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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): February 21, 2024
WESTERN MIDSTREAM PARTNERS, LP
(Exact name of registrant as specified in its charter)
 
Delaware001-3575346-0967367
(State or other jurisdiction
of incorporation or organization)
(Commission
File Number)
(IRS Employer
Identification No.)
 9950 Woodloch Forest Drive, Suite 2800
The Woodlands, Texas 77380
(Address of principal executive office) (Zip Code)
 
(346) 786-5000
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of exchange
on which registered
Common unitsWESNew York Stock Exchange
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).    Emerging growth company   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐




Item 2.02 Results of Operations and Financial Condition.

On February 21, 2024, Western Midstream Partners, LP issued a press release announcing fourth-quarter and full-year 2023 results. The Partnership also simultaneously made the slide presentation for tomorrow’s earnings call available on the Western Midstream website, www.westernmidstream.com. The press release is included in this report as Exhibit 99.1.

Item 7.01 Regulation FD.

On February 21, 2024, Western Midstream Partners, LP issued a press release announcing 2024 guidance. The Partnership also simultaneously made the slide presentation for tomorrow’s guidance call available on the Western Midstream website, www.westernmidstream.com. The press release is included in this report as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
WESTERN MIDSTREAM PARTNERS, LP
By:Western Midstream Holdings, LLC,
its general partner
Dated:February 21, 2024By:/s/ Kristen S. Shults
Kristen S. Shults
Senior Vice President and Chief Financial Officer


EXHIBIT 99.1
wesprlogo1a.jpg

WESTERN MIDSTREAM ANNOUNCES
FOURTH-QUARTER AND FULL-YEAR 2023 RESULTS
Reported fourth-quarter 2023 Net income attributable to limited partners of $281.6 million, generating fourth-quarter Adjusted EBITDA(1) of $570.7 million.
Reported full-year 2023 Net income attributable to limited partners of $998.5 million, generating full-year Adjusted EBITDA(1) of $2.069 billion, and exceeding the revised full-year 2023 Adjusted EBITDA range of $1.950 billion to $2.050 billion.
Reported fourth-quarter 2023 Cash flows provided by operating activities of $473.3 million, generating fourth-quarter Free cash flow(1) of $282.0 million.
Reported full-year 2023 Cash flows provided by operating activities of $1.661 billion, generating full-year Free cash flow(1) of $964.2 million, and falling within the full-year 2023 Free cash flow guidance range of $900.0 million to $1.000 billion.
Announced a fourth-quarter Base Distribution of $0.575 per unit, which is consistent with the third-quarter Base Distribution, or $2.30 on an annualized basis.
HOUSTON—(PR NEWSWIRE)—February 21, 2024 – Today Western Midstream Partners, LP (NYSE: WES) (“WES” or the “Partnership”) announced fourth-quarter and full-year 2023 financial and operating results. Net income (loss) attributable to limited partners for the fourth quarter of 2023 totaled $281.6 million, or $0.74 per common unit (diluted), with fourth-quarter 2023 Adjusted EBITDA(1) totaling $570.7 million. Fourth-quarter Adjusted EBITDA(1) includes approximately $20.4 million of positive revenue recognition adjustments associated with our cost-of-service agreements in South Texas and on our DJ Basin oil system. Fourth-quarter 2023 Cash flows provided by operating activities totaled $473.3 million, and fourth-quarter 2023 Free cash flow(1) totaled $282.0 million.
Net income (loss) attributable to limited partners for full-year 2023 totaled $998.5 million, or $2.60 per common unit (diluted), with full-year 2023 Adjusted EBITDA(1) totaling $2.069 billion. Full-year 2023 Cash flows provided by operating activities totaled $1.661 billion, and full-year 2023 Free cash flow(1) totaled $964.2 million.



