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: September 30, 2024 December 31, 2023 thousands Principal Carrying Fair Value (1) Principal Carrying Fair Value (1) Short - term debt Commercial paper $ — $ — $ — $ 613,885 $ 610,312 $ 610,312 3.100% Senior Notes due 2025 663,831 663,418 658,879 — — — 3.950% Senior Notes due 2025 336,758 336,145 334,236 — — — Finance lease liabilities 8,455 8,455 8,455 7,436 7,436 7,436 Total short - term debt $ 1,009,044 $ 1,008,018 $ 1,001,570 $ 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 440,505 439,499 440,646 467,204 465,705 459,617 4.500% Senior Notes due 2028 342,935 340,991 339,955 357,094 354,665 346,121 4.750% Senior Notes due 2028 336,260 334,658 336,179 382,888 380,747 374,767 6.350% Senior Notes due 2029 600,000 593,964 637,500 600,000 593,069 626,994 4.050% Senior Notes due 2030 1,057,134 1,051,190 1,018,157 1,104,593 1,097,609 1,036,097 6.150% Senior Notes due 2033 750,000 741,668 793,103 750,000 741,125 780,203 5.450% Senior Notes due 2034 800,000 790,331 802,608 — — — 5.450% Senior Notes due 2044 600,000 594,151 568,686 600,000 594,031 545,154 5.300% Senior Notes due 2048 700,000 687,925 636,440 700,000 687,735 614,082 5.500% Senior Notes due 2048 350,000 343,016 325,073 350,000 342,913 312,365 5.250% Senior Notes due 2050 1,000,000 984,421 908,480 1,000,000 984,206 895,440 Finance lease liabilities 27,398 27,398 27,398 28,668 28,668 28,668 Total long - term debt $ 7,004,232 $ 6,929,212 $ 6,834,225 $ 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 nine months ended September 30, 2024: thousands Carrying Value 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 (251) Other (3,511) Balance at September 30, 2024 $ 7,937,230 ________________________________________________________________________________________ (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 September 30, 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 being due on 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. During the nine months ended September 30, 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 September 30, 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 three and nine months ended September 30, 2023, a gain of $8.6 million and $15.4 million, respectively, was recognized for the early retirement of portions of these notes. As of September 30, 2024, WES Operating was in compliance with all covenants under the relevant governing indentures. 10. DEBT AND INTEREST EXPENSE 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. As of September 30, 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 September 30, 2024 and 2023, the interest rate on any outstanding RCF borrowings was 6.15% and 6.62%, respectively. The facility - fee rate was 0.20% at September 30, 2024 and 2023. As of September 30, 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 September 30, 2024, there were no outstanding borrowings under the commercial paper program. Interest expense. The following table summarizes the amounts included in interest expense: Three Months Ended Nine Months Ended thousands 2024 2023 2024 2023 Long - term and short - term debt $ (93,555) $ (83,177) $ (278,361) $ (249,416) Finance lease liabilities (632) (223) (1,964) (616) Commitment fees and amortization of debt-related costs (3,244) (2,904) (9,929) (9,199) Capitalized interest 3,282 3,550 11,077 8,625 Interest expense $ (94,149) $ (82,754) $ (279,177) $ (250,606) |