INVESTOR RELATIONS JACK SPINKSfilecache.investorroom.com/mr5ir_westerngas/172...INVESTOR RELATIONS...

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INVESTOR RELATIONS JACK SPINKS Manager, Investor Relations 832 636 3738 NYSE: WES westernmidstream.com WES INVESTOR PRESENTATION May 2019

Transcript of INVESTOR RELATIONS JACK SPINKSfilecache.investorroom.com/mr5ir_westerngas/172...INVESTOR RELATIONS...

Page 1: INVESTOR RELATIONS JACK SPINKSfilecache.investorroom.com/mr5ir_westerngas/172...INVESTOR RELATIONS JACK SPINKS Manager, Investor Relations 832 636 3738 NYSE: WES westernmidstream.com

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.