FOURTH-QUARTER AND FULL-YEAR 2023 HIGHLIGHTS
Achieved record annual natural-gas throughput of 4.4 Bcf/d, representing a 5-percent year-over-year increase(2), in-line with our revised 2023 expectations of mid-single-digits growth.
Gathered record annual crude-oil and NGLs throughput of 652 MBbls/d, representing a 7-percent year-over-year increase(3), exceeding our 2023 expectations of low-single-digits growth.
Gathered record annual produced-water throughput of 1,009 MBbls/d, representing a 21-percent year-over-year increase, exceeding our revised 2023 expectations of upper-teens growth.
Achieved year-over-year throughput growth across all products in the Delaware Basin of 11-percent, 8-percent, and 21-percent, for natural gas, crude oil and NGLs, and produced water, respectively.
Sanctioned the 250 MMcf/d North Loving processing plant in May 2023, and materially progressed construction of the 300 MMcf/d Mentone III processing train, both of which are underpinned by commercial agreements containing either acreage dedications or significant minimum-volume commitments.
Announced and closed the acquisition of Meritage Midstream Services II, LLC (“Meritage”), expanding WES’s position to the largest gathering and processing footprint in the Powder River Basin.
Executed on our capital return framework by returning $978.4 million in distributions, inclusive of two Base Distribution increases and the payment of our first Enhanced Distribution, and $134.6 million in unit repurchases, which represents approximately 15-percent of WES’s unaffected common unit count since becoming a standalone entity in early 2020.
Obtained full investment-grade ratings in May 2023 and raised $1.350 billion through two bond offerings to partially fund the Meritage acquisition, refinance existing borrowings, and enhance the partnership’s overall liquidity.
On February 13, 2024, WES paid its fourth-quarter 2023 per-unit Base Distribution of $0.575, consistent with the Partnership’s third-quarter Base Distribution. Fourth-quarter and full-year 2023 Free cash flow(1) after distributions totaled $58.6 million and negative $14.2 million, respectively. Fourth-quarter and full-year 2023 capital expenditures(4) totaled $180.7 million and $739.1 million, respectively.
Fourth-quarter 2023 natural-gas throughput(5) averaged 4.9 Bcf/d, representing a 9-percent sequential-quarter increase(2). Fourth-quarter 2023 throughput for crude-oil and NGLs assets(5) averaged 702 MBbls/d, representing a 5-percent sequential-quarter increase(3). Fourth-quarter 2023 throughput for produced-water assets(5) averaged 1,054 MBbls/d, representing a 2-percent sequential-quarter decrease.
2


Full-year 2023 natural-gas throughput(5) averaged 4.4 Bcf/d, representing a 5-percent year-over-year increase(2). Full-year 2023 throughput for crude-oil and NGLs assets(5) averaged 652 MBbls/d, representing a 7-percent year-over-year increase(3). Full-year 2023 throughput for produced-water assets(5) averaged 1,009 MBbls/d, representing a 21-percent year-over-year increase.
“2023 was a successful, pivotal year for WES as we achieved operated throughput growth of approximately 7-percent, 5-percent, and 21-percent for natural gas, crude-oil and NGLs, and produced water, respectively. We also continued to diversify our asset and customer base through accretive M&A in the Powder River Basin, all while returning $1.113 billion to unitholders through our capital-return framework. Our ability to successfully capture significant Delaware Basin throughput growth, efficiently expand our asset footprint, and maintain cost and capital discipline, positions WES to enter 2024 on solid financial footing with significant operational tailwinds,” said Michael Ure, President and Chief Executive Officer.
“Focusing on the Delaware Basin, this was an extremely successful year for WES as throughput increased across all three products resulting in record annual throughput from the basin for our partnership. We also extended the duration of our agreements and our firm-processing commitments with Occidental through 2035 and continued to diversify our customer base in the basin by adding 12 new third-party customers across our natural-gas and produced-water businesses. These accomplishments have resulted in meaningful growth and have helped WES grow its natural-gas volumes at a rate more than double the rate of throughput growth in the basin since early 2021. Our commercial successes were the primary drivers behind the sanctioning of both Mentone III and the North Loving plant, which together will increase our total operated processing capacity in the basin by 34-percent compared to year-end 2023 and maintain WES’s position as one of the top natural-gas processors in the Delaware Basin. In addition to advancing our strong Delaware Basin position, we remained focused on growing the entirety of our business. Our expansion in the Powder River Basin and volume growth expectations in the DJ Basin place our partnership in a position of strength as we enter 2024,” Mr. Ure continued.
“Additionally, concurrent with this release, we are announcing that we have entered into a series of agreements to sell WES’s equity interests in multiple non-core assets for aggregate proceeds of $790.0 million and for an aggregate multiple of approximately 9.6 times 2023 Adjusted EBITDA. These divestitures are in line with our strategy of divesting non-core, non-operated assets and redeploying that capital into our operated asset base with the goal of driving operational efficiencies alongside throughput growth and creating incremental value for our unitholders,” concluded Mr. Ure.
3


