Related-Party Transactions (Tables)

12 Months Ended

Dec. 31, 2022

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	2022		2021		2020
Revenues and other
Service revenues – fee based	$	1,674,959	$	1,589,367	$	1,740,999
Service revenues – product based	56,907		11,888		8,509
Product sales	63,367		31,103		71,104
Total revenues and other	1,795,233		1,632,358		1,820,612
Equity income, net – related parties (1)	183,483		204,645		226,750
Operating expenses
Cost of product (2)	(25,447)		42,805		92,884
Operation and maintenance	5,081		27,805		49,533
General and administrative (3)	2,338		15,613		40,295
Total operating expenses	(18,028)		86,223		182,712
Gain (loss) on divestiture and other, net	(1,756)		420		(2,870)
Interest income – Anadarko note receivable	—		—		11,736

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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 years ended December 31, 2021 and 2020, 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
	December 31,
thousands	2022		2021


Assets
Accounts receivable, net	$	313,937	$	180,205
Other current assets	1,578		12,490

Equity investments (1)	944,696		1,167,187
Other assets	29,058		45,494
Total assets	1,289,269		1,405,376
Liabilities
Accounts and imbalance payables	32,150		49,242

Accrued liabilities	11,756		13,914
Other liabilities	268,399		207,365
Total liabilities	312,305		270,521

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(1)See Note 7.


Consolidated statements of cash flows
	Year Ended December 31,

thousands	2022		2021		2020
Distributions from equity-investment earnings – related parties	$	186,153	$	213,516	$	246,637
Capital expenditures	(470)		(2,000)		—

Contributions to equity investments – related parties	(9,632)		(4,435)		(19,388)
Distributions from equity investments in excess of cumulative earnings – related parties	63,897		41,385		32,160
Distributions to Partnership unitholders (1)	(372,468)		(272,192)		(381,949)
Distributions to WES Operating unitholders (2)	(24,898)		(14,984)		(15,434)
Net contributions from (distributions to) related parties	1,423		8,533		24,466
Proceeds from the sale of assets to related parties	200		—		—
Finance lease payments (3)	—		—		(6,382)
Unit repurchases from Occidental (4)	(252,500)		(50,225)		—

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(1)Represents common and general partner unit 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)Included in Other cash flows from financing activities in the consolidated statements of cash flows.

(4)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
	Year Ended December 31,

thousands	2022		2021		2020
General and administrative (1)	$	5,373	$	18,365	$	41,609

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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 years ended December 31, 2021 and 2020, also include amounts charged by Occidental pursuant to the shared services agreement (see Services Agreement within this Note 6).


Consolidated balance sheets
	December 31,
thousands	2022		2021


Accounts receivable, net	$	313,937	$	180,205
Other current assets	1,487		12,490
Other assets	28,459		45,494
Accounts and imbalance payables (1)	76,131		97,749
Accrued liabilities	11,439		13,597

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


Consolidated statements of cash flows
	Year Ended December 31,

thousands	2022		2021		2020
Distributions to WES Operating unitholders (1)	$	(1,244,533)	$	(749,018)	$	(771,546)

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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.