Debt and Interest Expense | 11. DEBT AND INTEREST EXPENSE WES Operating is the borrower for all outstanding debt and is expected to be the borrower for all future debt issuances. The following table presents the outstanding debt: March 31, 2021 December 31, 2020 thousands Principal Carrying Fair Value (1) Principal Carrying Fair Value (1) Short - term debt 5.375% Senior Notes due 2021 $ — $ — $ — $ 431,081 $ 430,606 $ 436,241 Finance lease liabilities 7,752 7,752 7,752 8,264 8,264 8,264 Total short - term debt $ 7,752 $ 7,752 $ 7,752 $ 439,345 $ 438,870 $ 444,505 Long - term debt 4.000% Senior Notes due 2022 $ 580,917 $ 580,613 $ 596,358 $ 580,917 $ 580,555 $ 597,568 Floating - Rate Senior Notes due 2023 239,978 239,013 237,964 239,978 238,879 235,066 3.100% Senior Notes due 2025 1,000,000 993,300 1,035,754 1,000,000 992,900 1,028,614 3.950% Senior Notes due 2025 500,000 495,132 514,220 500,000 494,866 512,807 4.650% Senior Notes due 2026 500,000 496,840 527,584 500,000 496,708 524,880 4.500% Senior Notes due 2028 400,000 395,746 415,374 400,000 395,617 415,454 4.750% Senior Notes due 2028 400,000 396,649 418,284 400,000 396,555 418,786 4.050% Senior Notes due 2030 1,200,000 1,189,637 1,304,379 1,200,000 1,189,407 1,342,996 5.450% Senior Notes due 2044 600,000 593,631 617,579 600,000 593,598 607,234 5.300% Senior Notes due 2048 700,000 687,101 703,739 700,000 687,048 694,172 5.500% Senior Notes due 2048 350,000 342,571 342,609 350,000 342,543 343,928 5.250% Senior Notes due 2050 1,000,000 983,561 1,082,044 1,000,000 983,512 1,100,375 Finance lease liabilities 22,207 22,207 22,207 23,644 23,644 23,644 Total long - term debt $ 7,493,102 $ 7,416,001 $ 7,818,095 $ 7,494,539 $ 7,415,832 $ 7,845,524 _________________________________________________________________________________________ (1) Fair value is measured using the market approach and Level - 2 fair value inputs. 11. DEBT AND INTEREST EXPENSE Debt activity. The following table presents the debt activity for the three months ended March 31, 2021: thousands Carrying Value Balance at December 31, 2020 $ 7,854,702 RCF borrowings 100,000 Repayments of RCF borrowings (100,000) Repayment of 5.375% Senior Notes due 2021 (431,081) Finance lease liabilities (1,949) Other 2,081 Balance at March 31, 2021 $ 7,423,753 WES Operating Senior Notes. In mid - January 2020, WES Operating issued the Fixed - Rate 3.100% Senior Notes due 2025, 4.050% Senior Notes due 2030, and 5.250% Senior Notes due 2050 (collectively referred to as the “Fixed - Rate Senior Notes”) and the Floating - Rate Senior Notes due 2023 (the “Floating - Rate Senior Notes”). Including the effects of the issuance prices, underwriting discounts, and interest - rate adjustments, the effective interest rates of the Senior Notes due 2025, 2030, and 2050, were 4.542%, 5.424%, and 6.629%, respectively, at March 31, 2021, and were 3.287%, 4.168%, and 5.362%, respectively, at March 31, 2020. The interest rate on the Floating - Rate Senior Notes was 2.33% and 2.69% at March 31, 2021 and 2020, respectively. The effective interest rate of these notes is subject to adjustment from time to time due to a change in credit rating. During the first quarter of 2021, WES Operating redeemed the total principal amount outstanding of the 5.375% Senior Notes due 2021 at par value, pursuant to the optional redemption terms in WES Operating’s indenture. At March 31, 2021, WES Operating was in compliance with all covenants under the relevant governing indentures. Revolving credit facility. WES Operating’s $2.0 billion senior unsecured revolving credit facility (“RCF”) is expandable to a maximum of $2.5 billion, and matures in February 2025 for each extending lender. The non - extending lender’s commitments mature in February 2024 and represent $100.0 million out of $2.0 billion of total commitments from all lenders. As of March 31, 2021, there were no outstanding borrowings and $5.1 million of outstanding letters of credit, resulting in $2.0 billion of available borrowing capacity under the RCF. As of March 31, 2021 and 2020, the interest rate on any outstanding RCF borrowings was 1.61% and 2.13%, respectively. The facility - fee rate was 0.25% and 0.20% at March 31, 2021 and 2020, respectively. At March 31, 2021, WES Operating was in compliance with all covenants under the RCF. Term loan facility. In January 2020, WES Operating repaid the outstanding borrowings with proceeds from the issuance of the Fixed - Rate Senior Notes and Floating - Rate Senior Notes and terminated its $3.0 billion senior unsecured credit facility (“Term loan facility”), see WES Operating Senior Notes above. During the first quarter of 2020, a loss of $2.3 million was recognized for the early termination of the Term loan facility. Finance lease liabilities. The Partnership subleased equipment from Occidental via finance leases through April 2020. During the first quarter of 2020, the Partnership entered into finance leases with third parties for equipment and vehicles extending through 2029, with future lease payments of $34.5 million as of March 31, 2021. 11. DEBT AND INTEREST EXPENSE Interest expense. The following table summarizes the amounts included in interest expense: Three Months Ended thousands 2021 2020 Third parties Long - term and short - term debt $ (95,722) $ (89,769) Finance lease liabilities (298) (405) Amortization of debt issuance costs and commitment fees (3,338) (3,127) Capitalized interest 865 4,758 Total interest expense – third parties (98,493) (88,543) Related parties Finance lease liabilities — (43) Total interest expense – related parties — (43) Interest expense $ (98,493) $ (88,586) |