CONFERENCE CALL TOMORROW AT 1:00 P.M. CT
WES will host a conference call on Thursday, February 22, 2024, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss its fourth-quarter and full-year 2023 results. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership’s website at www.westernmidstream.com. A small number of phone lines are available for analysts; individuals should dial 888-390-0546 (Domestic) or 617-892-4906 (International) ten to fifteen minutes before the scheduled conference call time. A replay of the live audio webcast can be accessed on the Partnership’s website at www.westernmidstream.com for one year after the call.
For additional details on WES’s financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.
FILING OF ANNUAL REPORT ON FORM 10-K
Today WES announced the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, with the Securities and Exchange Commission. A copy of the report is available for viewing and downloading on the Western Midstream website at www.westernmidstream.com. Unitholders may request hard copies of the report, which contains WES’s audited financial statements, free of charge, by emailing investors@westernmidstream.com, or by submitting a written request to Western Midstream Partners, LP at the following address: 9950 Woodloch Forest Drive, Suite 2800, The Woodlands, TX 77380, Attention: Western Midstream Investor Relations.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP (“WES”) is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES’s cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES’s management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES’s assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; the successful closing of the divestitures noted above; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the “Risk Factors” section of WES’s most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
______________________________________________________________
(1)Please see the definitions of the Partnership’s non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures.
(2)For the quarter- and year-ended December 31, 2023, includes an average of 331 MMcf/d and 83 MMcf/d, respectively, of throughput associated with the Meritage acquisition in the fourth quarter of 2023.
(3)For the quarter- and year-ended December 31, 2022, excludes an average of 27 MBbls/d and 65 MBbls/d, respectively, of throughput associated with the sale of Cactus II in the fourth quarter of 2022. For the quarter and year-ended December 31, 2023, includes an average of 20 MBbls/d and 5 MBbls/d, respectively, of throughput associated with the Meritage acquisition in the fourth quarter of 2023.
(4)Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta.
(5)Represents total throughput attributable to WES, which excludes (i) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary and (ii) for natural-gas throughput, the 25% third-party interest in Chipeta, which collectively represent WES’s noncontrolling interests.

# # #
Source: Western Midstream Partners, LP

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523

Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523
4


Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months Ended 
December 31,
Year Ended 
December 31,
thousands except per-unit amounts2023202220232022
Revenues and other
Service revenues – fee based
$763,837 $647,948 $2,768,757 $2,602,053 
Service revenues – product based
49,515 46,971 191,727 249,692 
Product sales44,688 84,268 145,024 399,023 
Other168 250 968 953 
Total revenues and other858,208 779,437 3,106,476 3,251,721 
Equity income, net – related parties36,120 44,095 152,959 183,483 
Operating expenses
Cost of product40,803 92,663 164,598 420,900 
Operation and maintenance200,426 166,923 762,530 654,566 
General and administrative73,060 49,382 232,632 194,017 
Property and other taxes16,497 18,065 56,458 78,559 
Depreciation and amortization165,187 151,910 600,668 582,365 
Long-lived asset and other impairments4 20,491 52,884 20,585 
Total operating expenses495,977 499,434 1,869,770 1,950,992 
Gain (loss) on divestiture and other, net(6,434)104,560 (10,102)103,676 
Operating income (loss)391,917 428,658 1,379,563 1,587,888 
Interest expense(97,622)(84,606)(348,228)(333,939)
Gain (loss) on early extinguishment of debt — 15,378 91 
Other income (expense), net2,862 1,486 5,679 1,603 
Income (loss) before income taxes297,157 345,538 1,052,392 1,255,643 
Income tax expense (benefit)1,405 504 4,385 4,187 
Net income (loss)295,752 345,034 1,048,007 1,251,456 
Net income (loss) attributable to noncontrolling interests7,398 8,710 25,791 34,353 
Net income (loss) attributable to Western Midstream Partners, LP
$288,354 $336,324 $1,022,216 $1,217,103 
Limited partners’ interest in net income (loss):
Net income (loss) attributable to Western Midstream Partners, LP
$288,354 $336,324 $1,022,216 $1,217,103 
General partner interest in net (income) loss(6,724)(7,747)(23,684)(27,541)
Limited partners’ interest in net income (loss)$281,630 $328,577 $998,532 $1,189,562 
Net income (loss) per common unit – basic$0.74 $0.85 $2.61 $3.01 
Net income (loss) per common unit – diluted$0.74 $0.85 $2.60 $3.00 
Weighted-average common units outstanding – basic379,517 384,885 383,028 394,951 
Weighted-average common units outstanding – diluted381,140 386,482 384,408 396,236 

