plans is allocated to the Partnership over a weighted-average period applicable to the awards. See Note 6 . |
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 application of such accounting policy resulted in no deferred income taxes being recognized for the book and tax basis difference in goodwill, which is non-deductible for tax purposes for all periods presented. The Partnership had no material uncertain tax positions at December 31, 2019 or 2018 . 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, 2019 or 2018 . |
New accounting standards policy | Recently adopted accounting standards. ASU 2016-02, Leases (Topic 842) requires lessee recognition of a lease liability and a right-of-use (“ROU”) asset for all leases, including operating leases, with a term greater than 12 months on the balance sheet. This ASU modifies the definition of a lease and outlines the recognition, measurement, presentation, and disclosure of leasing arrangements by lessees and lessors. The Partnership adopted this standard on January 1, 2019, using the modified retrospective method applied to all leases in existence on January 1, 2019, and prior-period financial statements were not adjusted. The Partnership elected not to reassess contracts that commenced prior to adoption, to continue applying its current accounting policy for existing or expired land easements, and not to recognize ROU assets or lease liabilities for short-term leases. |
Leases 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 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. |
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. |
Net income (loss) per common unit policy | Partnership’s net income (loss) per common unit. Subsequent to entering into the Exchange Agreement, 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 to its unitholders an amount of cash 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 all of the net income for the period. See Note 5 . WES Operating’s net income (loss) per common unit. For periods subsequent to the closing of the Merger, net income (loss) per common unit for WES Operating is not calculated as it no longer has publicly traded units. For periods prior to the closing of the Merger, WES Operating applied the two-class method in determining net income (loss) per unit applicable to master limited partnerships having multiple classes of securities, including common units, Class C units, general partner units, and IDRs. See Note 5 . Partnership’s net income (loss) per common unit. As of December 31, 2019, following the transactions contemplated to the Exchange Agreement, 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. Specifically, net income equal to the amount of available cash (as defined by the partnership agreement) was allocated to the common and general partner unitholders consistent with actual cash distributions and capital account allocations. Undistributed earnings (net income in excess of distributions) or undistributed losses (available cash in excess of net income) were then allocated to the common and general partner unitholders in accordance with their weighted-average ownership percentage during each period. 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. Net income (loss) attributable to assets acquired from Anadarko for periods prior to the acquisition of such assets was not allocated to the limited partners when calculating net income (loss) per common unit. For periods prior to the Merger, dilutive net income (loss) per common unit was calculated by dividing the limited partners’ interest in net income (loss) adjusted for distributions on the WES Operating Series A Preferred units and a reallocation of the limited partners’ interest in net income (loss) assuming, prior to the actual conversion, conversion of the WES Operating Series A Preferred units into WES Operating common units, by the weighted-average number of the Partnership’s common units outstanding during the period. As of May 2, 2017, all WES Operating Series A Preferred units were converted into WES Operating common units on a one -for-one basis. The impact of the WES Operating Series A Preferred units assuming, prior to the actual conversion, conversion to WES Operating common units would be anti-dilutive for the year ended December 31, 2017. 5. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) WES Operating’s net income (loss) per common unit. For periods subsequent to the closing of the Merger, net income (loss) per common unit for WES Operating is not calculated as it no longer has publicly traded units. For periods prior to the closing of the Merger, Net income (loss) attributable to Western Midstream Operating, LP earned on and subsequent to the date of acquisition of the Partnership’s assets was allocated in the below-described manner. Net income (loss) attributable to assets acquired from Anadarko for periods prior to the acquisition of such assets was not allocated to the unitholders for purposes of calculating net income (loss) per common unit. WES Operating GP. The general partner’s allocation was equal to cash distributions plus its portion of undistributed earnings or losses. Specifically, net income equal to the amount of available cash (as defined by WES Operating’s partnership agreement) was allocated to the general partner consistent with actual cash distributions and capital account allocations, including incentive distributions. Undistributed earnings (net income in excess of distributions) or undistributed losses (available cash in excess of net income) were then allocated to the general partner in accordance with its weighted-average ownership percentage during each period. WES Operating Series A Preferred unitholders. The Series A Preferred units were not considered a participating security as they only had distribution rights up to the specified per-unit quarterly distribution and had no rights to WES Operating’s undistributed earnings and losses. As such, the Series A Preferred unitholders’ allocation was equal to their cash distribution plus the amortization of the Series A Preferred units beneficial conversion feature (see WES Operating Series A Preferred units above). WES Operating Common and Class C unitholders. The Class C units were considered a participating security because they participated in distributions with common units according to a predetermined formula (see Note 4 ). The common and Class C unitholders’ allocation was equal to their cash distributions plus their respective allocations of undistributed earnings or losses. Specifically, net income equal to the amount of available cash (as defined by the WES Operating partnership agreement) was allocated to the common and Class C unitholders consistent with actual cash distributions and capital account allocations. Undistributed earnings or undistributed losses were then allocated to the common and Class C unitholders in accordance with their respective weighted-average ownership percentages during each period. The common unitholder allocation also included the impact of the amortization of the Class C units beneficial conversion feature. Similarly, the Class C unitholder allocation was impacted by the amortization of the Class C units beneficial conversion feature (see WES Operating Class C units above). Calculation of net income (loss) per unit. |
Derivatives policy | The Partnership did not apply hedge accounting and, therefore, gains and losses associated with the interest-rate swap agreements were recognized in earnings. For the years ended December 31, 2019 and 2018 , net losses of $125.3 million and $8.0 million , respectively, were recognized, which are included in Other income (expense), net in the consolidated statements of operations. Valuation of the interest-rate swaps was based on similar transactions observable in active markets and industry standard models that primarily rely on market-observable inputs. Inputs used to estimate fair value in industry standard models are categorized as Level-2 inputs because substantially all assumptions and inputs are observable in active markets throughout the full term of the instruments. Inputs used to estimate the fair value include market price curves, contract terms and prices, and credit risk adjustments. The fair value of the interest-rate swaps was a liability of $8.0 million at December 31, 2018, which is reported within Accrued liabilities on the consolidated balance sheets. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Assets and Investments Table | As of December 31, 2019 , the Partnership’s assets and investments consisted of the following: Wholly Owned and Operated Operated Interests Non-Operated Interests Equity Interests Gathering systems (1) 17 2 3 2 Treating facilities 37 3 — 3 Natural-gas processing plants/trains 25 3 — 5 NGLs pipelines 2 — — 4 Natural-gas pipelines 5 — — 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: 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 50.00 % Ranch Westex 50.00 % FRP 33.33 % Red Bluff Express 30.00 % Mont Belvieu JV 25.00 % Rendezvous 22.00 % TEP 20.00 % TEG 20.00 % Whitethorn LLC 20.00 % Saddlehorn 20.00 % Cactus II 15.00 % Panola 15.00 % Fort Union 14.81 % 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, in addition to the noncontrolling interests noted 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, 2019 | |
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 2019 2018 Revenue from customers Service revenues – fee based $ 2,388,191 $ 1,905,728 Service revenues – product based 70,127 88,785 Product sales 287,055 310,895 Total revenue from customers 2,745,373 2,305,408 Revenue from other than customers Net gains (losses) on commodity-price swap agreements (667 ) (7,875 ) Other 1,468 2,125 Total revenues and other $ 2,746,174 $ 2,299,658 |
Contract Assets and Liabilities Activity Tables | The following table summarizes current-period activity related to contract assets from contracts with customers: thousands Balance at December 31, 2018 $ 47,621 Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period (4,841 ) Additional estimated revenues recognized 14,698 Cumulative catch-up adjustment for change in estimated consideration due to an annual cost-of-service rate update 9,879 Balance at December 31, 2019 $ 67,357 Contract assets at December 31, 2019 Other current assets $ 7,129 Other assets 60,228 Total contract assets from contracts with customers $ 67,357 thousands Balance at December 31, 2018 $ 145,624 Cash received or receivable, excluding revenues recognized during the period 75,166 Revenues recognized that were included in the contract liability balance at the beginning of the period (12,110 ) Cumulative catch-up adjustment for change in estimated consideration due to an annual cost-of-service rate update 13,594 Balance at December 31, 2019 $ 222,274 Contract liabilities at December 31, 2019 Accrued liabilities $ 19,659 Other liabilities 202,615 Total contract liabilities from contracts with customers $ 222,274 |
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 2020 $ 736,055 2021 776,068 2022 1,030,527 2023 973,799 2024 943,514 Thereafter 3,534,725 Total $ 7,994,688 |
Partnership Distributions (Tabl
Partnership Distributions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Cash Distributions Tables | For the below-presented periods, WES Operating paid the cash distributions to WES Operating’s common and general partner unitholders as follows: thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Distribution 2017 March 31 $ 0.875 $ 188,753 May 2017 June 30 0.890 207,491 August 2017 September 30 0.905 212,038 November 2017 December 31 0.920 216,586 February 2018 2018 March 31 $ 0.935 $ 221,133 May 2018 June 30 0.950 225,691 August 2018 September 30 0.965 230,239 November 2018 December 31 0.980 234,787 February 2019 thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Distribution 2017 (1) March 31 $ 0.49125 $ 107,549 May 2017 June 30 0.52750 115,487 August 2017 September 30 0.53750 117,677 November 2017 December 31 0.54875 120,140 February 2018 2018 (1) March 31 $ 0.56875 $ 124,518 May 2018 June 30 0.58250 127,531 August 2018 September 30 0.59500 130,268 November 2018 December 31 0.60250 131,910 February 2019 2019 March 31 $ 0.61000 $ 276,324 May 2019 June 30 0.61800 279,959 August 2019 September 30 0.62000 280,880 November 2019 December 31 (2) 0.62200 281,786 February 2020 (1) The 2017 and 2018 distributions were declared and paid prior to the closing of the Merger. (2) The Board of Directors declared a cash distribution to the Partnership’s unitholders for the fourth quarter of 2019 of $0.62200 per unit, or $281.8 million in aggregate. The cash distribution was paid on February 13, 2020 , to unitholders of record at the close of business on January 31, 2020 , including the general partner units that were issued on December 31, 2019 (see Note 1 ). |
Equity and Partners' Capital (T
Equity and Partners' Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Partners' Capital Notes [Abstract] | |
Partnership Interests Table | The following table summarizes WES Operating’s units issued during the years ended December 31, 2019 and 2018: Common Units Class C Units General Partner Units Total Balance at December 31, 2017 152,602,105 13,243,883 2,583,068 168,429,056 PIK Class C units — 1,128,782 — 1,128,782 Vesting of Long-Term Incentive Plan Awards 7,180 — — 7,180 Balance at December 31, 2018 152,609,285 14,372,665 2,583,068 169,565,018 PIK Class C units — 308,723 — 308,723 Conversion of Class C units 14,681,388 (14,681,388 ) — — IDR and General partner unit conversion 105,624,704 — (2,583,068 ) 103,041,636 Units issued as part of the AMA acquisition 45,760,201 — — 45,760,201 Balance at December 31, 2019 (1) 318,675,578 — — 318,675,578 (1) All WES Operating common units that converted into the Partnership’s common units at closing of the Merger were canceled and an equivalent amount of the canceled WES Operating common units were issued to the Partnership. See Note 1 for further details on the units issued and converted in connection with the closing of the Merger. In February 2019, the Partnership issued common units in connection with the closing of the Merger (see Note 1 ) as follows: Partnership common units outstanding prior to the Merger 218,937,797 WES Operating common units outstanding prior to the Merger 152,609,285 WES Operating Class C units outstanding prior to the Merger 14,681,388 Less: WES Operating common units owned by the Partnership (50,132,046 ) WES Operating common units subject to conversion into Partnership common units 117,158,627 Exchange ratio per unit 1.525 Partnership common units issued for WES Operating common units (1) 178,692,081 WES Operating common units issued as part of the AMA acquisition 45,760,201 Less: WES Operating common units retained by a subsidiary of Anadarko (6,375,284 ) WES Operating acquisition common units subject to conversion into Partnership common units 39,384,917 Conversion ratio per unit 1.4056 Partnership common units issued for WES Operating acquisition common units 55,360,984 Partnership common units outstanding at February 28, 2019 452,990,862 (1) Total Partnership units issued at Merger completion exceeds the calculation of such units using the exchange ratio due to the rounding convention described in the Merger Agreement. |
