Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 16, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | WESTERN MIDSTREAM PARTNERS, LP | ||
Entity File Number | 001-35753 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-0967367 | ||
Entity Address, Address Line One | 9950 Woodloch Forest Drive, Suite 2800 | ||
Entity Address, City or Town | The Woodlands, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | (346) | ||
Local Phone Number | 786-5000 | ||
Title of 12(b) Security | Common units | ||
Trading Symbol | WES | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.9 | ||
Entity Common Units Outstanding | 384,892,309 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001423902 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
WES Operating [Member] | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | WESTERN MIDSTREAM OPERATING, LP | ||
Entity File Number | 001-34046 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1075808 | ||
Entity Address, Address Line One | 9950 Woodloch Forest Drive, Suite 2800 | ||
Entity Address, City or Town | The Woodlands, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | (346) | ||
Local Phone Number | 786-5000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001414475 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
WES Operating [Member] | |
Auditor Information [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues and other | ||||
Revenues and other | [1] | $ 3,251,721 | $ 2,877,155 | $ 2,772,592 |
Equity income, net – related parties | 183,483 | 204,645 | 226,750 | |
Operating expenses | ||||
Cost of product | 420,900 | 322,285 | 188,088 | |
Operation and maintenance | 654,566 | 581,300 | 580,874 | |
General and administrative | 194,017 | 195,549 | 155,769 | |
Property and other taxes | 78,559 | 64,267 | 68,340 | |
Depreciation and amortization | 582,365 | 551,629 | 491,086 | |
Long-lived asset and other impairments | [2] | 20,585 | 30,543 | 203,889 |
Goodwill impairment | 0 | 0 | 441,017 | |
Total operating expenses | [3] | 1,950,992 | 1,745,573 | 2,129,063 |
Gain (loss) on divestiture and other, net | 103,676 | 44 | 8,634 | |
Operating income (loss) | 1,587,888 | 1,336,271 | 878,913 | |
Interest income – Anadarko note receivable | 0 | 0 | 11,736 | |
Interest expense | (333,939) | (376,512) | (380,058) | |
Gain (loss) on early extinguishment of debt | 91 | (24,944) | 11,234 | |
Other income (expense), net | 1,603 | (623) | 1,025 | |
Income (loss) before income taxes | 1,255,643 | 934,192 | 522,850 | |
Income tax expense (benefit) | 4,187 | (9,807) | 5,998 | |
Net income (loss) | 1,251,456 | 943,999 | 516,852 | |
Net income (loss) attributable to noncontrolling interests | 34,353 | 27,707 | (10,160) | |
Net income (loss) attributable to Western Midstream Partners, LP | 1,217,103 | 916,292 | 527,012 | |
Limited partners' interest in net income (loss): | ||||
Net income (loss) attributable to Western Midstream Partners, LP | 1,217,103 | 916,292 | 527,012 | |
General partner interest in net (income) loss | (27,541) | (19,815) | (11,104) | |
Limited partners' interest in net income (loss) | [4] | $ 1,189,562 | $ 896,477 | $ 515,908 |
Net income (loss) per common unit - basic | [4] | $ 3.01 | $ 2.18 | $ 1.18 |
Net income (loss) per common unit - diluted | [4] | $ 3 | $ 2.18 | $ 1.18 |
Weighted-average common units outstanding - basic | [4] | 394,951 | 411,309 | 435,554 |
Weighted-average common units outstanding - diluted | [4] | 396,236 | 412,022 | 435,624 |
Service Revenues - Fee Based [Member] | ||||
Revenues and other | ||||
Revenues and other | $ 2,602,053 | $ 2,462,835 | $ 2,584,323 | |
Service Revenues - Product Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 249,692 | 122,584 | 48,369 | |
Product Sales [Member] | ||||
Revenues and other | ||||
Revenues and other | 399,023 | 290,947 | 138,559 | |
Other [Member] | ||||
Revenues and other | ||||
Revenues and other | $ 953 | $ 789 | $ 1,341 | |
[1] Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . See Note 7 and Note 9 . Total operating expenses includes related - party amounts of $(18.0) million, $86.2 million, and $182.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . See Note 5. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Total revenues and other | [1] | $ 3,251,721 | $ 2,877,155 | $ 2,772,592 |
Total operating expenses | [2] | 1,950,992 | 1,745,573 | 2,129,063 |
Related Parties [Member] | ||||
Total revenues and other | 1,795,233 | 1,632,358 | 1,820,612 | |
Total operating expenses | $ (18,028) | $ 86,223 | $ 182,712 | |
[1] Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . Total operating expenses includes related - party amounts of $(18.0) million, $86.2 million, and $182.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 286,656 | $ 201,999 | |
Accounts receivable, net | 554,263 | 436,513 | |
Other current assets | 59,506 | 46,252 | |
Total current assets | 900,425 | 684,764 | |
Property, plant, and equipment | |||
Cost | 13,365,593 | 12,846,078 | |
Less accumulated depreciation | 4,823,993 | 4,333,171 | |
Net property, plant, and equipment | 8,541,600 | 8,512,907 | |
Goodwill | 4,783 | 4,783 | |
Other intangible assets | 713,075 | 744,742 | |
Equity investments | 944,696 | 1,167,187 | |
Other assets | [1] | 167,049 | 158,696 |
Total assets | [2] | 11,271,628 | 11,273,079 |
Current liabilities | |||
Accounts and imbalance payables | 360,562 | 326,061 | |
Short-term debt | 215,780 | 505,932 | |
Accrued ad valorem taxes | 72,875 | 44,955 | |
Accrued liabilities | 254,640 | 263,249 | |
Total current liabilities | 903,857 | 1,140,197 | |
Long-term liabilities | |||
Long-term debt | 6,569,582 | 6,400,616 | |
Deferred income taxes | 14,424 | 12,425 | |
Asset retirement obligations | 290,021 | 298,275 | |
Other liabilities | 385,629 | 325,806 | |
Total long-term liabilities | 7,259,656 | 7,037,122 | |
Total liabilities | [3] | 8,163,513 | 8,177,319 |
Equity and partners' capital | |||
Common units (384,070,984 and 402,993,919 units issued and outstanding at December 31, 2022 and 2021, respectively) | 2,969,604 | 2,966,955 | |
General partner units (9,060,641 units issued and outstanding at December 31, 2022 and 2021) | 2,105 | (8,882) | |
Total partners' capital | 2,971,709 | 2,958,073 | |
Noncontrolling interests | 136,406 | 137,687 | |
Total equity and partners' capital | 3,108,115 | 3,095,760 | |
Total liabilities, equity, and partners' capital | $ 11,271,628 | $ 11,273,079 | |
Common units issued | 384,070,984 | 402,993,919 | |
Common units outstanding | 384,070,984 | 402,993,919 | |
General partner units issued | 9,060,641 | 9,060,641 | |
General partner units outstanding | 9,060,641 | 9,060,641 | |
[1] Other assets includes $6.5 million and $9.8 million of NGLs line - fill inventory as of December 31, 2022 and 2021, respectively. Other assets also includes $60.4 million and $56.2 million of materials and supplies inventory as of December 31, 2022 and 2021, respectively. Total assets includes related - party amounts of $1.3 billion and $1.4 billion as of December 31, 2022 and 2021, respectively, which includes related - party Accounts receivable, net of $313.9 million and $180.2 million as of December 31, 2022 and 2021, respectively. See Note 6 . Total liabilities includes related - party amounts of $312.3 million and $270.5 million as of December 31, 2022 and 2021, respectively. See Note 6 . |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Materials and supplies inventory | $ 60,400 | $ 56,200 | |
Total assets | [1] | 11,271,628 | 11,273,079 |
Accounts receivable, net | 554,263 | 436,513 | |
Total liabilities | [2] | 8,163,513 | 8,177,319 |
Related Parties [Member] | |||
Total assets | 1,289,269 | 1,405,376 | |
Accounts receivable, net | 313,937 | 180,205 | |
Total liabilities | 312,305 | 270,521 | |
Natural-Gas Liquids [Member] | |||
NGLs line-fill inventory | $ 6,500 | $ 9,800 | |
[1] Total assets includes related - party amounts of $1.3 billion and $1.4 billion as of December 31, 2022 and 2021, respectively, which includes related - party Accounts receivable, net of $313.9 million and $180.2 million as of December 31, 2022 and 2021, respectively. See Note 6 . Total liabilities includes related - party amounts of $312.3 million and $270.5 million as of December 31, 2022 and 2021, respectively. See Note 6 . |
Consolidated Statements of Equi
Consolidated Statements of Equity and Partners' Capital - USD ($) $ in Thousands | Total | Occidental [Member] | Chipeta [Member] | WES Operating [Member] | Common Units [Member] | Common Units [Member] Occidental [Member] | General Partner [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member] Chipeta [Member] | Noncontrolling Interests [Member] WES Operating [Member] | |
Balance at Dec. 31, 2019 | $ 3,345,293 | $ 3,209,947 | $ (14,224) | $ 149,570 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | 516,852 | 515,908 | 11,104 | (10,160) | |||||||
Distributions to noncontrolling interest owners | $ (8,644) | $ (15,434) | $ (8,644) | $ (15,434) | |||||||
Distributions to Partnership unitholders | (695,834) | (681,746) | (14,088) | ||||||||
Unit exchange with Occidental | [1] | (261,878) | (256,640) | (5,238) | |||||||
Unit repurchases | [2] | (32,535) | (32,535) | ||||||||
Acquisitions from related parties | 0 | (3,987) | 3,987 | ||||||||
Contributions of equity-based compensation from related parties | $ 14,604 | $ 14,604 | |||||||||
Equity-based compensation expense | 7,857 | 7,857 | |||||||||
Net contributions from (distributions to) related parties | [3] | 24,466 | 4,466 | 20,000 | |||||||
Other | 465 | 465 | |||||||||
Balance at Dec. 31, 2020 | 2,895,212 | 2,778,339 | (17,208) | 134,081 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | 943,999 | 896,477 | 19,815 | 27,707 | |||||||
Distributions to noncontrolling interest owners | (9,117) | (14,984) | (9,117) | (14,984) | |||||||
Distributions to Partnership unitholders | (533,758) | (522,269) | (11,489) | ||||||||
Unit repurchases | [2] | (217,465) | (217,465) | ||||||||
Contributions of equity-based compensation from related parties | 10,087 | 10,087 | |||||||||
Equity-based compensation expense | 17,589 | 17,589 | |||||||||
Net contributions from (distributions to) related parties | 8,533 | 8,533 | |||||||||
Other | (4,336) | (4,336) | |||||||||
Balance at Dec. 31, 2021 | 3,095,760 | 2,966,955 | (8,882) | 137,687 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||
Net income (loss) | 1,251,456 | 1,189,562 | 27,541 | 34,353 | |||||||
Distributions to noncontrolling interest owners | $ (10,736) | $ (24,898) | $ (10,736) | $ (24,898) | |||||||
Distributions to Partnership unitholders | (735,755) | (719,201) | (16,554) | ||||||||
Unit repurchases | [2] | (487,590) | (487,590) | ||||||||
Contributions of equity-based compensation from related parties | $ 2,277 | $ 2,277 | |||||||||
Equity-based compensation expense | 25,506 | 25,506 | |||||||||
Net contributions from (distributions to) related parties | 1,423 | 1,423 | |||||||||
Other | (9,328) | (9,328) | |||||||||
Balance at Dec. 31, 2022 | $ 3,108,115 | $ 2,969,604 | $ 2,105 | $ 136,406 | |||||||
[1] See Note 6 . See Note 5 . |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 1,251,456 | $ 943,999 | $ 516,852 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 582,365 | 551,629 | 491,086 | |
Long-lived asset and other impairments | [1] | 20,585 | 30,543 | 203,889 |
Goodwill impairment | 0 | 0 | 441,017 | |
Non-cash equity-based compensation expense | 27,783 | 27,676 | 22,462 | |
Deferred income taxes | 1,999 | (9,770) | 3,296 | |
Accretion and amortization of long-term obligations, net | 7,142 | 7,635 | 8,654 | |
Equity income, net – related parties | (183,483) | (204,645) | (226,750) | |
Distributions from equity-investment earnings – related parties | 186,153 | 213,516 | 246,637 | |
(Gain) loss on divestiture and other, net | (103,676) | (44) | (8,634) | |
(Gain) loss on early extinguishment of debt | (91) | 24,944 | (11,234) | |
Cash paid to settle interest-rate swaps | 0 | 0 | (25,621) | |
Other | 510 | 260 | 193 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (116,296) | 16,366 | (193,688) | |
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (7,812) | 114,887 | 144,437 | |
Change in other items, net | 34,791 | 49,856 | 24,822 | |
Net cash provided by operating activities | 1,701,426 | 1,766,852 | 1,637,418 | |
Cash flows from investing activities | ||||
Capital expenditures | [2] | (487,228) | (313,674) | (423,602) |
Contributions to equity investments – related parties | (9,632) | (4,435) | (19,388) | |
Distributions from equity investments in excess of cumulative earnings – related parties | 63,897 | 41,385 | 32,160 | |
(Increase) decrease in materials and supplies inventory and other | (9,468) | 11,084 | (57,757) | |
Net cash used in investing activities | (218,237) | (257,538) | (448,254) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 1,389,010 | 480,000 | 3,681,173 | |
Repayments of debt | (1,518,548) | (1,432,966) | (3,803,888) | |
Increase (decrease) in outstanding checks | 2,206 | (21,631) | 20,699 | |
Distributions to Partnership unitholders | (735,755) | (533,758) | (695,834) | |
Net contributions from (distributions to) related parties | 1,423 | 8,533 | 24,466 | |
Unit repurchases | (487,590) | (217,465) | (32,535) | |
Other | (13,644) | (10,849) | (14,207) | |
Net cash provided by (used in) financing activities | (1,398,532) | (1,752,237) | (844,204) | |
Net increase (decrease) in cash and cash equivalents | 84,657 | (242,923) | 344,960 | |
Cash and cash equivalents at beginning of period | 201,999 | 444,922 | 99,962 | |
Cash and cash equivalents at end of period | 286,656 | 201,999 | 444,922 | |
Supplemental disclosures | ||||
Non-cash unit exchange with Occidental | [2] | 0 | 0 | (261,878) |
Interest paid, net of capitalized interest | 355,363 | 375,007 | 349,913 | |
Income taxes paid (reimbursements received) | 912 | 938 | (384) | |
Accrued capital expenditures | 82,353 | 35,240 | 25,126 | |
Third Parties [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions from third parties | (40,127) | 0 | 0 | |
Proceeds from the sale of assets to third parties | 264,121 | 8,102 | 20,333 | |
Related Parties [Member] | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
(Gain) loss on divestiture and other, net | 1,756 | (420) | 2,870 | |
Cash flows from investing activities | ||||
Capital expenditures | (470) | (2,000) | 0 | |
Proceeds from the sale of assets to third parties | 200 | 0 | 0 | |
Cash flows from financing activities | ||||
Distributions to Partnership unitholders | (372,468) | (272,192) | (381,949) | |
Unit repurchases | (252,500) | (50,225) | 0 | |
Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | (10,736) | (9,117) | (8,644) | |
WES Operating [Member] | ||||
Cash flows from financing activities | ||||
Distributions to noncontrolling interest owner of WES Operating | (24,898) | (14,984) | (15,434) | |
WES Operating [Member] | Related Parties [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Partnership unitholders | $ (24,898) | $ (14,984) | $ (15,434) | |
[1] See Note 7 and Note 9 . Includes related-party amounts. See Note 6 . |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Capital expenditures | [1] | $ 487,228 | $ 313,674 | $ 423,602 |
Related Parties [Member] | ||||
Capital expenditures | $ 470 | $ 2,000 | $ 0 | |
[1] Includes related-party amounts. See Note 6 . |
Consolidated Statements of Op_3
Consolidated Statements of Operations - WES Operating - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues and other | ||||
Revenues and other | [1] | $ 3,251,721 | $ 2,877,155 | $ 2,772,592 |
Equity income, net – related parties | 183,483 | 204,645 | 226,750 | |
Operating expenses | ||||
Cost of product | 420,900 | 322,285 | 188,088 | |
Operation and maintenance | 654,566 | 581,300 | 580,874 | |
General and administrative | 194,017 | 195,549 | 155,769 | |
Property and other taxes | 78,559 | 64,267 | 68,340 | |
Depreciation and amortization | 582,365 | 551,629 | 491,086 | |
Long-lived asset and other impairments | [2] | 20,585 | 30,543 | 203,889 |
Goodwill impairment | 0 | 0 | 441,017 | |
Total operating expenses | [3] | 1,950,992 | 1,745,573 | 2,129,063 |
Gain (loss) on divestiture and other, net | 103,676 | 44 | 8,634 | |
Operating income (loss) | 1,587,888 | 1,336,271 | 878,913 | |
Interest income – Anadarko note receivable | 0 | 0 | 11,736 | |
Interest expense | (333,939) | (376,512) | (380,058) | |
Gain (loss) on early extinguishment of debt | 91 | (24,944) | 11,234 | |
Other income (expense), net | 1,603 | (623) | 1,025 | |
Income (loss) before income taxes | 1,255,643 | 934,192 | 522,850 | |
Income tax expense (benefit) | 4,187 | (9,807) | 5,998 | |
Net income (loss) | 1,251,456 | 943,999 | 516,852 | |
Net income (loss) attributable to noncontrolling interest | 34,353 | 27,707 | (10,160) | |
Net income (loss) attributable to Western Midstream Operating, LP | 1,217,103 | 916,292 | 527,012 | |
Service Revenues - Fee Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 2,602,053 | 2,462,835 | 2,584,323 | |
Service Revenues - Product Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 249,692 | 122,584 | 48,369 | |
Product Sales [Member] | ||||
Revenues and other | ||||
Revenues and other | 399,023 | 290,947 | 138,559 | |
Other [Member] | ||||
Revenues and other | ||||
Revenues and other | 953 | 789 | 1,341 | |
WES Operating [Member] | ||||
Revenues and other | ||||
Revenues and other | [4] | 3,251,721 | 2,877,155 | 2,772,592 |
Equity income, net – related parties | 183,483 | 204,645 | 226,750 | |
Operating expenses | ||||
Cost of product | 420,900 | 322,285 | 188,088 | |
Operation and maintenance | 654,566 | 581,300 | 580,874 | |
General and administrative | 191,361 | 192,617 | 152,217 | |
Property and other taxes | 78,559 | 64,267 | 68,340 | |
Depreciation and amortization | 582,365 | 551,629 | 491,086 | |
Long-lived asset and other impairments | [5] | 20,585 | 30,543 | 203,889 |
Goodwill impairment | 0 | 0 | 441,017 | |
Total operating expenses | [6] | 1,948,336 | 1,742,641 | 2,125,511 |
Gain (loss) on divestiture and other, net | 103,676 | 44 | 8,634 | |
Operating income (loss) | 1,590,544 | 1,339,203 | 882,465 | |
Interest income – Anadarko note receivable | 0 | 0 | 11,736 | |
Interest expense | (333,939) | (376,512) | (380,058) | |
Gain (loss) on early extinguishment of debt | 91 | (24,944) | 11,234 | |
Other income (expense), net | 1,558 | (634) | 1,008 | |
Income (loss) before income taxes | 1,258,254 | 937,113 | 526,385 | |
Income tax expense (benefit) | 4,180 | (9,816) | 5,998 | |
Net income (loss) | 1,254,074 | 946,929 | 520,387 | |
Net income (loss) attributable to noncontrolling interest | 9,454 | 8,942 | (20,990) | |
Net income (loss) attributable to Western Midstream Operating, LP | 1,244,620 | 937,987 | 541,377 | |
WES Operating [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 2,602,053 | 2,462,835 | 2,584,323 | |
WES Operating [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and other | ||||
Revenues and other | 249,692 | 122,584 | 48,369 | |
WES Operating [Member] | Product Sales [Member] | ||||
Revenues and other | ||||
Revenues and other | 399,023 | 290,947 | 138,559 | |
WES Operating [Member] | Other [Member] | ||||
Revenues and other | ||||
Revenues and other | $ 953 | $ 789 | $ 1,341 | |
[1] Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . See Note 7 and Note 9 . Total operating expenses includes related - party amounts of $(18.0) million, $86.2 million, and $182.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . See Note 7 and Note 9 . Total operating expenses includes related - party amounts of $(15.0) million, $89.0 million, and $184.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . |
Consolidated Statements of Op_4
Consolidated Statements of Operations - WES Operating (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Total revenues and other | [1] | $ 3,251,721 | $ 2,877,155 | $ 2,772,592 |
Total operating expenses | [2] | 1,950,992 | 1,745,573 | 2,129,063 |
Related Parties [Member] | ||||
Total revenues and other | 1,795,233 | 1,632,358 | 1,820,612 | |
Total operating expenses | (18,028) | 86,223 | 182,712 | |
WES Operating [Member] | ||||
Total revenues and other | [3] | 3,251,721 | 2,877,155 | 2,772,592 |
Total operating expenses | [4] | 1,948,336 | 1,742,641 | 2,125,511 |
WES Operating [Member] | Related Parties [Member] | ||||
Total revenues and other | 1,800,000 | 1,600,000 | 1,800,000 | |
Total operating expenses | $ (15,000) | $ 89,000 | $ 184,000 | |
[1] Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . Total operating expenses includes related - party amounts of $(18.0) million, $86.2 million, and $182.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . Total operating expenses includes related - party amounts of $(15.0) million, $89.0 million, and $184.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . |
Consolidated Balance Sheets - W
Consolidated Balance Sheets - WES Operating - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 286,656 | $ 201,999 | |
Accounts receivable, net | 554,263 | 436,513 | |
Other current assets | 59,506 | 46,252 | |
Total current assets | 900,425 | 684,764 | |
Property, plant, and equipment | |||
Cost | 13,365,593 | 12,846,078 | |
Less accumulated depreciation | 4,823,993 | 4,333,171 | |
Net property, plant, and equipment | 8,541,600 | 8,512,907 | |
Goodwill | 4,783 | 4,783 | |
Other intangible assets | 713,075 | 744,742 | |
Equity investments | 944,696 | 1,167,187 | |
Other assets | [1] | 167,049 | 158,696 |
Total assets | [2] | 11,271,628 | 11,273,079 |
Current liabilities | |||
Accounts and imbalance payables | 360,562 | 326,061 | |
Short-term debt | 215,780 | 505,932 | |
Accrued ad valorem taxes | 72,875 | 44,955 | |
Accrued liabilities | 254,640 | 263,249 | |
Total current liabilities | 903,857 | 1,140,197 | |
Long-term liabilities | |||
Long-term debt | 6,569,582 | 6,400,616 | |
Deferred income taxes | 14,424 | 12,425 | |
Asset retirement obligations | 290,021 | 298,275 | |
Other liabilities | 385,629 | 325,806 | |
Total long-term liabilities | 7,259,656 | 7,037,122 | |
Total liabilities | [3] | 8,163,513 | 8,177,319 |
Equity and partners' capital | |||
Common units (318,675,578 units issued and outstanding at December 31, 2022 and 2021) | 2,969,604 | 2,966,955 | |
Total partners' capital | 2,971,709 | 2,958,073 | |
Noncontrolling interest | 136,406 | 137,687 | |
Total equity and partners' capital | 3,108,115 | 3,095,760 | |
Total liabilities, equity, and partners' capital | $ 11,271,628 | $ 11,273,079 | |
Common units issued | 384,070,984 | 402,993,919 | |
Common units outstanding | 384,070,984 | 402,993,919 | |
WES Operating [Member] | |||
Current assets | |||
Cash and cash equivalents | $ 286,101 | $ 195,598 | |
Accounts receivable, net | 554,263 | 436,513 | |
Other current assets | 57,291 | 44,421 | |
Total current assets | 897,655 | 676,532 | |
Property, plant, and equipment | |||
Cost | 13,365,593 | 12,846,078 | |
Less accumulated depreciation | 4,823,993 | 4,333,171 | |
Net property, plant, and equipment | 8,541,600 | 8,512,907 | |
Goodwill | 4,783 | 4,783 | |
Other intangible assets | 713,075 | 744,742 | |
Equity investments | 944,696 | 1,167,187 | |
Other assets | [4] | 166,450 | 158,696 |
Total assets | [5] | 11,268,259 | 11,264,847 |
Current liabilities | |||
Accounts and imbalance payables | 404,468 | 374,443 | |
Short-term debt | 215,780 | 505,932 | |
Accrued ad valorem taxes | 72,875 | 44,955 | |
Accrued liabilities | 197,289 | 210,693 | |
Total current liabilities | 890,412 | 1,136,023 | |
Long-term liabilities | |||
Long-term debt | 6,569,582 | 6,400,616 | |
Deferred income taxes | 14,424 | 12,425 | |
Asset retirement obligations | 290,021 | 298,275 | |
Other liabilities | 383,713 | 324,842 | |
Total long-term liabilities | 7,257,740 | 7,036,158 | |
Total liabilities | [6] | 8,148,152 | 8,172,181 |
Equity and partners' capital | |||
Common units (318,675,578 units issued and outstanding at December 31, 2022 and 2021) | 3,092,012 | 3,063,289 | |
Total partners' capital | 3,092,012 | 3,063,289 | |
Noncontrolling interest | 28,095 | 29,377 | |
Total equity and partners' capital | 3,120,107 | 3,092,666 | |
Total liabilities, equity, and partners' capital | $ 11,268,259 | $ 11,264,847 | |
Common units issued | 318,675,578 | 318,675,578 | |
Common units outstanding | 318,675,578 | 318,675,578 | |
[1] Other assets includes $6.5 million and $9.8 million of NGLs line - fill inventory as of December 31, 2022 and 2021, respectively. Other assets also includes $60.4 million and $56.2 million of materials and supplies inventory as of December 31, 2022 and 2021, respectively. Total assets includes related - party amounts of $1.3 billion and $1.4 billion as of December 31, 2022 and 2021, respectively, which includes related - party Accounts receivable, net of $313.9 million and $180.2 million as of December 31, 2022 and 2021, respectively. See Note 6 . Total liabilities includes related - party amounts of $312.3 million and $270.5 million as of December 31, 2022 and 2021, respectively. See Note 6 . Other assets includes $6.5 million and $9.8 million of NGLs line - fill inventory as of December 31, 2022 and 2021, respectively. Other assets also includes $60.4 million and $56.2 million of materials and supplies inventory as of December 31, 2022 and 2021, respectively. Total assets includes related - party amounts of $1.3 billion and $1.4 billion as of December 31, 2022 and 2021, respectively, which includes related - party Accounts receivable, net of $313.9 million and $180.2 million as of December 31, 2022 and 2021, respectively. See Note 6 . Total liabilities includes related - party amounts of $356.0 million and $318.7 million as of December 31, 2022 and 2021, respectively. See Note 6 . |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - WES Operating (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Materials and supplies inventory | $ 60,400 | $ 56,200 | |
Total assets | [1] | 11,271,628 | 11,273,079 |
Accounts receivable, net | 554,263 | 436,513 | |
Total liabilities | [2] | 8,163,513 | 8,177,319 |
Related Parties [Member] | |||
Total assets | 1,289,269 | 1,405,376 | |
Accounts receivable, net | 313,937 | 180,205 | |
Total liabilities | 312,305 | 270,521 | |
Natural-Gas Liquids [Member] | |||
NGLs line-fill inventory | 6,500 | 9,800 | |
WES Operating [Member] | |||
Materials and supplies inventory | 60,400 | 56,200 | |
Total assets | [3] | 11,268,259 | 11,264,847 |
Accounts receivable, net | 554,263 | 436,513 | |
Total liabilities | [4] | 8,148,152 | 8,172,181 |
WES Operating [Member] | Related Parties [Member] | |||
Total assets | 1,300,000 | 1,400,000 | |
Accounts receivable, net | 313,937 | 180,205 | |
Total liabilities | 356,000 | 318,700 | |
WES Operating [Member] | Natural-Gas Liquids [Member] | |||
NGLs line-fill inventory | $ 6,500 | $ 9,800 | |
[1] Total assets includes related - party amounts of $1.3 billion and $1.4 billion as of December 31, 2022 and 2021, respectively, which includes related - party Accounts receivable, net of $313.9 million and $180.2 million as of December 31, 2022 and 2021, respectively. See Note 6 . Total liabilities includes related - party amounts of $312.3 million and $270.5 million as of December 31, 2022 and 2021, respectively. See Note 6 . Total assets includes related - party amounts of $1.3 billion and $1.4 billion as of December 31, 2022 and 2021, respectively, which includes related - party Accounts receivable, net of $313.9 million and $180.2 million as of December 31, 2022 and 2021, respectively. See Note 6 . Total liabilities includes related - party amounts of $356.0 million and $318.7 million as of December 31, 2022 and 2021, respectively. See Note 6 . |
Consolidated Statements of Eq_2
Consolidated Statements of Equity and Partners' Capital - WES Operating - USD ($) $ in Thousands | Total | Occidental [Member] | Chipeta [Member] | Common Units [Member] | Common Units [Member] Occidental [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] Chipeta [Member] | WES Operating [Member] | WES Operating [Member] Occidental [Member] | WES Operating [Member] WES [Member] | WES Operating [Member] Chipeta [Member] | WES Operating [Member] Common Units [Member] | WES Operating [Member] Common Units [Member] Occidental [Member] | WES Operating [Member] Common Units [Member] WES [Member] | WES Operating [Member] Noncontrolling Interest [Member] | WES Operating [Member] Noncontrolling Interest [Member] Chipeta [Member] | |||||
Balance at Dec. 31, 2019 | $ 3,345,293 | $ 3,209,947 | $ 149,570 | $ 3,341,819 | $ 3,286,620 | $ 55,199 | |||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||||||
Net income (loss) | 516,852 | 515,908 | (10,160) | 520,387 | 541,377 | (20,990) | |||||||||||||||
Distributions to noncontrolling interest owners | $ (8,644) | $ (8,644) | $ (8,644) | $ (8,644) | |||||||||||||||||
Distributions to WES Operating unitholders | (695,834) | (681,746) | (771,546) | (771,546) | |||||||||||||||||
Acquisitions from related parties | 0 | (3,987) | 3,987 | 0 | (3,987) | 3,987 | |||||||||||||||
Contributions of equity-based compensation from related parties | $ 14,604 | $ 14,604 | $ 14,604 | $ 14,604 | |||||||||||||||||
Unit exchange with Occidental | (261,878) | [1] | (256,640) | [1] | (5,238) | [1] | (261,878) | [2] | (261,878) | [2] | |||||||||||
Net contributions from (distributions to) related parties | 24,466 | [3] | 4,466 | [3] | 20,000 | [3] | 24,466 | [4] | 24,466 | [4] | |||||||||||
Other | 465 | 465 | 1,543 | 1,543 | |||||||||||||||||
Balance at Dec. 31, 2020 | 2,895,212 | 2,778,339 | 134,081 | 2,860,751 | 2,831,199 | 29,552 | |||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||||||
Net income (loss) | 943,999 | 896,477 | 27,707 | 946,929 | 937,987 | 8,942 | |||||||||||||||
Distributions to noncontrolling interest owners | (9,117) | (9,117) | (9,117) | (9,117) | |||||||||||||||||
Distributions to WES Operating unitholders | (533,758) | (522,269) | (749,018) | (749,018) | |||||||||||||||||
Contributions of equity-based compensation from related parties | 10,087 | 10,087 | 10,087 | $ 24,501 | 10,087 | $ 24,501 | |||||||||||||||
Net contributions from (distributions to) related parties | 8,533 | 8,533 | 8,533 | 8,533 | |||||||||||||||||
Other | (4,336) | (4,336) | |||||||||||||||||||
Balance at Dec. 31, 2021 | 3,095,760 | 2,966,955 | 137,687 | 3,092,666 | 3,063,289 | 29,377 | |||||||||||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||||||||||||||
Net income (loss) | 1,251,456 | 1,189,562 | 34,353 | 1,254,074 | 1,244,620 | 9,454 | |||||||||||||||
Distributions to noncontrolling interest owners | $ (10,736) | $ (10,736) | $ (10,736) | $ (10,736) | |||||||||||||||||
Distributions to WES Operating unitholders | (735,755) | (719,201) | (1,244,533) | (1,244,533) | |||||||||||||||||
Contributions of equity-based compensation from related parties | $ 2,277 | $ 2,277 | $ 2,277 | $ 24,936 | $ 2,277 | $ 24,936 | |||||||||||||||
Net contributions from (distributions to) related parties | 1,423 | 1,423 | 1,423 | 1,423 | |||||||||||||||||
Other | (9,328) | (9,328) | |||||||||||||||||||
Balance at Dec. 31, 2022 | $ 3,108,115 | $ 2,969,604 | $ 136,406 | $ 3,120,107 | $ 3,092,012 | $ 28,095 | |||||||||||||||
[1] See Note 6 . See Note 5 . |
Consolidated Statements of Ca_3
Consolidated Statements of Cash Flows - WES Operating - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ 1,251,456 | $ 943,999 | $ 516,852 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 582,365 | 551,629 | 491,086 | |