5


Western Midstream Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
thousands except number of units20232022
Total current assets$992,410 $900,425 
Net property, plant, and equipment9,655,016 8,541,600 
Other assets1,824,181 1,829,603 
Total assets$12,471,607 $11,271,628 
Total current liabilities$1,304,056 $903,857 
Long-term debt7,283,556 6,569,582 
Asset retirement obligations359,185 290,021 
Other liabilities495,680 400,053 
Total liabilities9,442,477 8,163,513 
Equity and partners’ capital
Common units (379,519,983 and 384,070,984 units issued and outstanding at December 31, 2023 and 2022, respectively)2,894,231 2,969,604 
General partner units (9,060,641 units issued and outstanding at December 31, 2023 and 2022) 3,193 2,105 
Noncontrolling interests131,706 136,406 
Total liabilities, equity, and partners’ capital$12,471,607 $11,271,628 

6


Western Midstream Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Year Ended 
December 31,
thousands20232022
Cash flows from operating activities
Net income (loss)$1,048,007 $1,251,456 
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:
Depreciation and amortization600,668 582,365 
Long-lived asset and other impairments52,884 20,585 
(Gain) loss on divestiture and other, net10,102 (103,676)
(Gain) loss on early extinguishment of debt(15,378)(91)
Change in other items, net(34,949)(49,213)
Net cash provided by operating activities$1,661,334 $1,701,426 
Cash flows from investing activities
Capital expenditures$(735,080)$(487,228)
Acquisitions from third parties(877,746)(40,127)
Contributions to equity investments - related parties(1,153)(9,632)
Distributions from equity investments in excess of cumulative earnings – related parties39,104 63,897 
Proceeds from the sale of assets to related parties 200 
Proceeds from the sale of assets to third parties(87)264,121 
(Increase) decrease in materials and supplies inventory and other(32,329)(9,468)
Net cash used in investing activities$(1,607,291)$(218,237)
Cash flows from financing activities
Borrowings, net of debt issuance costs$2,448,733 $1,389,010 
Repayments of debt(1,967,928)(1,518,548)
Commercial paper borrowings (repayments), net609,916 — 
Increase (decrease) in outstanding checks3,516 2,206 
Distributions to Partnership unitholders(978,430)(735,755)
Distributions to Chipeta noncontrolling interest owner(7,641)(10,736)
Distributions to noncontrolling interest owner of WES Operating(22,850)(24,898)
Net contributions from (distributions to) related parties 1,423 
Unit repurchases(134,602)(487,590)
Other(18,626)(13,644)
Net cash provided by (used in) financing activities$(67,912)$(1,398,532)
Net increase (decrease) in cash and cash equivalents$(13,869)$84,657 
Cash and cash equivalents at beginning of period286,656 201,999 
Cash and cash equivalents at end of period$272,787 $286,656 
7


Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES

WES defines Adjusted gross margin attributable to Western Midstream Partners, LP (“Adjusted gross margin”) as total revenues and other (less reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owners’ proportionate share of revenues and cost of product.
WES defines Adjusted EBITDA as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) interest income, (v) income tax benefit, (vi) other income, and (vii) the noncontrolling interest owners’ proportionate share of revenues and expenses.
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 excess of cumulative earnings. Management considers Free cash flow an appropriate metric for assessing capital discipline, cost efficiency, and balance-sheet strength. Although Free cash flow is the metric used to assess WES’s ability to make distributions to unitholders, this measure should not be viewed as indicative of the actual amount of cash that is available for distributions or planned for distributions for a given period. Instead, Free cash flow should be considered indicative of the amount of cash that is available for distributions, debt repayments, and other general partnership purposes.
Below are reconciliations of (i) gross margin (GAAP) to Adjusted gross margin (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that Adjusted gross margin, Adjusted EBITDA, and Free cash flow are widely accepted financial indicators of WES’s financial performance compared to other publicly traded partnerships and are useful in assessing WES’s ability to incur and service debt, fund capital expenditures, and make distributions. Adjusted gross margin, Adjusted EBITDA, and Free cash flow as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES’s Adjusted gross margin, Adjusted EBITDA, and Free cash flow should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as gross margin or cash flows provided by operating activities.
8


Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)

