Forward-Looking Statements and Ownership Structure WES OWNERSHIP STRUCTURE This presentation contains forward-looking statements. Western Midstream Partners, LP Occidental Public Unitholders (WES) believes that its expectations are…
Recent Highlights
Recent Highlights Operational & Financial Accomplishments Total Record Delaware Basin Natural-Gas Natural-Gas Achieved record natural-gas throughput in the Throughput Throughput Delaware Basin for the 7th consecutive quarter…
WES's Capital Allocation Priorities Net Leverage Reduction1 Future Capital Allocation Priorities Continue Executing Expansion Opportunities Targeting organic capital projects that meet or exceed mid-teens, unlevered rates of…
Third-Quarter Financial Performance 2Q 2024 3Q 2024 ( in millions) Actuals Actuals 282 Operating Cash Flow 631.4 551.3 million Cash Capital Investments1 206.6 186.2 3Q'24 Net Income4 Free Cash Flow 424.8 365.1 340.92 340.93…
Guidance
2024 Guidance Highlights Adjusted Free Cash Leverage Cash EBITDA Flow Ratio Returns 2.30 1.15 3.0x 3.20 Billion1 Billion2 YE243 per unit4 Est. Base 11%1 increase 19%2 increase 0.7x3 decrease Distribution4 vs. 2023 vs. 2023…
2024 Financial & Operational Outlook 2024 Financial Guidance 2024 Estimated Throughput Growth Rates5 Crude Oil & NGLs Low-double-digits ( in millions) Natural Gas Mid-to-Upper Teens Adjusted EBITDA1 2,200 2,400 Produced Water…
Summary
Accomplishments & Strategic Priorities Since 2020 Balance sheet flexibility supports continued growth and strong unitholder returns Capital- Strong Standalone Efficient Accretive Capital Midstream Organic M&A Return Enterprise…
Evolution of the MLP WES has helped lead the optimization of the MLP model Portfolio Optimization Old MLP Model New MLP Model Free Operational Cash Flow Efficiencies & Generation Cost Reduction Free Cash Flow Distributable Cash…
Opportunity for MLP Valuation Uplift Current, more sustainable MLP model trades at a 5.0x discount compared to the old MLP model Quarterly Average MLP Valuations Average valuation of 13.7x under old MLP model1 Average yield:…
Comparative Valuation Metrics Highlighting midstreams compelling investment opportunity Russell 3000 and Midstream Investment Grade Russell 3000 Companies Companies with 7.0% forward yield1 Credit Profile with 7.0% yield2 Company…
WES A Superior, Tax-Deferred Yield Opportunity WES provides an attractive income opportunity relative to midstream and the S&P 500 1 Dividend / Distribution Yield by Sector2 Midstream Dividend / Distribution Yield1,2 WES continues…
MLP's Tax-Deferred Advantage WES provides a strong, tax-deferred investment opportunity at an attractive valuation 2025 EV/EBITDA1 Est. Cumulative Cash Taxes to be Paid2 Future Tax-Payers The MLP model's differentiated tax…
Comparative Valuation Metrics Highlighting WES's compelling investment opportunity Free Cash Flow Yield1 Price / Earnings Ratio2 (6%) WES continues to generate the highest free cash flow yield and yet trades at the lowest…
Comparative Valuation Metrics (continued) Strong track-record of returning capital to unitholders Total Capital Return Yield1 Total Capital Return Yield1 WES continues to be a market leader in total capital return yield relative…
Comparative Valuation Metrics (continued) Leading returns on capital and redeployment of capital to stakeholders Total Capital Return as a Percentage of Return on Capital Employed2 Enterprise Value since 20201 WES continues to…
Differentiated & Attractive Investment Opportunity WES has been a leader in generating strong unitholder returns Total Capital Return Yield8,9 GROWING MAINTAINING Throughput & Profitability Capital Discipline 46% natural-gas growth…
Well Positioned for Growth and Capital Return Well-Positioned Asset Base Situated within core of most attractive basins Operations Operational Excellence Increased efficiencies and competitive cost structure Increasing Producer…