Long-lived asset and other impairments | [1] | 20,585 | 30,543 | 203,889 |
Goodwill impairment | 0 | 0 | 441,017 | |
Non-cash equity-based compensation expense | 27,783 | 27,676 | 22,462 | |
Deferred income taxes | 1,999 | (9,770) | 3,296 | |
Accretion and amortization of long-term obligations, net | 7,142 | 7,635 | 8,654 | |
Equity income, net – related parties | (183,483) | (204,645) | (226,750) | |
Distributions from equity-investment earnings – related parties | 186,153 | 213,516 | 246,637 | |
(Gain) loss on divestiture and other, net | (103,676) | (44) | (8,634) | |
(Gain) loss on early extinguishment of debt | (91) | 24,944 | (11,234) | |
Cash paid to settle interest-rate swaps | 0 | 0 | (25,621) | |
Other | 510 | 260 | 193 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (116,296) | 16,366 | (193,688) | |
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (7,812) | 114,887 | 144,437 | |
Change in other items, net | 34,791 | 49,856 | 24,822 | |
Net cash provided by operating activities | 1,701,426 | 1,766,852 | 1,637,418 | |
Cash flows from investing activities | ||||
Capital expenditures | [2] | (487,228) | (313,674) | (423,602) |
Contributions to equity investments – related parties | (9,632) | (4,435) | (19,388) | |
Distributions from equity investments in excess of cumulative earnings – related parties | 63,897 | 41,385 | 32,160 | |
(Increase) decrease in materials and supplies inventory and other | (9,468) | 11,084 | (57,757) | |
Net cash used in investing activities | (218,237) | (257,538) | (448,254) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 1,389,010 | 480,000 | 3,681,173 | |
Repayments of debt | (1,518,548) | (1,432,966) | (3,803,888) | |
Increase (decrease) in outstanding checks | 2,206 | (21,631) | 20,699 | |
Distributions to WES Operating unitholders | (735,755) | (533,758) | (695,834) | |
Net contributions from (distributions to) related parties | 1,423 | 8,533 | 24,466 | |
Other | (13,644) | (10,849) | (14,207) | |
Net cash provided by (used in) financing activities | (1,398,532) | (1,752,237) | (844,204) | |
Net increase (decrease) in cash and cash equivalents | 84,657 | (242,923) | 344,960 | |
Cash and cash equivalents at beginning of period | 201,999 | 444,922 | 99,962 | |
Cash and cash equivalents at end of period | 286,656 | 201,999 | 444,922 | |
Supplemental disclosures | ||||
Non-cash unit exchange with Occidental | [2] | 0 | 0 | (261,878) |
Interest paid, net of capitalized interest | 355,363 | 375,007 | 349,913 | |
Income taxes paid (reimbursements received) | 912 | 938 | (384) | |
Accrued capital expenditures | 82,353 | 35,240 | 25,126 | |
Third Parties [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions from third parties | (40,127) | 0 | 0 | |
Proceeds from the sale of assets to third parties | 264,121 | 8,102 | 20,333 | |
Related Parties [Member] | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
(Gain) loss on divestiture and other, net | 1,756 | (420) | 2,870 | |
Cash flows from investing activities | ||||
Capital expenditures | (470) | (2,000) | 0 | |
Proceeds from the sale of assets to third parties | 200 | 0 | 0 | |
Cash flows from financing activities | ||||
Distributions to WES Operating unitholders | (372,468) | (272,192) | (381,949) | |
Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | (10,736) | (9,117) | (8,644) | |
WES Operating [Member] | ||||
Cash flows from operating activities | ||||
Net income (loss) | 1,254,074 | 946,929 | 520,387 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 582,365 | 551,629 | 491,086 | |
Long-lived asset and other impairments | [3] | 20,585 | 30,543 | 203,889 |
Goodwill impairment | 0 | 0 | 441,017 | |
Non-cash equity-based compensation expense | 27,213 | 34,588 | 14,604 | |
Deferred income taxes | 1,999 | (9,770) | 3,296 | |
Accretion and amortization of long-term obligations, net | 7,142 | 7,635 | 8,654 | |
Equity income, net – related parties | (183,483) | (204,645) | (226,750) | |
Distributions from equity-investment earnings – related parties | 186,153 | 213,516 | 246,637 | |
(Gain) loss on divestiture and other, net | (103,676) | (44) | (8,634) | |
(Gain) loss on early extinguishment of debt | (91) | 24,944 | (11,234) | |
Cash paid to settle interest-rate swaps | 0 | 0 | (25,621) | |
Other | 510 | 260 | 193 | |
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (116,296) | (28,965) | (147,041) | |
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (17,189) | 150,055 | 105,352 | |
Change in other items, net | 34,827 | 48,704 | 24,816 | |
Net cash provided by operating activities | 1,694,133 | 1,765,379 | 1,640,651 | |
Cash flows from investing activities | ||||
Capital expenditures | [4] | (487,228) | (313,674) | (423,602) |
Contributions to equity investments – related parties | (9,632) | (4,435) | (19,388) | |
Distributions from equity investments in excess of cumulative earnings – related parties | 63,897 | 41,385 | 32,160 | |
(Increase) decrease in materials and supplies inventory and other | (9,468) | 11,084 | (57,757) | |
Net cash used in investing activities | (218,237) | (257,538) | (448,254) | |
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 1,389,010 | 480,000 | 3,681,173 | |
Repayments of debt | (1,518,548) | (1,432,966) | (3,803,888) | |
Increase (decrease) in outstanding checks | 2,309 | (21,699) | 20,664 | |
Distributions to WES Operating unitholders | [4] | (1,244,533) | (749,018) | (771,546) |
Net contributions from (distributions to) related parties | 1,423 | 8,533 | 24,466 | |
Other | (4,318) | (6,513) | (14,207) | |
Net cash provided by (used in) financing activities | (1,385,393) | (1,730,780) | (871,982) | |
Net increase (decrease) in cash and cash equivalents | 90,503 | (222,939) | 320,415 | |
Cash and cash equivalents at beginning of period | 195,598 | 418,537 | 98,122 | |
Cash and cash equivalents at end of period | 286,101 | 195,598 | 418,537 | |
Supplemental disclosures | ||||
Non-cash unit exchange with Occidental | [4] | 0 | 0 | (261,878) |
Interest paid, net of capitalized interest | 355,363 | 375,007 | 349,913 | |
Income taxes paid (reimbursements received) | 912 | 938 | (384) | |
Accrued capital expenditures | 82,353 | 35,240 | 25,126 | |
WES Operating [Member] | Third Parties [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions from third parties | (40,127) | 0 | 0 | |
Proceeds from the sale of assets to third parties | 264,121 | 8,102 | 20,333 | |
WES Operating [Member] | Related Parties [Member] | ||||
Cash flows from investing activities | ||||
Proceeds from the sale of assets to third parties | 200 | 0 | 0 | |
Cash flows from financing activities | ||||
Distributions to WES Operating unitholders | (1,244,533) | (749,018) | (771,546) | |
WES Operating [Member] | Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | $ (10,736) | $ (9,117) | $ (8,644) | |
[1] See Note 7 and Note 9 . Includes related-party amounts. See Note 6 . See Note 7 and Note 9 . |
Consolidated Statements of Ca_4
Consolidated Statements of Cash Flows - WES Operating (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Capital expenditures | [1] | $ 487,228 | $ 313,674 | $ 423,602 |
WES Operating [Member] | ||||
Capital expenditures | [2] | 487,228 | 313,674 | 423,602 |
Related Parties [Member] | ||||
Capital expenditures | $ 470 | $ 2,000 | $ 0 | |
[1] Includes related-party amounts. See Note 6 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Basis of Presentation | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION General. Western Midstream Partners, LP is a Delaware master limited partnership formed in September 2012. Western Midstream Operating, LP (together with its subsidiaries, “WES Operating”) is a Delaware limited partnership formed in 2007 to acquire, own, develop, and operate midstream assets. Western Midstream Partners, LP owns, directly and indirectly, a 98.0% limited partner interest in WES Operating, and directly owns all of the outstanding equity interests of Western Midstream Operating GP, LLC, which holds the entire non - economic general partner interest in WES Operating. For purposes of these consolidated financial statements, the “Partnership” refers to Western Midstream Partners, LP in its individual capacity or to Western Midstream Partners, LP and its subsidiaries, including Western Midstream Operating GP, LLC and WES Operating, as the context requires. “WES Operating GP” refers to Western Midstream Operating GP, LLC, individually as the general partner of WES Operating. The Partnership’s general partner, Western Midstream Holdings, LLC (the “general partner”), is a wholly owned subsidiary of Occidental Petroleum Corporation. “Occidental” refers to Occidental Petroleum Corporation, as the context requires, and its subsidiaries, excluding the general partner. “Anadarko” refers to Anadarko Petroleum Corporation and its subsidiaries, excluding Western Midstream Holdings, LLC. Anadarko became a wholly owned subsidiary of Occidental as a result of Occidental’s acquisition by merger of Anadarko on August 8, 2019. “Related parties” refers to Occidental (see Note 6 ), the Partnership’s investments accounted for under the equity method of accounting (see Note 7 ), and the Partnership and WES Operating for transactions that eliminate upon consolidation (see Note 6 ). The Partnership is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural - gas liquids (“NGLs”), and crude oil; and gathering and disposing of produced water. In its capacity as a natural - gas processor, the Partnership also buys and sells natural gas, NGLs, and condensate on behalf of itself and as an agent for its customers under certain contracts. As of December 31, 2022, the Partnership’s assets and investments consisted of the following: Wholly Operated Non-Operated Equity Gathering systems (1) 17 2 3 1 Treating facilities 37 3 — — Natural - gas processing plants/trains 25 3 — 3 NGLs pipelines 2 — — 5 Natural - gas pipelines 6 — — 1 Crude - oil pipelines 3 1 — 3 _________________________________________________________________________________________ (1) Includes the DBM water systems. These assets and investments are located in Texas, New Mexico, the Rocky Mountains (Colorado, Utah, and Wyoming), and North - central Pennsylvania. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of presentation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of the Partnership and entities in which it holds a controlling financial interest, including WES Operating, WES Operating GP, proportionately consolidated interests, and equity investments (see table below). All significant intercompany transactions have been eliminated. The following table outlines the ownership interests and the accounting method of consolidation used in the consolidated financial statements for entities not wholly owned (see Note 3 and Note 7) : Percentage Interest Full consolidation Chipeta (1) 75.00 % Proportionate consolidation (2) Springfield system 50.10 % Marcellus Interest systems 33.75 % Equity investments (3) Mi Vida JV LLC (“Mi Vida”) 50.00 % Front Range Pipeline LLC (“FRP”) 33.33 % Red Bluff Express Pipeline, LLC (“Red Bluff Express”) 30.00 % Enterprise EF78 LLC (“Mont Belvieu JV”) 25.00 % Rendezvous Gas Services, LLC (“Rendezvous”) 22.00 % Texas Express Pipeline LLC (“TEP”) 20.00 % Texas Express Gathering LLC (“TEG”) 20.00 % Whitethorn Pipeline Company LLC (“Whitethorn LLC”) 20.00 % Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 20.00 % Panola Pipeline Company, LLC (“Panola”) 15.00 % White Cliffs Pipeline, LLC (“White Cliffs”) 10.00 % _________________________________________________________________________________________ (1) The 25% third - party interest in Chipeta Processing LLC (“Chipeta”) is reflected within noncontrolling interests in the consolidated financial statements. See Noncontrolling interests below. (2) The Partnership proportionately consolidates its associated share of the assets, liabilities, revenues, and expenses attributable to these assets. (3) Investments in non - controlled entities over which the Partnership exercises significant influence are accounted for under the equity method of accounting. “Equity - investment throughput” refers to the Partnership’s share of average throughput for these investments. The consolidated financial results of WES Operating are included in the Partnership’s consolidated financial statements. Throughout these notes to consolidated financial statements, and to the extent material, any differences between the consolidated financial results of the Partnership and WES Operating are discussed separately. The Partnership’s consolidated financial statements differ from those of WES Operating primarily as a result of (i) the presentation of noncontrolling interest ownership (see Noncontrolling interests below), (ii) the elimination of WES Operating GP’s investment in WES Operating with WES Operating GP’s underlying capital account, (iii) the general and administrative expenses incurred by the Partnership, which are separate from, and in addition to, those incurred by WES Operating, (iv) the inclusion of the impact of Partnership equity balances and Partnership distributions, and (v) transactions between the Partnership and WES Operating that eliminate upon consolidation. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Presentation of the Partnership’s assets. The Partnership’s assets include assets owned and ownership interests accounted for by the Partnership under the equity method of accounting, through its 98.0% partnership interest in WES Operating, as of December 31, 2022 (see Note 7 ). The Partnership also owns and controls the entire non - economic general partner interest in WES Operating GP, and the Partnership’s general partner is owned by Occidental. Use of estimates. In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other reasonable methods. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates. Effects on the business, financial condition, and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information included herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements, and certain prior-period amounts have been reclassified to conform to the current-year presentation. Noncontrolling interests. The Partnership’s noncontrolling interests in the consolidated financial statements consist of (i) the 25% third - party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary. WES Operating’s noncontrolling interest in the consolidated financial statements consists of the 25% third - party interest in Chipeta. See Note 5. Fair value. The fair-value-measurement standard defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard characterizes inputs used in determining fair value according to a hierarchy that prioritizes those inputs based on the degree to which the inputs are observable. The three input levels of the fair-value hierarchy are as follows: Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in management’s internally developed present value of future cash flows model that underlies the fair value measurement). 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION In determining fair value, management uses observable market data when available, or models that incorporate observable market data. When a fair value measurement is required and there is not a market-observable price for the asset or liability or a market-observable price for a similar asset or liability, the cost, income, or market approach is used, depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset-replacement cost. The income approach uses management’s best assumptions regarding expectations of projected cash flows and discounts the expected cash flows using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment because results are based on expected future events or conditions, such as contractual rates, estimates of future throughput, capital and operating costs and the timing thereof, economic and regulatory climates, and other factors. The market approach uses management’s best assumptions regarding expectations of projected earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and an assumed multiple of that EBITDA that a willing buyer would pay to acquire an asset. Management’s estimates of future net cash flows and EBITDA are inherently imprecise because they reflect management’s expectation of future conditions that are often outside of management’s control. However, the assumptions used reflect a market participant’s view of long-term revenues, costs, and other factors, and are consistent with assumptions used in the Partnership’s business plans and investment decisions. Management uses relevant observable inputs available for the valuation technique employed to estimate fair value. If a fair-value measurement reflects inputs at multiple levels within the hierarchy, the fair-value measurement is characterized based on the lowest level of input that is significant to the fair-value measurement. Non-financial assets and liabilities initially measured at fair value include certain assets and liabilities acquired in a third-party business combination, assets and liabilities exchanged in non-monetary transactions, goodwill and other intangibles, and the initial measurement of asset retirement obligations. Impairment analyses for long-lived assets, goodwill, and equity investments and the initial recognition of asset retirement obligations use Level-3 inputs. The fair value of debt reflects any premium or discount for the difference between the stated interest rate and the quarter-end market interest rate and is based on quoted market prices for identical instruments, if available, or based on valuations of similar debt instruments. 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. Credit losses. Accounts receivable represent contractual rights for services performed, with, on average, 30-day payment terms from the invoice date. Contract assets primarily relate to revenue accrued but not yet billed under cost-of-service contracts and accrued deficiency fees. Exposure to credit losses is analyzed within collective pools for all of our customers and, if necessary, individual customers may be analyzed separately if their credit quality becomes a concern. The Partnership monitors credit exposure to all customers to ensure exposures are within established credit limits. As of December 31, 2022, there are no negative indications regarding the collectability of significant receivables and the Partnership will continue to monitor the credit quality of its customer base and assess collectability of these assets as appropriate. The allowance for expected credit losses was immaterial at December 31, 2022 and 2021. 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, 2022, imbalance receivables and payables were $32.7 million and $32.5 million, respectively. As of December 31, 2021, imbalance receivables and payables were $25.3 million and $16.6 million, respectively. Net changes in imbalance receivables and payables are reported in Cost of product in the consolidated statements of operations. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Inventory. The cost of NGLs inventory is determined by the weighted-average cost method on a location-by-location basis. Inventory is stated at the lower of weighted-average cost or net realizable value. NGLs inventory is reported in Other current assets and NGLs line-fill inventory is reported in Other assets on the consolidated balance sheets. Materials and supplies inventory is valued at weighted-average cost, reviewed periodically for obsolescence, and assessed for impairment together with any associated property, plant, and equipment and other intangible assets. Materials and supplies inventory is reported in Other assets on the consolidated balance sheets. Property, plant, and equipment and other intangible assets. Property, plant, and equipment and other intangible assets are stated at historical cost less accumulated depreciation or amortization, or fair value if impaired. Prior long-lived asset acquisitions from Anadarko were transfers of net assets between entities under common control; therefore, the assets acquired were initially recorded at Anadarko’s historic carrying value. The difference between the carrying value of net assets acquired from Anadarko and the consideration paid has been recorded as an adjustment to partners’ capital. Assets acquired in a business combination or non-monetary exchange with a third party are initially recorded at fair value. All construction-related direct labor and material costs are capitalized. The cost of renewals and betterments that extend the useful life of property, plant, and equipment is also capitalized. The cost of repairs, replacements, and major maintenance projects that do not extend the useful life or increase the expected output of property, plant, and equipment is expensed as incurred. Depreciation is computed using the straight-line method based on estimated useful lives and salvage values of assets. Subsequent events could cause a change in estimates of remaining useful lives or salvage value, thereby impacting future depreciation amounts. Uncertainties that may impact these estimates include, but are not limited to, changes in laws and regulations relating to environmental matters, including air and water quality, restoration and abandonment requirements, economic conditions, and supply and demand in the area. Management assesses property, plant, and equipment together with any associated materials and supplies inventory and intangible assets, as described in Note 10 , for impairment when events or changes in circumstances indicate their carrying values may not be recoverable. Impairments exist when the carrying value of a long-lived asset exceeds the total estimated undiscounted net cash flows from the future use and eventual disposition of the asset. When alternative courses of action for future use of a long-lived asset are under consideration, estimates of future undiscounted net cash flows incorporate the possible outcomes and probabilities of their occurrence. If an impairment exists, an impairment loss is measured as the excess of the asset’s carrying value over its estimated fair value, such that the asset’s carrying value is adjusted down to its estimated fair value with an offsetting charge to Long-lived asset and other impairments. Refer to Note 9 for a description of impairments recorded during the years ended December 31, 2022, 2021, and 2020. Capitalized interest. Interest is capitalized as part of the historical cost of constructing assets that are in progress. Capitalized interest is determined by multiplying the Partnership’s weighted-average borrowing cost on debt by the average amount of assets under construction. Cumulative capitalized interest accrued during the year is expensed through depreciation or impairment. Segments. The Partnership’s operations continue to be organized into a single operating segment, the assets of which gather, compress, treat, process, and transport natural gas; gather, stabilize, and transport condensate, NGLs, and crude oil; and gather and dispose of produced water in the United States. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated historic carrying value of midstream goodwill attributed to the Partnership’s assets previously acquired from Anadarko. The Partnership had allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment at the reporting unit level annually, as of October 1, or more often as facts and circumstances warrant. An initial qualitative assessment is performed to determine the likelihood of whether goodwill is impaired. If management concludes, based on qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no goodwill impairment is recorded and further testing is not necessary. If an assessment of qualitative factors does not result in management’s determination that the fair value of the reporting unit more likely than not exceeds its carrying value, then a quantitative assessment must be performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value through a charge to Goodwill impairment. The Partnership recognized a goodwill impairment of $441.0 million during the first quarter of 2020, which reduced the carrying value of goodwill to zero for the gathering and processing reporting unit. See Note 10 . Asset retirement obligations. When tangible long-lived assets are acquired or constructed, the initial estimated asset retirement obligation liability is recognized at fair value, measured using discounted expected future cash outflows of the settlement obligation, with an associated increase in property, plant, and equipment. Over time, the discounted liability is adjusted up to its expected settlement value through accretion expense, which is reported within Depreciation and amortization in the consolidated statements of operations. Estimated asset retirement costs typically extend many years into the future, and estimation requires significant judgment. Subsequent to the initial recognition, the liability is adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to property, plant, and equipment, or depreciation expense if the asset is fully depreciated) until the obligation is settled. Revisions in estimated asset retirement obligations may result from changes in estimated asset retirement costs, inflation rates, discount rates, and the estimated timing of settlement. See Note 12 . Environmental expenditures. The Partnership is subject to various environmental-remediation obligations arising from federal, state, and local laws and regulations. Losses associated with environmental obligations are accrued when the necessity for environmental remediation or other potential environmental liabilities becomes probable and the costs can be reasonably estimated, with the exception of environmental obligations acquired in a business combination, which are recorded at fair value at the time of acquisition. Accruals for estimated losses from environmental-remediation obligations are recognized no later than at the time of the completion of the remediation feasibility study or when the evaluation of response options is complete. These accruals are adjusted as additional information becomes available or as circumstances change. Costs of future expenditures for environmental-remediation obligations are not discounted to their present value. See Note 16. Revenue and cost of product. The Partnership provides gathering, processing, treating, transportation, and disposal services pursuant to a variety of contracts. Under these arrangements, the Partnership receives fees and/or retains a percentage of products or a percentage of the proceeds from the sale of the customer’s products. These revenues are included in Service revenues and Product sales in the consolidated statements of operations. Payment is generally received from the customer in the month following the service or delivery of the product. Contracts with customers generally have initial terms ranging from 5 to 10 years. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Service revenues – fee based is recognized for fee-based contracts in the month of service based on the volumes delivered by the customer. Producers’ wells or production facilities are connected to the Partnership’s gathering systems for gathering, processing, treating, transportation, and disposal of natural gas, NGLs, condensate, crude oil, and produced water, as applicable. Revenues are valued based on the rate in effect for the month of service when the fee is either the same per-unit rate over the contract term or when the fee escalates and the escalation factor approximates inflation. Deficiency fees charged to customers that do not meet their minimum delivery requirements are recognized as services are performed based on an estimate of the fees that will be billed at the completion of the performance period. Because of its significant upfront capital investment, the Partnership may charge additional service fees to customers for only a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold), and these fees are recognized as revenue over the expected period of customer benefit, which is generally the life of the related properties. Timing differences between amounts recognized in Service revenues – fee based and the amounts billed to customer are recognized as contract assets or contract liabilities, and are amortized over the related contract period. Prior to April 1, 2020, the Partnership also recognized revenue and cost of product expense from marketing services performed on behalf of its customers by Occidental. Effective April 1, 2020, changes to marketing-contract terms with Occidental terminated Occidental’s prior status as an agent of the Partnership for third-party sales and established Occidental as a customer of the Partnership. Accordingly, the Partnership no longer recognizes revenue and the equivalent cost of product expense for the marketing services performed by Occidental. See Note 6 . The Partnership also receives Service revenues – fee based from contracts that have fees that require periodic rate redeterminations based on the related facility cost of service. The cost-of-service rates are calculated using a contractually specified rate of return and estimates including long-term assumptions for capital invested, receipt volumes, and operating and maintenance expenses. Certain of these cost-of-service agreements also have minimum-volume-commitment demand fees and guaranteed minimum revenues, in addition to cost-of-service rates. Such contracts include fixed and variable consideration that are recognized on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost-of-service rates charged to customers, and a cumulative catch-up revenue adjustment related to services already provided to the minimum volumes under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate based on the total expected variable consideration under the contract. If the Partnership determines it is probable that a significant reversal in the cumulative catch-up revenue adjustment could occur, the variable consideration may be constrained up to the amount of the probable significant reversal. Service revenues – product based includes service revenues from percent-of-proceeds gathering and processing contracts that are recognized net of the cost of product for purchases from the Partnership’s customers since it is acting as the agent in the product sale. Keep-whole agreements, percent-of-product agreements, and certain fee-based contracts that have a fixed-recovery component result in Service revenues – product based being recognized when the natural gas and/or NGLs are received from the customer as non-cash consideration for the services provided. Non-cash consideration for these services is valued at the time the services are provided. Revenue is also recognized in Product sales, along with the cost of product expense related to the sale, when the product received as non-cash consideration is sold to either Occidental or a third party. The Partnership also purchases natural-gas volumes from producers at the wellhead or from a production facility, typically at an index price, and charges the producer fees associated with the downstream gathering and processing services. When the fees relate to services performed after control of the product has transferred to the Partnership, the fees are treated as a reduction of the purchase cost. If the fees relate to services performed before control of the product has transferred to the Partnership, the fees are treated as Service revenues – fee based. Product sales revenue is recognized, along with cost of product expense related to the sale, when the purchased product is sold to either Occidental or a third party. The Partnership receives aid-in-construction reimbursements for certain capital costs necessary to provide services to customers (i.e., connection costs, etc.) under certain service contracts. Aid-in-construction reimbursements are reflected as a contract liability when received and are amortized to Service revenues – fee based over the expected period of customer benefit, which is generally the life of the related properties. