v3.24.1.u1

Debt and Interest Expense | 3 Months Ended
--- | ---
Mar. 31, 2024
Debt Instruments [Abstract] |
Debt and Interest Expense | 10. 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, 2024 |  | December 31, 2023
thousands |  | Principal |  | Carrying Value |  | Fair Value (1) |  | Principal |  | Carrying Value |  | Fair Value (1)
Short-term debt |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper |  | $ | 100,000 |  |  | $ | 99,933 |  |  | $ | 99,933 |  |  | $ | 613,885 |  |  | $ | 610,312 |  |  | $ | 610,312 |
Finance lease liabilities |  | 8,461 |  |  | 8,461 |  |  | 8,461 |  |  | 7,436 |  |  | 7,436 |  |  | 7,436 |
Total short-term debt |  | $ | 108,461 |  |  | $ | 108,394 |  |  | $ | 108,394 |  |  | $ | 621,321 |  |  | $ | 617,748 |  |  | $ | 617,748 |
Long-term debt |  |  |  |  |  |  |  |  |  |  |  |
3.100% Senior Notes due 2025 |  | $ | 663,831 |  |  | $ | 662,804 |  |  | $ | 649,658 |  |  | $ | 666,481 |  |  | $ | 665,145 |  |  | $ | 650,765 |
3.950% Senior Notes due 2025 |  | 348,645 |  |  | 347,631 |  |  | 341,763 |  |  | 349,163 |  |  | 347,938 |  |  | 341,415 |
4.650% Senior Notes due 2026 |  | 467,204 |  |  | 465,848 |  |  | 458,425 |  |  | 467,204 |  |  | 465,705 |  |  | 459,617 |
4.500% Senior Notes due 2028 |  | 350,175 |  |  | 347,923 |  |  | 338,199 |  |  | 357,094 |  |  | 354,665 |  |  | 346,121 |
4.750% Senior Notes due 2028 |  | 381,848 |  |  | 379,816 |  |  | 370,935 |  |  | 382,888 |  |  | 380,747 |  |  | 374,767 |
6.350% Senior Notes due 2029 |  | 600,000 |  |  | 593,364 |  |  | 622,248 |  |  | 600,000 |  |  | 593,069 |  |  | 626,994 |
4.050% Senior Notes due 2030 |  | 1,100,612 |  |  | 1,093,906 |  |  | 1,025,726 |  |  | 1,104,593 |  |  | 1,097,609 |  |  | 1,036,097 |
6.150% Senior Notes due 2033 |  | 750,000 |  |  | 741,302 |  |  | 769,373 |  |  | 750,000 |  |  | 741,125 |  |  | 780,203 |
5.450% Senior Notes due 2044 |  | 600,000 |  |  | 594,070 |  |  | 551,802 |  |  | 600,000 |  |  | 594,031 |  |  | 545,154 |
5.300% Senior Notes due 2048 |  | 700,000 |  |  | 687,798 |  |  | 611,492 |  |  | 700,000 |  |  | 687,735 |  |  | 614,082 |
5.500% Senior Notes due 2048 |  | 350,000 |  |  | 342,947 |  |  | 310,674 |  |  | 350,000 |  |  | 342,913 |  |  | 312,365 |
5.250% Senior Notes due 2050 |  | 1,000,000 |  |  | 984,276 |  |  | 895,150 |  |  | 1,000,000 |  |  | 984,206 |  |  | 895,440 |
Finance lease liabilities |  | 30,394 |  |  | 30,394 |  |  | 30,394 |  |  | 28,668 |  |  | 28,668 |  |  | 28,668 |
Total long-term debt |  | $ | 7,342,709 |  |  | $ | 7,272,079 |  |  | $ | 6,975,839 |  |  | $ | 7,356,091 |  |  | $ | 7,283,556 |  |  | $ | 7,011,688 |
_________________________________________________________________________________________ (1)Fair value is measured using the market approach and Level-2 fair value inputs. 10. DEBT AND INTEREST EXPENSE Debt activity. The following table presents the debt activity for the three months ended March 31, 2024:
thousands |  | Carrying Value
Balance at December 31, 2023 |  | $ | 7,901,304 |
Commercial paper borrowings (repayments), net (1) |  | (510,379) |
Repayment of 3.100% Senior Notes due 2025 |  | (2,650) |
Repayment of 3.950% Senior Notes due 2025 |  | (518) |
Repayment of 4.500% Senior Notes due 2028 |  | (6,919) |
Repayment of 4.750% Senior Notes due 2028 |  | (1,040) |
Repayment of 4.050% Senior Notes due 2030 |  | (3,981) |
Finance lease liabilities |  | 2,751 |
Other |  | 1,905 |
Balance at March 31, 2024 |  | $ | 7,380,473 |
________________________________________________________________________________________ (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, 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 March 31, 2024, and were 3.790%, 4.671%, and 5.869%, respectively, at March 31, 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 three months ended March 31, 2024, WES Operating purchased and retired $15.1 million of certain of its senior notes via open-market repurchases with cash from operations (see Debt activity above) and a gain of $0.5 million was recognized for the early retirement of portions of these notes. As of March 31, 2024, the 3.100% Senior Notes due 2025 were classified as long-term debt on the consolidated balance sheet as WES Operating has the ability and intent to refinance these obligations using long-term debt. Subsequent to March 31, 2024, WES Operating purchased and retired $134.9 million of certain of its senior notes via open-market repurchases. 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. As of March 31, 2024, WES Operating was in compliance with all covenants under the relevant governing indentures. 10. DEBT AND INTEREST EXPENSE Revolving credit facility. 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. As of March 31, 2024, there were no outstanding borrowings and $0.5 million of outstanding letters of credit, resulting in $1.9 billion in effective borrowing capacity under the RCF, after taking into account the $100.0 million of outstanding commercial paper borrowings (see below), for which we maintain availability under the RCF as support for WES Operating’s commercial paper program. As of March 31, 2024 and 2023, the interest rate on any outstanding RCF borrowings was 6.63% and 6.21%, respectively. The facility-fee rate was 0.20% at March 31, 2024 and 2023. As of March 31, 2024, WES Operating was in compliance with all covenants under the RCF. 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 March 31, 2024, there were $100.0 million aggregate principal amount of short-term notes outstanding under the commercial paper program at a weighted-average interest rate of 6.00% and weighted-average maturity of four days. Interest expense. The following table summarizes the amounts included in interest expense:
|  |  |  | Three Months Ended March 31, |  |
thousands |  |  |  |  |  | 2024 |  | 2023 |  |
Long-term and short-term debt |  |  |  |  |  | $ | (95,956) |  |  | $ | (81,151) |  |  |
Finance lease liabilities |  |  |  |  |  | (677) |  |  | (163) |  |  |
Commitment fees and amortization of debt-related costs |  |  |  |  |  | (3,200) |  |  | (2,881) |  |  |
Capitalized interest |  |  |  |  |  | 5,327 |  |  | 2,525 |  |  |
Interest expense |  |  |  |  |  | $ | (94,506) |  |  | $ | (81,670) |  |  |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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