Related-Party Transactions (Tables)

9 Months Ended

Sep. 30, 2021

The following tables summarize material related-party transactions included in the Partnership’s consolidated financial statements:


Consolidated statements of operations
	Three Months Ended September 30,				Nine Months Ended September 30,
thousands	2021		2020		2021		2020
Revenues and other
Service revenues – fee based	$	418,520	$	436,405	$	1,188,679	$	1,344,326
Service revenues – product based	1,499		2,544		9,662		6,690
Product sales	11,662		16,692		27,034		60,452
Total revenues and other	431,681		455,641		1,225,375		1,411,468
Equity income, net – related parties (1)	48,506		61,026		159,337		176,788
Operating expenses
Cost of product	17,384		1,483		53,968		85,353
Operation and maintenance	3,497		1,303		24,534		35,660
General and administrative (2)	1,808		7,607		13,003		40,456
Total operating expenses	22,689		10,393		91,505		161,469

Interest income – Anadarko note receivable	—		3,286		—		11,736

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(1)See Note 7.

(2)Includes (i) amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6) and (ii) equity-based compensation expense allocated to the Partnership by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6).





Consolidated balance sheets

thousands	September 30, 2021		December 31, 2020
Assets
Accounts receivable, net	$	289,402	$	291,253
Other current assets	29,021		5,493

Equity investments (1)	1,181,181		1,224,813
Other assets	76,560		50,967
Total assets	1,576,164		1,572,526
Liabilities
Accounts and imbalance payables	42,384		6,664

Accrued liabilities	19,232		19,195
Other liabilities	189,119		138,796
Total liabilities	250,735		164,655

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(1)See Note 7.

6. RELATED-PARTY TRANSACTIONS


Consolidated statements of cash flows
	Nine Months Ended September 30,
thousands	2021		2020
Distributions from equity-investment earnings – related parties	$	164,772	$	187,816
Purchases from related parties	(2,000)		—
Contributions to equity investments – related parties	(3,683)		(19,017)
Distributions from equity investments in excess of cumulative earnings – related parties	30,075		21,750


Distributions to Partnership unitholders (1)	(195,205)		(301,219)
Distributions to WES Operating unitholders (2)	(9,934)		(11,545)
Net contributions from (distributions to) related parties	6,673		22,674

Finance lease payments	—		(6,382)

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(1)Represents distributions paid to Occidental pursuant to the partnership agreement of the Partnership (see Note 4 and Note 5).

(2)Represents distributions paid to a certain subsidiary of Occidental pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5).

WES Operating [Member]

Related-Party Transactions Tables

The following tables summarize material related-party transactions for WES Operating (which are included in the Partnership’s consolidated financial statements) to the extent the amounts differ from the Partnership’s consolidated financial statements:


Consolidated statements of operations

	Three Months Ended September 30,				Nine Months Ended September 30,
thousands	2021		2020		2021		2020
General and administrative (1)	$	2,775	$	8,314	$	15,061	$	41,220

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(1)Includes (i) amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6), (ii) equity-based compensation expense allocated to WES Operating by Occidental, which is not reimbursed to Occidental and is reflected as a contribution to partners’ capital in the consolidated statements of equity and partners’ capital (see Incentive Plans within this Note 6), and (iii) an intercompany service fee between the Partnership and WES Operating.





Consolidated balance sheets
thousands	September 30, 2021		December 31, 2020
Accounts receivable, net	$	289,402	$	246,083
Accounts and imbalance payables (1)	83,576		6,664

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(1)As of September 30, 2021, includes balances related to transactions between the Partnership and WES Operating.


Consolidated statements of cash flows

	Nine Months Ended September 30,
thousands		2021		2020

Distributions to WES Operating unitholders (1)		$	(496,555)	$	(577,122)

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(1)Represents distributions paid to the Partnership and a certain subsidiary of Occidental pursuant to WES Operating’s partnership agreement. Includes a distribution made from WES Operating to the Partnership during the quarter ended September 30, 2021, that was used by the Partnership to repurchase common units on the open market. See Note 4 and Note 5.