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Defined-contribution plan. Employees of the Partnership are eligible to participate in the Western Midstream Savings Plan, a defined - contribution benefit plan maintained by the Partnership. All regular employees may participate in the plan by making elective contributions that are matched by the Partnership, subject to certain limitations. The Partnership also makes other contributions based on plan guidelines. The Partnership recognized expense related to the plan of $21.8 million, $23.7 million, and $12.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. Partnership income taxes. Deferred federal and state income taxes included in the accompanying consolidated financial statements are attributable to temporary differences between the financial statement carrying amount and tax basis of the Partnership’s investment in WES Operating. The Partnership’s accounting policy is to “look through” its investment in WES Operating for purposes of calculating deferred income tax asset and liability balances attributable to the Partnership’s interests in WES Operating. The Partnership had no material uncertain tax positions at December 31, 2022 or 2021. 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, 2022 or 2021. Net income (loss) per common unit. The Partnership applies the two-class method in determining net income (loss) per unit applicable to master limited partnerships having multiple classes of securities, including common units and general partner units. The two-class method allocates earnings pursuant to a formula that treats participating securities as having rights to earnings that otherwise would have been available to common unitholders. Under the two-class method, net income (loss) per unit is calculated as if all of the earnings for the period were distributed pursuant to the terms of the relevant contractual arrangement. The accounting guidance provides the methodology for the allocation of undistributed earnings to the general partner and limited partners and the circumstances in which such an allocation should be made. For the Partnership, earnings per unit is calculated based on the assumption that the Partnership distributes cash to its unitholders equal to the net income of the Partnership, notwithstanding the general partner’s ultimate discreti |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2020 Revenue from customers Service revenues – fee based $ 2,602,053 $ 2,283,584 $ 2,360,680 Service revenues – product based 249,692 122,584 48,369 Product sales 399,023 290,947 138,559 Total revenue from customers 3,250,768 2,697,115 2,547,608 Revenue from other than customers Lease revenue (1) — 179,251 223,643 Other 953 789 1,341 Total revenues and other $ 3,251,721 $ 2,877,155 $ 2,772,592 _________________________________________________________________________________________ (1) Includes fixed - and variable - lease revenue from an operating and maintenance agreement entered into with Occidental. See Operating leases within Note 6. Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $545.0 million and $424.6 million as of December 31, 2022 and 2021, respectively. Contract assets primarily relate to (i) accrued deficiency fees the Partnership expects to charge customers once the related performance periods are completed and (ii) revenue accrued but not yet billed under cost - of - service contracts with fixed and variable fees. The following table summarizes activity related to contract assets from contracts with customers: Year Ended December 31, thousands 2022 2021 Contract assets balance at beginning of year $ 22,557 $ 56,344 Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period (7,683) (10,380) Additional estimated revenues recognized 5,531 120 Cumulative catch-up adjustment for change in estimated consideration 2,156 (23,527) Contract assets balance at end of year $ 22,561 $ 22,557 December 31, thousands 2022 2021 Other current assets $ 3,381 $ 5,307 Other assets 19,180 17,250 Total contract assets from contracts with customers $ 22,561 $ 22,557 2. REVENUE FROM CONTRACTS WITH CUSTOMERS Contract liabilities primarily relate to (i) fixed and variable fees under cost - of - service contracts that are received from customers for which revenue recognition is deferred, (ii) aid - in - construction payments received from customers that must be recognized over the expected period of customer benefit, and (iii) fees that are charged to customers for only a portion of the contract term and must be recognized as revenues over the expected period of customer benefit. The following table summarizes activity related to contract liabilities from contracts with customers: Year Ended December 31, thousands 2022 2021 Contract liabilities balance at beginning of year $ 313,146 $ 266,937 Cash received or receivable, excluding revenues recognized during the period 71,097 83,326 Revenues recognized that were included in the contract liability balance at the beginning of the period (16,158) (17,265) Cumulative catch-up adjustment for change in estimated consideration 1,200 (19,852) Contract liabilities balance at end of year $ 369,285 $ 313,146 December 31, thousands 2022 2021 Accrued liabilities $ 20,903 $ 27,763 Other liabilities 348,382 285,383 Total contract liabilities from contracts with customers $ 369,285 $ 313,146 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, 2022, are presented in the following table. The Partnership applies the optional exemptions in Revenue from Contracts with Customers (Topic 606) and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Therefore, the following table represents only a portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and, in some cases, variable commodity prices for those volumes. thousands 2023 $ 1,086,712 2024 1,107,224 2025 1,024,386 2026 874,615 2027 784,781 Thereafter 1,825,720 Total $ 6,703,438 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Acquisitions and Divestitures | 3. ACQUISITIONS AND DIVESTITURES Cactus II. In November 2022, the Partnership sold its 15.00% interest in Cactus II to two third parties for $264.8 million, which includes a $1.8 million pro-rata distribution through closing. Total proceeds were received during the fourth quarter of 2022, resulting in a net gain on sale of $109.9 million that was recorded as Gain (loss) on divestiture and other, net Ranch Westex. In September 2022, the Partnership acquired the remaining 50% interest in Ranch Westex JV LLC (“Ranch Westex”) from a third party for $40.1 million. Subsequent to the acquisition, (i) the Partnership is the sole owner and operator of the asset, (ii) Ranch Westex is no longer accounted for under the equity method of accounting, and (iii) the Ranch Westex processing plant is included as part of the operations of the West Texas complex. Fort Union and Bison facilities. In October 2020, the Partnership (i) sold its 14.81% interest in Fort Union Gas Gathering, LLC (“Fort Union”), which was accounted for under the equity method of accounting, and (ii) entered into an option agreement to sell the Bison treating facility, located in Northeast Wyoming, to a third party. The Partnership received combined proceeds of $27.0 million, resulting in a net gain on sale of $21.0 million related to the Fort Union interest that was recorded in the fourth quarter of 2020 as Gain (loss) on divestiture and other, net in the consolidated statements of operations. During the second quarter of 2021, the third party exercised its option to purchase the Bison treating facility and the sale closed. The Partnership received total proceeds of $8.0 million, $7.0 million in the fourth quarter of 2020 and $1.0 million when the sale closed in the second quarter of 2021, resulting in a net gain on sale of $5.4 million that was recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. |
Partnership Distributions
Partnership Distributions | 12 Months Ended |
Dec. 31, 2022 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Partnership Distributions | 4. PARTNERSHIP DISTRIBUTIONS Partnership distributions. Under its partnership agreement, the Partnership distributes all of its available cash (beyond proper reserves 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 of the general partner (the “Board”) declared the following cash distributions to the Partnership’s unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Distribution Record 2020 March 31 $ 0.31100 $ 140,893 May 14, 2020 May 1, 2020 June 30 0.31100 140,900 August 13, 2020 July 31, 2020 September 30 0.31100 132,255 November 13, 2020 October 30, 2020 December 31 0.31100 131,265 February 12, 2021 February 1, 2021 2021 March 31 $ 0.31500 $ 132,969 May 14, 2021 April 30, 2021 June 30 0.31900 134,662 August 13, 2021 July 30, 2021 September 30 0.32300 134,862 November 12, 2021 November 1, 2021 December 31 0.32700 134,749 February 14, 2022 January 31, 2022 2022 March 31 $ 0.50000 $ 206,197 May 13, 2022 May 2, 2022 June 30 0.50000 197,744 August 12, 2022 August 1, 2022 September 30 0.50000 197,065 November 14, 2022 October 31, 2022 December 31 0.50000 196,569 February 13, 2023 February 1, 2023 4. PARTNERSHIP DISTRIBUTIONS Available cash. The amount of available cash (beyond proper reserves as defined in the partnership agreement) generally is all cash on hand at the end of the quarter, plus, at the discretion of the general partner, working capital borrowings made subsequent to the end of such quarter, less the amount of cash reserves established by the general partner to provide for the proper conduct of the Partnership’s business, including (i) to fund future capital expenditures; (ii) to comply with applicable laws, debt instruments, or other agreements; or (iii) to provide funds for unitholder distributions for any one or more of the next four quarters. Working capital borrowings generally include borrowings made under a credit facility or similar financing arrangement and are intended to be repaid or refinanced within 12 months. In all cases, working capital borrowings are used solely for working capital purposes or to fund unitholder distributions. WES Operating partnership distributions. WES Operating makes quarterly cash distributions to the Partnership and WGR Asset Holding Company LLC (“WGRAH”), a subsidiary of Occidental, in proportion to their share of limited partner interests in WES Operating. See Note 5 . WES Operating made the following cash distributions to its limited partners for the periods presented: thousands Quarters Ended Total Quarterly Distribution 2020 March 31 $ 143,404 May 2020 June 30 143,404 August 2020 September 30 143,404 November 2020 December 31 127,470 February 2021 2021 March 31 $ 137,030 May 2021 June 30 140,217 August 2021 September 30 140,217 November 2021 December 31 140,217 February 2022 2022 March 31 $ 213,513 May 2022 June 30 213,513 August 2022 September 30 213,513 November 2022 December 31 213,513 February 2023 In addition to the distributions above, during the years ended December 31, 2022 and 2021, WES Operating made distributions of $463.8 million and $204.1 million, respectively, to the Partnership and WGRAH. The Partnership used its portion of the distribution to repurchase common units. See Note 5 |
Equity and Partners' Capital
Equity and Partners' Capital | 12 Months Ended |
Dec. 31, 2022 | |
Partners' Capital Notes [Abstract] | |
Equity and Partners' Capital | 5. EQUITY AND PARTNERS’ CAPITAL Holdings of Partnership equity. The Partnership’s common units are listed on the New York Stock Exchange under the ticker symbol “WES.” As of December 31, 2022, Occidental held 190,281,578 common units, representing a 48.4% 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 2.3% general partner interest in the Partnership. The public held 193,789,406 common units, representing a 49.3% limited partner interest in the Partnership. In March 2021, an affiliate of Occidental sold 11,500,000 of the Partnership’s common units it held through an underwritten offering, including 1,500,000 common units pursuant to the full exercise of the underwriters’ over - allotment option. The Partnership did not receive any proceeds from the public offering. On September 11, 2020, the Partnership assigned its 98% interest in the 30 - year $260.0 million note established in May 2008 between WES Operating and Anadarko (the “Anadarko note receivable”) to Anadarko, which Anadarko canceled and retired immediately upon receipt, in exchange for which Occidental caused certain of its subsidiaries to transfer an aggregate of 27,855,398 common units representing limited partner interests in the Partnership to the Partnership. The units were canceled by the Partnership immediately upon receipt. See Note 6. Partnership equity repurchases. In February 2022, the Board authorized the Partnership to buy back up to $1.0 billion of the Partnership’s common units through December 31, 2024. In November 2022, the Board authorized an increase in the program to $1.25 billion (the “$1.25 billion Purchase Program”). The common units may be purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. During the year ended December 31, 2022, the Partnership repurchased 19,532,305 common units, which includes 10,000,000 common units repurchased from Occidental, for an aggregate purchase price of $487.6 million. The units were canceled immediately upon receipt. As of December 31, 2022, the Partnership had an authorized amount of $762.4 million remaining under the program. In November 2020, the Board authorized the Partnership to buy back up to $250.0 million of the Partnership’s common units through December 31, 2021 (the “$250.0 million Purchase Program”). The common units were purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. The Partnership repurchased 8,707,869 and 2,368,711 common units on the open market during the years ended December 31, 2021 and 2020, respectively, for an aggregate purchase price of $167.2 million and $32.5 million, respectively. In addition, the Partnership repurchased 2,500,000 common units from Occidental during the year ended December 31, 2021, for an aggregate purchase price of $50.2 million. The units were canceled by the Partnership immediately upon receipt. As of December 31, 2021, the entire $250.0 million authorized program had been fulfilled. Holdings of WES Operating equity. As of December 31, 2022, (i) the Partnership, directly and indirectly through its ownership of WES Operating GP, owned a 98.0% limited partner interest and the entire non - economic general partner interest in WES Operating and (ii) Occidental, through its ownership of WGRAH, owned a 2.0% limited partner interest in WES Operating, which is reflected as a noncontrolling interest within the consolidated financial statements of the Partnership (see Note 1 ). Partnership’s net income (loss) per common unit. The common and general partner unitholders’ allocation of net income (loss) attributable to the Partnership was equal to their cash distributions plus their respective allocations of undistributed earnings or losses in accordance with their weighted - average ownership percentage during each period using the two - class method. The Partnership’s basic net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) by the weighted - average number of common units outstanding during the period. Diluted net income (loss) per common unit includes the effect of outstanding units issued under the Partnership’s long-term incentive plans. 5. EQUITY AND PARTNERS’ CAPITAL The following table provides a reconciliation between basic and diluted net income (loss) per common unit: Year Ended December 31, thousands except per-unit amounts 2022 2021 2020 Net income (loss) Limited partners’ interest in net income (loss) $ 1,189,562 $ 896,477 $ 515,908 Weighted-average common units outstanding Basic 394,951 411,309 435,554 Dilutive effect of non-vested phantom units 1,285 713 70 Diluted 396,236 412,022 435,624 Excluded due to anti-dilutive effect 554 589 997 Net income (loss) per common unit Basic $ 3.01 $ 2.18 $ 1.18 Diluted $ 3.00 $ 2.18 $ 1.18 WES Operating’s net income (loss) per common unit. Net income (loss) per common unit for WES Operating is not calculated because it has no publicly traded units. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | |
Related-Party Transactions | 6. RELATED-PARTY TRANSACTIONS Summary of related-party transactions. The following tables summarize material related - party transactions included in the Partnership’s consolidated financial statements: Consolidated statements of operations Year Ended December 31, thousands 2022 2021 2020 Revenues and other Service revenues – fee based $ 1,674,959 $ 1,589,367 $ 1,740,999 Service revenues – product based 56,907 11,888 8,509 Product sales 63,367 31,103 71,104 Total revenues and other 1,795,233 1,632,358 1,820,612 Equity income, net – related parties (1) 183,483 204,645 226,750 Operating expenses Cost of product (2) (25,447) 42,805 92,884 Operation and maintenance 5,081 27,805 49,533 General and administrative (3) 2,338 15,613 40,295 Total operating expenses (18,028) 86,223 182,712 Gain (loss) on divestiture and other, net (1,756) 420 (2,870) Interest income – Anadarko note receivable — — 11,736 _________________________________________________________________________________________ (1) See Note 7 . (2) Includes related-party natural - gas and NGLs imbalances. (3) Includes equity - based compensation expense allocated to the Partnership by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6 ). Balances for the years ended December 31, 2021 and 2020, also include amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6 ). 6. RELATED-PARTY TRANSACTIONS Consolidated balance sheets December 31, thousands 2022 2021 Assets Accounts receivable, net $ 313,937 $ 180,205 Other current assets 1,578 12,490 Equity investments (1) 944,696 1,167,187 Other assets 29,058 45,494 Total assets 1,289,269 1,405,376 Liabilities Accounts and imbalance payables 32,150 49,242 Accrued liabilities 11,756 13,914 Other liabilities 268,399 207,365 Total liabilities 312,305 270,521 _________________________________________________________________________________________ (1) See Note 7 . Consolidated statements of cash flows Year Ended December 31, thousands 2022 2021 2020 Distributions from equity - investment earnings – related parties $ 186,153 $ 213,516 $ 246,637 Capital expenditures (470) (2,000) — Contributions to equity investments – related parties (9,632) (4,435) (19,388) Distributions from equity investments in excess of cumulative earnings – related parties 63,897 41,385 32,160 Distributions to Partnership unitholders (1) (372,468) (272,192) (381,949) Distributions to WES Operating unitholders (2) (24,898) (14,984) (15,434) Net contributions from (distributions to) related parties 1,423 8,533 24,466 Proceeds from the sale of assets to related parties 200 — — Finance lease payments (3) — — (6,382) Unit repurchases from Occidental (4) (252,500) (50,225) — _________________________________________________________________________________________ (1) Represents common and general partner unit distributions paid to Occidental pursuant to the partnership agreement of the Partnership (see Note 4 and Note 5 ). (2) Represents distributions paid to Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5 ). (3) Included in Other cash flows from financing activities in the consolidated statements of cash flows. (4) Represents common units repurchased from Occidental (see Note 5 ). 6. RELATED-PARTY TRANSACTIONS The following tables summarize material related - party transactions for WES Operating (which are included in the Partnership’s consolidated financial statements) to the extent the amounts differ materially from the Partnership’s consolidated financial statements: Consolidated statements of operations Year Ended December 31, thousands 2022 2021 2020 General and administrative (1) $ 5,373 $ 18,365 $ 41,609 _________________________________________________________________________________________ (1) Includes (i) an intercompany service fee between the Partnership and WES Operating and (ii) equity - based compensation expense allocated to WES Operating by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6 ). Balances for the years ended December 31, 2021 and 2020, also include amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6 ). Consolidated balance sheets December 31, thousands 2022 2021 Accounts receivable, net $ 313,937 $ 180,205 Other current assets 1,487 12,490 Other assets 28,459 45,494 Accounts and imbalance payables (1) 76,131 97,749 Accrued liabilities 11,439 13,597 _________________________________________________________________________________________ (1) Includes balances related to transactions between the Partnership and WES Operating. Consolidated statements of cash flows Year Ended December 31, thousands 2022 2021 2020 Distributions to WES Operating unitholders (1) $ (1,244,533) $ (749,018) $ (771,546) _________________________________________________________________________________________ (1) Represents distributions paid to the Partnership and Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement. Includes distributions made from WES Operating to the Partnership that were used by the Partnership to repurchase common units. See Note 4 and Note 5 . Related-party revenues. Related - party revenues include amounts earned by the Partnership from services provided to Occidental and from the sale of natural gas, condensate, and NGLs to Occidental. Gathering and processing agreements. The Partnership has significant gathering, processing, and produced-water disposal arrangements with affiliates of Occidental on most of its systems. While Occidental is the contracting counterparty of the Partnership, these arrangements with Occidental include not just Occidental - produced volumes, but also, in some instances, the volumes of other working - interest owners of Occidental who rely on the Partnership’s facilities and infrastructure to bring their volumes to market. Natural - gas throughput (excluding equity - investment throughput) attributable to production owned or controlled by Occidental was 35%, 36%, and 41% for the years ended December 31, 2022, 2021, and 2020, respectively. Crude - oil and NGLs throughput (excluding equity - investment throughput) attributable to production owned or controlled by Occidental was 89%, 89%, and 88% for the years ended December 31, 2022, 2021, and 2020, respectively. Produced - water throughput attributable to production owned or controlled by Occidental was 80%, 87%, and 87% for the years ended December 31, 2022, 2021, and 2020, respectively. 6. RELATED-PARTY TRANSACTIONS The Partnership is currently discussing varying interpretations of certain contractual provisions with Occidental regarding the calculation of the cost - of - service rates under an oil - gathering contract related to the Partnership’s DJ Basin oil - gathering system. If such discussions are resolved in a manner adverse to the Partnership, such resolution could have a negative impact on the Partnership’s financial condition and results of operations, including a reduction in rates and a non - cash charge to earnings. In connection with the sale of its Eagle Ford assets in 2017, Anadarko remained the primary counterparty to the Partnership’s Brasada gas processing agreement and entered into an agency relationship with Sanchez Energy Corporation (“Sanchez”), now Mesquite Energy, Inc. (“Mesquite”), that allows Mesquite to process gas under such agreement. In December 2021, the Brasada gas processing agreement was assigned from Anadarko to Mesquite effective July 1, 2023. For this reason, Anadarko continues to be liable under the Brasada gas processing agreement until June 30, 2023, to the extent Mesquite does not perform. For all periods presented, Mesquite has performed Anadarko’s obligations under the Brasada gas processing agreement pursuant to its agency arrangement with Anadarko. Further, in connection with the sale of its Uinta Basin assets in 2020, Kerr McGee Oil & Gas Onshore LP, a subsidiary of Occidental, retained the deficiency payment obligations under a gas processing agreement at the Chipeta plant. This contingent payment obligation ended as of September 30, 2022. Commodity purchase and sale agreements. Through December 31, 2020, the Partnership purchased and sold a significant amount of natural gas and NGLs from and to Anadarko Energy Services Company (“AESC”), a marketing affiliate of Occidental. Prior to April 1, 2020, AESC acted as an agent on behalf of either the Partnership or the Partnership’s customers for third - party sales. Where AESC sold natural gas and NGLs on the Partnership’s customers’ behalf, the Partnership recognized associated service revenues and cost of product expense for the marketing services performed by AESC. When product sales were on the Partnership’s behalf, the Partnership recognized product sales revenues based on Occidental’s sales price to the third party and recorded the associated cost of product expense associated with the marketing activities provided by AESC. Effective April 1, 2020, changes to marketing - contract terms with AESC terminated AESC’s prior status as an agent of the Partnership for third - party sales and established AESC as a customer of the Partnership. Accordingly, the Partnership no longer recognizes service revenues and/or product sales revenues and the equivalent cost of product expense for the marketing services performed by AESC. This change has no impact to Operating income (loss), Net income (loss), the balance sheets, cash flows, or any non - GAAP metric used to evaluate the Partnership’s operations (see Reconciliation of Non-GAAP Financial Measures under Part II, Item 7 of this Form 10-K). Marketing Transition Services Agreement. During the year ended December 31, 2020, Occidental provided marketing-related services to certain of the Partnership’s subsidiaries (the “Marketing Transition Services Agreement”). While the Partnership still has some marketing agreements with affiliates of Occidental, on January 1, 2021, the Partnership began marketing and selling substantially all of its crude oil and residue gas, and a majority of its NGLs, directly to third parties. Operating leases. As a result of the surface - use and salt - water disposal agreements being amended under the CUA (see Related-party commercial agreement below), these agreements are now classified as operating leases and a $30.0 million right-of-use (“ROU”) asset, included in Other assets on the consolidated balance sheets, was recognized during the first quarter of 2021. The ROU asset is being amortized to Operation and maintenance expense over the remaining term of the agreements. Effective December 31, 2019, an affiliate of Occidental and a wholly owned subsidiary of the Partnership, the lessor, entered into an operating and maintenance agreement pursuant to which Occidental provided operational and maintenance services with respect to a crude - oil gathering system and associated treating facilities owned by the Partnership through December 31, 2021. In April 2021, the Partnership exercised its option to terminate the operating and maintenance agreement with Occidental effective December 31, 2021. See Note 14 . 