INVESTOR RELATIONS JACK SPINKSfilecache.investorroom.com/mr5ir_westerngas/172...INVESTOR RELATIONS...
Transcript of INVESTOR RELATIONS JACK SPINKSfilecache.investorroom.com/mr5ir_westerngas/172...INVESTOR RELATIONS...
I N V E S T O R R E L A T I O N S
JACK SPINKSManager, Investor Relations
832 636 3738
NYSE: WESwesternmidstream.com
WES INVESTOR PRESENTATIONMay 2019
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Cautionary Language Regarding Forward Looking Statements
This presentation contains forward-looking statements. Western Midstream Partners, LP (“WES”) believes that itsexpectations are based on reasonable assumptions. No assurance, however, can be given that such expectationswill prove to have been correct. A number of factors could cause actual results to differ materially from theprojections, anticipated results or other expectations expressed in this presentation. These factors include theability to meet financial guidance or distribution-growth expectations; the ability to safely and efficiently operateWES’s assets; the ability to obtain new sources of hydrocarbons and related products; the effect of fluctuations incommodity prices and the demand for hydrocarbons; the ability to meet projected in-service dates for capitalgrowth 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 and Form 10-Q filedwith the Securities and Exchange Commission and in their other public filings and press releases. WES undertakesno obligation to publicly update or revise any forward-looking statements.
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WES: Built to Deliver Sustainable Value
Financial and Operating Discipline• 90% gas, 100% produced water and crude throughput with no direct commodity-price exposure2
• Committed to maintaining Investment Grade credit ratings targeting 3.5x – 4.0x leverage ratio• No expected near-term equity capital needs• 2020 Capital Expenditures expected to decline
World-Class Assets in Permian and DJ Basins• Significant multi-product service offerings in core of both basins• 75+% of 2019E EBITDA and 90+% of 2019E Capital Expenditures• De-risked growth with scalable infrastructure
Durable Long-Term Growth• Long-term, fee-based revenues supported by Cost of Service and MVC based contracts• Simplified structure with no IDRs and lower cost of capital• Distribution growth and coverage flexibility
Note: MVC: Minimum Volume Commitment 1) Western Midstream Operating, LP is the borrower for all existing and expected issuer of future indebtedness and owner of all operating assets and equity interests.2) As of 3/31/2019 and excluding equity investments.
S I M P L I F I E D S T R U C T U R E
Anadarko PetroleumCorporationNYSE: APC
PublicUnitholders
Western Midstream Partners, LPNYSE: WES
55.5% 44.5%
98%
Western Midstream Operating, LP1
OperatingAssets
DebtBBB- / Ba1
2%
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Strategic Portfolio of Assets
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24GATHERING
SYSTEMS
73PROCESSING &
TREATING FACILITIES
6NATURAL GAS
PIPELINES
13CRUDE OIL/NGL
PIPELINES
15,200+PIPELINE
MILES
WES AssetsWES Equity Interests
DELAWARE BASINFastest Growing Asset
DJ BASIN
PANOLA
SADDLEHORN
WHITETHORN
CACTUS II
WHITE CLIFFS
FRONT RANGE
TEXAS EXPRESS
RED BLUFF EXPRESS
1) Total Throughput includes the 25% interest in Chipeta held by a third-party member and the 2.0% limited partner interest in WES Operating held by a subsidiary of Anadarko.
WES Equity Interest Pipelines
1 Q 1 9 T h r o u g h p u t 1
Natural Gas
(MMcf/d)
Crude and NGLs(Mbbls/d)
Produced Water(Mbbls/d)
Delaware Basin 1,178 145 518
DJ Basin 1,258 102 —
Equity Investments 377 304 —
Other 1,562 55 —
Total 4,375 606 518
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Focused in High-Growth Basins
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2 0 1 9 E A d j u s t e d E B I T D A :$ 1 . 8 t o $ 1 . 9 B i l l i o n
2 0 1 9 E C a p i t a l E x p e n d i t u r e s :$ 1 . 3 t o $ 1 . 4 B i l l i o n
2 0 1 9 E C o v e r a g e R a t i o :C o v e r a g e E x p a n s i o n
Note: Delaware Basin 2019E Adjusted EBITDA includes distributions from, and 2019E Capital Expenditures includes contributions to, the following equity investments: Red Bluff Express Pipeline, Mi Vida and Bone Spring gas processing plants.
Equity Investments 10%
Equity Investments 6%
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P R O D U C E D W A T E R
~9% 2019E WES EBITDA
~13% 2019E WES CapEx
Delaware Basin: Expansive Multi-Product Infrastructure
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1) Weighted average contract length by volume as of February 2019.
L O N G - T E R M C O N T R A C T S U P P O R T
Product Weighted Average Length1
Oil ~15 Years
Gas 8+ Years
Water 12+ Years
5 MILES
NEW MEXICO
TEXAS
CULBERSON
REEVES
LOVING
WINKLER
WARD
RAMSEY
MENTONE
APC Leasehold
Gas Processing Plant
Existing/Future Gas Gathering Lines
Regional Oil Treating Facility
Existing/Future Oil Pipelines
Existing/Future Water Pipelines
P L A N N E D S Y S T E M C A P A C I T Y B Y Y E 1 9
~1.5 Bcf/d Gas Processing
190+ MBOPD Oil Treating
900+ MBbl/d Produced-Water Disposal
Delaware Basin• Gas, Crude & Water Solutions• System Backbones In Place• Capital Efficient and Scalable• Long-term, Fee-Based Contracts
~$740Million
2019EAdjusted EBITDA
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1) Weighted average contract length by volume as of February 2019.2) Includes 400 MMcf/d contribution from Latham plant upon completion.
DJ Basin: Integrated Footprint
5 MILES
DJ Basin Infrastructure
Oil TreatingOnline
~155MBOPD
GasProcessing2
1.5+Bcf/d
WESTERN MIDSTREAM OWNED INFRASTRUCTUREAPC Acreage
APC Mineral Interest
Pipelines (Oil and Gas)
Oil Treating Facility
Gas Plant
Mt. BelvieuNGL HUB
CushingWTI HUB
Market
Oil Equity Pipeline
NGL Equity Pipeline
Texas Express
Front RangeWhite Cliffs & Saddlehorn
Integrated Equity OwnershipL O N G - T E R M C O N T R A C T S U P P O R T
Product Weighted Average Length1
Oil ~9.5 Years
Gas ~80% = 9+ Years~20% = Life of Lease
DJ Basin• Substantial Producer Activity• Infrastructure In Place• Long-term, Fee-Based Contracts
~$680Million
2019EAdjusted EBITDA
Latham Plant 400 MMcf/d
Under Construction
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($ in millions, includes full-year effect of acquired assets) 2019 Guidance
Adjusted EBITDA1 $1,800 - $1,900
Total Capital Expenditures2,3 $1,300 - $1,400
Maintenance Capital Expenditures $110 - $120
Annual Distribution Growth 6% - 8%
Annual Distribution Coverage Minimum 1.2x
2019 Guidance
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1) A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income is not provided because the items necessary to estimate such amounts are not reasonably accessible or estimable at this time.2) Includes equity investments.3) Includes acquisition of a 30% interest in Red Bluff Express Pipeline for an estimated total cost of $110 million.