Calculation of Net Income (Loss) Per Unit Table | The following table illustrates the calculation of WES Operating’s net income (loss) per common unit: Year Ended December 31, thousands except per-unit amounts 2018 2017 Net income (loss) attributable to Western Midstream Operating, LP $ 627,917 $ 731,666 Pre-acquisition net (income) loss allocated to Anadarko (182,142 ) (164,183 ) Series A Preferred units interest in net (income) loss (1) — (42,373 ) General partner interest in net (income) loss (346,538 ) (303,835 ) Common and Class C limited partners’ interest in net income (loss) $ 99,237 $ 221,275 Net income (loss) allocable to common units (1) $ 84,334 $ 192,066 Net income (loss) allocable to Class C units (1) 14,903 29,209 Common and Class C limited partners’ interest in net income (loss) $ 99,237 $ 221,275 Net income (loss) per unit Common units – basic and diluted (2) $ 0.55 $ 1.30 Weighted-average units outstanding Common units – basic and diluted 152,606 147,194 Excluded due to anti-dilutive effect: Class C units (2) 13,795 12,776 Series A Preferred units assuming conversion to common units (2) — 5,406 (1) Adjusted to reflect amortization of the beneficial conversion features. (2) The impact of Class C units would be anti-dilutive for the periods presented and the conversion of Series A Preferred units would be anti-dilutive for the year ended December 31, 2017. On March 1, 2017, 50% of the outstanding Series A Preferred units converted into common units on a one -for-one basis, and on May 2, 2017, all remaining Series A Preferred units converted into common units on a one -for-one basis. |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |
Commodity Price Swap Agreements Tables | The tables below summarize the swap prices compared to the forward market prices: DJ Basin Complex per barrel except natural gas 2017 - 2018 Swap Prices 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 18.41 $ 5.09 $ 5.41 Propane 47.08 18.85 28.72 Isobutane 62.09 26.83 32.92 Normal butane 54.62 26.20 32.71 Natural gasoline 72.88 41.84 48.04 Condensate 76.47 45.40 49.36 Natural gas (per MMBtu) 5.96 3.05 2.21 MGR Assets per barrel except natural gas 2017 - 2018 Swap Prices 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 23.11 $ 4.08 $ 2.52 Propane 52.90 19.24 25.83 Isobutane 73.89 25.79 30.03 Normal butane 64.93 25.16 29.82 Natural gasoline 81.68 45.01 47.25 Condensate 81.68 53.55 56.76 Natural gas (per MMBtu) 4.87 3.05 2.21 (1) Represents the New York Mercantile Exchange forward strip price as of December 1, 2016 and December 20, 2017, for the 2017 Market Prices and 2018 Market Prices, respectively, adjusted for product specification, location, basis, and, in the case of NGLs, transportation and fractionation costs. |
Related Party Transactions Tables | The following table summarizes the amounts the Partnership reimbursed to Occidental, separate from, and in addition to, those reimbursed by WES Operating: Year Ended December 31, thousands 2019 2018 2017 General and administrative expenses $ 604 $ 269 $ 263 Public company expenses 4,089 2,895 1,821 Total reimbursement $ 4,693 $ 3,164 $ 2,084 The following table summarizes material affiliate transactions included in the Partnership’s consolidated financial statements: Year ended December 31, thousands 2019 2018 2017 Revenues and other (1) $ 1,607,396 $ 1,353,711 $ 1,539,105 Equity income, net – affiliates (1) 237,518 195,469 115,141 Operating expenses Cost of product (1) 254,771 168,535 74,560 Operation and maintenance (1) 146,990 115,948 82,249 General and administrative (2) 101,485 49,672 43,221 Total operating expenses 503,246 334,155 200,030 Interest income (3) 16,900 16,900 16,900 Interest expense (4) 1,970 6,746 224 APCWH Note Payable borrowings 11,000 321,780 98,813 Repayment of APCWH Note Payable 439,595 — — Settlement of the Deferred purchase price obligation – Anadarko (5) — — (37,346 ) Distributions to Partnership unitholders (6) 566,868 400,194 360,523 Distributions to WES Operating unitholders (7) 19,768 7,583 7,100 Above-market component of swap agreements with Anadarko 7,407 51,618 58,551 (1) Represents amounts earned or incurred on and subsequent to the date of the acquisition of assets from Anadarko, and amounts earned or incurred by Anadarko on a historical basis for periods prior to the acquisition of such assets. (2) Represents general and administrative expense incurred on and subsequent to the date of the acquisition of assets from Anadarko, and a management services fee for expenses incurred by Anadarko for periods prior to the acquisition of such assets. These amounts include equity-based compensation expense allocated to the Partnership by Occidental (see LTIPs and Incentive Plans within this Note 6 ) and amounts charged by Occidental under the WES and WES Operating omnibus agreements. (3) Represents interest income recognized on the Anadarko note receivable. (4) Includes amounts related to finance leases and the APCWH Note Payable (see Note 1 and Note 13 ). (5) Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation – Anadarko (see Note 3 ). (6) Represents distributions paid to Occidental pursuant to the partnership agreement of the Partnership (see Note 4 and Note 5 ). (7) Represents distributions paid to certain subsidiaries of Occidental pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5 ). Year Ended December 31, thousands 2019 2018 2017 Cash consideration paid $ (425 ) $ (254 ) $ (3,910 ) Net carrying value 335 59,089 5,283 Partners’ capital adjustment $ (90 ) $ 58,835 $ 1,373 |
LTIP Award Activity Tables | The following table summarizes award activity under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan for the years ended December 31, 2019 , 2018 , and 2017 : 2019 2018 2017 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Phantom units outstanding at beginning of year $ 35.08 7,128 $ 43.39 5,763 $ 39.78 5,658 Granted 29.75 25,212 35.08 7,128 43.39 5,763 Vested 31.62 (44,572 ) 43.39 (5,763 ) 39.78 (5,658 ) Converted (1) 33.46 12,232 — — — — Phantom units outstanding at end of year — — 35.08 7,128 43.39 5,763 (1) At closing of the Merger, WES Operating phantom units awarded under the Western Gas Partners, LP 2017 Long-Term Incentive Plan converted into phantom units of the Partnership under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) The following table summarizes award activity under the Western Gas Partners, LP 2017 Long-Term Incentive Plan, which was assumed by the Partnership in connection with the Merger, for the years ended December 31, 2019 , 2018 , and 2017 : 2019 2018 2017 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Phantom units outstanding at beginning of year $ 49.88 8,020 $ 55.73 7,180 $ 49.30 7,304 Granted — — 49.88 8,020 55.73 7,180 Vested — — 55.73 (7,180 ) 49.30 (7,304 ) Converted (1) 49.88 (8,020 ) — — — — Phantom units outstanding at end of year — — 49.88 8,020 55.73 7,180 (1) At closing of the Merger, WES Operating phantom units awarded under the Western Gas Partners, LP 2017 Long-Term Incentive Plan converted into phantom units of the Partnership under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan. |
WES Operating [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transactions Tables | The following table summarizes material affiliate transactions for WES Operating (which are included in the Partnership’s consolidated financial statements) to the extent the amounts differ from the Partnership’s consolidated financial statements: Year ended December 31, thousands 2019 2018 2017 General and administrative (1) $ 99,613 $ 48,819 $ 42,411 Distributions to WES Operating unitholders (2) 1,025,931 514,906 452,777 (1) Represents general and administrative expense incurred on and subsequent to the date of the acquisition of assets from Anadarko, and a management services fee for expenses incurred by Anadarko for periods prior to the acquisition of such assets. These amounts include equity-based compensation expense allocated to WES Operating by Occidental (see LTIPs and Incentive Plans within this Note 6 ) and amounts charged by Occidental pursuant to the WES Operating omnibus agreement. (2) Represents distributions paid to the Partnership and certain subsidiaries of Occidental pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5 ). For the year ended December 31, 2019 , includes distributions to the Partnership and a subsidiary of Occidental related to the repayment of the WGP RCF (see Note 13 ). The following table summarizes the amounts WES Operating reimbursed to Occidental pursuant to the WES Operating omnibus agreement: Year Ended December 31, thousands 2019 2018 2017 General and administrative expenses $ 84,039 $ 35,077 $ 31,733 Public company expenses 4,065 15,409 9,379 Total reimbursement $ 88,104 $ 50,486 $ 41,112 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 2017 Current income tax expense (benefit) Federal income tax expense (benefit) $ 5,550 $ (79,264 ) $ (9,207 ) State income tax expense (benefit) 313 (850 ) 2,422 Total current income tax expense (benefit) 5,863 (80,114 ) (6,785 ) Deferred income tax expense (benefit) Federal income tax expense (benefit) 2,782 133,044 (55,835 ) State income tax expense (benefit) 4,827 6,004 2,697 Total deferred income tax expense (benefit) 7,609 139,048 (53,138 ) Total income tax expense (benefit) $ 13,472 $ 58,934 $ (59,923 ) |
Tax Rate Reconciliation Table | The sources of these differences are as follows: Year Ended December 31, thousands except percentages 2019 2018 2017 Income (loss) before income taxes $ 821,172 $ 689,588 $ 677,462 Statutory tax rate — % — % — % Tax computed at statutory rate $ — $ — $ — Adjustments resulting from: U.S. federal tax reform — — (87,306 ) Federal taxes on pre-acquisition income attributable to assets acquired from Anadarko 8,332 54,243 22,353 State taxes on pre-acquisition income attributable to assets acquired from Anadarko (net of federal benefit) — 1,745 164 Texas margin tax expense (benefit) 5,140 2,946 4,866 Income tax expense (benefit) $ 13,472 $ 58,934 $ (59,923 ) Effective tax rate 2 % 9 % (9 )% |
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 2019 2018 Depreciable property $ (18,642 ) $ (280,377 ) Credit carryforwards — 497 Other intangible assets (678 ) (299 ) Other 421 162 Net long-term deferred income tax liabilities $ (18,899 ) $ (280,017 ) |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Land n/a $ 9,495 $ 5,298 Gathering systems – pipelines 30 years 5,092,004 4,764,099 Gathering systems – compressors 15 years 1,929,377 1,712,939 Processing complexes and treating facilities 25 years 3,237,801 2,844,337 Transportation pipeline and equipment 6 to 45 years 173,572 172,558 Produced-water disposal systems 20 years 754,774 629,946 Assets under construction n/a 486,584 604,265 Other 3 to 40 years 672,064 525,331 Total property, plant, and equipment 12,355,671 11,258,773 Less accumulated depreciation 3,290,740 2,848,420 Net property, plant, and equipment $ 9,064,931 $ 8,410,353 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets Table | The following table presents the gross carrying amount and accumulated amortization of other intangible assets: December 31, thousands 2019 2018 Gross carrying amount $ 979,863 $ 979,863 Accumulated amortization (170,472 ) (138,455 ) Other intangible assets $ 809,391 $ 841,408 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments Tables | The following tables present the equity-investments activity for the years ended December 31, 2019 and 2018: thousands Balance at December 31, 2017 Acquisitions Equity income, net Contributions (1) Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2018 Fort Union $ 7,030 $ — $ (1,433 ) $ — $ (194 ) $ (3,144 ) $ 2,259 White Cliffs 44,945 — 11,841 1,278 (11,259 ) (3,785 ) 43,020 Rendezvous 42,528 — 767 — (2,709 ) (2,745 ) 37,841 Mont Belvieu JV 110,299 — 29,200 — (29,239 ) (5,311 ) 104,949 TEG 15,879 — 4,290 3,720 (4,368 ) (163 ) 19,358 TEP 178,975 — 37,963 11,980 (33,552 ) (2,168 ) 193,198 FRP 166,555 — 23,308 14,980 (23,481 ) (4,926 ) 176,436 Whitethorn LLC — 150,563 47,088 7,069 (39,497 ) (3,365 ) 161,858 Cactus II — 12,052 — 94,308 — — 106,360 Saddlehorn 109,227 — 15,833 294 (16,017 ) (830 ) 108,507 Panola 23,625 — 2,200 — (2,200 ) (856 ) 22,769 Mi Vida 64,988 — 13,734 — (14,000 ) (91 ) 64,631 Ranch Westex 53,301 — 10,678 — (10,876 ) (2,201 ) 50,902 Total $ 817,352 $ 162,615 $ 195,469 $ 133,629 $ (187,392 ) $ (29,585 ) $ 1,092,088 thousands Balance at December 31, 2018 Acquisitions Equity income, net Contributions (1) Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2019 Fort Union $ 2,259 $ — $ (2,232 ) $ — $ — $ (637 ) $ (610 ) White Cliffs 43,020 — 9,500 5,414 (8,918 ) (3,139 ) 45,877 Rendezvous 37,841 — 769 — (2,710 ) (2,936 ) 32,964 Mont Belvieu JV 104,949 — 28,412 — (28,451 ) (1,874 ) 103,036 TEG 19,358 — 4,088 — (4,110 ) (1,137 ) 18,199 TEP 193,198 — 30,871 12,220 (32,733 ) — 203,556 FRP 176,436 — 32,617 30,175 (31,446 ) — 207,782 Whitethorn LLC 161,858 — 74,548 10,332 (74,856 ) (10,217 ) 161,665 Cactus II 106,360 — 10,755 56,252 (1,202 ) — 172,165 Saddlehorn 108,507 — 25,524 3,550 (24,726 ) — 112,855 Panola 22,769 — 2,136 — (2,137 ) (985 ) 21,783 Mi Vida 64,631 — 10,655 — (12,077 ) (5,402 ) 57,807 Ranch Westex 50,902 — 6,812 — (8,143 ) (2,893 ) 46,678 Red Bluff Express — 92,546 3,063 10,450 (3,063 ) (1,036 ) 101,960 Total $ 1,092,088 $ 92,546 $ 237,518 $ 128,393 $ (234,572 ) $ (30,256 ) $ 1,285,717 (1) Includes capitalized interest of $1.4 million and $3.6 million for the years ended December 31, 2018 and 2019, respectively, related to the construction of the Cactus II pipeline. (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. |
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 2019 2018 2017 Revenues $ 1,687,116 $ 1,300,921 $ 877,020 Operating income 1,107,664 876,910 542,390 Net income 1,108,173 874,587 540,538 December 31, thousands 2019 2018 Current assets $ 433,390 $ 297,143 Property, plant, and equipment, net 5,754,160 4,251,020 Other assets 175,231 81,769 Total assets $ 6,362,781 $ 4,629,932 Current liabilities 223,171 $ 101,729 Non-current liabilities 27,024 42,431 Equity 6,112,586 4,485,772 Total liabilities and equity $ 6,362,781 $ 4,629,932 |
Components of Working Capital (
Components of Working Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 2019 2018 Trade receivables, net $ 260,458 $ 221,119 $ 260,694 $ 221,328 Other receivables, net 54 45 54 45 Total accounts receivable, net $ 260,512 $ 221,164 $ 260,748 $ 221,373 |