6. RELATED-PARTY TRANSACTIONS Related-party expenses. Operation and maintenance expense includes amounts accrued for or paid to related parties for field - related costs provided by related parties at certain of the Partnership’s assets. A portion of general and administrative expense is paid by Occidental, which results in related - party transactions pursuant to the reimbursement provisions of the Partnership’s and WES Operating’s agreements with Occidental. Cost of product expense includes amounts related to certain continuing marketing arrangements with affiliates of Occidental, related - party imbalances, and transactions with affiliates accounted for under the equity method of accounting. See Commodity purchase and sale agreements and Marketing Transition Services Agreement in the sections above. Related - party expenses do not bear a direct relationship to related - party revenues, and third - party expenses do not bear a direct relationship to third - party revenues. Services Agreement. General and administrative expense includes costs incurred pursuant to the agreement dated as of December 31, 2019, by and among Occidental, Anadarko, and WES Operating GP, under which Occidental has performed certain centralized corporate functions for the Partnership and WES Operating (“Services Agreement”). Most of the administrative and operational services previously provided by Occidental fully transitioned to the Partnership by December 31, 2021, with certain limited transition services remaining in place pursuant to the terms of the Services Agreement. Incentive Plans. General and administrative expense includes non - cash equity - based compensation expense allocated to the Partnership by Occidental for awards granted to the executive officers of the general partner and to other employees prior to their employment with the Partnership under (i) the Anadarko Petroleum Corporation 2012 Omnibus Incentive Compensation Plan, as amended and restated, (ii) Occidental’s 2015 Long - Term Incentive Plan, and (iii) Occidental’s Phantom Share Unit Award Plan (collectively referred to as the “Incentive Plans”). General and administrative expense includes costs related to the Incentive Plans of $2.3 million, $10.1 million, and $14.6 million for the years ended December 31, 2022, 2021, and 2020, respectively. These amounts are reflected as contributions to partners’ capital in the consolidated statements of equity and partners’ capital. As of December 31, 2022, there is no unrecognized compensation expense attributable to the Incentive Plans. Construction reimbursement agreements and purchases and sales with related parties . From time to time, the Partnership enters into construction reimbursement agreements with Occidental providing that the Partnership will manage the construction of certain midstream infrastructure for Occidental in the Partnership’s areas of operation. Such arrangements generally provide for a reimbursement of costs incurred by the Partnership on a cost or cost-plus basis. Additionally, from time to time, in support of the Partnership’s business, the Partnership purchases and sells equipment, inventory, and other miscellaneous assets from or to Occidental or its affiliates. Related-party commercial agreement. During the first quarter of 2021, an affiliate of Occidental and certain wholly owned subsidiaries of the Partnership entered into a Commercial Understanding Agreement (“CUA”). Under the CUA, certain West Texas surface - use and salt - water disposal agreements were amended to reduce usage fees owed by the Partnership in exchange for the forgiveness of certain deficiency fees owed by Occidental and other unrelated contractual amendments. The present value of the reduced usage fees under the CUA was $30.0 million at the time the agreement was executed. Anadarko note receivable. In May 2008, WES Operating loaned $260.0 million to Anadarko in exchange for a 30 - year note that bore interest at a fixed annual rate and was classified as interest income in the consolidated statements of operations. On September 11, 2020, the Partnership and Occidental entered into a Unit Redemption Agreement, pursuant to which WES Operating transferred the note receivable to Anadarko, which Anadarko immediately canceled and retired upon receipt (see Note 5 ). Customer concentration. Occidental was the only customer from which revenues exceeded 10% of consolidated revenues for all periods presented in the consolidated statements of operations. |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | 7. EQUITY INVESTMENTS The following tables present the financial statement impact of the Partnership’s equity investments for the years ended December 31, 2021 and 2022: thousands Balance at December 31, 2020 Other-than-temporary impairment expense (1) Equity Contributions Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2021 White Cliffs $ 45,623 $ — $ 780 $ — $ (199) $ (5,451) $ 40,753 Rendezvous 28,198 — (2,155) — (1,103) (2,865) 22,075 Mont Belvieu JV 98,874 — 33,991 — (33,944) (2,193) 96,728 TEG 16,661 — 4,508 — (4,533) (520) 16,116 TEP 195,189 — 36,547 — (36,797) (6,014) 188,925 FRP 199,881 — 38,280 750 (38,275) (4,004) 196,632 Whitethorn LLC 156,729 — 4,969 349 (6,428) (5,929) 149,690 Cactus II 173,921 — 18,237 3,336 (18,404) (5,796) 171,294 Saddlehorn 111,717 — 30,878 — (31,403) (751) 110,441 Panola 20,867 — 2,188 — (2,188) (823) 20,044 Mi Vida 55,031 — 10,491 — (10,596) (3,163) 51,763 Ranch Westex 18,898 (11,805) 12,407 — (15,657) (2,864) 979 Red Bluff Express 103,224 — 13,524 — (13,989) (1,012) 101,747 Total $ 1,224,813 $ (11,805) $ 204,645 $ 4,435 $ (213,516) $ (41,385) $ 1,167,187 _________________________________________________________________________________________ (1) Recorded in Long-lived asset and other impairments in the consolidated statements of operations. (2) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. thousands Balance at December 31, 2021 Other-than-temporary impairment expense (1) Equity Contributions Distributions Distributions in excess of cumulative earnings (2) Acquisitions and Divestitures Balance at December 31, 2022 White Cliffs $ 40,753 $ (19,883) $ (1,086) $ — $ (32) $ (3,657) $ — $ 16,095 Rendezvous 22,075 — (2,582) — (677) (2,702) — 16,114 Mont Belvieu JV 96,728 — 29,475 — (29,599) (5,294) — 91,310 TEG 16,116 — 6,384 75 (6,407) (312) — 15,856 TEP 188,925 — 44,650 — (44,902) (3,986) — 184,687 FRP 196,632 — 45,841 455 (46,193) (4,019) — 192,716 Whitethorn LLC 149,690 — (3,417) 281 5,223 (5,182) — 146,595 Cactus II 171,294 — 11,696 — (11,835) (18,085) (153,070) — Saddlehorn 110,441 — 21,491 — (21,034) (6,707) — 104,191 Panola 20,044 — 2,343 — (2,212) (864) — 19,311 Mi Vida 51,763 — 11,316 — (11,113) (3,104) — 48,862 Ranch Westex 979 — 3,392 — (3,392) (8,376) 7,397 — Red Bluff Express 101,747 — 13,980 8,821 (13,980) (1,609) — 108,959 Total $ 1,167,187 $ (19,883) $ 183,483 $ 9,632 $ (186,153) $ (63,897) $ (145,673) $ 944,696 _________________________________________________________________________________________ (1) Recorded in Long-lived asset and other impairments in the consolidated statements of operations. (2) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. 7. EQUITY INVESTMENTS The investment balance in White Cliffs at December 31, 2022, is $23.9 million less than the Partnership’s underlying equity in White Cliffs’ net assets. During the year ended December 31, 2022, the Partnership recognized an impairment loss of $19.9 million that resulted from a decline in value below the carrying value, which was determined to be other than temporary in nature. This investment was impaired to its estimated fair value of $16.1 million, using the income approach and Level-3 fair value inputs, due to a reduction in estimated future cash flows resulting from lower forecasted producer throughput. The investment balance in Rendezvous at December 31, 2022, includes $23.9 million for the purchase price allocated to the investment in Rendezvous in excess of the historic cost basis of Western Gas Resources, Inc. (“WGRI”), the entity that previously owned the interest in Rendezvous, which Anadarko acquired in August 2006. This excess balance is attributable to the difference between the fair value and book value of such gathering and treating facilities (at the time WGRI was acquired by Anadarko) and will be amortized to Equity income, net – related parties in the consolidated statements of operations over the remaining estimated useful life of those facilities. The investment balance in Whitethorn LLC at December 31, 2022, is $33.9 million less than the Partnership’s underlying equity in Whitethorn LLC’s net assets, primarily due to terms of the acquisition agreement which provided the Partnership a share of pre-acquisition operating cash flow. This difference will be accreted to Equity income, net – related parties in the consolidated statements of operations over the remaining estimated useful life of Whitethorn. The investment balance in Saddlehorn at December 31, 2022, was $17.7 million less than the Partnership’s underlying equity in Saddlehorn’s net assets, primarily due to income from an expansion project that was funded by Saddlehorn’s other owners being disproportionately allocated to the Partnership beginning in the second quarter of 2020. This difference will be accreted to Equity income, net – related parties in the consolidated statements of operations over the remaining estimated useful life of the Saddlehorn pipeline. In September 2022, the Partnership acquired the remaining 50% interest in Ranch Westex from a third party. Subsequent to the acquisition, the Partnership is the sole owner and operator of the asset and Ranch Westex is no longer accounted for under the equity method of accounting. See Note 3. During the years ended December 31, 2021 and 2020, the Partnership recognized impairment losses of $11.8 million and $29.4 million, respectively, that resulted from a decline in value below the carrying value, which was determined to be other than temporary in nature. In November 2022, the Partnership sold its 15.00% interest in Cactus II to two third parties. See Note 3. Management evaluates its equity investments for impairment whenever events or changes in circumstances indicate that the carrying value of such investments may have experienced a decline in value that is other than temporary. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether the investment has been impaired. Management assesses the fair value of equity investments using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third-party comparable sales and discounted cash flow models. If the estimated fair value is less than the carrying value, the excess of the carrying value over the estimated fair value is recognized as an impairment loss in the consolidated statements of operations. 7. EQUITY INVESTMENTS The following tables present the summarized combined financial information for equity investments (amounts represent 100% of investee financial information): Year Ended December 31, thousands 2022 2021 2020 Revenues $ 1,922,733 $ 1,808,791 $ 1,635,132 Operating income 661,779 946,299 1,045,889 Net income 661,916 945,801 1,045,076 December 31, thousands 2022 2021 Current assets $ 293,539 $ 398,696 Property, plant, and equipment, net 4,278,398 5,442,565 Other assets 52,163 182,323 Total assets $ 4,624,100 $ 6,023,584 Current liabilities $ 123,897 $ 157,099 Non-current liabilities 17,660 24,713 Equity 4,482,543 5,841,772 Total liabilities and equity $ 4,624,100 $ 6,023,584 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES The Partnership is not a taxable entity for U.S. federal income tax purposes; therefore, the federal statutory rate is zero percent. However, income apportionable to Texas is subject to Texas margin tax. For the years ended December 31, 2022 and 2020, the variance from the federal statutory rate was primarily due to the Texas margin tax liability. For the year ended December 31, 2021, the variance from the federal statutory rate was primarily impacted by a state margin rate reduction associated with Occidental’s settlement of state audit matters and the Texas margin tax liability. The components of income tax expense (benefit) are as follows: Year Ended December 31, thousands 2022 2021 2020 Current state income tax expense (benefit) $ 2,188 $ (37) $ 2,702 Deferred state income tax expense (benefit) 1,999 (9,770) 3,296 Total income tax expense (benefit) $ 4,187 $ (9,807) $ 5,998 8. INCOME TAXES Total income taxes differed from the amounts computed by applying the statutory income tax rate to income (loss) before income taxes. The sources of these differences are as follows: Year Ended December 31, thousands except percentages 2022 2021 2020 Income (loss) before income taxes $ 1,255,643 $ 934,192 $ 522,850 Statutory tax rate — % — % — % Tax computed at statutory rate $ — $ — $ — Adjustments resulting from: Texas margin tax expense (benefit) (1) 4,187 (9,807) 5,998 Income tax expense (benefit) $ 4,187 $ (9,807) $ 5,998 Effective tax rate — % (1) % 1 % _________________________________________________________________________________________ (1) Includes a tax benefit of $12.5 million for the year ended December 31, 2021, related to a reduced Texas margin tax rate resulting from Occidental’s settlement of state audit matters. The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows: December 31, thousands 2022 2021 Depreciable property $ (14,114) $ (12,395) Other intangible assets (603) (486) Other 293 456 Net long-term deferred income tax liabilities $ (14,424) $ (12,425) |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | 9. PROPERTY, PLANT, AND EQUIPMENT A summary of the historical cost of property, plant, and equipment is as follows: December 31, thousands Estimated Useful Life 2022 2021 Land N/A $ 10,982 $ 10,955 Gathering systems – pipelines 30 years 5,519,592 5,386,003 Gathering systems – compressors 15 years 2,266,410 2,172,953 Processing complexes and treating facilities 25 years 3,419,201 3,375,317 Transportation pipeline and equipment 4 to 48 years 174,241 169,356 Produced - water disposal systems 20 years 932,627 882,527 Assets under construction N/A 263,353 98,473 Other 3 to 40 years 779,187 750,494 Total property, plant, and equipment 13,365,593 12,846,078 Less accumulated depreciation 4,823,993 4,333,171 Net property, plant, and equipment $ 8,541,600 $ 8,512,907 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. Long-lived asset impairments. During the year ended December 31, 2021, the Partnership recognized a long-lived asset impairment of $14.2 million at the DJ Basin complex due to cancellation of projects. During the year ended December 31, 2020, the Partnership recognized a long-lived asset impairment of $150.2 million for assets located in Wyoming and Utah. These assets were impaired to estimated fair values of $112.2 million. The Partnership assesses whether events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of assets with impairment triggers were measured using the income approach and Level - 3 fair value inputs. The income approach was based on the Partnership’s projected future EBITDA and free cash flows, which requires significant assumptions including, among others, future throughput volumes based on current expectations of producer activity and operating costs. These impairments were primarily triggered by reductions in estimated future cash flows resulting from lower forecasted producer throughput and lower commodity prices. The remaining long-lived asset impairments of $24.3 million were primarily at the DJ Basin complex and DBM oil system due to the cancellation of projects and impairments of rights - of - way. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | 10. GOODWILL AND OTHER INTANGIBLES Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. Goodwill also includes the allocated historic carrying value of midstream goodwill attributed to the Partnership’s assets previously acquired from Anadarko. The Partnership’s goodwill has been allocated to two reporting units: (i) gathering and processing and (ii) transportation. The Partnership evaluates goodwill for impairment at the reporting - unit level on an annual basis, 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 and if deemed necessary based on this assessment, a quantitative assessment is then performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value. During the three months ended March 31, 2020, the Partnership performed an interim goodwill impairment test due to a significant decline in the trading price of the Partnership’s common units, triggered by the combined impacts from the global outbreak of COVID - 19 and the oil - market disruption resulting from significantly lower global demand and corresponding oversupply of crude oil. The Partnership primarily used the market approach and Level - 3 inputs to estimate the fair value of its two reporting units. The market approach was based on multiples of EBITDA and the Partnership’s projected future EBITDA. The EBITDA multiples were based on current and historic multiples for comparable midstream companies of similar size and business profit to the Partnership. The EBITDA projections require significant assumptions including, among others, future throughput volumes based on current expectations of producer activity and operating costs. The reasonableness of the market approach was tested against an income approach that was based on a discounted cash - flow analysis. Key assumptions in this analysis include the use of an appropriate discount rate, terminal - year multiples, and estimated future cash flows, including estimates of throughput, capital expenditures, and operating and general and administrative costs. The Partnership also reviewed the reasonableness of the total fair value of both reporting units to the market capitalization as of March 31, 2020, and the reasonableness of an implied acquisition premium. Impairment determinations involve significant assumptions and judgments, and differing assumptions regarding any of these inputs could have a significant effect on the valuations. As a result of the interim impairment test, the Partnership recognized a goodwill impairment of $441.0 million during the first quarter of 2020, which reduced the carrying value of goodwill for the gathering and processing reporting unit to zero. Goodwill allocated to the transportation reporting unit of $4.8 million as of March 31, 2020, was not impaired. The Partnership’s annual qualitative goodwill impairment assessment as of October 1, 2022, indicated no further impairment. Qualitative factors also were assessed in the fourth quarter of 2022 to review any changes in circumstances subsequent to the annual test. This assessment also indicated no impairment. 10. GOODWILL AND OTHER INTANGIBLES Other intangible assets. The other intangible assets balance on the consolidated balance sheets includes the fair value, net of amortization, primarily related to (i) contracts assumed in connection with processing plant acquisitions in 2011 that are part of the DJ Basin complex, which are being amortized on a straight-line basis over 38 years and (ii) contracts assumed in connection with the DBM acquisition in November 2014, which are being amortized on a straight-line basis over 30 years. The Partnership assesses other intangible assets for impairment together with related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. See Property, plant, and equipment and other intangible assets in Note 1 for further discussion of management’s process to evaluate potential impairment of long-lived assets. The following table presents the gross carrying value and accumulated amortization of other intangible assets: December 31, thousands 2022 2021 Gross carrying value $ 979,863 $ 979,863 Accumulated amortization (266,788) (235,121) Other intangible assets $ 713,075 $ 744,742 |
Selected Components of Working
Selected Components of Working Capital | 12 Months Ended |
Dec. 31, 2022 | |
Selected Components Of Working Capital [Abstract] | |
Selected Components of Working Capital | 11. SELECTED COMPONENTS OF WORKING CAPITAL A summary of accounts receivable, net is as follows: The Partnership WES Operating December 31, December 31, thousands 2022 2021 2022 2021 Trade receivables, net $ 548,859 $ 431,649 $ 548,859 $ 431,649 Other receivables, net 5,404 4,864 5,404 4,864 Total accounts receivable, net $ 554,263 $ 436,513 $ 554,263 $ 436,513 A summary of other current assets is as follows: The Partnership WES Operating December 31, December 31, thousands 2022 2021 2022 2021 NGLs inventory $ 3,797 $ 3,370 $ 3,797 $ 3,370 Imbalance receivables 32,658 25,309 32,658 25,309 Prepaid insurance 13,262 10,369 11,139 8,538 Contract assets 3,381 5,307 3,381 5,307 Other 6,408 1,897 6,316 1,897 Total other current assets $ 59,506 $ 46,252 $ 57,291 $ 44,421 A summary of accrued liabilities is as follows: The Partnership WES Operating December 31, December 31, thousands 2022 2021 2022 2021 Accrued interest expense $ 110,486 $ 131,177 $ 110,486 $ 131,177 Short - term asset retirement obligations 10,493 9,934 10,493 9,934 Short - term remediation and reclamation obligations 5,383 7,454 5,383 7,454 Income taxes payable 2,428 1,516 2,428 1,516 Contract liabilities 20,903 27,763 20,903 27,763 Accrued payroll and benefits 44,855 41,311 — 20 Other 60,092 44,094 47,596 32,829 Total accrued liabilities $ 254,640 $ 263,249 $ 197,289 $ 210,693 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Carrying amount of asset retirement obligations at beginning of year $ 308,209 $ 280,498 Liabilities incurred 10,513 23,923 Liabilities settled (10,115) (12,710) Accretion expense 14,474 12,664 Revisions in estimated liabilities (22,567) 3,834 Carrying amount of asset retirement obligations at end of year $ 300,514 $ 308,209 Revisions in estimated liabilities for the year ended December 31, 2022, primarily related to a reduction in expected settlement costs at the West Texas and Brasada complexes, as well as the DBM oil and DBM water systems, partially offset by an increase in expected settlement costs at the Red Desert, Granger, and DJ Basin complexes, and at the Highlight system. |
Debt and Interest Expense
Debt and Interest Expense | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Debt and Interest Expense | 13. DEBT AND INTEREST EXPENSE WES Operating is the borrower for all outstanding debt and is expected to be the borrower for all future debt issuances. The following table presents the outstanding debt: December 31, 2022 December 31, 2021 thousands Principal Carrying Fair Value (1) Principal Carrying Fair Value (1) Short - term debt Floating - Rate Senior Notes due 2023 $ 213,138 $ 213,121 $ 214,823 $ — $ — $ — 4.000% Senior Notes due 2022 — — — 502,246 502,138 505,153 Finance lease liabilities 2,659 2,659 2,659 3,794 3,794 3,794 Total short - term debt $ 215,797 $ 215,780 $ 217,482 $ 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 730,706 727,953 692,491 732,106 728,096 764,815 3.950% Senior Notes due 2025 399,163 396,825 379,107 399,163 395,928 418,506 4.650% Senior Notes due 2026 474,242 472,161 452,201 474,242 471,629 516,473 4.500% Senior Notes due 2028 400,000 396,698 368,346 400,000 396,145 437,673 4.750% Senior Notes due 2028 400,000 397,340 368,141 400,000 396,938 444,550 4.050% Senior Notes due 2030 1,200,000 1,191,345 1,053,038 1,200,000 1,190,339 1,323,595 5.450% Senior Notes due 2044 600,000 593,878 503,742 600,000 593,733 717,804 5.300% Senior Notes due 2048 700,000 687,494 580,570 700,000 687,265 844,223 5.500% Senior Notes due 2048 350,000 342,783 291,194 350,000 342,659 418,907 5.250% Senior Notes due 2050 1,000,000 983,945 829,804 1,000,000 983,709 1,183,514 RCF 375,000 375,000 375,000 — — — Finance lease liabilities 4,160 4,160 4,160 1,533 1,533 1,533 Total long - term debt $ 6,633,271 $ 6,569,582 $ 5,897,794 $ 6,470,182 $ 6,400,616 $ 7,284,665 _________________________________________________________________________________________ (1) Fair value is measured using the market approach and Level - 2 fair value inputs. 13. DEBT AND INTEREST EXPENSE Debt activity. The following table presents the debt activity for the years ended December 31, 2022 and 2021: thousands Carrying Value Balance at December 31, 2020 $ 7,854,702 RCF borrowings 480,000 Repayments of RCF borrowings (480,000) Repayment of 5.375% Senior Notes due 2021 (431,081) Repayment of 4.000% Senior Notes due 2022 (78,671) Repayment of Floating-Rate Senior Notes due 2023 (26,840) Repayment of 3.100% Senior Notes due 2025 (267,894) Repayment of 3.950% Senior Notes due 2025 (100,837) Repayment of 4.650% Senior Notes due 2026 (25,758) Finance lease liabilities (26,582) Other 9,509 Balance at December 31, 2021 $ 6,906,548 RCF borrowings 1,390,000 Repayments of RCF borrowings (1,015,000) Repayment of 4.000% Senior Notes due 2022 (502,246) Repayment of 3.100% Senior Notes due 2025 (1,400) Finance lease liabilities 1,493 Other 5,967 Balance at December 31, 2022 $ 6,785,362 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 December 31, 2022, and were 4.542%, 5.424%, and 6.629%, respectively, at December 31, 2021. The interest rate on the Floating - Rate Senior Notes was 5.04% and 1.97% at December 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 second quarter of 2022, WES Operating (i) redeemed the total principal amount outstanding of the 4.000% Senior Notes due 2022 at par value and (ii) purchased and retired $1.4 million of the 3.100% Senior Notes due 2025 via open-market repurchases. During the third quarter of 2021, WES Operating purchased and retired $500.0 million of certain of its senior notes via a tender offer (see Debt activity above). 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. For the year ended December 31, 2021, losses of $24.9 million were recognized for the early retirement of these notes. As of December 31, 2022, the Floating-Rate Senior Notes were classified as short-term debt on the consolidated balance sheet, and in January 2023, WES Operating redeemed the total principal amount outstanding at par value with cash on hand. As of December 31, 2022, WES Operating was in compliance with all covenants under the relevant governing indentures. 13. DEBT AND INTEREST EXPENSE Revolving credit facility. In June 2022, WES Operating entered into an amendment to its $2.0 billion senior unsecured revolving credit facility (“RCF”), which is expandable to a maximum of $2.5 billion, to, among other things, (i) extend the maturity date applicable to the loans and commitments of certain lenders totaling $1.6 billion to February 2026, (ii) provide for the ability of WES Operating to extend the maturity date by one year on up to two additional occasions, (iii) provide that loans under the RCF with a fixed interest rate for a specified period bear interest based on the Secured Overnight Financing Rate (“SOFR”) instead of the London Interbank Offered Rate (“LIBOR”), and (iv) include an additional level of pricing if WES Operating’s senior unsecured debt rating is less than or equal to BB/Ba2/BB (Standard and Poor’s / Moody’s Investors Service / Fitch Ratings). The non - extending lender’s commitments mature in February 2025 and represent $400.0 million out of $2.0 billion of total commitments from all lenders. The RCF bears interest at an Adjusted Term SOFR (as defined in the RCF amendment), plus applicable margins ranging from 1.00% to 1.70%, or an alternate base rate equal to the greatest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.50%, or (c) Adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%, in each case plus applicable margins currently ranging from zero to 0.70%, based on WES Operating’s senior unsecured debt rating. A required quarterly facility fee is paid ranging from 0.125% to 0.300% of the commitment amount (whether drawn or undrawn), which also is based on the senior unsecured debt rating. As of December 31, 2022, there were $375.0 million of outstanding borrowings and $5.1 million of outstanding letters of credit, resulting in $1.6 billion of available borrowing capacity under the RCF. As of December 31, 2022 and 2021, the interest rate on any outstanding RCF borrowings was 5.92% and 1.60%, respectively. The facility - fee rate was 0.25% at December 31, 2022 and 2021. As of December 31, 2022, the outstanding borrowings under the RCF were classified as long-term debt on the consolidated balance sheet and 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”). During the first quarter of 2020, a loss of $2.3 million was recognized for the early termination of the Term loan facility. Interest-rate swaps. For the year ended December 31, 2020, WES Operating made cash payments totaling $25.6 million to settle interest rate swaps that were entered into in 2018 and 2019. These cash payments were classified as cash flows from operating activities in the consolidated statements of cash flows. 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. 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. See Note 14—Leases . Interest expense. The following table summarizes the amounts included in interest expense: Year Ended December 31, thousands 2022 2021 2020 Long - term and short - term debt $ (326,949) $ (366,570) $ (369,815) Finance lease liabilities (414) (861) (1,516) Commitment fees and amortization of debt-related costs (12,212) (12,705) (13,501) Capitalized interest 5,636 3,624 4,774 Interest expense $ (333,939) $ (376,512) $ (380,058) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases | 14. LEASES The Partnership adopted ASU 2016-02, Leases (Topic 842) on January 1, 2019, using the modified retrospective method applied to all leases in existence on January 1, 2019. 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. Lessee. The Partnership has entered into operating leases for corporate offices, shared field offices, easements, and equipment supporting the Partnership’s operations, with both Occidental and third parties as lessors. The Partnership also had subleased equipment from Occidental via finance leases that extended through April 2020. 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 following table summarizes information related to the Partnership’s leases: December 31, 2022 2021 thousands except lease term and discount rate Operating Leases Finance Leases Operating Leases Finance Leases Assets Other assets $ 67,087 $ — $ 71,725 $ — Net property, plant, and equipment — 7,402 — 5,449 Total lease assets (1) $ 67,087 $ 7,402 $ 71,725 $ 5,449 Liabilities Accrued liabilities $ 10,342 $ — $ 10,558 $ — Short-term debt — 2,659 — 3,794 Other liabilities 33,318 — 35,442 — Long-term debt — 4,160 — 1,533 Total lease liabilities (1) $ 43,660 $ 6,819 $ 46,000 $ 5,327 Weighted-average remaining lease term (years) 8 6 8 2 Weighted-average discount rate (%) 4.5 8.2 4.1 3.4 ________________________________________________________________________________________ (1) For the years ended December 31, 2022 and 2021, includes additions to ROU assets of $8.3 million and $44.9 million, respectively, and additions to lease liabilities of $8.3 million and $14.9 million, respectively, related to operating leases. Includes additions to ROU assets and lease liabilities of $7.1 million and $0.9 million related to finance leases for the years ended December 31, 2022 and 2021, respectively. The following table summarizes the Partnership’s lease cost: Year Ended December 31, thousands 2022 2021 2020 Operating lease cost $ 14,767 $ 10,753 $ 7,702 Short-term lease cost 38,875 37,616 43,102 Variable lease cost 5,611 2,628 (46) Sublease income (414) (414) (414) Finance lease cost Amortization of ROU assets 5,377 7,151 8,346 Interest on lease liabilities 414 861 1,516 Total lease cost $ 64,630 $ 58,595 $ 60,206 14. LEASES The following table summarizes cash paid for amounts included in the measurement of lease liabilities: Year Ended December 31, 2022 2021 2020 thousands Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Operating cash flows $ 13,616 $ 229 $ 5,805 $ 861 $ 5,750 $ 1,516 Financing cash flows — 4,318 — 6,513 — 14,207 The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2022: thousands Operating Leases Finance Leases 2023 $ 10,517 $ 2,720 2024 7,877 1,424 2025 5,769 3,810 2026 4,450 52 2027 4,332 — Thereafter 19,289 — Total lease payments 52,234 8,006 Less portion representing imputed interest 8,574 1,187 Total lease liabilities $ 43,660 $ 6,819 |
Lessee, Finance Leases | 14. LEASES The Partnership adopted ASU 2016-02, Leases (Topic 842) on January 1, 2019, using the modified retrospective method applied to all leases in existence on January 1, 2019. 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. Lessee. The Partnership has entered into operating leases for corporate offices, shared field offices, easements, and equipment supporting the Partnership’s operations, with both Occidental and third parties as lessors. The Partnership also had subleased equipment from Occidental via finance leases that extended through April 2020. 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 following table summarizes information related to the Partnership’s leases: December 31, 2022 2021 thousands except lease term and discount rate Operating Leases Finance Leases Operating Leases Finance Leases Assets Other assets $ 67,087 $ — $ 71,725 $ — Net property, plant, and equipment — 7,402 — 5,449 Total lease assets (1) $ 67,087 $ 7,402 $ 71,725 $ 5,449 Liabilities Accrued liabilities $ 10,342 $ — $ 10,558 $ — Short-term debt — 2,659 — 3,794 Other liabilities 33,318 — 35,442 — Long-term debt — 4,160 — 1,533 Total lease liabilities (1) $ 43,660 $ 6,819 $ 46,000 $ 5,327 Weighted-average remaining lease term (years) 8 6 8 2 Weighted-average discount rate (%) 4.5 8.2 4.1 3.4 ________________________________________________________________________________________ (1) For the years ended December 31, 2022 and 2021, includes additions to ROU assets of $8.3 million and $44.9 million, respectively, and additions to lease liabilities of $8.3 million and $14.9 million, respectively, related to operating leases. Includes additions to ROU assets and lease liabilities of $7.1 million and $0.9 million related to finance leases for the years ended December 31, 2022 and 2021, respectively. The following table summarizes the Partnership’s lease cost: Year Ended December 31, thousands 2022 2021 2020 Operating lease cost $ 14,767 $ 10,753 $ 7,702 Short-term lease cost 38,875 37,616 43,102 Variable lease cost 5,611 2,628 (46) Sublease income (414) (414) (414) Finance lease cost Amortization of ROU assets 5,377 7,151 8,346 Interest on lease liabilities 414 861 1,516 Total lease cost $ 64,630 $ 58,595 $ 60,206 14. LEASES The following table summarizes cash paid for amounts included in the measurement of lease liabilities: Year Ended December 31, 2022 2021 2020 thousands Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Operating cash flows $ 13,616 $ 229 $ 5,805 $ 861 $ 5,750 $ 1,516 Financing cash flows — 4,318 — 6,513 — 14,207 The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2022: thousands Operating Leases Finance Leases 2023 $ 10,517 $ 2,720 2024 7,877 1,424 2025 5,769 3,810 2026 4,450 52 2027 4,332 — Thereafter 19,289 — Total lease payments 52,234 8,006 Less portion representing imputed interest 8,574 1,187 Total lease liabilities $ 43,660 $ 6,819 |
