v3.22.1

Debt and Interest Expense | 3 Months Ended
--- | ---
Mar. 31, 2022
Debt Instruments [Abstract] |
Debt and Interest Expense | 9. 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:
|  | March 31, 2022 |  | December 31, 2021
thousands |  | Principal |  | Carrying Value |  | Fair Value (1) |  | Principal |  | Carrying Value |  | Fair Value (1)
Short-term debt |  |  |  |  |  |  |  |  |  |  |  |
4.000% Senior Notes due 2022 |  | $ | 502,246 |  |  | $ | 502,192 |  |  | $ | 502,250 |  |  | $ | 502,246 |  |  | $ | 502,138 |  |  | $ | 505,153 |
Floating-Rate Senior Notes due 2023 |  | 213,138 |  |  | 212,760 |  |  | 212,425 |  |  | — |  |  | — |  |  | — |
Finance lease liabilities |  | 3,201 |  |  | 3,201 |  |  | 3,201 |  |  | 3,794 |  |  | 3,794 |  |  | 3,794 |
Total short-term debt |  | $ | 718,585 |  |  | $ | 718,153 |  |  | $ | 717,876 |  |  | $ | 506,040 |  |  | $ | 505,932 |  |  | $ | 508,947 |
Long-term debt |  |  |  |  |  |  |  |  |  |  |  |
Floating-Rate Senior Notes due 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 213,138 |  |  | $ | 212,642 |  |  | $ | 213,072 |
3.100% Senior Notes due 2025 |  | 732,106 |  |  | 728,404 |  |  | 728,061 |  |  | 732,106 |  |  | 728,096 |  |  | 764,815 |
3.950% Senior Notes due 2025 |  | 399,163 |  |  | 396,149 |  |  | 402,063 |  |  | 399,163 |  |  | 395,928 |  |  | 418,506 |
4.650% Senior Notes due 2026 |  | 474,242 |  |  | 471,761 |  |  | 485,982 |  |  | 474,242 |  |  | 471,629 |  |  | 516,473 |
4.500% Senior Notes due 2028 |  | 400,000 |  |  | 396,281 |  |  | 407,380 |  |  | 400,000 |  |  | 396,145 |  |  | 437,673 |
4.750% Senior Notes due 2028 |  | 400,000 |  |  | 397,037 |  |  | 413,219 |  |  | 400,000 |  |  | 396,938 |  |  | 444,550 |
4.050% Senior Notes due 2030 |  | 1,200,000 |  |  | 1,190,584 |  |  | 1,201,380 |  |  | 1,200,000 |  |  | 1,190,339 |  |  | 1,323,595 |
5.450% Senior Notes due 2044 |  | 600,000 |  |  | 593,769 |  |  | 609,529 |  |  | 600,000 |  |  | 593,733 |  |  | 717,804 |
5.300% Senior Notes due 2048 |  | 700,000 |  |  | 687,321 |  |  | 694,990 |  |  | 700,000 |  |  | 687,265 |  |  | 844,223 |
5.500% Senior Notes due 2048 |  | 350,000 |  |  | 342,689 |  |  | 347,087 |  |  | 350,000 |  |  | 342,659 |  |  | 418,907 |
5.250% Senior Notes due 2050 |  | 1,000,000 |  |  | 983,765 |  |  | 982,278 |  |  | 1,000,000 |  |  | 983,709 |  |  | 1,183,514 |
Finance lease liabilities |  | 990 |  |  | 990 |  |  | 990 |  |  | 1,533 |  |  | 1,533 |  |  | 1,533 |
Total long-term debt |  | $ | 6,256,501 |  |  | $ | 6,188,750 |  |  | $ | 6,272,959 |  |  | $ | 6,470,182 |  |  | $ | 6,400,616 |  |  | $ | 7,284,665 |
_________________________________________________________________________________________ (1)Fair value is measured using the market approach and Level-2 fair value inputs. 9. DEBT AND INTEREST EXPENSE Debt activity. The following table presents the debt activity for the three months ended March 31, 2022:
thousands |  | Carrying Value
Balance at December 31, 2021 |  | $ | 6,906,548 |
Finance lease liabilities |  | (1,135) |
Other |  | 1,490 |
Balance at March 31, 2022 |  | $ | 6,906,903 |
WES Operating Senior Notes. In mid-January 2020, 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 (collectively referred to as the “Fixed-Rate Senior Notes”) and the Floating-Rate Senior Notes due 2023 (the “Floating-Rate Senior Notes”). 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 3.790%, 4.671%, and 5.869%, respectively, at March 31, 2022, and were 4.542%, 5.424%, and 6.629%, respectively, at March 31, 2021. The interest rate on the Floating-Rate Senior Notes was 1.84% and 2.33% at March 31, 2022 and 2021, respectively. The effective interest rate of these notes is subject to adjustment from time to time due to a change in credit rating. During the first quarter of 2021, WES Operating redeemed the total principal amount outstanding of the 5.375% Senior Notes due 2021 at par value, pursuant to the optional redemption terms in WES Operating’s indenture. As of March 31, 2022, the 4.000% Senior Notes due 2022 and the Floating-Rate Senior Notes were classified as short-term debt on the consolidated balance sheet. Subsequent to March 31, 2022, WES Operating redeemed the 4.000% Senior Notes due 2022 at par value on April 1, 2022, pursuant to the optional redemption terms in WES Operating’s indenture. At March 31, 2022, WES Operating was in compliance with all covenants under the relevant governing indentures. Revolving credit facility. WES Operating’s $2.0 billion senior unsecured revolving credit facility (“RCF”) is expandable to a maximum of $2.5 billion, and matures in February 2025 for each extending lender. The non-extending lender’s commitments mature in February 2024 and represent $100.0 million out of $2.0 billion of total commitments from all lenders. As of March 31, 2022, there were no outstanding borrowings and $5.1 million of outstanding letters of credit, resulting in $2.0 billion of available borrowing capacity under the RCF. As of March 31, 2022 and 2021, the interest rate on any outstanding RCF borrowings was 1.95% and 1.61%, respectively. The facility-fee rate was 0.25% at March 31, 2022 and 2021. At March 31, 2022, WES Operating was in compliance with all covenants under the RCF. Finance lease liabilities. During the first quarter of 2020, the Partnership entered into finance leases with third parties for equipment and vehicles. Certain of these equipment leases were amended during the third quarter of 2021 requiring reassessment of lease classification. As a result, these leases were classified as operating leases. The Partnership has future payments for its finance leases of $4.3 million as of March 31, 2022. 9. DEBT AND INTEREST EXPENSE Interest expense. The following table summarizes the amounts included in interest expense:
|  |  |  | Three Months Ended March 31, |  |
thousands |  |  |  |  |  | 2022 |  | 2021 |  |
Long-term and short-term debt |  |  |  |  |  | $ | (83,428) |  |  | $ | (95,722) |  |  |
Finance lease liabilities |  |  |  |  |  | (42) |  |  | (298) |  |  |
Commitment fees and amortization of debt-related costs |  |  |  |  |  | (3,032) |  |  | (3,338) |  |  |
Capitalized interest |  |  |  |  |  | 1,047 |  |  | 865 |  |  |
Interest expense |  |  |  |  |  | $ | (85,455) |  |  | $ | (98,493) |  |  |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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