Western Midstream Partners
Western Midstream Partners, LP (WES) is a publicly traded master limited partnership that owns and operates oil, natural gas, and water gathering systems, processing plants, and pipelines across various U.S. regions.
Company History
Western Midstream Partners, LP (WES) was formed by Anadarko Petroleum Corporation on August 21, 2007. The company began trading on the New York Stock Exchange as a master limited partnership under the ticker symbol WES in May 2008. Over the years, Western Midstream Partners has developed a significant presence in the oil and natural gas industry, bolstered by strategic acquisitions and investments. Notably, in October 2023, the company acquired Meritage Midstream and its assets in the Powder River Basin, further expanding its portfolio.
Business Operations
Western Midstream Partners, LP owns and operates various oil, natural gas, and water gathering systems, natural gas processing plants, oil treating facilities, and pipelines for crude oil, natural gas, and NGLs. The company's assets are located in several prolific U.S. basins including the Delaware Basin, DJ Basin, South Texas, Utah, and Wyoming. They operate 32 processing and treating facilities and 3,367 miles of pipeline in the Delaware Basin. In the DJ Basin, they run five active gas processing plants along with a Centralized Oil Stabilization Facility (COSF).
Equity Investments
Western Midstream Partners, LP holds equity investments in various assets across multiple states. These include nine gathering systems, processing plants, and pipelines. Notable investments are a 50% ownership in the Mi Vida gas processing plant in Ward County, TX, a 30% ownership in the Red Bluff Express natural-gas pipeline from Reeves County, TX to Waha, TX, and a 20% ownership in the Saddlehorn crude-oil pipeline from the DJ Basin to Cushing, OK. The company also holds significant stakes in the Front Range Pipeline, Texas Express Pipeline, and several other strategic infrastructure assets.
Key Facilities
Western Midstream Partners, LP operates several key facilities that are crucial to its operations. In the DJ Basin, the company's Central Oil Stabilization Facility includes two 250,000-barrel crude oil storage tanks with connectivity to local storage. In the Delaware Basin, the company operates three gas processing facilities with a combined capacity exceeding 1.640 Bcf/d. The Delaware Basin also features approximately 54 saltwater disposal wells with a capacity of 1,825 MBbl/d. These facilities are strategically designed to optimize the gathering, processing, and distribution of oil and natural gas.
Financial Performance
Western Midstream Partners, LP reported a record EBITDA in 2020 despite challenging market conditions due to the COVID-19 pandemic and reduced producer activity. Their diversified portfolio and equity investments have contributed to stable cash flow and financial stability. The company’s assets and operations are strategically positioned to capitalize on market opportunities and sustain long-term growth.