Lessor, Operating Leases | Lessor. Effective December 31, 2019, an affiliate of Occidental and a wholly owned subsidiary of the Partnership, the lessor, entered into an operating and maintenance agreement pursuant to which Occidental 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. The agreement and underlying contracts include (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. In April 2021, the Partnership exercised its option to terminate the operating and maintenance agreement with Occidental effective December 31, 2021. For the years ended December 31, 2021 and 2020, the Partnership recognized fixed-lease revenue of $175.8 million and $175.8 million, respectively, and variable-lease revenue of $3.5 million and $47.9 million, respectively, related to these agreements, with such amounts included in Service revenues – fee based in the consolidated statements of operations. In December 2021, one of the Partnership’s processing agreements was amended. The amended contract was determined to be a lease agreement; however, the Partnership elected the practical expedient to combine the lease and the non-lease components, which consists of processing and stabilization services, into a single service component and will account for the contract under Revenue from Contracts with Customers (Topic 606) . |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | 15. EQUITY-BASED COMPENSATION The general partner has the authority to grant equity compensation awards to its outside directors, executive officers, and employees under the Western Gas Partners, LP 2017 Long-Term Incentive Plan (the “2017 LTIP”) and the Western Midstream Partners, LP 2021 Long - Term Incentive Plan (the “2021 LTIP”). These plans are collectively referred to as the “WES LTIPs.” The 2017 LTIP and the 2021 LTIP permit the issuance of up to 3,431,251 and 9,500,000 units, respectively, of which 1,928,415 and 9,500,000 units, respectively, remained available for future issuance as of December 31, 2022. The Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan expired during the year ended December 31, 2022. On March 22, 2021, the Board approved the 2021 LTIP. Subject to the capitalization adjustment provisions included in the 2021 LTIP, the total aggregate number of common units that may be delivered with respect to awards under the 2021 LTIP is 9,500,000 (the “2021 LTIP Limit”). Common units withheld from an award or surrendered by a participant to satisfy tax withholding obligations or to satisfy the payment of any exercise price with respect to an award will not be considered to be common units delivered under the 2021 LTIP for purposes of the 2021 LTIP Limit. If any award is forfeited, cancelled, exercised, settled in cash, or otherwise terminates or expires without the actual delivery of common units, the common units subject to such award will again be available for awards under the 2021 LTIP. The 2021 LTIP provides for the grant of unit options, unit appreciation rights, restricted units, phantom units, other unit - based awards, cash awards, and a unit award or a substitute award to employees and directors of the Partnership and its general partner. The Board awards phantom units (the “Awards”) to the Partnership’s executive officers under the WES LTIPs. The Awards include (i) an award of time-vested phantom units that vest ratably over a period of three years (“Time-Based Awards”), (ii) a market-based award that vests after a performance period of three years based on the Partnership’s relative total unitholder return as compared to a group of peer companies (“TUR Awards”), and (iii) a performance award that vests based on the Partnership’s average return on assets over a performance period of three years (“ROA Awards”). At vesting, the number of vested units for the TUR Awards and the ROA Awards will be determined in accordance with the terms of the respective award agreements that provide for payout percentages ranging from 0% to 200% based on results achieved over the applicable performance period. At vesting, the Awards generally will be settled in Partnership common units. Prior to vesting, the Awards granted in 2020 pay in-kind distributions in the form of Partnership common units. During the years ended December 31, 2022, 2021, and 2020, the Partnership issued 13,754, 21,681, and 48,070 common units, respectively, as in-kind distributions under such Awards. Prior to vesting, the Time-Based Awards granted in 2021 and 2022 pay distribution equivalents in cash ratably. The TUR and ROA Awards granted in 2021 and 2022 pay cash distributions at vesting based on actual performance. In addition, time-vested phantom units may be awarded under the WES LTIPs to non-executive employees and outside directors of the Partnership, which vest ratably over a period of three years and one year from the grant date, respectively. Prior to vesting, the awards to non-executive employees and outside directors pay distribution equivalents in cash. The equity-based compensation expense attributable to these awards is amortized over the vesting periods applicable to the awards using the straight-line method. Expense is recognized based on the grant-date fair value and recorded, net of actual forfeitures, as General and administrative expense in the consolidated statements of operations. The fair value of the Time-Based Awards and non-executive awards is based on the observable market price of the Partnership’s units on the grant date of the award. The fair value of the TUR Awards is determined using a Monte Carlo simulation at the grant date of the award. The fair value of the ROA Awards is based on the observable market price of the Partnership’s units on the grant date of the award and compensation expense is adjusted quarterly based on the estimated performance rating at vesting. The total fair value of phantom units vested was $21.7 million, $8.5 million, and $0.5 million for the years ended December 31, 2022, 2021, and 2020, respectively, based on the market price at the vesting date. Compensation expense for the WES LTIPs was $25.5 million, $17.6 million, and $7.9 million for the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, the Partnership had $27.8 million of estimated unrecognized compensation expense attributable to the WES LTIPs that will be recognized over a weighted-average period of 0.8 years. 15. EQUITY-BASED COMPENSATION The following table summarizes time-vested award activity under the WES LTIPs for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 16.97 1,775,672 $ 15.69 1,307,606 $ — — Granted 26.11 866,900 17.86 1,041,635 15.49 1,442,821 Vested 16.84 (793,367) 14.82 (497,648) 9.54 (53,551) Forfeited 21.12 (160,175) 16.83 (75,921) 16.27 (81,664) Non-vested units at end of year 21.33 1,689,030 16.97 1,775,672 15.69 1,307,606 The following table summarizes TUR Awards activity under the WES LTIPs for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 21.17 325,217 $ 17.79 108,481 $ — — Granted 37.80 94,173 22.77 237,720 17.79 124,067 Forfeited 28.54 (30,573) 21.78 (20,984) 17.79 (15,586) Non-vested units at end of year 24.62 388,817 21.17 325,217 17.79 108,481 The following table summarizes ROA Awards activity under the WES LTIPs for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 16.01 325,217 $ 16.27 108,481 $ — — Granted 25.95 94,173 15.88 237,720 16.27 124,067 Forfeited 19.74 (30,573) 15.96 (20,984) 16.27 (15,586) Non-vested units at end of year 18.12 388,817 16.01 325,217 16.27 108,481 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES Environmental obligations. The Partnership is subject to various environmental-remediation obligations arising from federal, state, and local regulations regarding air and water quality, hazardous and solid waste disposal, and other environmental matters. As of December 31, 2022 and 2021, the consolidated balance sheets included $7.4 million and $10.1 million, respectively, of liabilities for remediation and reclamation obligations. The current portion of these amounts is included in Accrued liabilities 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 . Litigation and legal proceedings. From time to time, the Partnership is involved in legal, tax, regulatory, and other proceedings in various forums regarding performance, contracts, and other matters that arise in the ordinary course of business. Management is not aware of any such proceeding for which the final disposition could have a material adverse effect on the Partnership’s financial condition, results of operations, or cash flows. Other commitments. The Partnership has payment obligations, or commitments, that include, among other things, a revolving credit facility, other third - party long - term debt, obligations related to the Partnership’s capital spending programs, pipeline and offload commitments, and various operating and finance leases. The payment obligations related to the Partnership’s capital spending programs, the majority of which is expected to be paid in the next 12 months, primarily relate to construction, expansion, and asset - integrity projects at the West Texas complex, DBM oil system, DBM water systems, and DJ Basin complex. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation policy | Basis of presentation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and include the accounts of the Partnership and entities in which it holds a controlling financial interest, including WES Operating, WES Operating GP, proportionately consolidated interests, and equity investments (see table below). All significant intercompany transactions have been eliminated. The following table outlines the ownership interests and the accounting method of consolidation used in the consolidated financial statements for entities not wholly owned (see Note 3 and Note 7) : Percentage Interest Full consolidation Chipeta (1) 75.00 % Proportionate consolidation (2) Springfield system 50.10 % Marcellus Interest systems 33.75 % Equity investments (3) Mi Vida JV LLC (“Mi Vida”) 50.00 % Front Range Pipeline LLC (“FRP”) 33.33 % Red Bluff Express Pipeline, LLC (“Red Bluff Express”) 30.00 % Enterprise EF78 LLC (“Mont Belvieu JV”) 25.00 % Rendezvous Gas Services, LLC (“Rendezvous”) 22.00 % Texas Express Pipeline LLC (“TEP”) 20.00 % Texas Express Gathering LLC (“TEG”) 20.00 % Whitethorn Pipeline Company LLC (“Whitethorn LLC”) 20.00 % Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 20.00 % Panola Pipeline Company, LLC (“Panola”) 15.00 % White Cliffs Pipeline, LLC (“White Cliffs”) 10.00 % _________________________________________________________________________________________ (1) The 25% third - party interest in Chipeta Processing LLC (“Chipeta”) is reflected within noncontrolling interests in the consolidated financial statements. See Noncontrolling interests below. (2) The Partnership proportionately consolidates its associated share of the assets, liabilities, revenues, and expenses attributable to these assets. (3) Investments in non - controlled entities over which the Partnership exercises significant influence are accounted for under the equity method of accounting. “Equity - investment throughput” refers to the Partnership’s share of average throughput for these investments. The consolidated financial results of WES Operating are included in the Partnership’s consolidated financial statements. Throughout these notes to consolidated financial statements, and to the extent material, any differences between the consolidated financial results of the Partnership and WES Operating are discussed separately. The Partnership’s consolidated financial statements differ from those of WES Operating primarily as a result of (i) the presentation of noncontrolling interest ownership (see Noncontrolling interests below), (ii) the elimination of WES Operating GP’s investment in WES Operating with WES Operating GP’s underlying capital account, (iii) the general and administrative expenses incurred by the Partnership, which are separate from, and in addition to, those incurred by WES Operating, (iv) the inclusion of the impact of Partnership equity balances and Partnership distributions, and (v) transactions between the Partnership and WES Operating that eliminate upon consolidation. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Presentation of the Partnership’s assets. The Partnership’s assets include assets owned and ownership interests accounted for by the Partnership under the equity method of accounting, through its 98.0% partnership interest in WES Operating, as of December 31, 2022 (see Note 7 ). The Partnership also owns and controls the entire non - economic general partner interest in WES Operating GP, and the Partnership’s general partner is owned by Occidental. Noncontrolling interests. The Partnership’s noncontrolling interests in the consolidated financial statements consist of (i) the 25% third - party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary. WES Operating’s noncontrolling interest in the consolidated financial statements consists of the 25% third - party interest in Chipeta. See Note 5. |
Use of estimates policy | Use of estimates. In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues, and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other reasonable methods. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates. Effects on the business, financial condition, and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information included herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements, 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). 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION In determining fair value, management uses observable market data when available, or models that incorporate observable market data. When a fair value measurement is required and there is not a market-observable price for the asset or liability or a market-observable price for a similar asset or liability, the cost, income, or market approach is used, depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset-replacement cost. The income approach uses management’s best assumptions regarding expectations of projected cash flows and discounts the expected cash flows using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment because results are based on expected future events or conditions, such as contractual rates, estimates of future throughput, capital and operating costs and the timing thereof, economic and regulatory climates, and other factors. The market approach uses management’s best assumptions regarding expectations of projected earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and an assumed multiple of that EBITDA that a willing buyer would pay to acquire an asset. Management’s estimates of future net cash flows and EBITDA are inherently imprecise because they reflect management’s expectation of future conditions that are often outside of management’s control. However, the assumptions used reflect a market participant’s view of long-term revenues, costs, and other factors, and are consistent with assumptions used in the Partnership’s business plans and investment decisions. Management uses relevant observable inputs available for the valuation technique employed to estimate fair value. If a fair-value measurement reflects inputs at multiple levels within the hierarchy, the fair-value measurement is characterized based on the lowest level of input that is significant to the fair-value measurement. Non-financial assets and liabilities initially measured at fair value include certain assets and liabilities acquired in a third-party business combination, assets and liabilities exchanged in non-monetary transactions, goodwill and other intangibles, and the initial measurement of asset retirement obligations. Impairment analyses for long-lived assets, goodwill, and equity investments and the initial recognition of asset retirement obligations use Level-3 inputs. The fair value of debt reflects any premium or discount for the difference between the stated interest rate and the quarter-end market interest rate and is based on quoted market prices for identical instruments, if available, or based on valuations of similar debt instruments. 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. |
Credit losses policy | Credit losses. Accounts receivable represent contractual rights for services performed, with, on average, 30-day payment terms from the invoice date. Contract assets primarily relate to revenue accrued but not yet billed under cost-of-service contracts and accrued deficiency fees. Exposure to credit losses is analyzed within collective pools for all of our customers and, if necessary, individual customers may be analyzed separately if their credit quality becomes a concern. The Partnership monitors credit exposure to all customers to ensure exposures are within established credit limits. As of December 31, 2022, there are no negative indications regarding the collectability of significant receivables and the Partnership will continue to monitor the credit quality of its customer base and assess collectability of these assets as appropriate. The allowance for expected credit losses was immaterial at December 31, 2022 and 2021. |
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, 2022, imbalance receivables and payables were $32.7 million and $32.5 million, respectively. As of December 31, 2021, imbalance receivables and payables were $25.3 million and $16.6 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 inventory is determined by the weighted-average cost method on a location-by-location basis. Inventory is stated at the lower of weighted-average cost or net realizable value. NGLs inventory is reported in Other current assets and NGLs line-fill inventory is reported in Other assets on the consolidated balance sheets. Materials and supplies inventory is valued at weighted-average cost, reviewed periodically for obsolescence, and assessed for impairment together with any associated property, plant, and equipment and other intangible assets. Materials and supplies inventory is reported in Other assets on the consolidated balance sheets. |
Property, plant, and equipment and other intangible assets policy | Property, plant, and equipment and other intangible assets. Property, plant, and equipment and other intangible assets are stated at historical cost less accumulated depreciation or amortization, or fair value if impaired. Prior long-lived asset acquisitions from Anadarko were transfers of net assets between entities under common control; therefore, the assets acquired were initially recorded at Anadarko’s historic carrying value. The difference between the carrying value of net assets acquired from Anadarko and the consideration paid has been recorded as an adjustment to partners’ capital. Assets acquired in a business combination or non-monetary exchange with a third party are initially recorded at fair value. All construction-related direct labor and material costs are capitalized. The cost of renewals and betterments that extend the useful life of property, plant, and equipment is also capitalized. The cost of repairs, replacements, and major maintenance projects that do not extend the useful life or increase the expected output of property, plant, and equipment is expensed as incurred. Depreciation is computed using the straight-line method based on estimated useful lives and salvage values of assets. Subsequent events could cause a change in estimates of remaining useful lives or salvage value, thereby impacting future depreciation amounts. Uncertainties that may impact these estimates include, but are not limited to, changes in laws and regulations relating to environmental matters, including air and water quality, restoration and abandonment requirements, economic conditions, and supply and demand in the area. Management assesses property, plant, and equipment together with any associated materials and supplies inventory and intangible assets, as described in Note 10 , for impairment when events or changes in circumstances indicate their carrying values may not be recoverable. Impairments exist when the carrying value of a long-lived asset exceeds the total estimated undiscounted net cash flows from the future use and eventual disposition of the asset. When alternative courses of action for future use of a long-lived asset are under consideration, estimates of future undiscounted net cash flows incorporate the possible outcomes and probabilities of their occurrence. If an impairment exists, an impairment loss is measured as the excess of the asset’s carrying value over its estimated fair value, such that the asset’s carrying value is adjusted down to its estimated fair value with an offsetting charge to Long-lived asset and other impairments. Refer to Note 9 for a description of impairments recorded during the years ended December 31, 2022, 2021, and 2020. |
Capitalized interest policy | Capitalized interest. Interest is capitalized as part of the historical cost of constructing assets that are in progress. Capitalized interest is determined by multiplying the Partnership’s weighted-average borrowing cost on debt by the average amount of assets under construction. Cumulative capitalized interest accrued during the year is expensed through depreciation or impairment. |
Segments policy | Segments. The Partnership’s operations continue to be organized into a single operating segment, the assets of which gather, compress, treat, process, and transport natural gas; gather, stabilize, and transport condensate, NGLs, and crude oil; and gather and dispose of produced water in the United States. |
Goodwill policy | Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated historic carrying value of midstream goodwill attributed to the Partnership’s assets previously acquired from Anadarko. The Partnership had allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment at the reporting unit level annually, as of October 1, or more often as facts and circumstances warrant. An initial qualitative assessment is performed to determine the likelihood of whether goodwill is impaired. If management concludes, based on qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no goodwill impairment is recorded and further testing is not necessary. If an assessment of qualitative factors does not result in management’s determination that the fair value of the reporting unit more likely than not exceeds its carrying value, then a quantitative assessment must be performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value through a charge to Goodwill impairment. The Partnership recognized a goodwill impairment of $441.0 million during the first quarter of 2020, which reduced the carrying value of goodwill to zero for the gathering and processing reporting unit. See Note 10 . The Partnership evaluates goodwill for impairment at the reporting - unit level on an annual basis, 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 and if deemed necessary based on this assessment, a quantitative assessment is then performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value. |
Asset retirement obligations policy | Asset retirement obligations. When tangible long-lived assets are acquired or constructed, the initial estimated asset retirement obligation liability is recognized at fair value, measured using discounted expected future cash outflows of the settlement obligation, with an associated increase in property, plant, and equipment. Over time, the discounted liability is adjusted up to its expected settlement value through accretion expense, which is reported within Depreciation and amortization in the consolidated statements of operations. Estimated asset retirement costs typically extend many years into the future, and estimation requires significant judgment. Subsequent to the initial recognition, the liability is adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to property, plant, and equipment, or depreciation expense if the asset is fully depreciated) until the obligation is settled. Revisions in estimated asset retirement obligations may result from changes in estimated asset retirement costs, inflation rates, discount rates, and the estimated timing of settlement. See Note 12 . |
Environmental expenditures policy | Environmental expenditures. The Partnership is subject to various environmental-remediation obligations arising from federal, state, and local laws and regulations. Losses associated with environmental obligations are accrued when the necessity for environmental remediation or other potential environmental liabilities becomes probable and the costs can be reasonably estimated, with the exception of environmental obligations acquired in a business combination, which are recorded at fair value at the time of acquisition. Accruals for estimated losses from environmental-remediation obligations are recognized no later than at the time of the completion of the remediation feasibility study or when the evaluation of response options is complete. These accruals are adjusted as additional information becomes available or as circumstances change. Costs of future expenditures for environmental-remediation obligations are not discounted to their present value. See Note 16. |
Revenue and cost of product policy | Revenue and cost of product. The Partnership provides gathering, processing, treating, transportation, and disposal services pursuant to a variety of contracts. Under these arrangements, the Partnership receives fees and/or retains a percentage of products or a percentage of the proceeds from the sale of the customer’s products. These revenues are included in Service revenues and Product sales in the consolidated statements of operations. Payment is generally received from the customer in the month following the service or delivery of the product. Contracts with customers generally have initial terms ranging from 5 to 10 years. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Service revenues – fee based is recognized for fee-based contracts in the month of service based on the volumes delivered by the customer. Producers’ wells or production facilities are connected to the Partnership’s gathering systems for gathering, processing, treating, transportation, and disposal of natural gas, NGLs, condensate, crude oil, and produced water, as applicable. Revenues are valued based on the rate in effect for the month of service when the fee is either the same per-unit rate over the contract term or when the fee escalates and the escalation factor approximates inflation. Deficiency fees charged to customers that do not meet their minimum delivery requirements are recognized as services are performed based on an estimate of the fees that will be billed at the completion of the performance period. Because of its significant upfront capital investment, the Partnership may charge additional service fees to customers for only a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold), and these fees are recognized as revenue over the expected period of customer benefit, which is generally the life of the related properties. Timing differences between amounts recognized in Service revenues – fee based and the amounts billed to customer are recognized as contract assets or contract liabilities, and are amortized over the related contract period. Prior to April 1, 2020, the Partnership also recognized revenue and cost of product expense from marketing services performed on behalf of its customers by Occidental. Effective April 1, 2020, changes to marketing-contract terms with Occidental terminated Occidental’s prior status as an agent of the Partnership for third-party sales and established Occidental as a customer of the Partnership. Accordingly, the Partnership no longer recognizes revenue and the equivalent cost of product expense for the marketing services performed by Occidental. See Note 6 . The Partnership also receives Service revenues – fee based from contracts that have fees that require periodic rate redeterminations based on the related facility cost of service. The cost-of-service rates are calculated using a contractually specified rate of return and estimates including long-term assumptions for capital invested, receipt volumes, and operating and maintenance expenses. Certain of these cost-of-service agreements also have minimum-volume-commitment demand fees and guaranteed minimum revenues, in addition to cost-of-service rates. Such contracts include fixed and variable consideration that are recognized on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost-of-service rates charged to customers, and a cumulative catch-up revenue adjustment related to services already provided to the minimum volumes under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate based on the total expected variable consideration under the contract. If the Partnership determines it is probable that a significant reversal in the cumulative catch-up revenue adjustment could occur, the variable consideration may be constrained up to the amount of the probable significant reversal. Service revenues – product based includes service revenues from percent-of-proceeds gathering and processing contracts that are recognized net of the cost of product for purchases from the Partnership’s customers since it is acting as the agent in the product sale. Keep-whole agreements, percent-of-product agreements, and certain fee-based contracts that have a fixed-recovery component result in Service revenues – product based being recognized when the natural gas and/or NGLs are received from the customer as non-cash consideration for the services provided. Non-cash consideration for these services is valued at the time the services are provided. Revenue is also recognized in Product sales, along with the cost of product expense related to the sale, when the product received as non-cash consideration is sold to either Occidental or a third party. The Partnership also purchases natural-gas volumes from producers at the wellhead or from a production facility, typically at an index price, and charges the producer fees associated with the downstream gathering and processing services. When the fees relate to services performed after control of the product has transferred to the Partnership, the fees are treated as a reduction of the purchase cost. If the fees relate to services performed before control of the product has transferred to the Partnership, the fees are treated as Service revenues – fee based. Product sales revenue is recognized, along with cost of product expense related to the sale, when the purchased product is sold to either Occidental or a third party. The Partnership receives aid-in-construction reimbursements for certain capital costs necessary to provide services to customers (i.e., connection costs, etc.) under certain service contracts. Aid-in-construction reimbursements are reflected as a contract liability when received and are amortized to Service revenues – fee based over the expected period of customer benefit, which is generally the life of the related properties. |
