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Debt and Interest Expense
 12 Months Ended
Dec. 31, 2024
Debt Instruments [Abstract]  
Debt and Interest Expense
13. DEBT AND INTEREST EXPENSE

WES Operating is the borrower for all outstanding debt and is expected to be the borrower for all future debt issuances. The following table presents the outstanding debt:
 December 31, 2024December 31, 2023
thousandsPrincipalCarrying
Value
Fair
Value (1)
PrincipalCarrying
Value
Fair
Value (1)
Short-term debt
Commercial paper$— $— $— $613,885 $610,312 $610,312 
3.100% Senior Notes due 2025
663,831 663,727 662,457 — — — 
3.950% Senior Notes due 2025
336,758 336,349 335,209 — — — 
Finance lease liabilities10,956 10,956 10,956 7,436 7,436 7,436 
Total short-term debt
$1,011,545 $1,011,032 $1,008,622 $621,321 $617,748 $617,748 
Long-term debt
3.100% Senior Notes due 2025
$— $— $— $666,481 $665,145 $650,765 
3.950% Senior Notes due 2025
— — — 349,163 347,938 341,415 
4.650% Senior Notes due 2026
440,505 439,637 438,699 467,204 465,705 459,617 
4.500% Senior Notes due 2028
342,935 341,123 336,207 357,094 354,665 346,121 
4.750% Senior Notes due 2028
336,260 334,753 330,483 382,888 380,747 374,767 
6.350% Senior Notes due 2029
600,000 594,270 621,936 600,000 593,069 626,994 
4.050% Senior Notes due 2030
1,057,134 1,051,440 992,321 1,104,593 1,097,609 1,036,097 
6.150% Senior Notes due 2033
750,000 741,857 764,760 750,000 741,125 780,203 
5.450% Senior Notes due 2034
800,000 790,511 772,536 — — — 
5.450% Senior Notes due 2044
600,000 594,192 534,096 600,000 594,031 545,154 
5.300% Senior Notes due 2048
700,000 687,990 595,826 700,000 687,735 614,082 
5.500% Senior Notes due 2048
350,000 343,051 304,003 350,000 342,913 312,365 
5.250% Senior Notes due 2050
1,000,000 984,494 857,260 1,000,000 984,206 895,440 
Finance lease liabilities23,329 23,329 23,329 28,668 28,668 28,668 
Total long-term debt
$7,000,163 $6,926,647 $6,571,456 $7,356,091 $7,283,556 $7,011,688 
_________________________________________________________________________________________
(1)Fair value is measured using the market approach and Level-2 fair value inputs.
13. DEBT AND INTEREST EXPENSE

Debt activity. The following table summarizes debt activity for the periods presented:
thousandsCarrying Value
Balance at December 31, 2022$6,785,362 
RCF borrowings1,120,000 
Commercial paper borrowings (1)
610,312 
Repayments of RCF borrowings(1,495,000)
Issuance of 6.350% Senior Notes due 2029
600,000 
Issuance of 6.150% Senior Notes due 2033
750,000 
Repayment of Floating-Rate Senior Notes due 2023(213,138)
Repayment of 3.100% Senior Notes due 2025
(64,225)
Repayment of 3.950% Senior Notes due 2025
(50,000)
Repayment of 4.650% Senior Notes due 2026
(7,038)
Repayment of 4.500% Senior Notes due 2028
(42,906)
Repayment of 4.750% Senior Notes due 2028
(17,112)
Repayment of 4.050% Senior Notes due 2030
(95,407)
Finance lease liabilities29,285 
Other(8,829)
Balance at December 31, 2023$7,901,304 
Commercial paper borrowings (repayments), net (1)
(610,312)
Issuance of 5.450% Senior Notes due 2034
800,000 
Repayment of 3.100% Senior Notes due 2025
(2,650)
Repayment of 3.950% Senior Notes due 2025
(12,405)
Repayment of 4.650% Senior Notes due 2026
(26,699)
Repayment of 4.500% Senior Notes due 2028
(14,159)
Repayment of 4.750% Senior Notes due 2028
(46,628)
Repayment of 4.050% Senior Notes due 2030
(47,459)
Finance lease liabilities(1,819)
Other(1,494)
Balance at December 31, 2024$7,937,679 
________________________________________________________________________________________
(1)Net of borrowings and repayments related to commercial paper notes with original maturities of 90 days or less.

WES Operating Senior Notes. WES Operating issued the Fixed-Rate 3.100% Senior Notes due 2025, 4.050% Senior Notes due 2030, and 5.250% Senior Notes due 2050 and the Floating-Rate Senior Notes due 2023 in January 2020. Including the effects of the issuance prices, underwriting discounts, and interest-rate adjustments, the effective interest rates of the Senior Notes due 2025, 2030, and 2050, were 3.290%, 4.169%, and 5.363%, respectively, at December 31, 2024 and 2023. The effective interest rate of these notes is subject to adjustment from time to time due to a change in credit rating.
During the third quarter of 2024, WES Operating completed the public offering of $800.0 million in aggregate principal amount of 5.450% Senior Notes due 2034. Interest is payable semi-annually on May 15th and November 15th of each year, with the initial interest payment due May 15, 2025. Net proceeds from the offering will be used to repay a portion of the maturing 3.100% Senior Notes due 2025 and 3.950% Senior Notes due 2025 and for general partnership purposes, including the funding of capital expenditures.
13. DEBT AND INTEREST EXPENSE