Other Current Assets Table | A summary of other current assets is as follows: The Partnership WES Operating December 31, December 31, thousands 2019 2018 2019 2018 NGLs inventory $ 906 $ 1,203 $ 906 $ 1,203 Materials and supplies inventory 23,444 9,665 23,444 9,665 Imbalance receivables 4,690 9,035 4,690 9,035 Prepaid insurance 5,676 1,972 3,652 1,972 Contract assets 7,129 5,399 7,129 5,399 Other 93 4,184 93 3,309 Total other current assets $ 41,938 $ 31,458 $ 39,914 $ 30,583 |
Accrued Liabilities Table | A summary of accrued liabilities is as follows: The Partnership WES Operating December 31, December 31, thousands 2019 2018 2019 2018 Accrued interest expense $ 72,064 $ 70,968 $ 72,064 $ 70,959 Short-term asset retirement obligations 22,472 25,938 22,472 25,938 Short-term remediation and reclamation obligations 3,528 863 3,528 863 Income taxes payable 697 384 697 384 Contract liabilities 19,659 16,235 19,659 16,235 Other (1) 31,373 14,760 31,219 13,495 Total accrued liabilities $ 149,793 $ 129,148 $ 149,639 $ 127,874 (1) Includes amounts related to WES Operating’s interest-rate swap agreements as of December 31, 2019 and 2018 (see Note 13 ). Includes lease liabilities related to the implementation of ASU 2016-02, Leases (Topic 842) as of December 31, 2019 (see Note 1 ). |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Carrying amount of asset retirement obligations at beginning of year $ 325,962 $ 154,571 Liabilities incurred 27,360 34,558 Liabilities settled (17,104 ) (12,432 ) Accretion expense 13,599 7,909 Revisions in estimated liabilities 9,051 141,356 Carrying amount of asset retirement obligations at end of year $ 358,868 $ 325,962 |
Debt and Interest Expense (Tabl
Debt and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
Debt Outstanding and Debt Activity Tables | The following table presents the outstanding debt: December 31, 2019 December 31, 2018 thousands Principal Carrying Value Fair Value (1) Principal Carrying Value Fair Value (1) Short-term debt WGP RCF $ — $ — $ — $ 28,000 $ 28,000 $ 28,000 Finance lease liabilities (2) 7,873 7,873 7,873 — — — Total short-term debt $ 7,873 $ 7,873 $ 7,873 $ 28,000 $ 28,000 $ 28,000 Long-term debt 5.375% Senior Notes due 2021 $ 500,000 $ 498,168 $ 515,042 $ 500,000 $ 496,959 $ 515,990 4.000% Senior Notes due 2022 670,000 669,322 689,784 670,000 669,078 662,109 3.950% Senior Notes due 2025 500,000 493,830 504,968 500,000 492,837 466,135 4.650% Senior Notes due 2026 500,000 496,197 513,393 500,000 495,710 483,994 4.500% Senior Notes due 2028 400,000 395,113 390,920 400,000 394,631 377,475 4.750% Senior Notes due 2028 400,000 396,190 400,962 400,000 395,841 384,370 5.450% Senior Notes due 2044 600,000 593,470 533,710 600,000 593,349 522,386 5.300% Senior Notes due 2048 700,000 686,843 610,841 700,000 686,648 605,327 5.500% Senior Notes due 2048 350,000 342,432 310,198 350,000 342,328 311,536 RCF 380,000 380,000 380,000 220,000 220,000 220,000 Term loan facility 3,000,000 3,000,000 3,000,000 — — — APCWH Note Payable — — — 427,493 427,493 427,493 Total long-term debt $ 8,000,000 $ 7,951,565 $ 7,849,818 $ 5,267,493 $ 5,214,874 $ 4,976,815 (1) Fair value is measured using the market approach and Level-2 fair value inputs. (2) Amounts are considered affiliate. See Note 14 . 13. DEBT AND INTEREST EXPENSE (CONTINUED) Debt activity. The following table presents the debt activity for the years ended December 31, 2019 and 2018: thousands Carrying Value Balance at December 31, 2017 $ 3,591,678 RCF borrowings 540,000 APCWH Note Payable borrowings 321,780 Issuance of 4.500% Senior Notes due 2028 400,000 Issuance of 5.300% Senior Notes due 2048 700,000 Issuance of 4.750% Senior Notes due 2028 400,000 Issuance of 5.500% Senior Notes due 2048 350,000 Repayment of 2.600% Senior Notes due 2018 (350,000 ) Repayments of RCF borrowings (690,000 ) Other (20,584 ) Balance at December 31, 2018 $ 5,242,874 RCF borrowings 1,160,000 Term loan facility borrowings 3,000,000 APCWH Note Payable borrowings 11,000 Finance lease liabilities 7,873 Repayments of RCF borrowings (1,000,000 ) Repayment of WGP RCF borrowings (28,000 ) Repayment of APCWH Note Payable (439,595 ) Other 5,286 Balance at December 31, 2019 $ 7,959,438 |
Interest Expense Table | The following table summarizes the amounts included in interest expense: Year Ended December 31, thousands 2019 2018 2017 Third parties Long-term and short-term debt $ (315,872 ) $ (200,454 ) $ (143,400 ) Amortization of debt issuance costs and commitment fees (12,424 ) (9,110 ) (7,970 ) Capitalized interest 26,980 32,479 9,074 Total interest expense – third parties (301,316 ) (177,085 ) (142,296 ) Affiliates APCWH Note Payable (1,833 ) (6,746 ) (153 ) Finance lease liabilities (137 ) — — Deferred purchase price obligation – Anadarko — — (71 ) Total interest expense – affiliates (1,970 ) (6,746 ) (224 ) Interest expense $ (303,286 ) $ (183,831 ) $ (142,520 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Leases Table | The following table summarizes information related to the Partnership’s leases at December 31, 2019 : thousands except lease term and discount rate Operating Leases Finance Leases Assets Other assets $ 3,985 $ — Net property, plant, and equipment — 7,892 Total lease assets (1) $ 3,985 $ 7,892 Liabilities Accrued liabilities $ 1,805 $ — Short-term debt — 7,873 Other liabilities 3,035 — Total lease liabilities (1) $ 4,840 $ 7,873 Weighted-average remaining lease term (years) 5 — Weighted-average discount rate 4.7 % 2.9 % (1) Includes additions to ROU assets and lease liabilities of $8.5 million related to finance leases for the year ended December 31, 2019 . |
Summary of Lease Cost and Cash Flow Activity Tables | The following table summarizes the Partnership’s lease cost for the year ended December 31, 2019 : thousands Year Ended Operating lease cost $ 6,932 Short-term lease cost 1,295 Variable lease cost 256 Sublease income (414 ) Finance lease cost Amortization of ROU assets 562 Interest on lease liabilities 137 Total lease cost $ 8,768 The following table summarizes cash paid for amounts included in the measurement of lease liabilities for the year ended December 31, 2019 : thousands Operating Leases Finance Leases Operating cash flows $ 7,042 $ 118 Financing cash flows — 508 |
Lessee, Operating Leases Maturity Tables | The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2019 : thousands Operating Leases Finance Leases 2020 $ 1,969 $ 7,934 2021 612 — 2022 618 — 2023 625 — 2024 449 — Thereafter 1,209 — Total lease payments 5,482 7,934 Less portion representing imputed interest 642 61 Total lease liabilities $ 4,840 $ 7,873 The amounts in the table below represent contractual operating lease commitments at December 31, 2018 , that were assigned or otherwise charged to the Partnership pursuant to the reimbursement provisions of the omnibus agreement (see Note 1 ): thousands 2019 $ 8,711 2020 2,236 2021 460 2022 467 2023 473 Thereafter 1,547 Total lease payments $ 13,894 |
Lessee, Finance Leases Maturity Table | The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2019 : thousands Operating Leases Finance Leases 2020 $ 1,969 $ 7,934 2021 612 — 2022 618 — 2023 625 — 2024 449 — Thereafter 1,209 — Total lease payments 5,482 7,934 Less portion representing imputed interest 642 61 Total lease liabilities $ 4,840 $ 7,873 |
Lessor, Operating Leases Maturity Table | The following table presents the undiscounted cash flows expected to be received for all operating leases in effect as of December 31, 2019 . This presentation includes minimum fixed lease payments and does not include an estimate of variable lease consideration. thousands 2020 $ 157,582 2021 193,925 2022 — 2023 — 2024 — Thereafter — Total lease payments $ 351,507 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Assets and Investments Table (Details) | Dec. 31, 2019unit |
Wholly Owned and Operated [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 17 |
Wholly Owned and Operated [Member] | Treating Facilities [Member] | |
Assets [Line Items] | |
Assets, number of units | 37 |
Wholly Owned and Operated [Member] | Natural-Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 25 |
Wholly Owned and Operated [Member] | Natural-Gas Liquids Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 2 |
Wholly Owned and Operated [Member] | Natural-Gas Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 5 |
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 | 2 |
Equity Interests [Member] | Treating Facilities [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Equity Interests [Member] | Natural-Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 5 |
Equity Interests [Member] | Natural-Gas Liquids Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 4 |
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 - Ownership Interests and Method of Consolidation Table (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Chipeta [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Ownership interest by noncontrolling interest owner | 25.00% |
Full Consolidation [Member] | Chipeta [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Percentage ownership interest | 75.00% |
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 | 50.00% |
Equity Investments [Member] | Ranch Westex [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 50.00% |
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 | 30.00% |
Equity Investments [Member] | Mont Belvieu JV [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 25.00% |
Equity Investments [Member] | Rendezvous [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 22.00% |
Equity Investments [Member] | Texas Express Pipeline [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 20.00% |
Equity Investments [Member] | Texas Express Gathering [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 20.00% |
Equity Investments [Member] | Whitethorn LLC [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 20.00% |
Equity Investments [Member] | Saddlehorn [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 20.00% |
Equity Investments [Member] | Cactus II [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 15.00% |
Equity Investments [Member] | Panola [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 15.00% |
Equity Investments [Member] | Fort Union [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 14.81% |
Equity Investments [Member] | White Cliffs [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity investment ownership percentage | 10.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | Jan. 31, 2020 | Dec. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 01, 2019 | Dec. 19, 2018 | |
Common units outstanding | 443,971,409 | 443,971,409 | 218,937,797 | ||||||
Acquisitions | $ 92,546,000 | $ 162,615,000 | |||||||
General partner units outstanding | 9,060,641 | 9,060,641 | 0 | ||||||
Conversion ratio per unit | 1.525 | ||||||||
Revenues and other | $ 2,746,174,000 | $ 2,299,658,000 | $ 2,429,614,000 | ||||||
Impairments | 6,279,000 | 230,584,000 | 180,051,000 | ||||||
Imbalance receivables | $ 4,690,000 | 4,690,000 | 9,035,000 | ||||||
Imbalance payables | $ 2,700,000 | 2,700,000 | 9,600,000 | ||||||
Gain (loss) on divestiture and other, net | [1],[2] | (1,406,000) | 1,312,000 | 132,388,000 | |||||
Proceeds from property insurance claims | $ 0 | 0 | 22,977,000 | ||||||
Western Gas Partners 2017 Long-Term Incentive Plan [Member] | |||||||||
Units available under LTIP | 3,419,020 | 3,419,020 | |||||||
Western Gas Equity Partners 2012 Long-Term Incentive Plan [Member] | |||||||||
Units available under LTIP | 2,911,985 | 2,911,985 | |||||||
Kitty Draw and Third Creek Gathering Systems [Member] | |||||||||
Impairments | 134,000,000 | ||||||||
Delaware Basin Midstream Complex [Member] | |||||||||
Gain (loss) on divestiture and other, net | (5,700,000) | ||||||||
Proceeds from insurance claims, total | 52,900,000 | ||||||||
Proceeds from business interruption insurance claims | 29,900,000 | ||||||||
Proceeds from property insurance claims | 23,000,000 | ||||||||
Affiliates [Member] | |||||||||
Revenues and other | $ 1,607,396,000 | 1,353,711,000 | 1,539,105,000 | ||||||
Affiliates [Member] | Product Sales [Member] | |||||||||
Revenues and other | 158,459,000 | 280,306,000 | 753,724,000 | ||||||
Affiliates [Member] | Product Sales [Member] | Kitty Draw and Third Creek Gathering Systems [Member] | |||||||||
Revenues and other | $ 6,100,000 | $ (10,900,000) | |||||||
Anadarko Midstream Assets [Member] | |||||||||
Conversion ratio per unit | 1.4056 | ||||||||
Subsequent Event [Member] | |||||||||
Cash contribution from affiliate | $ 20,000,000 | ||||||||
WES Operating [Member] | |||||||||
Ownership interest by noncontrolling interest owner | 2.00% | 2.00% | |||||||
Chipeta [Member] | |||||||||
Ownership interest by noncontrolling interest owner | 25.00% | 25.00% | |||||||
WES [Member] | Common Units [Member] | |||||||||
Common units outstanding | 452,990,862 | 218,937,797 | |||||||
Conversion of units | 178,692,081 | ||||||||
WES [Member] | Common Units [Member] | Anadarko Midstream Assets [Member] | |||||||||
Conversion of units | 55,360,984 | ||||||||
WES [Member] | WES Operating [Member] | |||||||||
Ownership interest | 98.00% | ||||||||
General partner units outstanding | 2,583,068 | ||||||||
WES [Member] | WES Operating [Member] | Common Units [Member] | |||||||||
Common units outstanding | 50,132,046 | ||||||||
Occidental [Member] | WES [Member] | |||||||||
Ownership interest | 53.40% | ||||||||
General partner's interest | 2.00% | 2.00% | |||||||
Common units outstanding | 242,136,976 | 242,136,976 | |||||||
General partner units outstanding | 9,060,641 | 9,060,641 | |||||||
Occidental [Member] | WES [Member] | Common Units [Member] | |||||||||
Common units outstanding | 9,060,641 | 9,060,641 | |||||||
Occidental [Member] | WES Operating [Member] | |||||||||
Ownership interest | 2.00% | ||||||||
WES Operating [Member] | |||||||||
Units issued | 308,723 | 1,128,782 | |||||||
General partner units outstanding | 0 | 0 | 2,583,068 | ||||||
Conversion of units | 0 | ||||||||
Revenues and other | $ 2,746,174,000 | $ 2,299,658,000 | 2,429,614,000 | ||||||
Impairments | 6,279,000 | 230,584,000 | 180,051,000 | ||||||
Imbalance receivables | $ 4,690,000 | 4,690,000 | 9,035,000 | ||||||
Gain (loss) on divestiture and other, net | [3],[4] | (1,406,000) | 1,312,000 | 132,388,000 | |||||
Proceeds from property insurance claims | 0 | 0 | 22,977,000 | ||||||
WES Operating [Member] | Affiliates [Member] | |||||||||
Revenues and other | 1,607,396,000 | 1,353,711,000 | 1,539,105,000 | ||||||
WES Operating [Member] | Affiliates [Member] | Product Sales [Member] | |||||||||
Revenues and other | $ 158,459,000 | $ 280,306,000 | $ 753,724,000 | ||||||
WES Operating [Member] | Anadarko Midstream Assets [Member] | |||||||||