Defined-contribution plan policy | Defined-contribution plan. Employees of the Partnership are eligible to participate in the Western Midstream Savings Plan, a defined - contribution benefit plan maintained by the Partnership. All regular employees may participate in the plan by making elective contributions that are matched by the Partnership, subject to certain limitations. The Partnership also makes other contributions based on plan guidelines. The Partnership recognized expense related to the plan of $21.8 million, $23.7 million, and $12.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Income taxes policy | Partnership income taxes. Deferred federal and state income taxes included in the accompanying consolidated financial statements are attributable to temporary differences between the financial statement carrying amount and tax basis of the Partnership’s investment in WES Operating. The Partnership’s accounting policy is to “look through” its investment in WES Operating for purposes of calculating deferred income tax asset and liability balances attributable to the Partnership’s interests in WES Operating. The Partnership had no material uncertain tax positions at December 31, 2022 or 2021. 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, 2022 or 2021. |
Net income (loss) per common unit policy | Net income (loss) per common unit. The Partnership applies the two-class method in determining net income (loss) per unit applicable to master limited partnerships having multiple classes of securities, including common units and general partner units. The two-class method allocates earnings pursuant to a formula that treats participating securities as having rights to earnings that otherwise would have been available to common unitholders. Under the two-class method, net income (loss) per unit is calculated as if all of the earnings for the period were distributed pursuant to the terms of the relevant contractual arrangement. The accounting guidance provides the methodology for the allocation of undistributed earnings to the general partner and limited partners and the circumstances in which such an allocation should be made. For the Partnership, earnings per unit is calculated based on the assumption that the Partnership distributes cash to its unitholders equal to the net income of the Partnership, notwithstanding the general partner’s ultimate discretion over the amount of cash to be distributed for the period, the existence of other legal or contractual limitations that would prevent distributions of all of the net income for the period, or any other economic or practical limitation on the ability to make a full distribution of the net income for the period. See Note 5 . Net income (loss) per common unit for WES Operating is not calculated because no publicly traded units are outstanding. Partnership’s net income (loss) per common unit. The common and general partner unitholders’ allocation of net income (loss) attributable to the Partnership was equal to their cash distributions plus their respective allocations of undistributed earnings or losses in accordance with their weighted - average ownership percentage during each period using the two - class method. The Partnership’s basic net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) by the weighted - average number of common units outstanding during the period. Diluted net income (loss) per common unit includes the effect of outstanding units issued under the Partnership’s long-term incentive plans. 5. EQUITY AND PARTNERS’ CAPITAL The following table provides a reconciliation between basic and diluted net income (loss) per common unit: Year Ended December 31, thousands except per-unit amounts 2022 2021 2020 Net income (loss) Limited partners’ interest in net income (loss) $ 1,189,562 $ 896,477 $ 515,908 Weighted-average common units outstanding Basic 394,951 411,309 435,554 Dilutive effect of non-vested phantom units 1,285 713 70 Diluted 396,236 412,022 435,624 Excluded due to anti-dilutive effect 554 589 997 Net income (loss) per common unit Basic $ 3.01 $ 2.18 $ 1.18 Diluted $ 3.00 $ 2.18 $ 1.18 WES Operating’s net income (loss) per common unit. Net income (loss) per common unit for WES Operating is not calculated because it has no publicly traded units. |
Leases, lessee policy | Leases. The Partnership determines if an arrangement is a lease based on the rights and obligations conveyed at contract inception. Significant judgment is required when determining whether a customer obtains the right to direct the use of identified property or equipment. When the Partnership is a lessee at the lease-commencement date, a lease is classified as either operating or finance, and right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of future lease payments over the lease term. As the rate implicit in the Partnership’s leases is generally not readily determinable, the Partnership discounts lease liabilities using the Partnership’s incremental borrowing rate at the commencement date. Non-lease components associated with leases that begin in 2019 or later are accounted for as part of the lease component, and prepaid lease payments are included as ROU assets. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that the Partnership will exercise that option. Leases of 12 months or less are not recognized on the consolidated balance sheets. Lease cost is generally recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized over the lease term using the effective interest method. Variable lease payments are recognized when the obligation for those payments is incurred. |
Leases, lessor policy | When the Partnership is a lessor at the lease-commencement date, a lease is classified as operating, sales-type, or direct financing. The underlying assets associated with these agreements are evaluated for future use beyond the lease term. For operating leases, lease income is generally recognized on a straight-line basis over the lease term. Variable lease payments are recognized when the obligation for those payments is performed. The Partnership does not have sales-type or direct financing leases. For the Partnership’s gathering and processing assets, we elected the practical expedient to not separate lease and non-lease components. When the non-lease component is determined to be the predominant component, the combined components are accounted for under Revenue from Contracts with Customers (Topic 606) . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill policy | Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated historic carrying value of midstream goodwill attributed to the Partnership’s assets previously acquired from Anadarko. The Partnership had allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment at the reporting unit level annually, as of October 1, or more often as facts and circumstances warrant. An initial qualitative assessment is performed to determine the likelihood of whether goodwill is impaired. If management concludes, based on qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds its carrying value, then no goodwill impairment is recorded and further testing is not necessary. If an assessment of qualitative factors does not result in management’s determination that the fair value of the reporting unit more likely than not exceeds its carrying value, then a quantitative assessment must be performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value through a charge to Goodwill impairment. The Partnership recognized a goodwill impairment of $441.0 million during the first quarter of 2020, which reduced the carrying value of goodwill to zero for the gathering and processing reporting unit. See Note 10 . The Partnership evaluates goodwill for impairment at the reporting - unit level on an annual basis, 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 and if deemed necessary based on this assessment, a quantitative assessment is then performed. If the quantitative assessment indicates that the carrying value of the reporting unit, including goodwill, exceeds its fair value, a goodwill impairment is recorded for the amount by which the reporting unit’s carrying value exceeds its fair value. |
Equity-Based Compensation (Poli
Equity-Based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-based compensation policy | The equity-based compensation expense attributable to these awards is amortized over the vesting periods applicable to the awards using the straight-line method. Expense is recognized based on the grant-date fair value and recorded, net of actual forfeitures, as General and administrative expense in the consolidated statements of operations. The fair value of the Time-Based Awards and non-executive awards is based on the observable market price of the Partnership’s units on the grant date of the award. The fair value of the TUR Awards is determined using a Monte Carlo simulation at the grant date of the award. The fair value of the ROA Awards is based on the observable market price of the Partnership’s units on the grant date of the award and compensation expense is adjusted quarterly based on the estimated performance rating at vesting. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Assets and Investments Table | As of December 31, 2022, the Partnership’s assets and investments consisted of the following: Wholly Operated Non-Operated Equity Gathering systems (1) 17 2 3 1 Treating facilities 37 3 — — Natural - gas processing plants/trains 25 3 — 3 NGLs pipelines 2 — — 5 Natural - gas pipelines 6 — — 1 Crude - oil pipelines 3 1 — 3 _________________________________________________________________________________________ (1) Includes the DBM water systems. |
Ownership Interests and Method of Consolidation Table | The following table outlines the ownership interests and the accounting method of consolidation used in the consolidated financial statements for entities not wholly owned (see Note 3 and Note 7) : Percentage Interest Full consolidation Chipeta (1) 75.00 % Proportionate consolidation (2) Springfield system 50.10 % Marcellus Interest systems 33.75 % Equity investments (3) Mi Vida JV LLC (“Mi Vida”) 50.00 % Front Range Pipeline LLC (“FRP”) 33.33 % Red Bluff Express Pipeline, LLC (“Red Bluff Express”) 30.00 % Enterprise EF78 LLC (“Mont Belvieu JV”) 25.00 % Rendezvous Gas Services, LLC (“Rendezvous”) 22.00 % Texas Express Pipeline LLC (“TEP”) 20.00 % Texas Express Gathering LLC (“TEG”) 20.00 % Whitethorn Pipeline Company LLC (“Whitethorn LLC”) 20.00 % Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 20.00 % Panola Pipeline Company, LLC (“Panola”) 15.00 % White Cliffs Pipeline, LLC (“White Cliffs”) 10.00 % _________________________________________________________________________________________ (1) The 25% third - party interest in Chipeta Processing LLC (“Chipeta”) is reflected within noncontrolling interests in the consolidated financial statements. See Noncontrolling interests below. (2) The Partnership proportionately consolidates its associated share of the assets, liabilities, revenues, and expenses attributable to these assets. (3) Investments in non - controlled entities over which the Partnership exercises significant influence are accounted for under the equity method of accounting. “Equity - investment throughput” refers to the Partnership’s share of average throughput for these investments. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2020 Revenue from customers Service revenues – fee based $ 2,602,053 $ 2,283,584 $ 2,360,680 Service revenues – product based 249,692 122,584 48,369 Product sales 399,023 290,947 138,559 Total revenue from customers 3,250,768 2,697,115 2,547,608 Revenue from other than customers Lease revenue (1) — 179,251 223,643 Other 953 789 1,341 Total revenues and other $ 3,251,721 $ 2,877,155 $ 2,772,592 _________________________________________________________________________________________ (1) Includes fixed - and variable - lease revenue from an operating and maintenance agreement entered into with Occidental. See Operating leases within Note 6. |
Contract Balances Tables | The following table summarizes activity related to contract assets from contracts with customers: Year Ended December 31, thousands 2022 2021 Contract assets balance at beginning of year $ 22,557 $ 56,344 Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period (7,683) (10,380) Additional estimated revenues recognized 5,531 120 Cumulative catch-up adjustment for change in estimated consideration 2,156 (23,527) Contract assets balance at end of year $ 22,561 $ 22,557 December 31, thousands 2022 2021 Other current assets $ 3,381 $ 5,307 Other assets 19,180 17,250 Total contract assets from contracts with customers $ 22,561 $ 22,557 Year Ended December 31, thousands 2022 2021 Contract liabilities balance at beginning of year $ 313,146 $ 266,937 Cash received or receivable, excluding revenues recognized during the period 71,097 83,326 Revenues recognized that were included in the contract liability balance at the beginning of the period (16,158) (17,265) Cumulative catch-up adjustment for change in estimated consideration 1,200 (19,852) Contract liabilities balance at end of year $ 369,285 $ 313,146 December 31, thousands 2022 2021 Accrued liabilities $ 20,903 $ 27,763 Other liabilities 348,382 285,383 Total contract liabilities from contracts with customers $ 369,285 $ 313,146 |
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 2023 $ 1,086,712 2024 1,107,224 2025 1,024,386 2026 874,615 2027 784,781 Thereafter 1,825,720 Total $ 6,703,438 |
Partnership Distributions (Tabl
Partnership Distributions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Cash Distributions Tables | The Board of Directors of the general partner (the “Board”) declared the following cash distributions to the Partnership’s unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Distribution Record 2020 March 31 $ 0.31100 $ 140,893 May 14, 2020 May 1, 2020 June 30 0.31100 140,900 August 13, 2020 July 31, 2020 September 30 0.31100 132,255 November 13, 2020 October 30, 2020 December 31 0.31100 131,265 February 12, 2021 February 1, 2021 2021 March 31 $ 0.31500 $ 132,969 May 14, 2021 April 30, 2021 June 30 0.31900 134,662 August 13, 2021 July 30, 2021 September 30 0.32300 134,862 November 12, 2021 November 1, 2021 December 31 0.32700 134,749 February 14, 2022 January 31, 2022 2022 March 31 $ 0.50000 $ 206,197 May 13, 2022 May 2, 2022 June 30 0.50000 197,744 August 12, 2022 August 1, 2022 September 30 0.50000 197,065 November 14, 2022 October 31, 2022 December 31 0.50000 196,569 February 13, 2023 February 1, 2023 thousands Quarters Ended Total Quarterly Distribution 2020 March 31 $ 143,404 May 2020 June 30 143,404 August 2020 September 30 143,404 November 2020 December 31 127,470 February 2021 2021 March 31 $ 137,030 May 2021 June 30 140,217 August 2021 September 30 140,217 November 2021 December 31 140,217 February 2022 2022 March 31 $ 213,513 May 2022 June 30 213,513 August 2022 September 30 213,513 November 2022 December 31 213,513 February 2023 |
Equity and Partners' Capital (T
Equity and Partners' Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Partners' Capital Notes [Abstract] | |
Calculation of Net Income (Loss) Per Unit Table | The following table provides a reconciliation between basic and diluted net income (loss) per common unit: Year Ended December 31, thousands except per-unit amounts 2022 2021 2020 Net income (loss) Limited partners’ interest in net income (loss) $ 1,189,562 $ 896,477 $ 515,908 Weighted-average common units outstanding Basic 394,951 411,309 435,554 Dilutive effect of non-vested phantom units 1,285 713 70 Diluted 396,236 412,022 435,624 Excluded due to anti-dilutive effect 554 589 997 Net income (loss) per common unit Basic $ 3.01 $ 2.18 $ 1.18 Diluted $ 3.00 $ 2.18 $ 1.18 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |
Related-Party Transactions Tables | The following tables summarize material related - party transactions included in the Partnership’s consolidated financial statements: Consolidated statements of operations Year Ended December 31, thousands 2022 2021 2020 Revenues and other Service revenues – fee based $ 1,674,959 $ 1,589,367 $ 1,740,999 Service revenues – product based 56,907 11,888 8,509 Product sales 63,367 31,103 71,104 Total revenues and other 1,795,233 1,632,358 1,820,612 Equity income, net – related parties (1) 183,483 204,645 226,750 Operating expenses Cost of product (2) (25,447) 42,805 92,884 Operation and maintenance 5,081 27,805 49,533 General and administrative (3) 2,338 15,613 40,295 Total operating expenses (18,028) 86,223 182,712 Gain (loss) on divestiture and other, net (1,756) 420 (2,870) Interest income – Anadarko note receivable — — 11,736 _________________________________________________________________________________________ (1) See Note 7 . (2) Includes related-party natural - gas and NGLs imbalances. (3) Includes equity - based compensation expense allocated to the Partnership by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6 ). Balances for the years ended December 31, 2021 and 2020, also include amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6 ). 6. RELATED-PARTY TRANSACTIONS Consolidated balance sheets December 31, thousands 2022 2021 Assets Accounts receivable, net $ 313,937 $ 180,205 Other current assets 1,578 12,490 Equity investments (1) 944,696 1,167,187 Other assets 29,058 45,494 Total assets 1,289,269 1,405,376 Liabilities Accounts and imbalance payables 32,150 49,242 Accrued liabilities 11,756 13,914 Other liabilities 268,399 207,365 Total liabilities 312,305 270,521 _________________________________________________________________________________________ (1) See Note 7 . Consolidated statements of cash flows Year Ended December 31, thousands 2022 2021 2020 Distributions from equity - investment earnings – related parties $ 186,153 $ 213,516 $ 246,637 Capital expenditures (470) (2,000) — Contributions to equity investments – related parties (9,632) (4,435) (19,388) Distributions from equity investments in excess of cumulative earnings – related parties 63,897 41,385 32,160 Distributions to Partnership unitholders (1) (372,468) (272,192) (381,949) Distributions to WES Operating unitholders (2) (24,898) (14,984) (15,434) Net contributions from (distributions to) related parties 1,423 8,533 24,466 Proceeds from the sale of assets to related parties 200 — — Finance lease payments (3) — — (6,382) Unit repurchases from Occidental (4) (252,500) (50,225) — _________________________________________________________________________________________ (1) Represents common and general partner unit distributions paid to Occidental pursuant to the partnership agreement of the Partnership (see Note 4 and Note 5 ). (2) Represents distributions paid to Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5 ). (3) Included in Other cash flows from financing activities in the consolidated statements of cash flows. (4) Represents common units repurchased from Occidental (see Note 5 ). |
WES Operating [Member] | |
Related Party Transaction [Line Items] | |
Related-Party Transactions Tables | The following tables summarize material related - party transactions for WES Operating (which are included in the Partnership’s consolidated financial statements) to the extent the amounts differ materially from the Partnership’s consolidated financial statements: Consolidated statements of operations Year Ended December 31, thousands 2022 2021 2020 General and administrative (1) $ 5,373 $ 18,365 $ 41,609 _________________________________________________________________________________________ (1) Includes (i) an intercompany service fee between the Partnership and WES Operating and (ii) equity - based compensation expense allocated to WES Operating by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6 ). Balances for the years ended December 31, 2021 and 2020, also include amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6 ). Consolidated balance sheets December 31, thousands 2022 2021 Accounts receivable, net $ 313,937 $ 180,205 Other current assets 1,487 12,490 Other assets 28,459 45,494 Accounts and imbalance payables (1) 76,131 97,749 Accrued liabilities 11,439 13,597 _________________________________________________________________________________________ (1) Includes balances related to transactions between the Partnership and WES Operating. Consolidated statements of cash flows Year Ended December 31, thousands 2022 2021 2020 Distributions to WES Operating unitholders (1) $ (1,244,533) $ (749,018) $ (771,546) _________________________________________________________________________________________ (1) Represents distributions paid to the Partnership and Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement. Includes distributions made from WES Operating to the Partnership that were used by the Partnership to repurchase common units. See Note 4 and Note 5 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments Table | The following tables present the financial statement impact of the Partnership’s equity investments for the years ended December 31, 2021 and 2022: thousands Balance at December 31, 2020 Other-than-temporary impairment expense (1) Equity Contributions Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2021 White Cliffs $ 45,623 $ — $ 780 $ — $ (199) $ (5,451) $ 40,753 Rendezvous 28,198 — (2,155) — (1,103) (2,865) 22,075 Mont Belvieu JV 98,874 — 33,991 — (33,944) (2,193) 96,728 TEG 16,661 — 4,508 — (4,533) (520) 16,116 TEP 195,189 — 36,547 — (36,797) (6,014) 188,925 FRP 199,881 — 38,280 750 (38,275) (4,004) 196,632 Whitethorn LLC 156,729 — 4,969 349 (6,428) (5,929) 149,690 Cactus II 173,921 — 18,237 3,336 (18,404) (5,796) 171,294 Saddlehorn 111,717 — 30,878 — (31,403) (751) 110,441 Panola 20,867 — 2,188 — (2,188) (823) 20,044 Mi Vida 55,031 — 10,491 — (10,596) (3,163) 51,763 Ranch Westex 18,898 (11,805) 12,407 — (15,657) (2,864) 979 Red Bluff Express 103,224 — 13,524 — (13,989) (1,012) 101,747 Total $ 1,224,813 $ (11,805) $ 204,645 $ 4,435 $ (213,516) $ (41,385) $ 1,167,187 _________________________________________________________________________________________ (1) Recorded in Long-lived asset and other impairments in the consolidated statements of operations. (2) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. thousands Balance at December 31, 2021 Other-than-temporary impairment expense (1) Equity Contributions Distributions Distributions in excess of cumulative earnings (2) Acquisitions and Divestitures Balance at December 31, 2022 White Cliffs $ 40,753 $ (19,883) $ (1,086) $ — $ (32) $ (3,657) $ — $ 16,095 Rendezvous 22,075 — (2,582) — (677) (2,702) — 16,114 Mont Belvieu JV 96,728 — 29,475 — (29,599) (5,294) — 91,310 TEG 16,116 — 6,384 75 (6,407) (312) — 15,856 TEP 188,925 — 44,650 — (44,902) (3,986) — 184,687 FRP 196,632 — 45,841 455 (46,193) (4,019) — 192,716 Whitethorn LLC 149,690 — (3,417) 281 5,223 (5,182) — 146,595 Cactus II 171,294 — 11,696 — (11,835) (18,085) (153,070) — Saddlehorn 110,441 — 21,491 — (21,034) (6,707) — 104,191 Panola 20,044 — 2,343 — (2,212) (864) — 19,311 Mi Vida 51,763 — 11,316 — (11,113) (3,104) — 48,862 Ranch Westex 979 — 3,392 — (3,392) (8,376) 7,397 — Red Bluff Express 101,747 — 13,980 8,821 (13,980) (1,609) — 108,959 Total $ 1,167,187 $ (19,883) $ 183,483 $ 9,632 $ (186,153) $ (63,897) $ (145,673) $ 944,696 _________________________________________________________________________________________ (1) Recorded in Long-lived asset and other impairments in the consolidated statements of operations. (2) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual - investment basis. |
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 2022 2021 2020 Revenues $ 1,922,733 $ 1,808,791 $ 1,635,132 Operating income 661,779 946,299 1,045,889 Net income 661,916 945,801 1,045,076 December 31, thousands 2022 2021 Current assets $ 293,539 $ 398,696 Property, plant, and equipment, net 4,278,398 5,442,565 Other assets 52,163 182,323 Total assets $ 4,624,100 $ 6,023,584 Current liabilities $ 123,897 $ 157,099 Non-current liabilities 17,660 24,713 Equity 4,482,543 5,841,772 Total liabilities and equity $ 4,624,100 $ 6,023,584 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2020 Current state income tax expense (benefit) $ 2,188 $ (37) $ 2,702 Deferred state income tax expense (benefit) 1,999 (9,770) 3,296 Total income tax expense (benefit) $ 4,187 $ (9,807) $ 5,998 |
Tax Rate Reconciliation Table | Total income taxes differed from the amounts computed by applying the statutory income tax rate to income (loss) before income taxes. The sources of these differences are as follows: Year Ended December 31, thousands except percentages 2022 2021 2020 Income (loss) before income taxes $ 1,255,643 $ 934,192 $ 522,850 Statutory tax rate — % — % — % Tax computed at statutory rate $ — $ — $ — Adjustments resulting from: Texas margin tax expense (benefit) (1) 4,187 (9,807) 5,998 Income tax expense (benefit) $ 4,187 $ (9,807) $ 5,998 Effective tax rate — % (1) % 1 % _________________________________________________________________________________________ (1) Includes a tax benefit of $12.5 million for the year ended December 31, 2021, related to a reduced Texas margin tax rate resulting from Occidental’s settlement of state audit matters. |
Income Tax Temporary Differences Table | The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows: December 31, thousands 2022 2021 Depreciable property $ (14,114) $ (12,395) Other intangible assets (603) (486) Other 293 456 Net long-term deferred income tax liabilities $ (14,424) $ (12,425) |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Land N/A $ 10,982 $ 10,955 Gathering systems – pipelines 30 years 5,519,592 5,386,003 Gathering systems – compressors 15 years 2,266,410 2,172,953 Processing complexes and treating facilities 25 years 3,419,201 3,375,317 Transportation pipeline and equipment 4 to 48 years 174,241 169,356 Produced - water disposal systems 20 years 932,627 882,527 Assets under construction N/A 263,353 98,473 Other 3 to 40 years 779,187 750,494 Total property, plant, and equipment 13,365,593 12,846,078 Less accumulated depreciation 4,823,993 4,333,171 Net property, plant, and equipment $ 8,541,600 $ 8,512,907 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets Table | The following table presents the gross carrying value and accumulated amortization of other intangible assets: December 31, thousands 2022 2021 Gross carrying value $ 979,863 $ 979,863 Accumulated amortization (266,788) (235,121) Other intangible assets $ 713,075 $ 744,742 |
Selected Components of Workin_2
Selected Components of Working Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Selected Components Of Working Capital [Abstract] | |
Accounts Receivable, Net Table | A summary of accounts receivable, net is as follows: The Partnership WES Operating December 31, December 31, thousands 2022 2021 2022 2021 Trade receivables, net $ 548,859 $ 431,649 $ 548,859 $ 431,649 Other receivables, net 5,404 4,864 5,404 4,864 Total accounts receivable, net $ 554,263 $ 436,513 $ 554,263 $ 436,513 |
Other Current Assets Table | A summary of other current assets is as follows: The Partnership WES Operating December 31, December 31, thousands 2022 2021 2022 2021 NGLs inventory $ 3,797 $ 3,370 $ 3,797 $ 3,370 Imbalance receivables 32,658 25,309 32,658 25,309 Prepaid insurance 13,262 10,369 11,139 8,538 Contract assets 3,381 5,307 3,381 5,307 Other 6,408 1,897 6,316 1,897 Total other current assets $ 59,506 $ 46,252 $ 57,291 $ 44,421 |
Accrued Liabilities Table | A summary of accrued liabilities is as follows: The Partnership WES Operating December 31, December 31, thousands 2022 2021 2022 2021 Accrued interest expense $ 110,486 $ 131,177 $ 110,486 $ 131,177 Short - term asset retirement obligations 10,493 9,934 10,493 9,934 Short - term remediation and reclamation obligations 5,383 7,454 5,383 7,454 Income taxes payable 2,428 1,516 2,428 1,516 Contract liabilities 20,903 27,763 20,903 27,763 Accrued payroll and benefits 44,855 41,311 — 20 Other 60,092 44,094 47,596 32,829 Total accrued liabilities $ 254,640 $ 263,249 $ 197,289 $ 210,693 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Carrying amount of asset retirement obligations at beginning of year $ 308,209 $ 280,498 Liabilities incurred 10,513 23,923 Liabilities settled (10,115) (12,710) Accretion expense 14,474 12,664 Revisions in estimated liabilities (22,567) 3,834 Carrying amount of asset retirement obligations at end of year $ 300,514 $ 308,209 |
Debt and Interest Expense (Tabl
Debt and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instruments [Abstract] | |
Debt Outstanding and Debt Activity Tables | The following table presents the outstanding debt: December 31, 2022 December 31, 2021 thousands Principal Carrying Fair Value (1) Principal Carrying Fair Value (1) Short - term debt Floating - Rate Senior Notes due 2023 $ 213,138 $ 213,121 $ 214,823 $ — $ — $ — 4.000% Senior Notes due 2022 — — — 502,246 502,138 505,153 Finance lease liabilities 2,659 2,659 2,659 3,794 3,794 3,794 Total short - term debt $ 215,797 $ 215,780 $ 217,482 $ 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 730,706 727,953 692,491 732,106 728,096 764,815 3.950% Senior Notes due 2025 399,163 396,825 379,107 399,163 395,928 418,506 4.650% Senior Notes due 2026 474,242 472,161 452,201 474,242 471,629 516,473 4.500% Senior Notes due 2028 400,000 396,698 368,346 400,000 396,145 437,673 4.750% Senior Notes due 2028 400,000 397,340 368,141 400,000 396,938 444,550 4.050% Senior Notes due 2030 1,200,000 1,191,345 1,053,038 1,200,000 1,190,339 1,323,595 5.450% Senior Notes due 2044 600,000 593,878 503,742 600,000 593,733 717,804 5.300% Senior Notes due 2048 700,000 687,494 580,570 700,000 687,265 844,223 5.500% Senior Notes due 2048 350,000 342,783 291,194 350,000 342,659 418,907 5.250% Senior Notes due 2050 1,000,000 983,945 829,804 1,000,000 983,709 1,183,514 RCF 375,000 375,000 375,000 — — — Finance lease liabilities 4,160 4,160 4,160 1,533 1,533 1,533 Total long - term debt $ 6,633,271 $ 6,569,582 $ 5,897,794 $ 6,470,182 $ 6,400,616 $ 7,284,665 _________________________________________________________________________________________ (1) Fair value is measured using the market approach and Level - 2 fair value inputs. 13. DEBT AND INTEREST EXPENSE Debt activity. The following table presents the debt activity for the years ended December 31, 2022 and 2021: thousands Carrying Value Balance at December 31, 2020 $ 7,854,702 RCF borrowings 480,000 Repayments of RCF borrowings (480,000) Repayment of 5.375% Senior Notes due 2021 (431,081) Repayment of 4.000% Senior Notes due 2022 (78,671) Repayment of Floating-Rate Senior Notes due 2023 (26,840) Repayment of 3.100% Senior Notes due 2025 (267,894) Repayment of 3.950% Senior Notes due 2025 (100,837) Repayment of 4.650% Senior Notes due 2026 (25,758) Finance lease liabilities (26,582) Other 9,509 Balance at December 31, 2021 $ 6,906,548 RCF borrowings 1,390,000 Repayments of RCF borrowings (1,015,000) Repayment of 4.000% Senior Notes due 2022 (502,246) Repayment of 3.100% Senior Notes due 2025 (1,400) Finance lease liabilities 1,493 Other 5,967 Balance at December 31, 2022 $ 6,785,362 |