During the year ended December 31, 2024, WES Operating purchased and retired $150.0 million of certain of its senior notes via open-market repurchases with cash from operations (see Debt activity above) and a gain of $5.4 million was recognized for the early retirement of portions of these notes. As of December 31, 2024, the 3.100% Senior Notes due 2025 and 3.950% Senior Notes due 2025 were classified as short-term debt on the consolidated balance sheet.
During the third quarter of 2023, WES Operating completed the public offering of $600.0 million in aggregate principal amount of 6.350% Senior Notes due 2029. Net proceeds from the offering were used to fund a portion of the aggregate purchase price for the Meritage acquisition (see Note 3), to pay related costs and expenses, and for general partnership purposes. During the second quarter of 2023, WES Operating completed the public offering of $750.0 million in aggregate principal amount of 6.150% Senior Notes due 2033. Net proceeds from the offering were used to repay borrowings under the RCF and for general partnership purposes. In addition, during 2023, WES Operating purchased and retired $276.7 million of certain of its senior notes via open-market repurchases and redeemed the total principal amount outstanding on the Floating-Rate Senior Notes due 2023 at par value with cash on hand. For the year ended December 31, 2023, a gain of $15.4 million was recognized for the early retirement of portions of these notes. Subsequent to December 31, 2024, WES Operating retired the 3.100% Senior Notes due 2025 on the maturity date of February 3, 2025.
As of December 31, 2024, WES Operating was in compliance with all covenants under the relevant governing indentures.

Revolving credit facility. In May 2024, WES Operating entered into an amendment to the RCF to exercise an option to extend the maturity date of the RCF from April 2028 to April 2029, for each extending lender. The non-extending lender’s commitments mature in April 2028 and represent $120.0 million out of $2.0 billion of total commitments from all lenders.
In April 2023, WES Operating (i) repaid all then-outstanding borrowings under its RCF with proceeds from the 6.150% Senior Notes due 2033 offering and (ii) entered into an amendment to its RCF to, among other things, extend the maturity date to April 2028 and provide for a maximum borrowing capacity up to $2.0 billion, expandable to a maximum of $2.5 billion, through the maturity date.
The RCF bears interest at an Adjusted Term SOFR (as defined in the RCF amendment), plus applicable margins ranging from 1.00% to 1.70%, or an alternate base rate equal to the greatest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.50%, or (c) Adjusted Term SOFR for a one-month tenor in effect on such day plus 1.00%, in each case plus applicable margins currently ranging from zero to 0.70%, based on WES Operating’s senior unsecured debt rating. A required quarterly facility fee is paid ranging from 0.125% to 0.300% of the commitment amount (whether drawn or undrawn), which also is based on the senior unsecured debt rating.
The RCF contains certain covenants that limit, among other things, WES Operating’s ability, and that of certain of its subsidiaries, to incur additional indebtedness, grant certain liens, merge, consolidate, or allow any material change in the character of its business, enter into certain related-party transactions, and use proceeds other than for partnership purposes. The RCF also contains various customary covenants, certain events of default, and a maximum consolidated leverage ratio as of the end of each fiscal quarter (which is defined as the ratio of consolidated indebtedness as of the last day of a fiscal quarter to Consolidated EBITDA, as defined in the RCF agreement, for the most-recent four-consecutive fiscal quarters ending on such day) of 5.0 to 1.0, or a consolidated leverage ratio of 5.5 to 1.0 with respect to quarters ending in the 270-day period immediately following certain acquisitions. As a result of certain covenants contained in the RCF, our capacity to borrow under the RCF may be limited.
As of December 31, 2024, there were no outstanding borrowings and no outstanding letters of credit, resulting in $2.0 billion in effective borrowing capacity under the RCF. Any outstanding commercial paper borrowings (see below) reduce the effective borrowing capacity under the RCF as WES Operating maintains availability under the RCF as support for its commercial paper program. As of December 31, 2024 and 2023, the interest rate on any outstanding RCF borrowings was 5.63% and 6.65%, respectively. The facility-fee rate was 0.20% at December 31, 2024 and 2023. As of December 31, 2024, WES Operating was in compliance with all covenants under the RCF.
13. DEBT AND INTEREST EXPENSE

Commercial paper program. In November 2023, WES Operating entered into an unsecured commercial paper program under which it may issue (and have outstanding at any one time) an aggregate principal amount up to $2.0 billion. WES Operating intends to maintain a minimum aggregate available borrowing capacity under the RCF equal to the aggregate amount of outstanding commercial paper borrowings. The maturities of the notes may vary, but may not exceed 397 days. As of December 31, 2024, there were no outstanding borrowings under the commercial paper program.

Interest expense. The following table summarizes the amounts included in interest expense:
Year Ended December 31,
thousands202420232022
Long-term and short-term debt
$(377,850)$(348,393)$(326,949)
Finance lease liabilities(2,573)(1,083)(414)
Commitment fees and amortization of debt-related costs(13,305)(12,395)(12,212)
Capitalized interest 15,215 13,643 5,636 
Interest expense$(378,513)$(348,228)$(333,939)