Adjusted Gross Margin
Three Months EndedYear Ended
thousandsDecember 31,
2023
September 30,
2023
December 31,
2023
December 31,
2022
Reconciliation of Gross margin to Adjusted gross margin
Total revenues and other$858,208 $776,013 $3,106,476 $3,251,721 
Less:
Cost of product40,803 27,590 164,598 420,900 
Depreciation and amortization
165,187 147,363 600,668 582,365 
Gross margin652,218 601,060 2,341,210 2,248,456 
Add:
Distributions from equity investments46,661 41,562 194,273 250,050 
Depreciation and amortization
165,187 147,363 600,668 582,365 
Less:
Reimbursed electricity-related charges recorded as revenues25,273 29,981 102,109 81,764 
Adjusted gross margin attributable to noncontrolling interests (1)
19,412 18,095 70,195 73,632 
Adjusted gross margin
$819,381 $741,909 $2,963,847 $2,925,475 
Gross margin
Gross margin for natural-gas assets (2)
$484,688 $450,130 $1,738,125 $1,676,732 
Gross margin for crude-oil and NGLs assets (2)
103,228 87,911 368,444 346,406 
Gross margin for produced-water assets (2)
70,509 70,353 259,541 245,274 
Adjusted gross margin
Adjusted gross margin for natural-gas assets
$579,278 $518,765 $2,067,528 $2,031,600 
Adjusted gross margin for crude-oil and NGLs assets
157,048 139,430 589,091 607,769 
Adjusted gross margin for produced-water assets83,055 83,714 307,228 286,106 
(1)For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary, which collectively represent WES’s noncontrolling interests.
(2)Excludes corporate-level depreciation and amortization.

9


Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)

Adjusted EBITDA
Three Months EndedYear Ended
thousandsDecember 31,
2023
September 30,
2023
December 31,
2023
December 31,
2022
Reconciliation of Net income (loss) to Adjusted EBITDA
Net income (loss)$295,752 $284,398 $1,048,007 $1,251,456 
Add:
Distributions from equity investments46,661 41,562 194,273 250,050 
Non-cash equity-based compensation expense9,970 7,171 32,005 27,783 
Interest expense97,622 82,754 348,228 333,939 
Income tax expense1,405 905 4,385 4,187 
Depreciation and amortization165,187 147,363 600,668 582,365 
Impairments4 245 52,884 20,585 
Other expense71 1,269 1,739 555 
Less:
Gain (loss) on divestiture and other, net(6,434)(1,480)(10,102)103,676 
Gain (loss) on early extinguishment of debt 8,565 15,378 91 
Equity income, net – related parties36,120 35,494 152,959 183,483 
Other income2,862 27 6,976 1,648 
Adjusted EBITDA attributable to noncontrolling interests (1)
13,459 12,134 48,345 54,049 
Adjusted EBITDA$570,665 $510,927 $2,068,633 $2,127,973 
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA
Net cash provided by operating activities$473,300 $394,787 $1,661,334 $1,701,426 
Interest (income) expense, net97,622 82,754 348,228 333,939 
Accretion and amortization of long-term obligations, net(2,174)(1,882)(8,151)(7,142)
Current income tax expense (benefit)1,315 806 3,341 2,188 
Other (income) expense, net(2,862)1,270 (5,679)(1,603)
Distributions from equity investments in excess of cumulative earnings – related parties7,389 8,536 39,104 63,897 
Changes in assets and liabilities:
Accounts receivable, net17,773 60,614 78,346 116,296 
Accounts and imbalance payables and accrued liabilities, net(19,021)(12,535)68,019 7,812 
Other items, net10,782 (11,289)(67,564)(34,791)
Adjusted EBITDA attributable to noncontrolling interests (1)
(13,459)(12,134)(48,345)(54,049)
Adjusted EBITDA$570,665 $510,927 $2,068,633 $2,127,973 
Cash flow information
Net cash provided by operating activities$473,300 $394,787 $1,661,334 $1,701,426 
Net cash used in investing activities(1,068,707)(207,916)(1,607,291)(218,237)
Net cash provided by (used in) financing activities378,700 88,670 (67,912)(1,398,532)
(1)For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary, which collectively represent WES’s noncontrolling interests.
10


Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(Unaudited)

Free Cash Flow
Three Months EndedYear Ended
thousandsDecember 31,
2023
September 30,
2023
December 31,
2023
December 31,
2022
Reconciliation of Net cash provided by operating activities to Free cash flow
Net cash provided by operating activities$473,300 $394,787 $1,661,334 $1,701,426 
Less:
Capital expenditures198,653 201,857 735,080 487,228 
Contributions to equity investments – related parties 1,021 1,153 9,632 
Add:
Distributions from equity investments in excess of cumulative earnings – related parties7,389 8,536 39,104 63,897 
Free cash flow$282,036 $200,445 $964,205 $1,268,463 
Cash flow information
Net cash provided by operating activities$473,300 $394,787 $1,661,334 $1,701,426 
Net cash used in investing activities(1,068,707)(207,916)(1,607,291)(218,237)
Net cash provided by (used in) financing activities378,700 88,670 (67,912)(1,398,532)