Interest Expense Table | The following table summarizes the amounts included in interest expense: Year Ended December 31, thousands 2022 2021 2020 Long - term and short - term debt $ (326,949) $ (366,570) $ (369,815) Finance lease liabilities (414) (861) (1,516) Commitment fees and amortization of debt-related costs (12,212) (12,705) (13,501) Capitalized interest 5,636 3,624 4,774 Interest expense $ (333,939) $ (376,512) $ (380,058) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Leases Table | The following table summarizes information related to the Partnership’s leases: December 31, 2022 2021 thousands except lease term and discount rate Operating Leases Finance Leases Operating Leases Finance Leases Assets Other assets $ 67,087 $ — $ 71,725 $ — Net property, plant, and equipment — 7,402 — 5,449 Total lease assets (1) $ 67,087 $ 7,402 $ 71,725 $ 5,449 Liabilities Accrued liabilities $ 10,342 $ — $ 10,558 $ — Short-term debt — 2,659 — 3,794 Other liabilities 33,318 — 35,442 — Long-term debt — 4,160 — 1,533 Total lease liabilities (1) $ 43,660 $ 6,819 $ 46,000 $ 5,327 Weighted-average remaining lease term (years) 8 6 8 2 Weighted-average discount rate (%) 4.5 8.2 4.1 3.4 ________________________________________________________________________________________ (1) For the years ended December 31, 2022 and 2021, includes additions to ROU assets of $8.3 million and $44.9 million, respectively, and additions to lease liabilities of $8.3 million and $14.9 million, respectively, related to operating leases. Includes additions to ROU assets and lease liabilities of $7.1 million and $0.9 million related to finance leases for the years ended December 31, 2022 and 2021, respectively. |
Summary of Lease Cost and Cash Flow Activity Tables | The following table summarizes the Partnership’s lease cost: Year Ended December 31, thousands 2022 2021 2020 Operating lease cost $ 14,767 $ 10,753 $ 7,702 Short-term lease cost 38,875 37,616 43,102 Variable lease cost 5,611 2,628 (46) Sublease income (414) (414) (414) Finance lease cost Amortization of ROU assets 5,377 7,151 8,346 Interest on lease liabilities 414 861 1,516 Total lease cost $ 64,630 $ 58,595 $ 60,206 14. LEASES The following table summarizes cash paid for amounts included in the measurement of lease liabilities: Year Ended December 31, 2022 2021 2020 thousands Operating Leases Finance Leases Operating Leases Finance Leases Operating Leases Finance Leases Operating cash flows $ 13,616 $ 229 $ 5,805 $ 861 $ 5,750 $ 1,516 Financing cash flows — 4,318 — 6,513 — 14,207 |
Lessee, Operating Leases Maturity Tables | The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2022: thousands Operating Leases Finance Leases 2023 $ 10,517 $ 2,720 2024 7,877 1,424 2025 5,769 3,810 2026 4,450 52 2027 4,332 — Thereafter 19,289 — Total lease payments 52,234 8,006 Less portion representing imputed interest 8,574 1,187 Total lease liabilities $ 43,660 $ 6,819 |
Lessee, Finance Leases Maturity Table | The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at December 31, 2022: thousands Operating Leases Finance Leases 2023 $ 10,517 $ 2,720 2024 7,877 1,424 2025 5,769 3,810 2026 4,450 52 2027 4,332 — Thereafter 19,289 — Total lease payments 52,234 8,006 Less portion representing imputed interest 8,574 1,187 Total lease liabilities $ 43,660 $ 6,819 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Award Activity Tables | The following table summarizes time-vested award activity under the WES LTIPs for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 16.97 1,775,672 $ 15.69 1,307,606 $ — — Granted 26.11 866,900 17.86 1,041,635 15.49 1,442,821 Vested 16.84 (793,367) 14.82 (497,648) 9.54 (53,551) Forfeited 21.12 (160,175) 16.83 (75,921) 16.27 (81,664) Non-vested units at end of year 21.33 1,689,030 16.97 1,775,672 15.69 1,307,606 The following table summarizes TUR Awards activity under the WES LTIPs for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 21.17 325,217 $ 17.79 108,481 $ — — Granted 37.80 94,173 22.77 237,720 17.79 124,067 Forfeited 28.54 (30,573) 21.78 (20,984) 17.79 (15,586) Non-vested units at end of year 24.62 388,817 21.17 325,217 17.79 108,481 The following table summarizes ROA Awards activity under the WES LTIPs for the years ended December 31, 2022, 2021, and 2020: 2022 2021 2020 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Non-vested units at beginning of year $ 16.01 325,217 $ 16.27 108,481 $ — — Granted 25.95 94,173 15.88 237,720 16.27 124,067 Forfeited 19.74 (30,573) 15.96 (20,984) 16.27 (15,586) Non-vested units at end of year 18.12 388,817 16.01 325,217 16.27 108,481 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Basis of Presentation - Assets and Investments Table (Details) | Dec. 31, 2022 unit |
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 | 6 |
Wholly Owned and Operated [Member] | Crude-Oil Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Operated Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 2 |
Operated Interests [Member] | Treating Facilities [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Operated Interests [Member] | Natural-Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Operated Interests [Member] | Crude-Oil Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 1 |
Non-Operated Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Equity Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 1 |
Equity Interests [Member] | Natural-Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Equity Interests [Member] | Natural-Gas Liquids Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 5 |
Equity Interests [Member] | Natural-Gas Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 1 |
Equity Interests [Member] | Crude-Oil Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Basis of Presentation - Ownership Interests and Method of Consolidation Table (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Chipeta [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Ownership interest by noncontrolling interest owner | 25% |
Full Consolidation [Member] | Chipeta [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Percentage ownership interest | 75% |
Proportionate Consolidation [Member] | Springfield System [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Percentage ownership interest | 50.10% |
Proportionate Consolidation [Member] | Marcellus Interest Systems [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Percentage ownership interest | 33.75% |
Equity Investments [Member] | Mi Vida [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 50% |
Equity Investments [Member] | Front Range Pipeline [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 33.33% |
Equity Investments [Member] | Red Bluff Express [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 30% |
Equity Investments [Member] | Mont Belvieu JV [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 25% |
Equity Investments [Member] | Rendezvous [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 22% |
Equity Investments [Member] | Texas Express Pipeline [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 20% |
Equity Investments [Member] | Texas Express Gathering [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 20% |
Equity Investments [Member] | Whitethorn LLC [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 20% |
Equity Investments [Member] | Saddlehorn [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 20% |
Equity Investments [Member] | Panola [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 15% |
Equity Investments [Member] | White Cliffs [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Equity-investment ownership percentage | 10% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Imbalance receivables | $ 32,658,000 | $ 25,309,000 | |
Imbalance payables | 32,500,000 | 16,600,000 | |
Goodwill impairment | 0 | 0 | $ 441,017,000 |
Goodwill | 4,783,000 | 4,783,000 | |
Defined-contribution plan expense | $ 21,800,000 | $ 23,700,000 | 12,500,000 |
Gathering and Processing Reporting Unit [Member] | |||
Goodwill | $ 0 | ||
WES Operating [Member] | |||
Ownership interest by noncontrolling interest owner | 2% | ||
Chipeta [Member] | |||
Ownership interest by noncontrolling interest owner | 25% | ||
WES [Member] | WES Operating [Member] | |||
Ownership interest | 98% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue From Contracts With Customers Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | $ 3,250,768 | $ 2,697,115 | $ 2,547,608 | |
Revenue from other than customers, other | 953 | 789 | 1,341 | |
Total revenues and other | [1] | 3,251,721 | 2,877,155 | 2,772,592 |
Service Revenues - Fee Based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 2,602,053 | 2,283,584 | 2,360,680 | |
Total revenues and other | 2,602,053 | 2,462,835 | 2,584,323 | |
Service Revenues - Product Based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 249,692 | 122,584 | 48,369 | |
Total revenues and other | 249,692 | 122,584 | 48,369 | |
Product Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 399,023 | 290,947 | 138,559 | |
Total revenues and other | 399,023 | 290,947 | 138,559 | |
Lease Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other than customers | $ 0 | $ 179,251 | $ 223,643 | |
[1] Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Contracts with Customer, Asset [Roll Forward] | ||
Contract assets balance at beginning of year | $ 22,557 | $ 56,344 |
Amounts transferred to Accounts receivable, net that were included in the contract assets balance at the beginning of the period | (7,683) | (10,380) |
Additional estimated revenues recognized | 5,531 | 120 |
Contract with Customer, Asset, Cumulative Catch-up Adjustment to Revenue, Change in Estimate of Transaction Price | 2,156 | (23,527) |
Contract assets balance at end of period | 22,561 | 22,557 |
Contract Assets [Abstract] | ||
Other current assets | 3,381 | 5,307 |
Other assets | 19,180 | 17,250 |
Total contract assets from contracts with customers | $ 22,561 | $ 22,557 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Liabilities Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Contracts with Customer, Liability [Roll Forward] | ||
Contract liabilities balance at begining of year | $ 313,146 | $ 266,937 |
Cash received or receivable, excluding revenues recognized during the period | 71,097 | 83,326 |
Revenues recognized that were included in the contract liability balance at the beginning of the period | (16,158) | (17,265) |
Cumulative catch-up adjustment for change in estimated consideration | 1,200 | (19,852) |
Contract liabilities balance at end of period | 369,285 | 313,146 |
Contract Liabilities [Abstract] | ||
Accrued liabilities | 20,903 | 27,763 |
Other liabilities | 348,382 | 285,383 |
Total contract liabilities from contracts with customers | $ 369,285 | $ 313,146 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Expected Revenues Table (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 6,703,438 |
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 | $ 1,086,712 |
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 | $ 1,107,224 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 1,024,386 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 874,615 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 784,781 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 1,825,720 |
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, 2022 | Dec. 31, 2021 |
Revenue from Contracts with Customer [Line Items] | ||
Accounts receivable, net | $ 554,263 | $ 436,513 |
Customers [Member] | ||
Revenue from Contracts with Customer [Line Items] | ||
Accounts receivable, net | $ 545,000 | $ 424,600 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||||||||
Distributions | $ 186,153 | $ 213,516 | $ 246,637 | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain loss on disposition of assets and other net | Gain loss on disposition of assets and other net | Gain loss on disposition of assets and other net | |||||
Ranch Westex [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Ownership interest purchased | 50% | |||||||
Acquisitions from third parties | $ 40,100 | |||||||
Fort Union and Bison Treating Facility [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Proceeds from sale of assets | $ 27,000 | |||||||
Bison [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Proceeds from sale of assets | $ 1,000 | $ 7,000 | $ 8,000 | |||||
Net gain on sale of assets | 5,400 | |||||||
Cactus II [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Equity-investment ownership percentage | 15% | 15% | ||||||
Proceeds from Sale of Equity Method Investments | $ 264,800 | |||||||
Distributions | $ 1,800 | 11,835 | $ 18,404 | |||||
Net gain on sale of assets | $ 109,900 | |||||||
Fort Union [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Equity-investment ownership percentage | 14.81% | 14.81% | ||||||
Net gain on sale of assets | $ 21,000 |
Partnership Distributions - Cas
Partnership Distributions - Cash Distributions Tables (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Total quarterly per-unit distribution | $ 0.50000 | $ 0.50000 | $ 0.50000 | $ 0.50000 | $ 0.32700 | $ 0.32300 | $ 0.31900 | $ 0.31500 | $ 0.31100 | $ 0.31100 | $ 0.31100 | $ 0.31100 |
Total quarterly cash distribution | $ 196,569 | $ 197,065 | $ 197,744 | $ 206,197 | $ 134,749 | $ 134,862 | $ 134,662 | $ 132,969 | $ 131,265 | $ 132,255 | $ 140,900 | $ 140,893 |
WES Operating [Member] | ||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Total quarterly cash distribution | $ 213,513 | $ 213,513 | $ 213,513 | $ 213,513 | $ 140,217 | $ 140,217 | $ 140,217 | $ 137,030 | $ 127,470 | $ 143,404 | $ 143,404 | $ 143,404 |
Partnership Distributions - Add
Partnership Distributions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
WES [Member] | ||
Distribution Made to Limited Partner [Line Items] | ||
Partnership agreement day requirement of distribution of available cash | 55 days | |
WES Operating [Member] | ||
Distribution Made to Limited Partner [Line Items] | ||
Additional quarterly cash distribution | $ 463.8 | $ 204.1 |
Equity and Partners' Capital -
Equity and Partners' Capital - Calculation of Net Income (Loss) Per Unit Table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Equity [Abstract] | ||||
Limited partners' interest in net income (loss) | [1] | $ 1,189,562 | $ 896,477 | $ 515,908 |
Weighted-average common units outstanding | ||||
Basic | [1] | 394,951 | 411,309 | 435,554 |
Dilutive effect of non-vested phantom units | 1,285 | 713 | 70 | |
Diluted | [1] | 396,236 | 412,022 | 435,624 |
Excluded due to anti-dilutive effect | 554 | 589 | 997 | |
Net income (loss) per common unit | ||||
Basic | [1] | $ 3.01 | $ 2.18 | $ 1.18 |
Diluted | [1] | $ 3 | $ 2.18 | $ 1.18 |
[1] See Note 5. |
Equity and Partners' Capital _2
Equity and Partners' Capital - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Sep. 11, 2020 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 02, 2022 | Feb. 23, 2022 | Nov. 30, 2020 | May 31, 2008 | |
Schedule of Investments [Line Items] | |||||||||
Common units outstanding | 384,070,984 | 402,993,919 | |||||||
General partner units outstanding | 9,060,641 | 9,060,641 | |||||||
Unit repurchases, authorized amount | $ 1,250,000,000 | $ 1,000,000,000 | $ 250,000,000 | ||||||
Unit repurchases, amount | $ 487,590,000 | $ 217,465,000 | $ 32,535,000 | ||||||
Unit repurchases, remaining authorized amount | 762,400,000 | ||||||||
Related Parties [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Anadarko note receivable | $ 260,000,000 | ||||||||
Unit repurchases, amount | $ 252,500,000 | $ 50,225,000 | $ 0 | ||||||
Anadarko [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Anadarko note receivable - percentage interest transferred | 98% | ||||||||
Anadarko note receivable | $ 260,000,000 | ||||||||
Public [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Unit repurchases, number of units | 19,532,305 | 8,707,869 | 2,368,711 | ||||||
Unit repurchases, amount | $ 487,600,000 | $ 167,200,000 | $ 32,500,000 | ||||||
Occidental [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Unit repurchases, number of units | 10,000,000 | ||||||||
WES [Member] | Public [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Common units outstanding | 193,789,406 | ||||||||
Limited partner's interest | 49.30% | ||||||||
WES [Member] | WES [Member] | Limited Partner [Member] | Related Parties [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Units redeemed from a related party | 27,855,398 | ||||||||
WES [Member] | WES Operating [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Limited partner's interest | 98% | ||||||||
Occidental [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Unit repurchases, number of units | 2,500,000 | ||||||||
Unit repurchases, amount | $ 50,200,000 | ||||||||
Occidental [Member] | Limited Partner [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Units sold by a related party | 11,500,000 | ||||||||
Units sold by a related party, over-allotment | 1,500,000 | ||||||||
Occidental [Member] | WES [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Common units outstanding | 190,281,578 | ||||||||
Limited partner's interest | 48.40% | ||||||||
General partner units outstanding | 9,060,641 | ||||||||
General partner's interest | 2.30% | ||||||||
Occidental [Member] | WES Operating [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Limited partner's interest | 2% |
Related-Party Transactions - Su
Related-Party Transactions - Summary of WES Related-Party Transactions Tables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | [1] | $ 3,251,721 | $ 2,877,155 | $ 2,772,592 |
Equity income, net – related parties | 183,483 | 204,645 | 226,750 | |
Cost of product | 420,900 | 322,285 | 188,088 | |
Operation and maintenance | 654,566 | 581,300 | 580,874 | |
General and administrative | 194,017 | 195,549 | 155,769 | |
Total operating expenses | [2] | 1,950,992 | 1,745,573 | 2,129,063 |
(Gain) loss on divestiture and other, net | (103,676) | (44) | (8,634) | |
Interest income – Anadarko note receivable | 0 | 0 | 11,736 | |
Consolidated balance sheets [Abstract] | ||||
Accounts receivable, net | 554,263 | 436,513 | ||
Other current assets | 59,506 | 46,252 | ||
Equity investments | 944,696 | 1,167,187 | 1,224,813 | |
Other assets | [3] | 167,049 | 158,696 | |
Total assets | [4] | 11,271,628 | 11,273,079 | |
Accounts and imbalance payables | 360,562 | 326,061 | ||
Accrued liabilities | 254,640 | 263,249 | ||
Other liabilities | 385,629 | 325,806 | ||
Total liabilities | [5] | 8,163,513 | 8,177,319 | |
Consolidated statements of cash flows [Abstract] | ||||
Distributions from equity-investment earnings – related parties | 186,153 | 213,516 | 246,637 | |
Capital expenditures | [6] | (487,228) | (313,674) | (423,602) |
Contributions to equity investments – related parties | (9,632) | (4,435) | (19,388) | |
Distributions from equity investments in excess of cumulative earnings – related parties | 63,897 | 41,385 | 32,160 | |
Distributions to Partnership unitholders | (735,755) | (533,758) | (695,834) | |
Net contributions from (distributions to) related parties | 1,423 | 8,533 | 24,466 | |
Finance lease payments | (4,318) | (6,513) | (14,207) | |
Unit repurchases from Occidental | (487,590) | (217,465) | (32,535) | |
Service Revenues - Fee Based [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 2,602,053 | 2,462,835 | 2,584,323 | |
Service Revenues - Product Based [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 249,692 | 122,584 | 48,369 | |
Product Sales [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 399,023 | 290,947 | 138,559 | |
Related Parties [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 1,795,233 | 1,632,358 | 1,820,612 | |
Cost of product | (25,447) | 42,805 | 92,884 | |
Operation and maintenance | 5,081 | 27,805 | 49,533 | |
General and administrative | 2,338 | 15,613 | 40,295 | |
Total operating expenses | (18,028) | 86,223 | 182,712 | |
(Gain) loss on divestiture and other, net | 1,756 | (420) | 2,870 | |
Consolidated balance sheets [Abstract] | ||||
Accounts receivable, net | 313,937 | 180,205 | ||
Other current assets | 1,578 | 12,490 | ||
Other assets | 29,058 | 45,494 | ||
Total assets | 1,289,269 | 1,405,376 | ||
Accounts and imbalance payables | 32,150 | 49,242 | ||
Accrued liabilities | 11,756 | 13,914 | ||
Other liabilities | 268,399 | 207,365 | ||
Total liabilities | 312,305 | 270,521 | ||
Consolidated statements of cash flows [Abstract] | ||||
Capital expenditures | (470) | (2,000) | 0 | |
Distributions to Partnership unitholders | (372,468) | (272,192) | (381,949) | |
Proceeds from the sale of assets to related parties | 200 | 0 | 0 | |
Finance lease payments | 0 | 0 | (6,382) | |
Unit repurchases from Occidental | (252,500) | (50,225) | 0 | |
Related Parties [Member] | WES Operating [Member] | ||||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to Partnership unitholders | (24,898) | (14,984) | (15,434) | |
Related Parties [Member] | Service Revenues - Fee Based [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 1,674,959 | 1,589,367 | 1,740,999 | |
Related Parties [Member] | Service Revenues - Product Based [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | 56,907 | 11,888 | 8,509 | |
Related Parties [Member] | Product Sales [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
Revenues and other | $ 63,367 | $ 31,103 | $ 71,104 | |
[1] Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . Total operating expenses includes related - party amounts of $(18.0) million, $86.2 million, and $182.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . Other assets includes $6.5 million and $9.8 million of NGLs line - fill inventory as of December 31, 2022 and 2021, respectively. Other assets also includes $60.4 million and $56.2 million of materials and supplies inventory as of December 31, 2022 and 2021, respectively. Total assets includes related - party amounts of $1.3 billion and $1.4 billion as of December 31, 2022 and 2021, respectively, which includes related - party Accounts receivable, net of $313.9 million and $180.2 million as of December 31, 2022 and 2021, respectively. See Note 6 . Total liabilities includes related - party amounts of $312.3 million and $270.5 million as of December 31, 2022 and 2021, respectively. See Note 6 . Includes related-party amounts. See Note 6 . |
Related-Party Transactions - _2
Related-Party Transactions - Summary of WES Operating Related-Party Transactions Tables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Consolidated statements of operations [Abstract] | ||||
General and administrative | $ 194,017 | $ 195,549 | $ 155,769 | |
Consolidated balance sheets [Abstract] | ||||
Accounts receivable, net | 554,263 | 436,513 | ||
Other current assets | 59,506 | 46,252 | ||
Other assets | [1] | 167,049 | 158,696 | |
Accounts and imbalance payables | 360,562 | 326,061 | ||
Accrued liabilities | 254,640 | 263,249 | ||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to WES Operating unitholders | (735,755) | (533,758) | (695,834) | |
Related Parties [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
General and administrative | 2,338 | 15,613 | 40,295 | |
Consolidated balance sheets [Abstract] | ||||
Accounts receivable, net | 313,937 | 180,205 | ||
Other current assets | 1,578 | 12,490 | ||
Other assets | 29,058 | 45,494 | ||
Accounts and imbalance payables | 32,150 | 49,242 | ||
Accrued liabilities | 11,756 | 13,914 | ||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to WES Operating unitholders | (372,468) | (272,192) | (381,949) | |
WES Operating [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
General and administrative | 191,361 | 192,617 | 152,217 | |
Consolidated balance sheets [Abstract] | ||||
Accounts receivable, net | 554,263 | 436,513 | ||
Other current assets | 57,291 | 44,421 | ||
Other assets | [2] | 166,450 | 158,696 | |
Accounts and imbalance payables | 404,468 | 374,443 | ||
Accrued liabilities | 197,289 | 210,693 | ||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to WES Operating unitholders | [3] | (1,244,533) | (749,018) | (771,546) |
WES Operating [Member] | Related Parties [Member] | ||||
Consolidated statements of operations [Abstract] | ||||
General and administrative | 5,373 | 18,365 | 41,609 | |
Consolidated balance sheets [Abstract] | ||||
Accounts receivable, net | 313,937 | 180,205 | ||
Other current assets | 1,487 | 12,490 | ||
Other assets | 28,459 | 45,494 | ||
Accounts and imbalance payables | 76,131 | 97,749 | ||
Accrued liabilities | 11,439 | 13,597 | ||
Consolidated statements of cash flows [Abstract] | ||||
Distributions to WES Operating unitholders | $ (1,244,533) | $ (749,018) | $ (771,546) | |
[1] Other assets includes $6.5 million and $9.8 million of NGLs line - fill inventory as of December 31, 2022 and 2021, respectively. Other assets also includes $60.4 million and $56.2 million of materials and supplies inventory as of December 31, 2022 and 2021, respectively. Other assets includes $6.5 million and $9.8 million of NGLs line - fill inventory as of December 31, 2022 and 2021, respectively. Other assets also includes $60.4 million and $56.2 million of materials and supplies inventory as of December 31, 2022 and 2021, respectively. |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2008 | |
Related Party Transaction [Line Items] | |||||
Right-of-use asset recognized | $ 67,087,000 | $ 71,725,000 | |||
Unvested equity-based compensation expense | 27,800,000 | ||||
Related Parties [Member] | |||||
Related Party Transaction [Line Items] | |||||
Right-of-use asset recognized | $ 30,000,000 | ||||
Anadarko note receivable | $ 260,000,000 | ||||
Related Parties [Member] | Incentive Plans [Member] | |||||
Related Party Transaction [Line Items] | |||||
Allocated equity-based compensation expense | 2,300,000 | $ 10,100,000 | $ 14,600,000 | ||
Unvested equity-based compensation expense | $ 0 | ||||
Occidental [Member] | |||||
Related Party Transaction [Line Items] | |||||
Present value of reduced usage fees | $ 30,000,000 | ||||
Natural Gas [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related-party throughput percentage | 35% | 36% | 41% | ||
Crude Oil and NGLs Member] | |||||
Related Party Transaction [Line Items] | |||||
Related-party throughput percentage | 89% | 89% | 88% | ||
Produced water [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related-party throughput percentage | 80% | 87% | 87% |
Equity Investments - Equity Inv
Equity Investments - Equity Investments Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | $ 1,167,187 | $ 1,224,813 | ||
Other-than-temporary impairment expense | (19,883) | (11,805) | ||
Equity income, net | 183,483 | 204,645 | $ 226,750 | |
Contributions | 9,632 | 4,435 | 19,388 | |
Distributions | (186,153) | (213,516) | (246,637) | |
Distributions in excess of cumulative earnings | (63,897) | (41,385) | (32,160) | |
Acquisitions and divestitures | (145,673) | |||
Balance at end of period | $ 944,696 | 944,696 | 1,167,187 | 1,224,813 |
White Cliffs [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 40,753 | 45,623 | ||
Other-than-temporary impairment expense | (19,883) | 0 | ||
Equity income, net | (1,086) | 780 | ||
Contributions | 0 | 0 | ||
Distributions | (32) | (199) | ||
Distributions in excess of cumulative earnings | (3,657) | (5,451) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 16,095 | 16,095 | 40,753 | 45,623 |
Rendezvous [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 22,075 | 28,198 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | (2,582) | (2,155) | ||
Contributions | 0 | 0 | ||
Distributions | (677) | (1,103) | ||
Distributions in excess of cumulative earnings | (2,702) | (2,865) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 16,114 | 16,114 | 22,075 | 28,198 |
Mont Belvieu JV [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 96,728 | 98,874 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 29,475 | 33,991 | ||
Contributions | 0 | 0 | ||
Distributions | (29,599) | (33,944) | ||
Distributions in excess of cumulative earnings | (5,294) | (2,193) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 91,310 | 91,310 | 96,728 | 98,874 |
Texas Express Gathering [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 16,116 | 16,661 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 6,384 | 4,508 | ||
Contributions | 75 | 0 | ||
Distributions | (6,407) | (4,533) | ||
Distributions in excess of cumulative earnings | (312) | (520) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 15,856 | 15,856 | 16,116 | 16,661 |
Texas Express Pipeline [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 188,925 | 195,189 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 44,650 | 36,547 | ||
Contributions | 0 | 0 | ||
Distributions | (44,902) | (36,797) | ||
Distributions in excess of cumulative earnings | (3,986) | (6,014) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 184,687 | 184,687 | 188,925 | 195,189 |
Front Range Pipeline [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 196,632 | 199,881 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 45,841 | 38,280 | ||
Contributions | 455 | 750 | ||
Distributions | (46,193) | (38,275) | ||
Distributions in excess of cumulative earnings | (4,019) | (4,004) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 192,716 | 192,716 | 196,632 | 199,881 |
Whitethorn LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 149,690 | 156,729 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | (3,417) | 4,969 | ||
Contributions | 281 | 349 | ||
Distributions | 5,223 | (6,428) | ||
Distributions in excess of cumulative earnings | (5,182) | (5,929) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 146,595 | 146,595 | 149,690 | 156,729 |
Cactus II [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 171,294 | 173,921 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 11,696 | 18,237 | ||
Contributions | 0 | 3,336 | ||
Distributions | (1,800) | (11,835) | (18,404) | |
Distributions in excess of cumulative earnings | (18,085) | (5,796) | ||
Acquisitions and divestitures | (153,070) | |||
Balance at end of period | 0 | 0 | 171,294 | 173,921 |
Saddlehorn [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 110,441 | 111,717 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 21,491 | 30,878 | ||
Contributions | 0 | 0 | ||
Distributions | (21,034) | (31,403) | ||
Distributions in excess of cumulative earnings | (6,707) | (751) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 104,191 | 104,191 | 110,441 | 111,717 |
Panola [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 20,044 | 20,867 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 2,343 | 2,188 | ||
Contributions | 0 | 0 | ||
Distributions | (2,212) | (2,188) | ||
Distributions in excess of cumulative earnings | (864) | (823) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 19,311 | 19,311 | 20,044 | 20,867 |
Mi Vida [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 51,763 | 55,031 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 11,316 | 10,491 | ||
Contributions | 0 | 0 | ||
