Business Context and Reporting Period
Company: Western Midstream Partners, LP (WES)
Filing Type: Form 8-K (Current Report)
Date of Report: November 16, 2023
Event: Entry into a Material Definitive Agreement regarding a new commercial paper program.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or existing debt levels. It establishes a new financing facility with the following parameters:
- Commercial Paper Program Size: $2,000,000,000 (Maximum principal amount of outstanding notes at any one time).
- Instrument Type: Unsecured short-term promissory notes.
- Maximum Maturity: 397 days.
- Issuance Status: As of the filing date, no notes have been issued.
- Use of Proceeds: General partnership purposes.
Material Changes Versus Prior Period
The filing does not provide comparative financial data or discuss changes in operating metrics versus prior periods. The material change is the establishment of the $2 billion commercial paper program, which was not in existence prior to November 16, 2023.
Guidance, Outlook, and Risks
Management Commentary: The program allows WES Operating to issue notes at a discounted price or with interest, dependent on market conditions and credit ratings assigned by rating agencies at the time of issuance.
Risks and Contingencies:
- Notes are unregistered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption.
- Cost of borrowing (discount or interest) is variable and tied to market conditions and credit ratings.
- Dealers and affiliates may provide future banking and advisory services for which customary fees will be charged.
Investor Verification Checklist
- Verify the credit ratings assigned to the CP Program by major rating agencies to assess potential borrowing costs.
- Monitor future issuances to determine the actual utilization of the $2 billion facility.
- Review the full text of the Dealer Agreement (Exhibit 10.1) for specific covenants and indemnification provisions.
- Check subsequent filings for any actual drawdowns on the commercial paper program.