Units issued | 45,760,201 | ||||||||
WES Operating [Member] | Anadarko Midstream Assets [Member] | Anadarko [Member] | |||||||||
Cash payment for acquisition | $ 1,814,000,000 | ||||||||
Acquisitions | 193,900,000 | ||||||||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | |||||||||
Facility, maximum borrowing capacity | $ 2,000,000,000 | ||||||||
WES Operating [Member] | Term Loan Facility [Member] | Revolving Credit Facility [Member] | |||||||||
Facility, maximum borrowing capacity | $ 3,000,000,000 | $ 2,000,000,000 | |||||||
WES Operating [Member] | Common Units [Member] | |||||||||
Common units outstanding | 152,609,285 | ||||||||
Conversion of units | 105,624,704 | 14,681,388 | |||||||
WES Operating [Member] | Common Units [Member] | Anadarko Midstream Assets [Member] | |||||||||
Units issued | 45,760,201 | 45,760,201 | |||||||
WES Operating [Member] | Class C Units [Member] | |||||||||
Common units outstanding | 14,681,388 | ||||||||
Units issued | 308,723 | 1,128,782 | |||||||
Class C units, common units issued upon conversion | 1 | ||||||||
Conversion of units | (14,681,388) | ||||||||
Anadarko [Member] | WES Operating [Member] | Common Units [Member] | |||||||||
Common units outstanding | 6,400,000 | 6,400,000 | |||||||
Anadarko [Member] | WES Operating [Member] | Common Units [Member] | Anadarko Midstream Assets [Member] | |||||||||
Common units outstanding | 6,375,284 | ||||||||
[1] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | ||||||||
[2] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | ||||||||
[3] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . | ||||||||
[4] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1 . |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from customers | $ 2,745,373 | $ 2,305,408 | |
Revenue from other than customers, other | 1,468 | 2,125 | |
Total revenues and other | 2,746,174 | 2,299,658 | $ 2,429,614 |
Service Revenues - Fee Based [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customers | 2,388,191 | 1,905,728 | |
Service Revenues - Product Based [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customers | 70,127 | 88,785 | |
Product Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customers | 287,055 | 310,895 | |
Commodity-Price Swap Agreement [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from other than customers | $ (667) | $ (7,875) |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Contracts with Customer, Asset [Roll Forward] | |||
Balance at December 31, 2018 | $ 47,621 | ||
Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period | (4,841) | ||
Additional estimated revenues recognized | 14,698 | ||
Cumulative catch-up adjustment for change in estimated consideration due to an annual cost-of-service rate update | 9,879 | ||
Balance at December 31, 2019 | 67,357 | ||
Contract assets at December 31, 2019 | |||
Other current assets | $ 7,129 | $ 5,399 | |
Other assets | 60,228 | ||
Total contract assets from contracts with customers | $ 67,357 | $ 67,357 | $ 47,621 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Liabilities Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Contracts with Customer, Liability [Roll Forward] | |||
Balance at December 31, 2018 | $ 145,624 | ||
Cash received or receivable, excluding revenues recognized during the period | 75,166 | ||
Revenues recognized that were included in the contract liability balance at the beginning of the period | (12,110) | ||
Cumulative catch-up adjustment for change in estimated consideration due to an annual cost-of-service rate update | 13,594 | ||
Balance at December 31, 2019 | 222,274 | ||
Contract liabilities at December 31, 2019 | |||
Accrued liabilities | $ 19,659 | $ 16,235 | |
Other liabilities | 202,615 | ||
Total contract liabilities from contracts with customers | $ 222,274 | $ 222,274 | $ 145,624 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Expected Revenues Table (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 736,055 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 776,068 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 1,030,527 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 973,799 |
Performance obligation expected to be satisfied, expected timing | 1 year |
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 | $ 943,514 |
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 | $ 7,994,688 |
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, 2019 | Dec. 31, 2018 | |
Revenue from Contracts with Customer [Line Items] | |||
Accounts receivable, net | [1] | $ 260,512 | $ 221,164 |
Customers [Member] | |||
Revenue from Contracts with Customer [Line Items] | |||
Accounts receivable, net | $ 362,600 | $ 214,300 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.3 million and $72.6 million as of December 31, 2019 and 2018, respectively. |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) $ in Thousands | Feb. 28, 2019 | Jan. 18, 2019USD ($) | Dec. 14, 2018USD ($) | Jun. 27, 2018USD ($) | Jun. 01, 2018USD ($) | Mar. 17, 2017USD ($) | Mar. 31, 2019MBbls / dMcf / dmibbl | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||||||
Acquisition, net investment | $ 92,546 | $ 162,615 | |||||||||
Newcastle System [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Proceeds from the sale of assets | $ 3,200 | ||||||||||
Gain (loss) on sale of assets | 600 | ||||||||||
Helper And Clawson Systems [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gain (loss) on sale of assets | $ 16,300 | ||||||||||
Affiliates [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Cash payment for acquisition | 2,007,926 | 254 | 3,910 | ||||||||
Cash payment to settle the Deferred purchase price obligation - Anadarko | [1] | 0 | 0 | 37,346 | |||||||
Deferred Purchase Price Obligation - Anadarko [Member] | Affiliates [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Cash payment to settle the Deferred purchase price obligation - Anadarko | $ 0 | $ 0 | 37,346 | ||||||||
Non-Operated Marcellus Interest [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Percentage ownership interest | 33.75% | ||||||||||
Newcastle System [Member] | Newcastle System [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Percentage ownership interest | 50.00% | ||||||||||
Wattenberg Processing Plant [Member] | Cryogenic Train [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gas processing capacity | Mcf / d | 190,000 | ||||||||||
Wattenberg Processing Plant [Member] | Refrigeration Train [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gas processing capacity | Mcf / d | 80,000 | ||||||||||
DJ Basin Oil System [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Oil processing capacity | MBbls / d | 155 | ||||||||||
DJ Basin Oil System [Member] | Pipelines [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Pipeline miles | mi | 12 | ||||||||||
DJ Basin Oil System [Member] | Storage Tank [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Storage capacity - barrels | bbl | 500,000 | ||||||||||
DBM Oil System [Member] | Pipelines [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Pipeline miles | mi | 14 | ||||||||||
DBM Oil System [Member] | Storage Tank [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Storage capacity - barrels | bbl | 30,000 | ||||||||||
DBM Oil System [Member] | Central Production Facilities [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Oil processing capacity | MBbls / d | 75 | ||||||||||
DBM Oil System [Member] | Regional Oil Treating Facilities [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Oil processing capacity | MBbls / d | 120 | ||||||||||
APC Water Systems [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Produced-water processing capacity | MBbls / d | 565 | ||||||||||
Saddlehorn [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Ownership percentage acquired | 20.00% | ||||||||||
Saddlehorn [Member] | Storage Tank [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Storage capacity - barrels | bbl | 300,000 | ||||||||||
Panola [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Ownership percentage acquired | 15.00% | ||||||||||
Panola [Member] | Pipelines [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Pipeline miles | mi | 248 | ||||||||||
Mi Vida [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gas processing capacity | Mcf / d | 200,000 | ||||||||||
Ownership percentage acquired | 50.00% | ||||||||||
Ranch Westex [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Ownership percentage acquired | 50.00% | ||||||||||
Ranch Westex [Member] | Cryogenic Train [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gas processing capacity | Mcf / d | 100,000 | ||||||||||
Ranch Westex [Member] | Refrigeration Train [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Gas processing capacity | Mcf / d | 25,000 | ||||||||||
Red Bluff Express [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Ownership percentage acquired | 30.00% | ||||||||||
Acquisition, net investment | $ 92,500 | ||||||||||
Whitethorn LLC [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Ownership percentage acquired | 20.00% | ||||||||||
Acquisition, net investment | $ 150,600 | ||||||||||
Cactus II [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Ownership percentage acquired | 15.00% | ||||||||||
Acquisition, net investment | $ 12,100 | ||||||||||
Delaware Basin JV Gathering LLC [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Ownership percentage acquired | 50.00% | ||||||||||
Cash payment for acquisition | $ 155,000 | ||||||||||
Gain (loss) recognized on property exchange | 125,700 | ||||||||||
Delaware Basin JV Gathering LLC [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | Affiliates [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Cash payment to settle the Deferred purchase price obligation - Anadarko | $ 37,300 | ||||||||||
Delaware Basin JV Gathering LLC [Member] | Delaware Basin JV Gathering LLC [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Percentage ownership interest | 50.00% | ||||||||||
[1] | See Note 3. |
Partnership Distributions - Cas
Partnership Distributions - Cash Distributions Tables (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Total quarterly per-unit distribution | $ 0.62200 | $ 0.62000 | $ 0.61800 | $ 0.61000 | $ 0.60250 | $ 0.59500 | $ 0.58250 | $ 0.56875 | $ 0.54875 | $ 0.53750 | $ 0.52750 | $ 0.49125 |
Total quarterly cash distribution | $ 281,786 | $ 280,880 | $ 279,959 | $ 276,324 | $ 131,910 | $ 130,268 | $ 127,531 | $ 124,518 | $ 120,140 | $ 117,677 | $ 115,487 | $ 107,549 |
WES Operating [Member] | ||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Total quarterly per-unit distribution | $ 0.980 | $ 0.965 | $ 0.950 | $ 0.935 | $ 0.920 | $ 0.905 | $ 0.890 | $ 0.875 | ||||
Total quarterly cash distribution | $ 290,300 | $ 289,700 | $ 288,100 | $ 283,300 | $ 234,787 | $ 230,239 | $ 225,691 | $ 221,133 | $ 216,586 | $ 212,038 | $ 207,491 | $ 188,753 |
Partnership Distributions - Add
Partnership Distributions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2019 | May 02, 2017 | Mar. 01, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 |
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Partnership agreement day requirement of distribution of available cash | 55 days | |||||||||||||||
Common units outstanding | 443,971,409 | 218,937,797 | 443,971,409 | |||||||||||||
Total quarterly cash distribution | $ 281,786 | $ 280,880 | $ 279,959 | $ 276,324 | $ 131,910 | $ 130,268 | $ 127,531 | $ 124,518 | $ 120,140 | $ 117,677 | $ 115,487 | $ 107,549 | ||||
WES [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Incentive distributions percentage | 48.00% | |||||||||||||||
WES [Member] | Common Units [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Common units outstanding | 452,990,862 | 218,937,797 | ||||||||||||||
WES Operating [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Total quarterly cash distribution | $ 290,300 | $ 289,700 | $ 288,100 | $ 283,300 | $ 234,787 | $ 230,239 | $ 225,691 | $ 221,133 | $ 216,586 | $ 212,038 | $ 207,491 | $ 188,753 | ||||
WES Operating [Member] | Common Units [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Common units outstanding | 152,609,285 | |||||||||||||||
WES Operating [Member] | Class C Units [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Common units outstanding | 14,681,388 | |||||||||||||||
Class C units, discount rate percentage on distribution | 6.00% | |||||||||||||||
Class C units, common units issued upon conversion | 1 | |||||||||||||||
WES Operating [Member] | Series A Preferred Units [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Series A Preferred units, distribution per unit | $ 0.68 | |||||||||||||||
Series A Preferred units, cash distribution | $ 7,500 | |||||||||||||||
WES Operating [Member] | Series A Preferred Units [Member] | Series A Preferred Units March 2017 Conversion [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Series A Preferred units, percentage converted | 50.00% | |||||||||||||||
Series A Preferred units, common units issued upon conversion | 1 | |||||||||||||||
WES Operating [Member] | Series A Preferred Units [Member] | Series A Preferred Units May 2017 Conversion [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Series A Preferred units, percentage converted | 50.00% | |||||||||||||||
Series A Preferred units, common units issued upon conversion | 1 | |||||||||||||||
WES Operating [Member] | WES [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Distribution sharing percentage | 1.50% | |||||||||||||||
WES Operating [Member] | WES [Member] | Common Units [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Common units outstanding | 50,132,046 | |||||||||||||||
WES Operating [Member] | Anadarko [Member] | Common Units [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Common units outstanding | 6,400,000 | 6,400,000 | ||||||||||||||
WES [Member] | Occidental [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Common units outstanding | 242,136,976 | 242,136,976 | ||||||||||||||
Distribution sharing percentage | 2.00% | |||||||||||||||
WES [Member] | Occidental [Member] | Common Units [Member] | ||||||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||||||
Common units outstanding | 9,060,641 | 9,060,641 |
Equity and Partners' Capital -
Equity and Partners' Capital - WES Units Table (Details) - shares | Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Capital Unit [Line Items] | |||
Limited partner units | 443,971,409 | 218,937,797 | |
Conversion ratio per unit | 1.525 | ||
Anadarko Midstream Assets [Member] | |||
Capital Unit [Line Items] | |||
Conversion ratio per unit | 1.4056 | ||
WES Operating [Member] | |||
Capital Unit [Line Items] | |||
Units issued | 308,723 | 1,128,782 | |
Conversion of units | 0 | ||
WES Operating [Member] | Anadarko Midstream Assets [Member] | |||
Capital Unit [Line Items] | |||
Units issued | 45,760,201 | ||