Distributions | (11,113) | (10,596) | ||
Distributions in excess of cumulative earnings | (3,104) | (3,163) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | 48,862 | 48,862 | 51,763 | 55,031 |
Ranch Westex [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 979 | 18,898 | ||
Other-than-temporary impairment expense | 0 | (11,805) | (29,400) | |
Equity income, net | 3,392 | 12,407 | ||
Contributions | 0 | 0 | ||
Distributions | (3,392) | (15,657) | ||
Distributions in excess of cumulative earnings | (8,376) | (2,864) | ||
Acquisitions and divestitures | 7,397 | |||
Balance at end of period | 0 | 0 | 979 | 18,898 |
Red Bluff Express [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance at beginning of year | 101,747 | 103,224 | ||
Other-than-temporary impairment expense | 0 | 0 | ||
Equity income, net | 13,980 | 13,524 | ||
Contributions | 8,821 | 0 | ||
Distributions | (13,980) | (13,989) | ||
Distributions in excess of cumulative earnings | (1,609) | (1,012) | ||
Acquisitions and divestitures | 0 | |||
Balance at end of period | $ 108,959 | $ 108,959 | $ 101,747 | $ 103,224 |
Equity Investments - Summarized
Equity Investments - Summarized Combined Financial Data For Equity Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues and other | [1] | $ 3,251,721 | $ 2,877,155 | $ 2,772,592 | |
Operating income | 1,587,888 | 1,336,271 | 878,913 | ||
Net Income | 1,251,456 | 943,999 | 516,852 | ||
Current assets | 900,425 | 684,764 | |||
Property, plant, and equipment, net | 8,541,600 | 8,512,907 | |||
Other assets | [2] | 167,049 | 158,696 | ||
Total assets | [3] | 11,271,628 | 11,273,079 | ||
Current liabilities | 903,857 | 1,140,197 | |||
Non-current liabilities | 7,259,656 | 7,037,122 | |||
Equity | 3,108,115 | 3,095,760 | 2,895,212 | $ 3,345,293 | |
Total liabilities and equity | 11,271,628 | 11,273,079 | |||
Summarized equity investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues and other | 1,922,733 | 1,808,791 | 1,635,132 | ||
Operating income | 661,779 | 946,299 | 1,045,889 | ||
Net Income | 661,916 | 945,801 | $ 1,045,076 | ||
Current assets | 293,539 | 398,696 | |||
Property, plant, and equipment, net | 4,278,398 | 5,442,565 | |||
Other assets | 52,163 | 182,323 | |||
Total assets | 4,624,100 | 6,023,584 | |||
Current liabilities | 123,897 | 157,099 | |||
Non-current liabilities | 17,660 | 24,713 | |||
Equity | 4,482,543 | 5,841,772 | |||
Total liabilities and equity | $ 4,624,100 | $ 6,023,584 | |||
[1] Total revenues and other includes related - party amounts of $1.8 billion, $1.6 billion, and $1.8 billion for the years ended December 31, 2022, 2021, and 2020, respectively. See Note 6 . Other assets includes $6.5 million and $9.8 million of NGLs line - fill inventory as of December 31, 2022 and 2021, respectively. Other assets also includes $60.4 million and $56.2 million of materials and supplies inventory as of December 31, 2022 and 2021, respectively. Total assets includes related - party amounts of $1.3 billion and $1.4 billion as of December 31, 2022 and 2021, respectively, which includes related - party Accounts receivable, net of $313.9 million and $180.2 million as of December 31, 2022 and 2021, respectively. See Note 6 . |
Equity Investments - Additional
Equity Investments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity-investment balance | $ 944,696 | $ 1,167,187 | $ 1,224,813 | |
Equity investment impairment loss | 19,883 | 11,805 | ||
Ranch Westex [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest purchased | 50% | |||
White Cliffs [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment difference between carrying and underlying value | (23,900) | |||
Equity-investment balance | 16,095 | 40,753 | 45,623 | |
Equity investment impairment loss | $ 19,883 | 0 | ||
White Cliffs [Member] | Equity Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-investment ownership percentage | 10% | |||
Rendezvous [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment difference between carrying and underlying value | $ 23,900 | |||
Equity-investment balance | 16,114 | 22,075 | 28,198 | |
Equity investment impairment loss | $ 0 | 0 | ||
Rendezvous [Member] | Equity Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-investment ownership percentage | 22% | |||
Whitethorn LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment difference between carrying and underlying value | $ (33,900) | |||
Equity-investment balance | 146,595 | 149,690 | 156,729 | |
Equity investment impairment loss | $ 0 | 0 | ||
Whitethorn LLC [Member] | Equity Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-investment ownership percentage | 20% | |||
Saddlehorn [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment difference between carrying and underlying value | $ (17,700) | |||
Equity-investment balance | 104,191 | 110,441 | 111,717 | |
Equity investment impairment loss | $ 0 | 0 | ||
Saddlehorn [Member] | Equity Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-investment ownership percentage | 20% | |||
Ranch Westex [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-investment balance | $ 0 | 979 | 18,898 | |
Equity investment impairment loss | 0 | 11,805 | 29,400 | |
Cactus II [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity-investment balance | 0 | 171,294 | $ 173,921 | |
Equity investment impairment loss | $ 0 | $ 0 | ||
Equity-investment ownership percentage | 15% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current state income tax expense (benefit) | $ 2,188 | $ (37) | $ 2,702 |
Deferred state income tax expense (benefit) | 1,999 | (9,770) | 3,296 |
Total income tax expense (benefit) | $ 4,187 | $ (9,807) | $ 5,998 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 1,255,643 | $ 934,192 | $ 522,850 |
Statutory tax rate | 0% | 0% | 0% |
Tax computed at statutory rate | $ 0 | $ 0 | $ 0 |
Adjustments resulting from: | |||
Texas margin tax expense (benefit) | 4,187 | (9,807) | 5,998 |
Total income tax expense (benefit) | $ 4,187 | $ (9,807) | $ 5,998 |
Effective tax rate | 0% | (1.00%) | 1% |
Tax benefit related to reduced Texas margin tax rate | $ 12,500 |
Income Taxes - Income Tax Tempo
Income Taxes - Income Tax Temporary Differences Table (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Depreciable property | $ (14,114) | $ (12,395) |
Other intangible assets | (603) | (486) |
Other | 293 | 456 |
Net long-term deferred income tax liabilities | $ (14,424) | $ (12,425) |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Historical Cost Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 13,365,593 | $ 12,846,078 |
Less accumulated depreciation | 4,823,993 | 4,333,171 |
Net property, plant, and equipment | 8,541,600 | 8,512,907 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 10,982 | 10,955 |
Gathering Systems – Pipelines [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 5,519,592 | 5,386,003 |
Estimated useful life | 30 years | |
Gathering Systems – Compressors [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 2,266,410 | 2,172,953 |
Estimated useful life | 15 years | |
Processing Complexes And Treating Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 3,419,201 | 3,375,317 |
Estimated useful life | 25 years | |
Transportation Pipeline And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 174,241 | 169,356 |
Transportation Pipeline And Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 4 years | |
Transportation Pipeline And Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 48 years | |
Produced-Water Disposal Systems [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 932,627 | 882,527 |
Estimated useful life | 20 years | |
Assets Under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 263,353 | 98,473 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 779,187 | $ 750,494 |
Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset and other impairments | [1] | $ 20,585 | $ 30,543 | $ 203,889 |
DJ Basin Complex [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset and other impairments | $ 14,200 | |||
Wyoming and Utah Assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset and other impairments | 150,200 | |||
Wyoming and Utah Assets [Member] | Level-3 Inputs [Member] | Fair Value, Nonrecurring [Member] | Valuation, Income Approach [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated fair value | 112,200 | |||
DJ Basin Complex and DBM Oil System [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Long-lived asset and other impairments | $ 24,300 | |||
[1] See Note 7 and Note 9 . |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Other Intangible Assets Table (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 979,863 | $ 979,863 |
Accumulated amortization | (266,788) | (235,121) |
Other intangible assets | $ 713,075 | $ 744,742 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Number of reporting units | 2 | ||
Goodwill impairment | $ 0 | $ 0 | $ 441,017,000 |
Goodwill | 4,783,000 | 4,783,000 | |
Amortization of intangible assets | 31,700,000 | $ 31,700,000 | 33,000,000 |
Estimated amortization expense 2023 | 31,700,000 | ||
Estimated amortization expense 2024 | 31,700,000 | ||
Estimated amortization expense 2025 | 31,700,000 | ||
Estimated amortization expense 2026 | 31,700,000 | ||
Estimated amortization expense 2027 | $ 31,700,000 | ||
DJ Basin Complex Processing Plants [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 38 years | ||
Delaware Basin Midstream LLC [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 30 years | ||
Gathering and Processing Reporting Unit [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 0 | ||
Transportation Reporting Unit [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 4,800,000 |
Selected Components of Workin_3
Selected Components of Working Capital - Accounts Receivable, Net Table (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Trade receivables, net | $ 548,859 | $ 431,649 |
Other receivables, net | 5,404 | 4,864 |
Total accounts receivable, net | 554,263 | 436,513 |
WES Operating [Member] | ||
Trade receivables, net | 548,859 | 431,649 |
Other receivables, net | 5,404 | 4,864 |
Total accounts receivable, net | $ 554,263 | $ 436,513 |
Selected Components of Workin_4
Selected Components of Working Capital - Other Current Assets Table (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
NGLs inventory | $ 3,797 | $ 3,370 |
Imbalance receivables | 32,658 | 25,309 |
Prepaid insurance | 13,262 | 10,369 |
Contract assets | 3,381 | 5,307 |
Other | 6,408 | 1,897 |
Total other current assets | 59,506 | 46,252 |
WES Operating [Member] | ||
NGLs inventory | 3,797 | 3,370 |
Imbalance receivables | 32,658 | 25,309 |
Prepaid insurance | 11,139 | 8,538 |
Contract assets | 3,381 | 5,307 |
Other | 6,316 | 1,897 |
Total other current assets | $ 57,291 | $ 44,421 |
Selected Components of Workin_5
Selected Components of Working Capital - Accrued Liabilities Table (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued interest expense | $ 110,486 | $ 131,177 |
Short-term asset retirement obligations | 10,493 | 9,934 |
Short-term remediation and reclamation obligations | 5,383 | 7,454 |
Income taxes payable | 2,428 | 1,516 |
Contract liabilities | 20,903 | 27,763 |
Accrued payroll and benefits | 44,855 | 41,311 |
Other | 60,092 | 44,094 |
Total accrued liabilities | 254,640 | 263,249 |
WES Operating [Member] | ||
Accrued interest expense | 110,486 | 131,177 |
Short-term asset retirement obligations | 10,493 | 9,934 |
Short-term remediation and reclamation obligations | 5,383 | 7,454 |
Income taxes payable | 2,428 | 1,516 |
Contract liabilities | 20,903 | 27,763 |
Accrued payroll and benefits | 0 | 20 |
Other | 47,596 | 32,829 |
Total accrued liabilities | $ 197,289 | $ 210,693 |
Asset Retirement Obligations -
Asset Retirement Obligations - Asset Retirement Obligations Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of asset retirement obligations at beginning of year | $ 308,209 | $ 280,498 |
Liabilities incurred | 10,513 | 23,923 |
Liabilities settled | (10,115) | (12,710) |
Accretion expense | 14,474 | 12,664 |
Revisions in estimated liabilities | (22,567) | 3,834 |
Carrying amount of asset retirement obligations at end of year | $ 300,514 | $ 308,209 |
Debt and Interest Expense - Deb
Debt and Interest Expense - Debt Outstanding Table (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Finance leases - short-term debt | $ 2,659 | $ 3,794 |
Total short-term debt, principal | 215,797 | 506,040 |
Total short-term debt, carrying value | 215,780 | 505,932 |
Finance leases - long-term debt | 4,160 | 1,533 |
Total long-term debt, carrying value | 6,569,582 | 6,400,616 |
Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt, fair value | 217,482 | 508,947 |
Long-Term Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt, principal | 6,633,271 | 6,470,182 |
Total long-term debt, carrying value | 6,569,582 | 6,400,616 |
Long-Term Debt Obligations [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 5,897,794 | 7,284,665 |
WES Operating [Member] | ||
Debt Instrument [Line Items] | ||
Total short-term debt, carrying value | 215,780 | 505,932 |
Total long-term debt, carrying value | 6,569,582 | 6,400,616 |
WES Operating [Member] | Finance Lease Liability, Short Term [Member] | ||
Debt Instrument [Line Items] | ||
Finance leases - short-term debt | 2,659 | 3,794 |
WES Operating [Member] | Finance Lease Liability, Short Term [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Finance leases - short-term debt | 2,659 | 3,794 |
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 375,000 | 0 |
Long-term debt, carrying value | 375,000 | 0 |
WES Operating [Member] | RCF [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 375,000 | 0 |
WES Operating [Member] | Finance Lease Liability, Long Term [Member] | ||
Debt Instrument [Line Items] | ||
Finance leases - long-term debt | 4,160 | 1,533 |
WES Operating [Member] | Finance Lease Liability, Long Term [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Finance leases - long-term debt | 4,160 | 1,533 |
WES Operating [Member] | Senior Notes [Member] | Floating-Rate Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 213,138 | 213,138 |
Short-term debt, carrying value | 213,121 | |
Long-term debt, carrying value | 212,642 | |
WES Operating [Member] | Senior Notes [Member] | Floating-Rate Senior Notes due 2023 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt, fair value | $ 214,823 | |
Long-term debt, fair value | 213,072 | |
WES Operating [Member] | Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 4% | |
Principal | $ 0 | 502,246 |
Short-term debt, carrying value | 0 | 502,138 |
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] | ||
Short-term debt, fair value | $ 0 | 505,153 |
WES Operating [Member] | Senior Notes [Member] | 3.100% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 3.10% | |
Principal | $ 730,706 | 732,106 |
Long-term debt, carrying value | 727,953 | 728,096 |
WES Operating [Member] | Senior Notes [Member] | 3.100% Senior Notes due 2025 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 692,491 | 764,815 |
WES Operating [Member] | Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 3.95% | |
Principal | $ 399,163 | 399,163 |
Long-term debt, carrying value | 396,825 | 395,928 |
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 | $ 379,107 | 418,506 |
WES Operating [Member] | Senior Notes [Member] | 4.650% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 4.65% | |
Principal | $ 474,242 | 474,242 |
Long-term debt, carrying value | 472,161 | 471,629 |
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 | $ 452,201 | 516,473 |
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 | 400,000 |
Long-term debt, carrying value | 396,698 | 396,145 |
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 | $ 368,346 | 437,673 |
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 | 400,000 |
Long-term debt, carrying value | 397,340 | 396,938 |
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 | $ 368,141 | 444,550 |
WES Operating [Member] | Senior Notes [Member] | 4.050% Senior Notes due 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 4.05% | |
Principal | $ 1,200,000 | 1,200,000 |
Long-term debt, carrying value | 1,191,345 | 1,190,339 |
WES Operating [Member] | Senior Notes [Member] | 4.050% Senior Notes due 2030 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 1,053,038 | 1,323,595 |
WES Operating [Member] | Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 5.45% | |
Principal | $ 600,000 | 600,000 |
Long-term debt, carrying value | 593,878 | 593,733 |
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 | $ 503,742 | 717,804 |
WES Operating [Member] | Senior Notes [Member] | 5.300% Senior Notes due 2048 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 5.30% | |
Principal | $ 700,000 | 700,000 |
Long-term debt, carrying value | 687,494 | 687,265 |
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 | $ 580,570 | 844,223 |
WES Operating [Member] | Senior Notes [Member] | 5.500% Senior Notes due 2048 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 5.50% | |
Principal | $ 350,000 | 350,000 |
Long-term debt, carrying value | 342,783 | 342,659 |
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 | $ 291,194 | 418,907 |
WES Operating [Member] | Senior Notes [Member] | 5.250% Senior Notes due 2050 [Member] | ||
Debt Instrument [Line Items] | ||
Senior note, interest rate | 5.25% | |
Principal | $ 1,000,000 | 1,000,000 |
Long-term debt, carrying value | 983,945 | 983,709 |
WES Operating [Member] | Senior Notes [Member] | 5.250% Senior Notes due 2050 [Member] | Valuation, Market Approach [Member] | Level-2 Inputs [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | $ 829,804 | $ 1,183,514 |
Debt and Interest Expense - D_2
Debt and Interest Expense - Debt Activity Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Debt Outstanding [Roll Forward] | |||
Beginning balance | $ 6,906,548 | $ 7,854,702 | |
Ending balance | 6,785,362 | 6,906,548 | |
WES Operating [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Other | 5,967 | 9,509 | |
WES Operating [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (500,000) | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
RCF borrowings | 1,390,000 | 480,000 | |
Repayments of RCF borrowings | (1,015,000) | (480,000) | |
WES Operating [Member] | 5.375% Senior Notes due 2021 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (431,081) | ||
Senior note, interest rate | 5.375% | ||
WES Operating [Member] | 4.000% Senior Notes due 2022 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (502,246) | $ (78,671) | |
Senior note, interest rate | 4% | ||
WES Operating [Member] | Floating-Rate Senior Notes due 2023 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | (26,840) | ||
WES Operating [Member] | 3.100% Senior Notes due 2025 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | $ (1,400) | (267,894) | |
Senior note, interest rate | 3.10% | ||
WES Operating [Member] | 3.950% Senior Notes due 2025 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | (100,837) | ||
Senior note, interest rate | 3.95% | ||
WES Operating [Member] | 4.650% Senior Notes due 2026 [Member] | Senior Notes [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Repayments of senior notes | (25,758) | ||
Senior note, interest rate | 4.65% | ||
WES Operating [Member] | Finance Lease Liability [Member] | |||
Changes in Debt Outstanding [Roll Forward] | |||
Finance lease liabilities | $ 1,493 | $ (26,582) |
Debt and Interest Expense - Int
Debt and Interest Expense - Interest Expense Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instruments [Abstract] | |||
Long-term and short-term debt | $ (326,949) | $ (366,570) | $ (369,815) |
Finance lease liabilities | (414) | (861) | (1,516) |
Commitment fees and amortization of debt-related costs | (12,212) | (12,705) | (13,501) |
Capitalized interest | 5,636 | 3,624 | 4,774 |
Interest expense | $ (333,939) | $ (376,512) | $ (380,058) |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Gain (loss) on early extinguishment of debt | $ 91,000 | $ (24,944,000) | $ 11,234,000 | |
Cash paid to settle interest-rate swaps | 0 | 0 | 25,621,000 | |
WES Operating [Member] | ||||
Debt Instrument [Line Items] | ||||
Gain (loss) on early extinguishment of debt | 91,000 | (24,944,000) | 11,234,000 | |
Cash paid to settle interest-rate swaps | 0 | $ 0 | 25,621,000 | |
WES Operating [Member] | Interest-Rate Swaps [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash paid to settle interest-rate swaps | 25,600,000 | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, maximum borrowing capacity | 2,000,000,000 | |||
Facility, expandable maximum borrowing capacity | 2,500,000,000 | |||
Facility, outstanding borrowings | 375,000,000 | |||
Facility, outstanding letters of credit | 5,100,000 | |||
Facility, available borrowing capacity | $ 1,600,000,000 | |||
Facility, interest rate at period end | 5.92% | 1.60% | ||
Facility, fee rate | 0.25% | 0.25% | ||
Facility, repayment of borrowings | $ 1,015,000,000 | $ 480,000,000 | ||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Alternate Base Rate, Percentage Above Federal Funds Effective Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, applicable margin added | 0.50% | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Alternate Base Rate, Percentage Above Adjusted Term SOFR [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, applicable margin added | 1% | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, applicable margin added | 0.125% | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Percentage Margin Above Adjusted Term SOFR [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, applicable margin added | 1% | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, applicable margin added | 0% | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, applicable margin added | 0.30% | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Percentage Margin Above Adjusted Term SOFR [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, applicable margin added | 1.70% | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, applicable margin added | 0.70% | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Extending Lenders [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, borrowing capacity for extending and non-extending lender | $ 1,600,000,000 | |||
WES Operating [Member] | RCF [Member] | Revolving Credit Facility [Member] | Non-Extending Lenders [Member] | ||||
Debt Instrument [Line Items] | ||||
Facility, borrowing capacity for extending and non-extending lender | $ 400,000,000 | |||
WES Operating [Member] | Term Loan Facility [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Gain (loss) on early extinguishment of debt | (2,300,000) | |||
Facility, repayment of borrowings | $ 3,000,000,000 | |||
WES Operating [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of senior notes | $ 500,000,000 | |||
Gain (loss) on early extinguishment of debt | $ (24,900,000) | |||
WES Operating [Member] | Senior Notes [Member] | 3.100% Senior Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior note, interest rate | 3.10% | |||
Senior note, effective interest rate | 3.79% | 4.542% | ||
Repayments of senior notes | $ 1,400,000 | $ 267,894,000 | ||
WES Operating [Member] | Senior Notes [Member] | 4.050% Senior Notes due 2030 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior note, interest rate | 4.05% | |||
Senior note, effective interest rate | 4.671% | 5.424% | ||
WES Operating [Member] | Senior Notes [Member] | 5.250% Senior Notes due 2050 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior note, interest rate | 5.25% | |||
Senior note, effective interest rate | 5.869% | 6.629% | ||
WES Operating [Member] | Senior Notes [Member] | Floating-Rate Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior note, effective interest rate | 5.04% | 1.97% | ||
Repayments of senior notes | $ 26,840,000 | |||
WES Operating [Member] | Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior note, interest rate | 4% | |||
Repayments of senior notes | $ 502,246,000 | $ 78,671,000 | ||
WES Operating [Member] | Senior Notes [Member] | 5.375% Senior Notes due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior note, interest rate | 5.375% | |||
Repayments of senior notes | $ 431,081,000 |
Leases - Summary of Leases Tabl
Leases - Summary of Leases Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating leases - Other assets | $ 67,087 | $ 71,725 |
Finance leases - Net property, plant, and equipment | 7,402 | 5,449 |
Operating leases - Accrued liabilities | 10,342 | 10,558 |
Operating leases - Other liabilities | 33,318 | 35,442 |
Operating leases - Total lease liabilities | 43,660 | 46,000 |
Finance leases - Short-term debt | 2,659 | 3,794 |
Finance leases - Long-term debt | 4,160 | 1,533 |
Finance leases - Total lease liabilities | $ 6,819 | $ 5,327 |
Operating leases - weighted-average remaining lease term (years) | 8 years | 8 years |
Operating leases - weighted-average discount rate | 4.50% | 4.10% |
Finance leases - weighted-average remaining lease term (years) | 6 years | 2 years |
Finance leases - weighted-average discount rate | 8.20% | 3.40% |
Operating leases - additions to ROU assets | $ 8,300 | $ 44,900 |
Operating leases - additions to lease liabilities | 8,300 | 14,900 |
Finance leases - additions to ROU assets and lease liabilities | $ 7,100 | $ 900 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant, and equipment, net | Property, plant, and equipment, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current, Other liabilities | Accrued Liabilities, Current, Other liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total short-term debt, carrying value | Total short-term debt, carrying value |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Long-term debt, Total short-term debt, carrying value | Long-term debt, Total short-term debt, carrying value |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 14,767 | $ 10,753 | $ 7,702 |
Short-term lease cost | 38,875 | 37,616 | 43,102 |
Variable lease cost | 5,611 | 2,628 | (46) |
Sublease income | (414) | (414) | (414) |
Amortization of ROU assets | 5,377 | 7,151 | 8,346 |
Interest on lease liabilities | 414 | 861 | 1,516 |
Total lease cost | $ 64,630 | $ 58,595 | $ 60,206 |
Leases - Cash Flow Activity Rel
Leases - Cash Flow Activity Related to Leases Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Cash Flows | |||
Operating leases | $ 13,616 | $ 5,805 | $ 5,750 |
Finance leases | 229 | 861 | 1,516 |
Financing Cash Flows | |||
Finance lease payments | $ 4,318 | $ 6,513 | $ 14,207 |
Leases - Lessee, Reconciliation
Leases - Lessee, Reconciliation of Operating and Finance Lease Liabilities Table (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 10,517 | |
2024 | 7,877 | |
2025 | 5,769 | |
2026 | 4,450 | |
2027 | 4,332 | |
Thereafter | 19,289 | |
Total lease payments | 52,234 | |
Less portion representing imputed interest | 8,574 | |
Total lease liabilities | 43,660 | $ 46,000 |
Finance Leases | ||
2023 | 2,720 | |
2024 | 1,424 | |
2025 | 3,810 | |
2026 | 52 | |
2027 | 0 | |
Thereafter | 0 | |
Total lease payments | 8,006 | |
Less portion representing imputed interest | 1,187 | |
Total lease liabilities | $ 6,819 | $ 5,327 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease, fixed-lease revenue | $ 175.8 | $ 175.8 |
Operating lease, variable-lease revenue | $ 3.5 | $ 47.9 |
Equity-Based Compensation - Awa
Equity-Based Compensation - Award Activity Tables (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Time-vested Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value at beginning of year | $ 16.97 | $ 15.69 | $ 0 |
Weighted-average grant-date fair value - units granted during the period | 26.11 | 17.86 | 15.49 |
Weighted-average grant-date fair value - units vested during the period | 16.84 | 14.82 | 9.54 |
Weighted-average grant-date fair value - units forfeited during the period | 21.12 | 16.83 | 16.27 |
Weighted-average grant-date fair value at end of year | $ 21.33 | $ 16.97 | $ 15.69 |
Non-vested units at beginning of year | 1,775,672 | 1,307,606 | 0 |
Units granted | 866,900 | 1,041,635 | 1,442,821 |
Units vested | (793,367) | (497,648) | (53,551) |
Units forfeited | (160,175) | (75,921) | (81,664) |
Non-vested units at end of year | 1,689,030 | 1,775,672 | 1,307,606 |
TUR Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value at beginning of year | $ 21.17 | $ 17.79 | $ 0 |
Weighted-average grant-date fair value - units granted during the period | 37.80 | 22.77 | 17.79 |
Weighted-average grant-date fair value - units forfeited during the period | 28.54 | 21.78 | 17.79 |
Weighted-average grant-date fair value at end of year | $ 24.62 | $ 21.17 | $ 17.79 |
Non-vested units at beginning of year | 325,217 | 108,481 | 0 |
Units granted | 94,173 | 237,720 | 124,067 |
Units forfeited | (30,573) | (20,984) | (15,586) |
Non-vested units at end of year | 388,817 | 325,217 | 108,481 |
ROA Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value at beginning of year | $ 16.01 | $ 16.27 | $ 0 |
Weighted-average grant-date fair value - units granted during the period | 25.95 | 15.88 | 16.27 |
Weighted-average grant-date fair value - units forfeited during the period | 19.74 | 15.96 | 16.27 |
Weighted-average grant-date fair value at end of year | $ 18.12 | $ 16.01 | $ 16.27 |
Non-vested units at beginning of year | 325,217 | 108,481 | 0 |
Units granted | 94,173 | 237,720 | 124,067 |
Units forfeited | (30,573) | (20,984) | (15,586) |
Non-vested units at end of year | 388,817 | 325,217 | 108,481 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 22, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of units vested | $ 21.7 | $ 8.5 | $ 0.5 | |
Unvested equity-based compensation expense | $ 27.8 | |||
Weighted-average term of unvested awards | 9 months 18 days | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation - payout percentage | 0% | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation - payout percentage | 200% | |||
Western Gas Partners, LP 2017 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units authorized under LTIP | 3,431,251 | |||
Units available under LTIP | 1,928,415 | |||
Western Midstream Partners, LP 2021 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units authorized under LTIP | 9,500,000 | 9,500,000 | ||
Units available under LTIP | 9,500,000 | |||
Executive Long-Term Incentive Plans [Member] | Time-vested Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 3 years | |||
Executive Long-Term Incentive Plans [Member] | TUR Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 3 years | |||
Executive Long-Term Incentive Plans [Member] | ROA Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 3 years | |||
Long-Term Incentive Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
In-kind distributions issued, number of units | 13,754 | 21,681 | 48,070 | |
Equity-based compensation, expense | $ 25.5 | $ 17.6 | $ 7.9 | |
Non-Executive Long-Term Incentive Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 3 years | |||
Independent Director Long-Term Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Units vesting period | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for remediation and reclamation obligations | $ 7.4 | $ 10.1 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current, Other liabilities | Accrued Liabilities, Current, Other liabilities |