Appendix
Returning Excess Free Cash Flow to Unitholders Enhanced Distribution Framework Positive Capital Allocation Annual Net Annual Distribution Cash Flow Outlook Priorities Leverage Threshold3 Framework Debt Optimization 3.4x 3.20…
Enhanced Distribution Mechanics Illustrative Calculation Using TTM Financial Information Any 2024 Enhanced Distribution would be Trailing Twelve-Month payable with first-quarter 2025 Base Enhanced Distribution Calculation…
2024 Adjusted EBITDA Guidance EXPECTED ASSET-LEVEL EBITDA CONTRIBUTION2 52% Delaware Basin 32% DJ Basin 66% Gas 88% Gas 2,200 Million 12% Oil 17% Oil to 17% Water 2,400 Million1 5% Powder River Basin 5% Equity…
2024 Capital Expenditures Guidance 5% Other 8% Other < 1% Equity Investments < 1% Equity Investments 7% Powder River Basin 9% DJ Basin 75% Gas 11% Well Connect 25% Oil 700 Million to 850 Million1 16% Maintenance &…
WES Liquidity Profile Liquidity ( in millions) Cash 1,125 Effective RCF 2,000 Capacity1 Senior Note Maturities ( in millions) 2025 2026 1,441 2028 679 2029+ 5,857 Note: As of 9/30/2024. 29 1) Net of applicable…
Diversified Asset Portfolio in Active Producing Basins Value-Focused Portfolio2 GATHERING Revenue: 53% Delaware Basin, 34% DJ Basin 21 SYSTEMS1 Total Capital: 80% Delaware Basin, 8% DJ Basin PROCESSING & 72 TREATING FACILITIES1…
Delaware Basin Asset Overview Leading Midstream Provider in the Core of the Texas Delaware Basin Premier Texas Delaware Basin Location Large asset base in the most prolific part of the basin More than half of basin rig count within 5…
Delaware Basin Asset Overview (continued) Expansive Multi-Product Infrastructure Customer Base Percentage of Related-Party Product Volumes1 Gas 42% Oil 98% Water 78% Long-Term Contract Support Weighted-Average Product…
DJ Basin Asset Overview A Core Position in the Heart of the DJ Basin 1,798 miles of natural-gas gathering pipelines and 1,750 MMcf/d of processing COLORADO capacity Low-emission, centralized facility providing 155 MBbls/d of…
DJ Basin Asset Overview (continued) Customer Base Percentage of Related-Party Product Volumes1 Gas 51% Oil 100% Long-Term Contract Support Weighted-Average Product Remaining Life2 Gas 88% = 5 Years 12% = Life of…
Powder River Basin Asset Overview Largest G&P Provider in the Powder River Basin 2,700 miles of high & low-pressure natural-gas WYOMING gathering pipelines 620 MMcf/d of natural-gas processing capacity with CAMPBELL 400 MMcf/d of…
Other Operated Assets Overview Strong portfolio of assets forecasted to provide incremental throughput growth Utah Southwest Wyoming South Texas Chipeta facility provides 790 MMcf/d Granger and Red Desert Brasada provides 200…
Equity Investment Overview WES Equity Investment Ownership Location Description Operator Mi Vida 50% Ward County, TX 200 MMcf/d gas-processing plant Energy Transfer Red Bluff Express 30% Reeves County, TX to Waha, TX 1.5 Bcf/d…
WES Non-GAAP Reconciliation Adjusted EBITDA WES defines Adjusted EBITDA attributable to Western Midstream Partners, LP (Adjusted EBITDA) as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based…
WES Non-GAAP Reconciliation Adjusted EBITDA WES defines Adjusted EBITDA attributable to Western Midstream Partners, LP (Adjusted EBITDA) as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based…
WES Non-GAAP Reconciliation Free Cash Flow WES defines Free cash flow as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in…
WES Non-GAAP Reconciliation Adjusted Gross Margin WES defines Adjusted gross margin attributable to Western Midstream Partners, LP (Adjusted gross margin) as total revenues and other (less reimbursements for electricity-related…
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