Debt and Interest Expense | 9. 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, 2022 December 31, 2021 thousands Principal Carrying Fair Value (1) Principal Carrying Fair Value (1) Short - term debt 4.000% Senior Notes due 2022 $ 502,246 $ 502,192 $ 502,250 $ 502,246 $ 502,138 $ 505,153 Floating - Rate Senior Notes due 2023 213,138 212,760 212,425 — — — Finance lease liabilities 3,201 3,201 3,201 3,794 3,794 3,794 Total short - term debt $ 718,585 $ 718,153 $ 717,876 $ 506,040 $ 505,932 $ 508,947 Long - term debt Floating - Rate Senior Notes due 2023 $ — $ — $ — $ 213,138 $ 212,642 $ 213,072 3.100% Senior Notes due 2025 732,106 728,404 728,061 732,106 728,096 764,815 3.950% Senior Notes due 2025 399,163 396,149 402,063 399,163 395,928 418,506 4.650% Senior Notes due 2026 474,242 471,761 485,982 474,242 471,629 516,473 4.500% Senior Notes due 2028 400,000 396,281 407,380 400,000 396,145 437,673 4.750% Senior Notes due 2028 400,000 397,037 413,219 400,000 396,938 444,550 4.050% Senior Notes due 2030 1,200,000 1,190,584 1,201,380 1,200,000 1,190,339 1,323,595 5.450% Senior Notes due 2044 600,000 593,769 609,529 600,000 593,733 717,804 5.300% Senior Notes due 2048 700,000 687,321 694,990 700,000 687,265 844,223 5.500% Senior Notes due 2048 350,000 342,689 347,087 350,000 342,659 418,907 5.250% Senior Notes due 2050 1,000,000 983,765 982,278 1,000,000 983,709 1,183,514 Finance lease liabilities 990 990 990 1,533 1,533 1,533 Total long - term debt $ 6,256,501 $ 6,188,750 $ 6,272,959 $ 6,470,182 $ 6,400,616 $ 7,284,665 _________________________________________________________________________________________ (1) Fair value is measured using the market approach and Level - 2 fair value inputs. 9. DEBT AND INTEREST EXPENSE Debt activity. The following table presents the debt activity for the three months ended March 31, 2022: thousands Carrying Value Balance at December 31, 2021 $ 6,906,548 Finance lease liabilities (1,135) Other 1,490 Balance at March 31, 2022 $ 6,906,903 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 3.790%, 4.671%, and 5.869%, respectively, at March 31, 2022, and were 4.542%, 5.424%, and 6.629%, respectively, at March 31, 2021. The interest rate on the Floating - Rate Senior Notes was 1.84% and 2.33% at March 31, 2022 and 2021, 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. As of March 31, 2022, the 4.000% Senior Notes due 2022 and the Floating-Rate Senior Notes were classified as short-term debt on the consolidated balance sheet. Subsequent to March 31, 2022, WES Operating redeemed the 4.000% Senior Notes due 2022 at par value on April 1, 2022, pursuant to the optional redemption terms in WES Operating’s indenture. At March 31, 2022, 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, 2022, 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, 2022 and 2021, the interest rate on any outstanding RCF borrowings was 1.95% and 1.61%, respectively. The facility - fee rate was 0.25% at March 31, 2022 and 2021. At March 31, 2022, WES Operating was in compliance with all covenants under the RCF. Finance lease liabilities. During the first quarter of 2020, the Partnership entered into finance leases with third parties for equipment and vehicles. Certain of these equipment leases were amended during the third quarter of 2021 requiring reassessment of lease classification. As a result, these leases were classified as operating leases. The Partnership has future payments for its finance leases of $4.3 million as of March 31, 2022. 9. DEBT AND INTEREST EXPENSE Interest expense. The following table summarizes the amounts included in interest expense: Three Months Ended thousands 2022 2021 Long - term and short - term debt $ (83,428) $ (95,722) Finance lease liabilities (42) (298) Commitment fees and amortization of debt-related costs (3,032) (3,338) Capitalized interest 1,047 865 Interest expense $ (85,455) $ (98,493) |