11


Western Midstream Partners, LP
OPERATING STATISTICS
(Unaudited)
 Three Months EndedYear Ended
December 31,
2023
September 30,
2023
December 31,
2023
December 31,
2022
Throughput for natural-gas assets (MMcf/d)
Gathering, treating, and transportation516 457 435 409 
Processing4,043 3,699 3,692 3,474 
Equity investments (1)
489 495 466 483 
Total throughput5,048 4,651 4,593 4,366 
Throughput attributable to noncontrolling interests (2)
172 167 161 156 
Total throughput attributable to WES for natural-gas assets4,876 4,484 4,432 4,210 
Throughput for crude-oil and NGLs assets (MBbls/d)
Gathering, treating, and transportation368 334 332 317 
Equity investments (1)
347 347 333 373 
Total throughput715 681 665 690 
Throughput attributable to noncontrolling interests (2)
13 14 13 14 
Total throughput attributable to WES for crude-oil and NGLs assets702 667 652 676 
Throughput for produced-water assets (MBbls/d)
Gathering and disposal1,076 1,101 1,029 853 
Throughput attributable to noncontrolling interests (2)
22 22 20 17 
Total throughput attributable to WES for produced-water assets1,054 1,079 1,009 836 
Per-Mcf Gross margin for natural-gas assets (3)
$1.04 $1.05 $1.04 $1.05 
Per-Bbl Gross margin for crude-oil and NGLs assets (3)
1.57 1.40 1.52 1.38 
Per-Bbl Gross margin for produced-water assets (3)
0.71 0.69 0.69 0.79 
Per-Mcf Adjusted gross margin for natural-gas assets (4)
$1.29 $1.26 $1.28 $1.32 
Per-Bbl Adjusted gross margin for crude-oil and NGLs assets (4)
2.43 2.27 2.48 2.46 
Per-Bbl Adjusted gross margin for produced-water assets (4)
0.86 0.84 0.83 0.94 
(1)Represents our share of average throughput for investments accounted for under the equity method of accounting.
(2)For all periods presented, includes (i) the 2.0% limited partner interest in WES Operating owned by an Occidental subsidiary and (ii) for natural-gas assets, the 25% third-party interest in Chipeta, which collectively represent WES’s noncontrolling interests.
(3)Average for period. Calculated as Gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.
(4)Average for period. Calculated as Adjusted gross margin for natural-gas assets, crude-oil and NGLs assets, or produced-water assets, divided by the respective total throughput (MMcf or MBbls) attributable to WES for natural-gas assets, crude-oil and NGLs assets, or produced-water assets.

12


Western Midstream Partners, LP
OPERATING STATISTICS (CONTINUED)
(Unaudited)

Three Months EndedYear Ended
December 31,
2023
September 30,
2023
Inc/
(Dec)
December 31,
2023
December 31,
2022
Inc/
(Dec)
Throughput for natural-gas assets (MMcf/d)
Operated
Delaware Basin1,704 1,674 %1,635 1,470 11 %
DJ Basin1,341 1,331 %1,322 1,331 (1)%
Powder River Basin369 40 NM120 33 NM
Other998 990 %930 914 %
Total operated throughput for natural-gas assets4,412 4,035 %4,007 3,748 %
Non-operated
Equity investments489 495 (1)%466 483 (4)%
Other147 121 21 %120 135 (11)%
Total non-operated throughput for natural-gas assets636 616 %586 618 (5)%
Total throughput for natural-gas assets 5,048 4,651 %4,593 4,366 %
Throughput for crude-oil and NGLs assets (MBbls/d)
Operated
Delaware Basin225 220 %214 198 %
DJ Basin81 68 19 %71 82 (13)%
Powder River Basin20 — 100 %5 — 100 %
Other42 46 (9)%42 37 14 %
Total operated throughput for crude-oil and NGLs assets368 334 10 %332 317 %
Non-operated
Equity investments347 347 — %333 373 (11)%
Total non-operated throughput for crude-oil and NGLs assets347 347 — %333 373 (11)%
Total throughput for crude-oil and NGLs assets715 681 %665 690 (4)%
Throughput for produced-water assets (MBbls/d)
Operated
Delaware Basin1,076 1,101 (2)%1,029 853 21 %
Total operated throughput for produced-water assets1,076 1,101 (2)%1,029 853 21 %
NMNot meaningful
13