Common Units [Member] | WES [Member] | |||
Capital Unit [Line Items] | |||
Limited partner units | 452,990,862 | 218,937,797 | |
Conversion of units | 178,692,081 | ||
Common Units [Member] | WES [Member] | Anadarko Midstream Assets [Member] | |||
Capital Unit [Line Items] | |||
Conversion of units | 55,360,984 | ||
Common Units [Member] | WES Operating [Member] | |||
Capital Unit [Line Items] | |||
Limited partner units | 152,609,285 | ||
Units subject to conversion | 117,158,627 | ||
Conversion of units | 105,624,704 | 14,681,388 | |
Common Units [Member] | WES Operating [Member] | Anadarko Midstream Assets [Member] | |||
Capital Unit [Line Items] | |||
Units subject to conversion | 39,384,917 | ||
Units issued | 45,760,201 | 45,760,201 | |
Class C Units [Member] | WES Operating [Member] | |||
Capital Unit [Line Items] | |||
Limited partner units | 14,681,388 | ||
Units issued | 308,723 | 1,128,782 | |
Conversion of units | (14,681,388) | ||
WES Operating [Member] | Common Units [Member] | WES [Member] | |||
Capital Unit [Line Items] | |||
Limited partner units | 50,132,046 | ||
WES Operating [Member] | Common Units [Member] | Anadarko [Member] | |||
Capital Unit [Line Items] | |||
Limited partner units | 6,400,000 | ||
WES Operating [Member] | Common Units [Member] | Anadarko [Member] | Anadarko Midstream Assets [Member] | |||
Capital Unit [Line Items] | |||
Limited partner units | 6,375,284 |
Equity and Partners' Capital _2
Equity and Partners' Capital - WES Operating Interests Table (Details) - WES Operating [Member] - shares | Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Change In Units [Roll Forward] | |||
Balance | 169,565,018 | 168,429,056 | |
Units issued | 308,723 | 1,128,782 | |
Vesting of Long-Term Incentive Plan Awards | 7,180 | ||
Conversion of Class C units | 0 | ||
IDR and General partner unit conversion | 103,041,636 | ||
Balance | 318,675,578 | 169,565,018 | |
Anadarko Midstream Assets [Member] | |||
Change In Units [Roll Forward] | |||
Units issued | 45,760,201 | ||
Common Units [Member] | |||
Change In Units [Roll Forward] | |||
Balance | 152,609,285 | 152,602,105 | |
Vesting of Long-Term Incentive Plan Awards | 7,180 | ||
Conversion of Class C units | 105,624,704 | 14,681,388 | |
IDR and General partner unit conversion | 105,624,704 | ||
Balance | 318,675,578 | 152,609,285 | |
Common Units [Member] | Anadarko Midstream Assets [Member] | |||
Change In Units [Roll Forward] | |||
Units issued | 45,760,201 | 45,760,201 | |
Class C Units [Member] | |||
Change In Units [Roll Forward] | |||
Balance | 14,372,665 | 13,243,883 | |
Units issued | 308,723 | 1,128,782 | |
Conversion of Class C units | (14,681,388) | ||
Balance | 0 | 14,372,665 | |
General Partner [Member] | |||
Change In Units [Roll Forward] | |||
Balance | 2,583,068 | 2,583,068 | |
IDR and General partner unit conversion | (2,583,068) | ||
Balance | 0 | 2,583,068 |
Equity and Partners' Capital _3
Equity and Partners' Capital - Calculation of WES Operating Net Income (Loss) Per Unit Table (Details) - USD ($) $ / shares in Units, $ in Thousands | May 02, 2017 | Mar. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Unit [Line Items] | ||||||
Net income (loss) attributable to Western Midstream Operating, LP | $ 697,241 | $ 551,571 | $ 540,790 | |||
Pre-acquisition net (income) loss allocated to Anadarko | (29,279) | (182,142) | (164,183) | |||
General partner interest in net (income) loss | (5,637) | 0 | 0 | |||
Limited partners' interest in net income (loss) | [1] | 662,325 | 369,429 | 376,607 | ||
WES Operating [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Net income (loss) attributable to Western Midstream Operating, LP | 807,590 | 627,917 | 731,666 | |||
Pre-acquisition net (income) loss allocated to Anadarko | (29,279) | (182,142) | (164,183) | |||
General partner interest in net (income) loss | [2] | 0 | (346,538) | (303,835) | ||
WES Operating [Member] | Series A Preferred Units [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Limited partners' interest in net income (loss) | [2] | $ 0 | $ 0 | $ 42,373 | ||
Anti-dilutive units excluded from computation of earnings per unit | 0 | 5,406,000 | ||||
WES Operating [Member] | Series A Preferred Units [Member] | Series A Preferred Units March 2017 Conversion [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Series A Preferred units, percentage converted | 50.00% | |||||
Series A Preferred units, common units issued upon conversion | 1 | |||||
WES Operating [Member] | Series A Preferred Units [Member] | Series A Preferred Units May 2017 Conversion [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Series A Preferred units, percentage converted | 50.00% | |||||
Series A Preferred units, common units issued upon conversion | 1 | |||||
WES Operating [Member] | Common and Class C Units [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Limited partners' interest in net income (loss) | $ 99,237 | $ 221,275 | ||||
WES Operating [Member] | Common Units [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Limited partners' interest in net income (loss) | $ 84,334 | $ 192,066 | ||||
Net income (loss) per common unit - basic and diluted | [2] | $ 0.55 | $ 1.30 | |||
Weighted-average common units outstanding - basic and diluted | 152,606,000 | 147,194,000 | ||||
WES Operating [Member] | Class C Units [Member] | ||||||
Earnings Per Unit [Line Items] | ||||||
Limited partners' interest in net income (loss) | $ 14,903 | $ 29,209 | ||||
Anti-dilutive units excluded from computation of earnings per unit | 13,795,000 | 12,776,000 | ||||
[1] | See Note 1 . | |||||
[2] | See Note 5 for the calculation of net income (loss) per common unit. |
Equity and Partners' Capital _4
Equity and Partners' Capital - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 02, 2017 | Mar. 01, 2017 | Nov. 30, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Feb. 28, 2019 |
Schedule of Investments [Line Items] | ||||||||||
Common units outstanding | 443,971,409 | 443,971,409 | 218,937,797 | |||||||
General partner units outstanding | 9,060,641 | 9,060,641 | 0 | |||||||
WES [Member] | Public [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Common units outstanding | 201,834,433 | 201,834,433 | ||||||||
Limited partner's interest | 44.60% | |||||||||
Occidental [Member] | WES [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Common units outstanding | 242,136,976 | 242,136,976 | ||||||||
Limited partner's interest | 53.40% | |||||||||
General partner units outstanding | 9,060,641 | 9,060,641 | ||||||||
General partner's interest | 2.00% | 2.00% | ||||||||
Occidental [Member] | WES Operating [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Limited partner's interest | 2.00% | |||||||||
WES [Member] | WES Operating [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Limited partner's interest | 98.00% | |||||||||
General partner units outstanding | 2,583,068 | |||||||||
WES Operating [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
General partner units outstanding | 0 | 0 | 2,583,068 | |||||||
Units issued | 308,723 | 1,128,782 | ||||||||
Series A Preferred units, amortization of beneficial conversion feature | $ 0 | $ 0 | $ 0 | |||||||
WES Operating [Member] | Class C Units [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Common units outstanding | 14,681,388 | |||||||||
Units issued | 308,723 | 1,128,782 | ||||||||
Class C units, common units issued upon conversion | 1 | |||||||||
Series A Perferred units, beneficial conversion feature | $ 34,800 | |||||||||
WES Operating [Member] | Class C Units [Member] | Other Subsidiaries of Anadarko [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Units issued | 10,913,853 | |||||||||
WES Operating [Member] | Series A Preferred Units [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Series A Perferred units, beneficial conversion feature | $ 93,400 | |||||||||
Series A Preferred units, amortization of beneficial conversion feature | $ 62,300 | |||||||||
WES Operating [Member] | Series A Preferred Units [Member] | Series A Preferred Units March 2017 Conversion [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Series A Preferred units, percentage converted | 50.00% | |||||||||
Series A Preferred units, common units issued upon conversion | 1 | |||||||||
WES Operating [Member] | Series A Preferred Units [Member] | Series A Preferred Units May 2017 Conversion [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Series A Preferred units, percentage converted | 50.00% | |||||||||
Series A Preferred units, common units issued upon conversion | 1 | |||||||||
WES Operating [Member] | Series A Preferred Units [Member] | Private Investor [Member] | ||||||||||
Schedule of Investments [Line Items] | ||||||||||
Units issued | 21,922,831 | |||||||||
Series A Preferred units, proceeds from issuance | $ 686,900 | |||||||||
Series A Preferred units, transaction fee percentage | 2.00% |
Transactions with Affiliates -
Transactions with Affiliates - Commodity Price Swap Agreements Tables (Details) | Dec. 20, 2017$ / MMBTU$ / bbl | Dec. 01, 2016$ / MMBTU$ / bbl | Dec. 31, 2018$ / MMBTU$ / bbl |
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Ethane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 18.41 | ||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Propane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 47.08 | ||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Isobutane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 62.09 | ||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Normal Butane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 54.62 | ||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Natural Gasoline [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 72.88 | ||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Condensate [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 76.47 | ||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Natural Gas (per MMBtu) [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | $ / MMBTU | 5.96 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Ethane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 5.09 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Propane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 18.85 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Isobutane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 26.83 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Normal Butane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 26.20 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Natural Gasoline [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 41.84 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Condensate [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 45.40 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Natural Gas (per MMBtu) [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | $ / MMBTU | 3.05 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Ethane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 5.41 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Propane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 28.72 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Isobutane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 32.92 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Normal Butane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 32.71 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Natural Gasoline [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 48.04 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Condensate [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 49.36 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Natural Gas (per MMBtu) [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | $ / MMBTU | 2.21 | ||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Ethane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 23.11 | ||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Propane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 52.90 | ||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Isobutane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 73.89 | ||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Normal Butane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 64.93 | ||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Natural Gasoline [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 81.68 | ||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Condensate [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | 81.68 | ||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Natural Gas (per MMBtu) [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity swap fixed price | $ / MMBTU | 4.87 | ||
MGR Assets [Member] | Year 2017 [Member] | Ethane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 4.08 | ||
MGR Assets [Member] | Year 2017 [Member] | Propane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 19.24 | ||
MGR Assets [Member] | Year 2017 [Member] | Isobutane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 25.79 | ||
MGR Assets [Member] | Year 2017 [Member] | Normal Butane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 25.16 | ||
MGR Assets [Member] | Year 2017 [Member] | Natural Gasoline [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 45.01 | ||
MGR Assets [Member] | Year 2017 [Member] | Condensate [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 53.55 | ||
MGR Assets [Member] | Year 2017 [Member] | Natural Gas (per MMBtu) [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | $ / MMBTU | 3.05 | ||
MGR Assets [Member] | Year 2018 [Member] | Ethane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 2.52 | ||
MGR Assets [Member] | Year 2018 [Member] | Propane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 25.83 | ||
MGR Assets [Member] | Year 2018 [Member] | Isobutane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 30.03 | ||
MGR Assets [Member] | Year 2018 [Member] | Normal Butane [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 29.82 | ||
MGR Assets [Member] | Year 2018 [Member] | Natural Gasoline [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 47.25 | ||
MGR Assets [Member] | Year 2018 [Member] | Condensate [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | 56.76 | ||
MGR Assets [Member] | Year 2018 [Member] | Natural Gas (per MMBtu) [Member] | |||
Commodity Price Risk Swap [Line Items] | |||
Commodity market price | $ / MMBTU | 2.21 |
Transactions with Affiliates _2
Transactions with Affiliates - Omnibus Agreement Tables (Details) - Omnibus Agreement [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Amounts reimbursed to Occidental | $ 4,693 | $ 3,164 | $ 2,084 |
WES Operating [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts reimbursed to Occidental | 88,104 | 50,486 | 41,112 |
General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts reimbursed to Occidental | 604 | 269 | 263 |
