Related-Party Transactions (Tables)

9 Months Ended

Sep. 30, 2022

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	2022		2021		2022		2021
Revenues and other
Service revenues – fee based	$	431,944	$	418,520	$	1,275,474	$	1,188,679
Service revenues – product based	24,246		1,499		48,297		9,662
Product sales	20,323		11,662		38,232		27,034
Total revenues and other	476,513		431,681		1,362,003		1,225,375
Equity income, net – related parties (1)	41,317		48,506		139,388		159,337
Operating expenses
Cost of product (2)	(7,771)		17,384		(39,462)		53,968
Operation and maintenance	3,231		3,497		3,874		24,534
General and administrative (3)	81		1,808		2,289		13,003
Total operating expenses	(4,459)		22,689		(33,299)		91,505

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(1)See Note 7.

(2)Includes related-party natural-gas and NGLs imbalances.

(3)Includes 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). Balances for the three and nine months ended September 30, 2021, also include amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6).

6. RELATED-PARTY TRANSACTIONS





Consolidated balance sheets
thousands	September 30, 2022		December 31, 2021
Assets
Accounts receivable, net	$	327,285	$	180,205
Other current assets	18,486		12,490

Equity investments (1)	1,142,103		1,167,187
Other assets	45,544		45,494
Total assets	1,533,418		1,405,376
Liabilities
Accounts and imbalance payables	65,484		49,242

Accrued liabilities	7,439		13,914
Other liabilities	253,912		207,365
Total liabilities	326,835		270,521

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(1)See Note 7.


Consolidated statements of cash flows

	Nine Months Ended September 30,
thousands	2022		2021
Distributions from equity-investment earnings – related parties	$	139,710	$	164,772
Capital expenditures	—		(2,000)

Contributions to equity investments – related parties	(8,899)		(3,683)
Distributions from equity investments in excess of cumulative earnings – related parties	41,058		30,075
Distributions to Partnership unitholders (1)	(260,774)		(195,205)
Distributions to WES Operating unitholders (2)	(20,177)		(9,934)
Net contributions from (distributions to) related parties	1,161		6,673

Unit repurchases from Occidental (3)	(252,500)		—

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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)Represents common units repurchased from Occidental (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 materially from the Partnership’s consolidated financial statements:


Consolidated statements of operations

	Three Months Ended September 30,				Nine Months Ended September 30,
thousands	2022		2021		2022		2021
General and administrative (1)	$	795	$	2,775	$	4,662	$	15,061

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(1)Includes (i) an intercompany service fee between the Partnership and WES Operating and (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). Balances for the three and nine months ended September 30, 2021, also include amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6).





Consolidated balance sheets
thousands	September 30, 2022		December 31, 2021

Other current assets	$	18,473	$	12,490
Other assets	44,899		45,494
Accounts and imbalance payables (1)	100,159		97,749
Accrued liabilities	7,122		13,597

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(1)Includes balances related to transactions between the Partnership and WES Operating.


Consolidated statements of cash flows

	Nine Months Ended September 30,
thousands		2022		2021
Distributions to WES Operating unitholders (1)		$	(1,008,572)	$	(496,555)

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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 that were used by the Partnership to repurchase common units. See Note 4 and Note 5.