EXHIBIT 99.2
wesprlogo.jpg

WESTERN MIDSTREAM ANNOUNCES
2024 GUIDANCE AND NON-CORE ASSET SALES FOR AGGREGATE PROCEEDS OF $790 MILLION
EXPECTS TO RECOMMEND A 52-PERCENT BASE DISTRIBUTION INCREASE
Subsequent to quarter-end, entered into a series of agreements to sell WES’s equity interests in multiple non-core assets for aggregate proceeds of $790 million and for an aggregate multiple of approximately 9.6 times 2023 Adjusted EBITDA.
Provided 2024 guidance ranges of $2.200 billion to $2.400 billion for Adjusted EBITDA(1), $700.0 million to $850.0 million for total capital expenditures(2), and $1.050 billion to $1.250 billion for Free cash flow(1), all of which include the impact of the non-core asset divestitures.
As a result of WES’s meaningful net leverage reduction, reduced unit count, and significant, sustainable Free cash flow generation, management plans to recommend a quarterly Base Distribution increase of $0.30 per unit, or $1.20 per unit annualized, starting in the first quarter of 2024(3).
Providing 2024 Base Distribution guidance of at least $3.20 per unit(3). This includes an increase to $0.875 per unit starting with our first quarter Base Distribution, which represents an annual rate of $3.50 per unit, a 52-percent increase over the prior annual rate of $2.30 per unit.
HOUSTON—(PR NEWSWIRE)—February 21, 2024 – Today Western Midstream Partners, LP (NYSE: WES) (“WES” or the “Partnership”) announced the execution of multiple agreements to divest of WES’s remaining interest in the Marcellus Interest gathering system, Saddlehorn Pipeline Company LLC, Whitethorn Pipeline Company LLC, Panola Pipeline Company LLC, and Enterprise EF78 LLC, for aggregate proceeds of $790 million. Additionally, the sale of the interests in Enterprise EF78 LLC and Whitethorn Pipeline Company LLC, which closed on February 16, 2024, resolved the outstanding legal proceedings associated with those assets. The sale of the Marcellus Interest gathering system, Panola Pipeline Company LLC, and Saddlehorn Pipeline Company LLC are expected to close in the



first or second quarters of 2024, subject to customary closing conditions.
“For the past few years, we have successfully executed our strategy of divesting non-core, non-operated assets and redeploying that capital into our operated asset base with the goal of driving operational efficiencies alongside additional growth, thus creating incremental value for our unitholders. Additionally, our ability to execute accretive, M&A transactions such as the Meritage Midstream acquisition, has allowed us to cost-efficiently grow and further diversify our asset footprint,” said Michael Ure, President and Chief Executive Officer.
“Through these divestitures, WES is expected to generate approximately $790 million in proceeds, which in the aggregate represents an attractive, accretive multiple of 9.6 times 2023 Adjusted EBITDA. By recycling these proceeds back into our core business, we can further grow our operated asset base and drive material Free cash flow generation, while at the same time meaningfully reduce net leverage towards our long-term goal of 3.0 times.”
“Since becoming a standalone partnership in 2020, we have worked diligently to pursue cost and capital efficiencies, bring additional volumes onto our systems, and maximize the overall value of our asset base. We have implemented new technologies and processes to increase operational efficiencies, enhance employee development and safety, and minimize our environmental footprint, all while maintaining a conscious eye on reducing costs. Furthermore, we have been incredibly focused on returning more capital to our stakeholders through our diversified, transparent capital-return framework,” Mr. Ure continued.
“The shift to Free cash flow generation has paved the way to strong results, including repurchasing 15-percent of our unaffected unit count, and following the closing of these non-core asset divestitures, we would expect our net debt to EBITDA to decrease by more than 1.5 times by year-end 2024 relative to 2019. These actions have put our partnership in a position of strength, resulting in our ability to accelerate the return of capital to our unitholders and target an increase in our Base Distribution by 52-percent relative to our prior quarter’s distribution. As we have in the past, we will continue to evaluate the Base Distribution on a quarterly basis with the intention of approving a level of distribution that is sustainable and aligned with the outlook of our business. Even with an increase of this magnitude, we believe we will still have room to target additional Base Distribution increases in future years as the business performs and Free cash flow generation continues to grow,” concluded Mr. Ure.
2