General and Administrative Expenses [Member] | WES Operating [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts reimbursed to Occidental | 84,039 | 35,077 | 31,733 |
Public Company Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts reimbursed to Occidental | 4,089 | 2,895 | 1,821 |
Public Company Expenses [Member] | WES Operating [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts reimbursed to Occidental | $ 4,065 | $ 15,409 | $ 9,379 |
Transactions with Affiliates _3
Transactions with Affiliates - LTIP Award Activity Tables (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Western Gas Equity Partners 2012 Long-Term Incentive Plan [Member] | |||
Related Party Transaction [Line Items] | |||
Value per unit of phantom units outstanding at beginning of year | $ 35.08 | $ 43.39 | $ 39.78 |
Value per unit of phantom units granted during the period | 29.75 | 35.08 | 43.39 |
Value per unit of phantom units vested during the period | $ 31.62 | $ 43.39 | $ 39.78 |
Value per unit of phantom units converted during the period | 33.46 | 0 | 0 |
Value per unit of phantom units outstanding at end of year | $ 0 | $ 35.08 | $ 43.39 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Phantom units outstanding at beginning of year | 7,128 | 5,763 | 5,658 |
Phantom units granted | 25,212 | 7,128 | 5,763 |
Phantom units vested | (44,572) | (5,763) | (5,658) |
Phantom units converted | 12,232 | 0 | 0 |
Phantom units outstanding at end of year | 0 | 7,128 | 5,763 |
Western Gas Partners 2017 Long-Term Incentive Plan [Member] | |||
Related Party Transaction [Line Items] | |||
Value per unit of phantom units outstanding at beginning of year | $ 49.88 | $ 55.73 | $ 49.30 |
Value per unit of phantom units granted during the period | 0 | 49.88 | 55.73 |
Value per unit of phantom units vested during the period | $ 0 | $ 55.73 | $ 49.30 |
Value per unit of phantom units converted during the period | 49.88 | 0 | 0 |
Value per unit of phantom units outstanding at end of year | $ 0 | $ 49.88 | $ 55.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Phantom units outstanding at beginning of year | 8,020 | 7,180 | 7,304 |
Phantom units granted | 0 | 8,020 | 7,180 |
Phantom units vested | 0 | (7,180) | (7,304) |
Phantom units converted | (8,020) | 0 | 0 |
Phantom units outstanding at end of year | 0 | 8,020 | 7,180 |
Transactions with Affiliates _4
Transactions with Affiliates - Affiliate Asset Contributions and Distributions Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Partners’ capital adjustment | $ (90) | $ 58,835 | $ 3,189 |
Purchases [Member] | Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Cash consideration paid | (425) | (254) | (3,910) |
Net carrying value | 335 | 59,089 | 5,283 |
Partners’ capital adjustment | $ (90) | $ 58,835 | $ 1,373 |
Transactions with Affiliates _5
Transactions with Affiliates - Summary of Affiliate Transactions Tables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Related Party Transaction [Line Items] | ||||
Revenues and other | $ 2,746,174 | $ 2,299,658 | $ 2,429,614 | |
Equity income, net – affiliates | 237,518 | 195,469 | 115,141 | |
Cost of product | [1] | 444,247 | 415,505 | 953,792 |
Operation and maintenance | [1] | 641,219 | 480,861 | 345,617 |
General and administrative | [1] | 114,591 | 67,195 | 53,949 |
Operating expenses | 1,750,943 | 1,635,157 | 1,905,327 | |
Interest income | 16,900 | 16,900 | 16,900 | |
Interest expense | [2] | 303,286 | 183,831 | 142,520 |
Distributions to unitholders | [3] | 969,073 | 502,457 | 441,967 |
Above-market component of swap agreements with Anadarko | [3] | 7,407 | 51,618 | 58,551 |
WES Operating [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues and other | 2,746,174 | 2,299,658 | 2,429,614 | |
Equity income, net – affiliates | 237,518 | 195,469 | 115,141 | |
Cost of product | [4] | 444,247 | 415,505 | 953,792 |
Operation and maintenance | [4] | 641,219 | 480,861 | 345,617 |
General and administrative | [4] | 107,772 | 63,166 | 51,077 |
Operating expenses | 1,744,124 | 1,631,128 | 1,902,455 | |
Interest income | 16,900 | 16,900 | 16,900 | |
Interest expense | [5] | 303,041 | 181,796 | 140,291 |
Distributions to unitholders | [6] | 1,124,388 | 893,649 | 801,300 |
Above-market component of swap agreements with Anadarko | [6] | 7,407 | 51,618 | 58,551 |
Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues and other | 1,607,396 | 1,353,711 | 1,539,105 | |
Cost of product | 254,771 | 168,535 | 74,560 | |
Operation and maintenance | 146,990 | 115,948 | 82,249 | |
General and administrative | 101,485 | 49,672 | 43,221 | |
Operating expenses | 503,246 | 334,155 | 200,030 | |
Interest expense | 1,970 | 6,746 | 224 | |
APCWH Note Payable borrowings | 11,000 | 321,780 | 98,813 | |
Repayment of APCWH Note Payable | 439,595 | 0 | 0 | |
Settlement of the Deferred purchase price obligation – Anadarko | [7] | 0 | 0 | (37,346) |
Distributions to unitholders | 566,868 | 400,194 | 360,523 | |
Affiliates [Member] | WES Operating [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues and other | 1,607,396 | 1,353,711 | 1,539,105 | |
Cost of product | 254,800 | 168,500 | 74,600 | |
Operation and maintenance | 147,000 | 115,900 | 82,200 | |
General and administrative | 99,613 | 48,819 | 42,411 | |
Interest expense | 2,000 | 6,700 | 200 | |
Settlement of the Deferred purchase price obligation – Anadarko | [8] | 0 | 0 | (37,346) |
Distributions to unitholders | 1,025,931 | 514,906 | 452,777 | |
Affiliates [Member] | WES Operating [Member] | ||||
Related Party Transaction [Line Items] | ||||
Distributions to unitholders | 19,768 | 7,583 | 7,100 | |
Affiliates [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | ||||
Related Party Transaction [Line Items] | ||||
Settlement of the Deferred purchase price obligation – Anadarko | $ 0 | $ 0 | $ (37,346) | |
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $101.5 million , $49.7 million , and $43.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | |||
[2] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . | |||
[3] | See Note 6 . | |||
[4] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $99.6 million , $48.8 million , and $42.4 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | |||
[5] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . | |||
[6] | See Note 6 . | |||
[7] | See Note 3. | |||
[8] | See Note 3. |
Transactions with Affiliates _6
Transactions with Affiliates - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Related Party Transaction [Line Items] | |||||
Note receivable - Anadarko | $ 260,000,000 | $ 260,000,000 | |||
Capital contribution for the above-market component of swap agreements with Anadarko | [1] | 7,407,000 | 51,618,000 | $ 58,551,000 | |
Administrative services fee under the omnibus agreement | [2] | 114,591,000 | 67,195,000 | 53,949,000 | |
Materials and supplies inventory | 23,444,000 | 9,665,000 | |||
Incentive Plans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Allocated equity-based compensation expense | 12,900,000 | 6,600,000 | 4,600,000 | ||
Unvested equity-based compensation expense | $ 7,900,000 | ||||
Weighted-average term of unvested awards | 1 year 9 months 18 days | ||||
Long-Term Incentive Plans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Units vesting period | 3 years | ||||
Allocated equity-based compensation expense | $ 1,000,000 | $ 700,000 | $ 600,000 | ||
Omnibus Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Administrative services fee under the omnibus agreement | $ 250,000 | ||||
Natural Gas [Member] | |||||
Related Party Transaction [Line Items] | |||||
Affiliate throughput percent | 38.00% | 36.00% | 39.00% | ||
Crude Oil, NGLs, and Produced Water [Member] | |||||
Related Party Transaction [Line Items] | |||||
Affiliate throughput percent | 83.00% | 85.00% | 81.00% | ||
Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Administrative services fee under the omnibus agreement | $ 101,485,000 | $ 49,672,000 | $ 43,221,000 | ||
Materials and supplies inventory | 18,400,000 | ||||
Affiliates [Member] | Commodity-Price Swap Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Net gains (losses) on commodity-price swap agreements | (700,000) | (7,900,000) | 600,000 | ||
Affiliates [Member] | Level-2 Inputs [Member] | Valuation, Market Approach [Member] | |||||
Related Party Transaction [Line Items] | |||||
Fair value of the note receivable | $ 337,700,000 | 279,600,000 | |||
Independent Director [Member] | Long-Term Incentive Plans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Units vesting period | 1 year | ||||
WES Operating [Member] | |||||
Related Party Transaction [Line Items] | |||||
Note receivable - Anadarko | $ 260,000,000 | 260,000,000 | |||
Capital contribution for the above-market component of swap agreements with Anadarko | [3] | 7,407,000 | 51,618,000 | 58,551,000 | |
Administrative services fee under the omnibus agreement | [4] | 107,772,000 | 63,166,000 | 51,077,000 | |
Materials and supplies inventory | 23,444,000 | 9,665,000 | |||
WES Operating [Member] | Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Note receivable - Anadarko | $ 260,000,000 | ||||
Fixed annual rate for note receivable bearing interest | 6.50% | ||||
Administrative services fee under the omnibus agreement | $ 99,613,000 | $ 48,819,000 | $ 42,411,000 | ||
[1] | See Note 6 . | ||||
[2] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $101.5 million , $49.7 million , and $43.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . | ||||
[3] | See Note 6 . | ||||
[4] | Cost of product includes product purchases from affiliates (as defined in Note 1 ) of $254.8 million , $168.5 million , and $74.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Operation and maintenance includes charges from affiliates of $147.0 million , $115.9 million , and $82.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. General and administrative includes charges from affiliates of $99.6 million , $48.8 million , and $42.4 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 6 . |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense (benefit) | |||
Federal income tax expense (benefit) | $ 5,550 | $ (79,264) | $ (9,207) |
State income tax expense (benefit) | 313 | (850) | 2,422 |
Total current income tax expense (benefit) | 5,863 | (80,114) | (6,785) |
Deferred income tax expense (benefit) | |||
Federal income tax expense (benefit) | 2,782 | 133,044 | (55,835) |
State income tax expense (benefit) | 4,827 | 6,004 | 2,697 |
Total deferred income tax expense (benefit) | 7,609 | 139,048 | (53,138) |
Total income tax expense (benefit) | $ 13,472 | $ 58,934 | $ (59,923) |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Income (loss) before income taxes | $ 821,172 | $ 689,588 | $ 677,462 |
Statutory tax rate | 0.00% | 0.00% | 0.00% |
Adjustments resulting from: | |||
U.S. federal tax reform | $ 0 | $ 0 | $ (87,306) |
Federal taxes on income | 0 | 0 | 0 |
State taxes on income (net of federal benefit) and Texas margin tax expense (benefit) | 5,140 | 2,946 | 4,866 |
Income tax expense (benefit) | $ 13,472 | $ 58,934 | $ (59,923) |
Effective tax rate | 2.00% | 9.00% | (9.00%) |
Pre-Acquisition From Anadarko [Member] | |||
Adjustments resulting from: | |||
Federal taxes on income | $ 8,332 | $ 54,243 | $ 22,353 |
State taxes on income (net of federal benefit) and Texas margin tax expense (benefit) | $ 0 | $ 1,745 | $ 164 |
Income Taxes - Income Tax Tempo
Income Taxes - Income Tax Temporary Differences Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Depreciable property | $ (18,642) | $ (280,377) |
Credit carryforwards | 0 | 497 |
Other intangible assets | (678) | (299) |
Other | 421 | 162 |
Net long-term deferred income tax liabilities | $ (18,899) | $ (280,017) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
U.S. federal tax reform | $ 0 | $ 0 | $ 87,306 |
Statutory tax rate | 0.00% | 0.00% | 0.00% |
Anadarko Midstream Assets [Member] | |||
Business Acquisition [Line Items] | |||
U.S. federal tax reform | $ 87,300 | ||
Statutory tax rate | 21.00% | 35.00% |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Historical Cost Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 12,355,671 | $ 11,258,773 |
Less accumulated depreciation | 3,290,740 | 2,848,420 |
Net property, plant, and equipment | 9,064,931 | 8,410,353 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 9,495 | 5,298 |
Gathering Systems – Pipelines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 5,092,004 | 4,764,099 |
Estimated useful life | 30 years | |
Gathering Systems – Compressors [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 1,929,377 | 1,712,939 |
Estimated useful life | 15 years | |
Processing Complexes And Treating Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 3,237,801 | 2,844,337 |
Estimated useful life | 25 years | |
Transportation Pipeline And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 173,572 | 172,558 |
Transportation Pipeline And Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 6 years | |
Transportation Pipeline And Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 45 years | |
Produced-Water Disposal Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 754,774 | 629,946 |
Estimated useful life | 20 years | |
Assets Under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 486,584 | 604,265 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 672,064 | $ 525,331 |
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 ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Impairments | $ 6,279,000 | $ 230,584,000 | $ 180,051,000 |
Fort Union [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Equity investment impairment loss | 3,100,000 | ||
Third Creek Gathering System [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 125,900,000 | ||
Third Creek Gathering System [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Market Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated salvage value | 1,800,000 | ||
Kitty Draw Gathering System [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 8,100,000 | ||
Kitty Draw Gathering System [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Market Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated salvage value | 0 | ||
Hilight System [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 38,700,000 | 8,200,000 | |
Hilight System [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Income Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated fair value | 4,900,000 | ||
MIGC System [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 34,600,000 | ||
MIGC System [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Income Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated fair value | 15,200,000 | ||
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 23,300,000 | 21,300,000 | |
GNB NGL Pipeline [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 10,900,000 | ||
