Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2021

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


Consolidated statements of operations
	Year Ended December 31,

thousands	2021		2020		2019
Revenues and other
Service revenues – fee based	$	1,589,367	$	1,740,999	$	1,441,875
Service revenues – product based	11,888		8,509		7,062
Product sales	31,103		71,104		158,459
Total revenues and other	1,632,358		1,820,612		1,607,396
Equity income, net – related parties (1)	204,645		226,750		237,518
Operating expenses
Cost of product	42,805		92,884		254,771
Operation and maintenance	27,805		49,533		146,990
General and administrative (2)	15,613		40,295		101,485
Total operating expenses	86,223		182,712		503,246
Gain (loss) on divestiture and other, net	420		(2,870)		—
Interest income – Anadarko note receivable	—		11,736		16,900
Interest expense	—		(6)		(1,970)

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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
	December 31,
thousands	2021		2020


Assets
Accounts receivable, net	$	180,205	$	291,253
Other current assets	12,490		5,493

Equity investments (1)	1,167,187		1,224,813
Other assets	45,494		50,967
Total assets	1,405,376		1,572,526
Liabilities
Accounts and imbalance payables	49,242		6,664

Accrued liabilities	13,914		19,195
Other liabilities	207,365		138,796
Total liabilities	270,521		164,655

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(1)See Note 7.

6. RELATED-PARTY TRANSACTIONS


Consolidated statements of cash flows
	Year Ended December 31,

thousands	2021		2020		2019
Distributions from equity-investment earnings – related parties	$	213,516	$	246,637	$	234,572
Capital expenditures	(2,000)		—		(425)
Acquisitions from related parties	—		—		(2,007,501)
Contributions to equity investments – related parties	(4,435)		(19,388)		(128,393)
Distributions from equity investments in excess of cumulative earnings – related parties	41,385		32,160		30,256
APCWH Note Payable borrowings	—		—		11,000
Repayment of APCWH Note Payable	—		—		(439,595)
Distributions to Partnership unitholders (1)	(260,703)		(367,861)		(566,868)
Distributions to WES Operating unitholders (2)	(14,984)		(15,434)		(19,768)
Net contributions from (distributions to) related parties	8,533		24,466		458,819
Above-market component of swap agreements with Anadarko	—		—		7,407
Finance lease payments	—		(6,382)		(508)
Unit repurchases from Occidental (3)	(50,225)		—		—

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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 Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement (see Note 4 and Note 5).

(3)The Partnership repurchased 2.5 million common units from Occidental during the year ended December 31, 2021 (see 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
	Year Ended December 31,

thousands	2021		2020		2019
General and administrative (1)	$	18,365	$	41,609	$	99,613

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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
	December 31,
thousands	2021		2020


Accounts receivable, net	$	180,205	$	246,083
Accounts and imbalance payables (1)	97,749		6,664

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(1)As of December 31, 2021, includes balances related to transactions between the Partnership and WES Operating.

6. RELATED-PARTY TRANSACTIONS


Consolidated statements of cash flows
	Year Ended December 31,

thousands	2021		2020		2019

Distributions to WES Operating unitholders (1)	$	(749,018)	$	(771,546)	$	(1,025,931)

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(1)Represents distributions paid to the Partnership and Occidental, through its ownership of WGRAH, pursuant to WES Operating’s partnership agreement. Includes distributions made from WES Operating to the Partnership during the years ended December 31, 2021 and 2020, that were used by the Partnership to repurchase common units. See Note 4 and Note 5.