2024 GUIDANCE
Based on the most current production forecast information from our producer customers, and including the impact of our non-core asset divestitures, WES is providing 2024 guidance as follows:
Adjusted EBITDA(1) between $2.200 billion and $2.400 billion
Total capital expenditures(2) between $700.0 million and $850.0 million
Free cash flow(1) between $1.050 billion and $1.250 billion
Full-year 2024 Base Distribution of at least $3.20 per unit(3), which excludes the impact of any Enhanced Distribution
“The financial outlook for WES remains strong as we transition into 2024, which we expect will be driven by another year of throughput growth that generates material increases in both Adjusted EBITDA and Free cash flow,” commented Kristen Shults, Senior Vice President and Chief Financial Officer. “Based on these growth expectations, we anticipate Adjusted EBITDA to range between $2.200 billion to $2.400 billion for full-year 2024, growing approximately 11-percent year-over-year at the midpoint.”
“Similar to years past, the Delaware Basin will continue to be the partnership’s growth engine as our diversified customer base continues to allocate substantial capital to the region, and we expect last year’s increased producer activity levels to result in annual throughput growth in the DJ Basin for the first time since 2021. Additionally, we expect the integration of the Meritage asset base to drive additional throughput growth and contribute to our overall profitability, and we will continue capturing operational synergies and implementing efficiencies over our expanded Powder River Basin footprint.”
“As the construction of Mentone III and North Loving continues in 2024, and we prepare for continued throughput growth, we expect total capital expenditures to range between $700.0 million to $850.0 million. Approximately 81-percent of our capital expenditures will be spent in the Delaware Basin, focused on the construction of the North Loving plant, which will enable us to accommodate future growth and process additional volumes in 2025 and beyond.”
“Finally, taking into consideration our expectations of year-over-year Adjusted EBITDA growth and our projected capital expenditure needs, we estimate our Free cash flow will increase by approximately 19-percent at the midpoint, which positions WES to continue returning capital to stakeholders. As demonstrated with our plan to recommend an increase to the Base Distribution of 52-
3


percent for the first quarter, we remain committed to returning more of WES’s Free cash flow to investors over time as the business continues to grow,” Ms. Shults continued.
“Management’s confidence in the sustainability of Free cash flow led to our decision to recommend an increase to the Base Distribution, rather than pay a material Enhanced Distribution in future years. While the Enhanced Distribution is a critical component of our capital allocation framework, we believe aligning the Base Distribution with our baseline cash generation expectations for the business generates maximum unitholder value and allows the Enhanced Distribution to provide for incremental returns of capital when the business outperforms,” concluded Ms. Shults.
CONFERENCE CALL TOMORROW AT 1:00 P.M. CT
As previously announced, WES will host a conference call on Thursday, February 22, 2024, at 1:00 p.m. Central Time (2:00 p.m. Eastern Time) to discuss its fourth-quarter and full-year 2023 results, and 2024 guidance. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership’s website at www.westernmidstream.com. A small number of phone lines are available for analysts; individuals should dial 888-390-0546 (Domestic) or 617-892-4906 (International) ten to fifteen minutes before the scheduled conference call time. A replay of the live audio webcast can be accessed on the Partnership’s website at www.westernmidstream.com for one year after the call.
For additional details on WES’s financial and operational performance, please refer to the earnings slides and updated investor presentation available at www.westernmidstream.com.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP (“WES”) is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged in the business of gathering, compressing, treating, processing, and transporting natural gas; gathering, stabilizing, and transporting condensate, natural-gas liquids, and crude oil; and gathering and disposing of produced water for its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and its customers under certain gas processing contracts. A substantial majority of WES’s cash flows are protected from direct exposure to commodity price volatility through fee-based contracts.
For more information about WES, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES’s management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES’s assets; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; the successful closing of the divestitures noted above; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the “Risk Factors” section of WES’s most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
______________________________________________________________
(1)A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss), and a reconciliation of the Free cash flow range to net cash provided by operating activities, is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. These items, net of tax, may include, but are not limited to, impairments of assets and other charges, divestiture costs, acquisition costs, or changes in accounting principles. All of these items could significantly impact such financial measures. At this time, WES is not able to estimate the aggregate impact, if any, of these items on future period reported earnings. Accordingly, WES is not able to provide a corresponding GAAP equivalent for the Adjusted EBITDA or Free cash flow ranges.
(2)Accrual-based, includes equity investments, excludes capitalized interest, and excludes capital expenditures associated with the 25% third-party interest in Chipeta.
(3)Full-year 2024 Base Distribution (paid in 2024) of at least $3.20 per unit, which includes the February 2024 distribution of $0.575 per unit. Board action on any distribution increase will be requested in April 2024, and is subject to the Board’s assessment of the needs of the business at that time.

# # #
Source: Western Midstream Partners LP

WESTERN MIDSTREAM CONTACTS

Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523

Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523
4
v3.24.0.1
Cover Page
Feb. 21, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 21, 2024
Entity Registrant Name WESTERN MIDSTREAM PARTNERS, LP
Entity Incorporation, State or Country Code DE
Entity File Number 001-35753
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
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common units
Trading Symbol WES
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001423902
Amendment Flag false

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