GNB NGL Pipeline [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Income Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated fair value | 10,000,000 | ||
Chipeta Complex [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 5,600,000 | ||
Chipeta Complex [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Market Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated salvage value | $ 1,500,000 | ||
Granger Complex [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 158,800,000 | ||
Granger Complex [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Income Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated fair value | 48,500,000 | ||
Granger Straddle Plant [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 3,700,000 | ||
Granger Straddle Plant [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Income Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated salvage value | 600,000 | ||
Northeast Wyoming Facility [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairments | 2,000,000 | ||
Northeast Wyoming Facility [Member] | Fair Value, Nonrecurring [Member] | Level-3 Inputs [Member] | Valuation, Market Approach [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated salvage value | $ 400,000 |
Goodwill and Intangibles - Othe
Goodwill and Intangibles - Other Intangible Assets Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 979,863 | $ 979,863 |
Accumulated amortization | (170,472) | (138,455) |
Other intangible assets | $ 809,391 | $ 841,408 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, impairment loss | $ 0 | ||
Intangible assets (excluding goodwill), impairment loss | 0 | ||
Amortization of intangible assets | 32,000,000 | $ 30,800,000 | $ 30,700,000 |
Estimated amortization expense 2020 | 32,000,000 | ||
Estimated amortization expense 2021 | 32,000,000 | ||
Estimated amortization expense 2022 | 32,000,000 | ||
Estimated amortization expense 2023 | 31,700,000 | ||
Estimated amortization expense 2024 | $ 31,700,000 | ||
Platte Valley [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 38 years | ||
Wattenberg Processing Plant [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 38 years | ||
Chipeta [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 10 years | ||
Delaware Basin Midstream LLC [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 30 years |
Equity Investments - Equity Inv
Equity Investments - Equity Investments Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Balance | $ 1,092,088 | $ 817,352 | |
Acquisitions | 92,546 | 162,615 | |
Equity income, net | 237,518 | 195,469 | $ 115,141 |
Contributions | 128,393 | 133,629 | 2,884 |
Distributions | (234,572) | (187,392) | (117,093) |
Distributions in excess of cumulative earnings | (30,256) | (29,585) | (31,659) |
Balance | 1,285,717 | 1,092,088 | 817,352 |
Fort Union [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 2,259 | 7,030 | |
Acquisitions | 0 | 0 | |
Equity income, net | (2,232) | (1,433) | |
Contributions | 0 | 0 | |
Distributions | 0 | (194) | |
Distributions in excess of cumulative earnings | (637) | (3,144) | |
Balance | (610) | 2,259 | 7,030 |
White Cliffs [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 43,020 | 44,945 | |
Acquisitions | 0 | 0 | |
Equity income, net | 9,500 | 11,841 | |
Contributions | 5,414 | 1,278 | |
Distributions | (8,918) | (11,259) | |
Distributions in excess of cumulative earnings | (3,139) | (3,785) | |
Balance | 45,877 | 43,020 | 44,945 |
Rendezvous [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 37,841 | 42,528 | |
Acquisitions | 0 | 0 | |
Equity income, net | 769 | 767 | |
Contributions | 0 | 0 | |
Distributions | (2,710) | (2,709) | |
Distributions in excess of cumulative earnings | (2,936) | (2,745) | |
Balance | 32,964 | 37,841 | 42,528 |
Mont Belvieu JV [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 104,949 | 110,299 | |
Acquisitions | 0 | 0 | |
Equity income, net | 28,412 | 29,200 | |
Contributions | 0 | 0 | |
Distributions | (28,451) | (29,239) | |
Distributions in excess of cumulative earnings | (1,874) | (5,311) | |
Balance | 103,036 | 104,949 | 110,299 |
Texas Express Gathering [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 19,358 | 15,879 | |
Acquisitions | 0 | 0 | |
Equity income, net | 4,088 | 4,290 | |
Contributions | 0 | 3,720 | |
Distributions | (4,110) | (4,368) | |
Distributions in excess of cumulative earnings | (1,137) | (163) | |
Balance | 18,199 | 19,358 | 15,879 |
Texas Express Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 193,198 | 178,975 | |
Acquisitions | 0 | 0 | |
Equity income, net | 30,871 | 37,963 | |
Contributions | 12,220 | 11,980 | |
Distributions | (32,733) | (33,552) | |
Distributions in excess of cumulative earnings | 0 | (2,168) | |
Balance | 203,556 | 193,198 | 178,975 |
Front Range Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 176,436 | 166,555 | |
Acquisitions | 0 | 0 | |
Equity income, net | 32,617 | 23,308 | |
Contributions | 30,175 | 14,980 | |
Distributions | (31,446) | (23,481) | |
Distributions in excess of cumulative earnings | 0 | (4,926) | |
Balance | 207,782 | 176,436 | 166,555 |
Whitethorn LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 161,858 | 0 | |
Acquisitions | 0 | 150,563 | |
Equity income, net | 74,548 | 47,088 | |
Contributions | 10,332 | 7,069 | |
Distributions | (74,856) | (39,497) | |
Distributions in excess of cumulative earnings | (10,217) | (3,365) | |
Balance | 161,665 | 161,858 | 0 |
Cactus II [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 106,360 | 0 | |
Acquisitions | 0 | 12,052 | |
Equity income, net | 10,755 | 0 | |
Contributions | 56,252 | 94,308 | |
Distributions | (1,202) | 0 | |
Distributions in excess of cumulative earnings | 0 | 0 | |
Balance | 172,165 | 106,360 | 0 |
Capitalized interest | 3,600 | 1,400 | |
Saddlehorn [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 108,507 | 109,227 | |
Acquisitions | 0 | 0 | |
Equity income, net | 25,524 | 15,833 | |
Contributions | 3,550 | 294 | |
Distributions | (24,726) | (16,017) | |
Distributions in excess of cumulative earnings | 0 | (830) | |
Balance | 112,855 | 108,507 | 109,227 |
Panola [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 22,769 | 23,625 | |
Acquisitions | 0 | 0 | |
Equity income, net | 2,136 | 2,200 | |
Contributions | 0 | 0 | |
Distributions | (2,137) | (2,200) | |
Distributions in excess of cumulative earnings | (985) | (856) | |
Balance | 21,783 | 22,769 | 23,625 |
Mi Vida [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 64,631 | 64,988 | |
Acquisitions | 0 | 0 | |
Equity income, net | 10,655 | 13,734 | |
Contributions | 0 | 0 | |
Distributions | (12,077) | (14,000) | |
Distributions in excess of cumulative earnings | (5,402) | (91) | |
Balance | 57,807 | 64,631 | 64,988 |
Ranch Westex [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 50,902 | 53,301 | |
Acquisitions | 0 | 0 | |
Equity income, net | 6,812 | 10,678 | |
Contributions | 0 | 0 | |
Distributions | (8,143) | (10,876) | |
Distributions in excess of cumulative earnings | (2,893) | (2,201) | |
Balance | 46,678 | 50,902 | $ 53,301 |
Red Bluff Express [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Balance | 0 | ||
Acquisitions | 92,546 | ||
Equity income, net | 3,063 | ||
Contributions | 10,450 | ||
Distributions | (3,063) | ||
Distributions in excess of cumulative earnings | (1,036) | ||
Balance | $ 101,960 | $ 0 |
Equity Investments - Summarized
Equity Investments - Summarized Combined Financial Data For Equity Investments - Income Statement Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenues | $ 1,687,116 | $ 1,300,921 | $ 877,020 |
Operating income | 1,107,664 | 876,910 | 542,390 |
Net income | $ 1,108,173 | $ 874,587 | $ 540,538 |
Equity Investments - Summariz_2
Equity Investments - Summarized Combined Financial Data For Equity Investments - Balance Sheet Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 433,390 | $ 297,143 |
Property, plant, and equipment, net | 5,754,160 | 4,251,020 |
Other assets | 175,231 | 81,769 |
Total assets | 6,362,781 | 4,629,932 |
Current liabilities | 223,171 | 101,729 |
Non-current liabilities | 27,024 | 42,431 |
Equity | 6,112,586 | 4,485,772 |
Total liabilities and equity | $ 6,362,781 | $ 4,629,932 |
Equity Investments - Additional
Equity Investments - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Fort Union [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity investment difference between carrying and underlying value | $ (3.1) |
Rendezvous [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity investment difference between carrying and underlying value | 32.4 |
White Cliffs [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity investment difference between carrying and underlying value | $ (5.8) |
White Cliffs [Member] | Affiliates [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity investment ownership percentage | 0.40% |
Whitethorn LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity investment difference between carrying and underlying value | $ (37.3) |
Components of Working Capital -
Components of Working Capital - Accounts Receivable, Net Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade receivables, net | $ 260,458 | $ 221,119 | |
Other receivables, net | 54 | 45 | |
Total accounts receivable, net | [1] | 260,512 | 221,164 |
WES Operating [Member] | |||
Trade receivables, net | 260,694 | 221,328 | |
Other receivables, net | 54 | 45 | |
Total accounts receivable, net | [2] | $ 260,748 | $ 221,373 |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.3 million and $72.6 million as of December 31, 2019 and 2018, respectively. | ||
[2] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1 ) of $113.6 million and $72.8 million as of December 31, 2019 and 2018, respectively. |
Components of Working Capital_2
Components of Working Capital - Other Current Assets Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
NGLs inventory | $ 906 | $ 1,203 | |
Materials and supplies inventory | 23,444 | 9,665 | |
Imbalance receivables | 4,690 | 9,035 | |
Prepaid insurance | 5,676 | 1,972 | |
Contract assets | 7,129 | 5,399 | |
Other | 93 | 4,184 | |
Total other current assets | [1] | 41,938 | 31,458 |
WES Operating [Member] | |||
NGLs inventory | 906 | 1,203 | |
Materials and supplies inventory | 23,444 | 9,665 | |
Imbalance receivables | 4,690 | 9,035 | |
Prepaid insurance | 3,652 | 1,972 | |
Contract assets | 7,129 | 5,399 | |
Other | 93 | 3,309 | |
Total other current assets | [2] | $ 39,914 | $ 30,583 |
[1] | Other current assets includes affiliate amounts of $5.0 million and $3.7 million as of December 31, 2019 | ||
[2] | Other current assets includes affiliate amounts of $5.0 million and $3.7 million as of December 31, 2019 and 2018, respectively. |
Components of Working Capital_3
Components of Working Capital - Accrued Liabilities Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Accrued interest expense | $ 72,064 | $ 70,968 | |
Short-term asset retirement obligations | 22,472 | 25,938 | |
Short-term remediation and reclamation obligations | 3,528 | 863 | |
Income taxes payable | 697 | 384 | |
Contract liabilities | 19,659 | 16,235 | |
Other | 31,373 | 14,760 | |
Total accrued liabilities | [1] | 149,793 | 129,148 |
WES Operating [Member] | |||
Accrued interest expense | 72,064 | 70,959 | |
Short-term asset retirement obligations | 22,472 | 25,938 | |
Short-term remediation and reclamation obligations | 3,528 | 863 | |
Income taxes payable | 697 | 384 | |
Contract liabilities | 19,659 | 16,235 | |
Other | 31,219 | 13,495 | |
Total accrued liabilities | [2] | $ 149,639 | $ 127,874 |
[1] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. | ||
[2] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. |
Asset Retirement Obligations -
Asset Retirement Obligations - Asset Retirement Obligations Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of asset retirement obligations at beginning of year | $ 325,962 | $ 154,571 |
Liabilities incurred | 27,360 | 34,558 |
Liabilities settled | (17,104) | (12,432) |
Accretion expense | 13,599 | 7,909 |
Revisions in estimated liabilities | 9,051 | 141,356 |
Carrying amount of asset retirement obligations at end of year | $ 358,868 | $ 325,962 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Revisions in estimated liabilities | $ 9,051 | $ 141,356 |
Gathering Systems and Processing Complexes [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Revisions in estimated liabilities | 71,800 | |
Third Creek Gathering System [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Revisions in estimated liabilities | $ 43,400 |
Debt and Interest Expense - Deb
Debt and Interest Expense - Debt Outstanding Table (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Short-term debt, principal | $ 7,873,000 | $ 28,000,000 | |
Short-term debt, carrying value | [1] | 7,873,000 | 28,000,000 |
Long-term debt, carrying value | 7,951,565,000 | 4,787,381,000 | |
Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Short-term debt, fair value | 7,873,000 | 28,000,000 | |
Long-Term Debt Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt, principal | 8,000,000,000 | 5,267,493,000 | |
Long-term debt, carrying value | 7,951,565,000 | 5,214,874,000 | |
Long-Term Debt Obligations [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 7,849,818,000 | 4,976,815,000 | |
WES [Member] | WGP RCF [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 0 | 28,000,000 | |
Short-term debt, carrying value | 0 | 28,000,000 | |
WES [Member] | WGP RCF [Member] | Revolving Credit Facility [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Short-term debt, fair value | 0 | 28,000,000 | |
WES Operating [Member] | |||
Debt Instrument [Line Items] | |||
Short-term debt, carrying value | [2] | 7,873,000 | 0 |
Long-term debt, carrying value | 7,951,565,000 | 4,787,381,000 | |
WES Operating [Member] | Finance Lease Liability [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 7,873,000 | 0 | |
Short-term debt, carrying value | 7,873,000 | 0 | |
WES Operating [Member] | Finance Lease Liability [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Short-term debt, fair value | 7,873,000 | 0 | |
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 380,000,000 | 220,000,000 | |
Long-term debt, carrying value | 380,000,000 | 220,000,000 | |
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 380,000,000 | 220,000,000 | |
WES Operating [Member] | Term Loan Facility [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 3,000,000,000 | 0 | |
Long-term debt, carrying value | 3,000,000,000 | 0 | |
WES Operating [Member] | Term Loan Facility [Member] | Revolving Credit Facility [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | 3,000,000,000 | $ 0 | |
WES Operating [Member] | APCWH Note Payable [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 3.04% | ||
Principal | 0 | $ 427,493,000 | |
Long-term debt, carrying value | 0 | 427,493,000 | |
