Debt and Interest Expense | 9. DEBT AND INTEREST EXPENSE WES Operating is the borrower for all outstanding debt and is expected to be the borrower for all future debt issuances. The following table presents the outstanding debt: March 31, 2023 December 31, 2022 thousands Principal Carrying Fair Value (1) Principal Carrying Fair Value (1) Short - term debt Floating - Rate Senior Notes due 2023 $ — $ — $ — $ 213,138 $ 213,121 $ 214,823 Finance lease liabilities 2,714 2,714 2,714 2,659 2,659 2,659 Total short - term debt $ 2,714 $ 2,714 $ 2,714 $ 215,797 $ 215,780 $ 217,482 Long - term debt 3.100% Senior Notes due 2025 $ 730,706 $ 728,273 $ 703,032 $ 730,706 $ 727,953 $ 692,491 3.950% Senior Notes due 2025 399,163 397,056 383,140 399,163 396,825 379,107 4.650% Senior Notes due 2026 474,242 472,299 459,488 474,242 472,161 452,201 4.500% Senior Notes due 2028 400,000 396,840 378,827 400,000 396,698 368,346 4.750% Senior Notes due 2028 400,000 397,443 381,273 400,000 397,340 368,141 4.050% Senior Notes due 2030 1,200,000 1,191,606 1,101,320 1,200,000 1,191,345 1,053,038 5.450% Senior Notes due 2044 600,000 593,915 524,661 600,000 593,878 503,742 5.300% Senior Notes due 2048 700,000 687,553 598,444 700,000 687,494 580,570 5.500% Senior Notes due 2048 350,000 342,815 302,297 350,000 342,783 291,194 5.250% Senior Notes due 2050 1,000,000 984,006 859,814 1,000,000 983,945 829,804 RCF 495,000 495,000 495,000 375,000 375,000 375,000 Finance lease liabilities 7,135 7,135 7,135 4,160 4,160 4,160 Total long - term debt $ 6,756,246 $ 6,693,941 $ 6,194,431 $ 6,633,271 $ 6,569,582 $ 5,897,794 _________________________________________________________________________________________ (1) Fair value is measured using the market approach and Level - 2 fair value inputs. Debt activity. The following table presents the debt activity for the three months ended March 31, 2023: thousands Carrying Value Balance at December 31, 2022 $ 6,785,362 RCF borrowings 220,000 Repayments of RCF borrowings (100,000) Repayment of Floating-Rate Senior Notes due 2023 (213,138) Finance lease liabilities 3,030 Other 1,401 Balance at March 31, 2023 $ 6,696,655 9. DEBT AND INTEREST EXPENSE 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, 5.250% Senior Notes due 2050, and the Floating - Rate Senior Notes due 2023. Including the effects of the issuance prices, underwriting discounts, and interest - rate adjustments, the effective interest rates of the Senior Notes due 2025, 2030, and 2050, were 3.790%, 4.671%, and 5.869%, respectively, at March 31, 2023 and 2022. The effective interest rate of these notes is subject to adjustment from time to time due to a change in credit rating. During the first quarter of 2023, WES Operating redeemed the total principal amount outstanding on the Floating-Rate Senior Notes due 2023 at par value with cash on hand. In April 2023, WES Operating completed the public offering of $750.0 million in aggregate principal amount of 6.150% Senior Notes due 2033. Interest will be payable semi-annually on April 1st and October 1st of each year, with the initial interest payment being due on October 1, 2023. Net proceeds from the offering were used to repay borrowings under the RCF and for general partnership purposes. During the second quarter of 2022, WES Operating (i) redeemed the total principal amount outstanding of the 4.000% Senior Notes due 2022 at par value and (ii) purchased and retired $1.4 million of the 3.100% Senior Notes due 2025 via open-market repurchases. As of March 31, 2023, WES Operating was in compliance with all covenants under the relevant governing indentures. Revolving credit facility. WES Operating’s $2.0 billion senior unsecured revolving credit facility (“RCF”), which is expandable to a maximum of $2.5 billion, matures in February 2026 for each extending lender. 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. As of March 31, 2023, there were $495.0 million of outstanding borrowings and $5.1 million of outstanding letters of credit, resulting in $1.5 billion of available borrowing capacity under the RCF. As of March 31, 2023 and 2022, the interest rate on any outstanding RCF borrowings was 6.21% and 1.95%, respectively. The facility - fee rate was 0.20% and 0.25% at March 31, 2023 and 2022, respectively. As of March 31, 2023, 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. In April 2023, WES Operating (i) repaid all outstanding borrowings under the RCF with proceeds from the senior note offering, and (ii) entered into an amendment to its RCF to, among other things, extend the maturity date to April 2028 and provide for a maximum borrowing capacity up to $2.0 billion through the maturity date. Interest expense. The following table summarizes the amounts included in interest expense: Three Months Ended thousands 2023 2022 Long - term and short - term debt $ (81,151) $ (83,428) Finance lease liabilities (163) (42) Commitment fees and amortization of debt-related costs (2,881) (3,032) Capitalized interest 2,525 1,047 Interest expense $ (81,670) $ (85,455) |