WES Operating [Member] | APCWH Note Payable [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 0 | 427,493,000 | |
WES Operating [Member] | Senior Notes [Member] | 5.375% Senior Notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 5.375% | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 498,168,000 | 496,959,000 | |
WES Operating [Member] | Senior Notes [Member] | 5.375% Senior Notes due 2021 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 515,042,000 | 515,990,000 | |
WES Operating [Member] | Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.00% | ||
Principal | $ 670,000,000 | 670,000,000 | |
Long-term debt, carrying value | 669,322,000 | 669,078,000 | |
WES Operating [Member] | Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | $ 689,784,000 | 662,109,000 | |
WES Operating [Member] | Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 3.95% | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 493,830,000 | 492,837,000 | |
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 | $ 504,968,000 | 466,135,000 | |
WES Operating [Member] | Senior Notes [Member] | 4.650% Senior Notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.65% | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 496,197,000 | 495,710,000 | |
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 | $ 513,393,000 | 483,994,000 | |
WES Operating [Member] | Senior Notes [Member] | 4.500% Senior Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.50% | ||
Principal | $ 400,000,000 | 400,000,000 | |
Long-term debt, carrying value | 395,113,000 | 394,631,000 | |
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 | $ 390,920,000 | 377,475,000 | |
WES Operating [Member] | Senior Notes [Member] | 4.750% Senior Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.75% | ||
Principal | $ 400,000,000 | 400,000,000 | |
Long-term debt, carrying value | 396,190,000 | 395,841,000 | |
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 | $ 400,962,000 | 384,370,000 | |
WES Operating [Member] | Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 5.45% | ||
Principal | $ 600,000,000 | 600,000,000 | |
Long-term debt, carrying value | 593,470,000 | 593,349,000 | |
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 | $ 533,710,000 | 522,386,000 | |
WES Operating [Member] | Senior Notes [Member] | 5.300% Senior Notes due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 5.30% | ||
Principal | $ 700,000,000 | 700,000,000 | |
Long-term debt, carrying value | 686,843,000 | 686,648,000 | |
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 | $ 610,841,000 | 605,327,000 | |
WES Operating [Member] | Senior Notes [Member] | 5.500% Senior Notes due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 5.50% | ||
Principal | $ 350,000,000 | 350,000,000 | |
Long-term debt, carrying value | 342,432,000 | 342,328,000 | |
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 | $ 310,198,000 | $ 311,536,000 | |
[1] | As of December 31, 2019 , all amounts are considered affiliate. See Note 14 . | ||
[2] | As of December 31, 2019 , all amounts are considered affiliate. See Note 14 . |
Debt and Interest Expense - D_2
Debt and Interest Expense - Debt Activity Table (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in Debt Outstanding [Roll Forward] | |||
Beginning balance | $ 5,242,874,000 | $ 5,242,874,000 | $ 3,591,678,000 |
Other | 5,286,000 | (20,584,000) | |
Ending balance | 7,959,438,000 | 5,242,874,000 | |
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Facility borrowings | 1,160,000,000 | 540,000,000 | |
Repayments of facility borrowings | (1,000,000,000) | (690,000,000) | |
WES Operating [Member] | Term Loan Facility [Member] | Revolving Credit Facility [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Facility borrowings | 3,000,000,000 | ||
WES Operating [Member] | Finance Lease Liability [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Finance lease liabilities | 7,873,000 | ||
WES Operating [Member] | APCWH Note Payable [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
APCWH Note Payable borrowings | 11,000,000 | 321,780,000 | |
Repayment of APCWH Note Payable | (439,595,000) | ||
WES Operating [Member] | 4.500% Senior Notes due 2028 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Issuance of senior notes | 400,000,000 | ||
WES Operating [Member] | 5.300% Senior Notes due 2048 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Issuance of senior notes | 700,000,000 | ||
WES Operating [Member] | 4.750% Senior Notes due 2028 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Issuance of senior notes | 400,000,000 | ||
WES Operating [Member] | 5.500% Senior Notes due 2048 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Issuance of senior notes | 350,000,000 | ||
WES Operating [Member] | 2.600% Senior Notes due 2018 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayment of senior notes | $ (350,000,000) | ||
WES [Member] | WGP RCF [Member] | Revolving Credit Facility [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of facility borrowings | $ (28,000,000) | $ (28,000,000) |
Debt and Interest Expense - Int
Debt and Interest Expense - Interest Expense Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | ||||
Finance lease liabilities | $ (137) | |||
Interest expense | [1] | (303,286) | $ (183,831) | $ (142,520) |
Third Parties [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term and short-term debt | (315,872) | (200,454) | (143,400) | |
Amortization of debt issuance costs and commitment fees | (12,424) | (9,110) | (7,970) | |
Capitalized interest | 26,980 | 32,479 | 9,074 | |
Interest expense | (301,316) | (177,085) | (142,296) | |
Affiliates [Member] | ||||
Debt Instrument [Line Items] | ||||
Finance lease liabilities | (137) | 0 | 0 | |
Interest expense | (1,970) | (6,746) | (224) | |
Affiliates [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense - affiliate | 0 | 0 | (71) | |
Affiliates [Member] | APCWH Note Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense - affiliate | $ (1,833) | $ (6,746) | $ (153) | |
[1] | Includes affiliate amounts of $(2.0) million , $(6.7) million , and $(0.2) million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. See Note 1 and Note 13 . |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 01, 2019 | Feb. 28, 2019 | Dec. 19, 2018 | Feb. 16, 2018 | Jun. 30, 2017 | ||
Debt Instrument [Line Items] | ||||||||||
APCWH Note Payable, maximum borrowing | [1] | $ 0 | $ 427,493,000 | |||||||
Cash paid to settle interest-rate swaps | 107,685,000 | 0 | $ 0 | |||||||
Accrued liability on interest-rate swaps | [2] | 149,793,000 | 129,148,000 | |||||||
Gain (loss) on interest-rate swaps | (125,334,000) | (7,972,000) | 0 | |||||||
WES [Member] | Revolving Credit Facility [Member] | WGP RCF [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, maximum borrowing capacity | $ 35,000,000 | |||||||||
Facility, repayment of borrowings | $ 28,000,000 | 28,000,000 | ||||||||
WES Operating [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
APCWH Note Payable, maximum borrowing | [3] | 0 | 427,493,000 | |||||||
Cash paid to settle interest-rate swaps | 107,685,000 | 0 | 0 | |||||||
Accrued liability on interest-rate swaps | [4] | 149,639,000 | 127,874,000 | |||||||
Gain (loss) on interest-rate swaps | (125,334,000) | (7,972,000) | $ 0 | |||||||
WES Operating [Member] | Interest-Rate Swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash paid to settle interest-rate swaps | 107,700,000 | |||||||||
Gain (loss) on interest-rate swaps | 125,300,000 | 8,000,000 | ||||||||
WES Operating [Member] | Not Designated as Hedging Instrument [Member] | Interest-Rate Swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest-rate swap, notional amount | $ 375,000,000 | 1,125,000,000 | 750,000,000 | |||||||
Accrued liability on interest-rate swaps | 25,600,000 | |||||||||
WES Operating [Member] | Not Designated as Hedging Instrument [Member] | Level-2 Inputs [Member] | Valuation, Market Approach [Member] | Interest-Rate Swap [Member] | Accrued Liabilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest-rate swap, liability fair value | $ 8,000,000 | |||||||||
WES Operating [Member] | APCWH Note Payable [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
APCWH Note Payable, interest rate | 3.04% | |||||||||
WES Operating [Member] | APCWH Note Payable [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
APCWH Note Payable, maximum borrowing | $ 500,000,000 | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, maximum borrowing capacity | $ 2,000,000,000 | |||||||||
Facility, repayment of borrowings | $ 1,000,000,000 | $ 690,000,000 | ||||||||
Facility, expandable maximum borrowing capacity | $ 2,500,000,000 | |||||||||
Facility, fee rate | 0.20% | 0.20% | ||||||||
Facility, outstanding borrowings | $ 380,000,000 | |||||||||
Facility, available borrowing capacity | 1,600,000,000 | |||||||||
Facility, outstanding letters of credit | $ 4,600,000 | |||||||||
Facility, interest rate at period end | 3.04% | 3.74% | ||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, fee rate | 0.125% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, fee rate | 0.25% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.50% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | Percentage Above Federal Funds Effective Rate [Member] | Alternate Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.50% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.00% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.50% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | RCF [Member] | Non-Extending Lender [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, borrowing capacity for non-extending lender | $ 100,000,000 | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, maximum borrowing capacity | $ 3,000,000,000 | $ 2,000,000,000 | ||||||||
Facility, outstanding borrowings | $ 3,000,000,000 | |||||||||
Facility, interest rate at period end | 3.10% | |||||||||
Facility, incremental capacity with provision carve out | $ 1,000,000,000 | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.625% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | Term Loan Facility [Member] | Percentage Above Federal Funds Effective Rate [Member] | Alternate Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.50% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | Term Loan Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.00% | |||||||||
WES Operating [Member] | Revolving Credit Facility [Member] | Term Loan Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.625% | |||||||||
[1] | See Note 1 and Note 6 . | |||||||||
[2] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. | |||||||||
[3] | See Note 1 and Note 6 . | |||||||||
[4] | Accrued liabilities includes affiliate amounts of $3.1 million and $2.2 million as of December 31, 2019 and 2018, respectively. |
Leases - Summary of Leases Tabl
Leases - Summary of Leases Table (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating leases - Other assets | $ 3,985 |
Finance leases - Net property, plant, and equipment | 7,892 |
Operating leases - Accrued liabilities | 1,805 |
Finance leases - Short-term debt | 7,873 |
Operating leases - Other liabilities | 3,035 |
Total lease liabilities - operating leases | $ 4,840 |
Weighted-average remaining lease term (years) - operating leases | 5 years |
Weighted-average discount rate - operating leases | 4.70% |
Weighted-average discount rate - finance leases | 2.90% |
Additions to ROU assets and lease liabilities - finance leases | $ 8,500 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease cost | $ 6,932 | ||
Short-term lease cost | 1,295 | ||
Variable lease cost | 256 | ||
Sublease income | (414) | ||
Amortization of ROU assets | 562 | ||
Interest on lease liabilities | 137 | ||
Total lease cost | $ 8,768 | $ 56,500 | $ 45,500 |
Leases - Cash Flow Activity Rel
Leases - Cash Flow Activity Related to Leases Table (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Cash Flows | |
Operating leases | $ 7,042 |
Finance leases | 118 |
Financing Cash Flows | |
Finance leases | $ 508 |
Leases - Lessee, Reconciliation
Leases - Lessee, Reconciliation of Operating and Finance Lease Liabilities Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
Year 1 | $ 1,969 | $ 8,711 |
Year 2 | 612 | 2,236 |
Year 3 | 618 | 460 |
Year 4 | 625 | 467 |
Year 5 | 449 | 473 |
Thereafter | 1,209 | 1,547 |
Total lease payments | 5,482 | $ 13,894 |
Less portion representing imputed interest | 642 | |
Total lease liabilities | 4,840 | |
Finance Leases | ||
2020 | 7,934 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 7,934 | |
Less portion representing imputed interest | 61 | |
Total lease liabilities | $ 7,873 |
Leases - Lessor, Reconciliation
Leases - Lessor, Reconciliation of Operating Lease Payments Table (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 157,582 |
2021 | 193,925 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total lease payments | $ 351,507 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Total lease cost | $ 8,768 | $ 56,500 | $ 45,500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for remediation and reclamation obligations | $ 5.4 | $ 1.7 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - WES Operating [Member] - USD ($) | Jan. 31, 2020 | Jan. 13, 2020 | Dec. 31, 2019 |
Revolving Credit Facility [Member] | Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | |||
Subsequent Event [Line Items] | |||
Senior note, applicable margin added | 1.00% | ||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Term Loan Facility [Member] | |||
Subsequent Event [Line Items] | |||
Facility, repayment of borrowings | $ 3,000,000,000 | ||
Subsequent Event [Member] | Senior Notes [Member] | 3.100% Senior Notes due 2025 [Member] | |||
Subsequent Event [Line Items] | |||
Issuance of senior notes | $ 1,000,000,000 | ||
Senior note, interest rate | 3.10% | ||
Senior note, offering percent | 99.962% | ||
Subsequent Event [Member] | Senior Notes [Member] | 4.050% Senior Notes due 2030 [Member] | |||
Subsequent Event [Line Items] | |||
Issuance of senior notes | $ 1,200,000,000 | ||
Senior note, interest rate | 4.05% | ||
Senior note, offering percent | 99.90% | ||
Subsequent Event [Member] | Senior Notes [Member] | 5.250% Senior Notes due 2050 [Member] | |||
Subsequent Event [Line Items] | |||
Issuance of senior notes | $ 1,000,000,000 | ||
Senior note, interest rate | 5.25% | ||
Senior note, offering percent | 99.442% | ||
Subsequent Event [Member] | Senior Notes [Member] | Floating Rate Senior Notes due 2023 [Member] | |||
Subsequent Event [Line Items] | |||
Issuance of senior notes | $ 300,000,000 | ||
Subsequent Event [Member] | Senior Notes [Member] | Floating Rate Senior Notes due 2023 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | |||
Subsequent Event [Line Items] | |||
Senior note, applicable margin added | 0.85% |