Western Midstream Partners, LP (WES): Business Model Canvas

Key Partnerships

Western Midstream Partners, LP (WES) has established key partnerships with various entities in the energy sector to facilitate its operations and expand its reach in the market.

• Joint ventures with energy companies: WES has entered into joint ventures with other energy companies to collaborate on infrastructure projects, share resources, and leverage each other's expertise. These partnerships help WES to efficiently develop and operate midstream assets, such as pipelines and processing plants, to transport and store natural gas.
• Contracts with petrochemical and refining companies: WES has secured long-term contracts with petrochemical and refining companies to provide them with reliable transportation and processing services for their natural gas and other energy products. These partnerships ensure a steady revenue stream for WES and enable it to support the operations of its customers.
• Agreements with natural gas producers: WES has established agreements with natural gas producers to gather, process, and transport their natural gas to end users. By partnering with natural gas producers, WES can access a stable supply of natural gas and expand its customer base by serving producers in different regions.

Overall, these key partnerships play a crucial role in WES's business model by enabling the company to access resources, share risks, and create value for its stakeholders in the energy sector.

Key Activities

Western Midstream Partners, LP (WES) engages in several key activities that are essential to its business model:

• One of WES's primary activities is the gathering, processing, and transporting of natural gas from producing wells to market hubs or other locations for further processing or distribution.
• This involves the construction and operation of natural gas gathering systems, processing plants, and pipelines to transport the gas efficiently and safely.
• WES has a network of gathering systems and pipelines that span several states and regions, allowing it to collect natural gas from various sources and deliver it to customers.

• In addition to natural gas, WES also produces and sells natural gas liquids (NGLs) as part of its key activities.
• NGLs are valuable byproducts of natural gas production and processing, including ethane, propane, butane, and natural gasoline.
• WES processes the natural gas it gathers to extract these NGLs, which can then be sold to customers for various industrial, commercial, and residential uses.

• WES is responsible for managing and operating a network of pipeline systems that transport natural gas, NGLs, and other products to different markets and customers.
• These pipeline systems are crucial to the company's operations and require constant monitoring, maintenance, and optimization to ensure efficient and reliable transportation of the products.
• WES invests in the construction, expansion, and maintenance of its pipeline infrastructure to meet the growing demand for energy transportation services.

Key Resources

Western Midstream Partners, LP (WES) relies on a variety of key resources to operate its business successfully. These resources include:

• Natural Gas Pipeline Networks: One of the most important resources for WES is its extensive network of natural gas pipelines. These pipelines allow the company to transport natural gas from production sites to processing plants and storage facilities. The reliability and efficiency of these pipelines are crucial to the overall operation of WES.
• Processing Plants and Storage Facilities: WES also owns and operates a number of processing plants and storage facilities. These facilities are used to process raw natural gas and prepare it for distribution. They also provide vital storage capacity for the company's natural gas products.
• Skilled Workforce in Pipeline Operations: Another key resource for WES is its skilled workforce in pipeline operations. These employees are responsible for the day-to-day operation and maintenance of the company's pipeline networks. Their expertise ensures that the pipelines function smoothly and safely, minimizing the risk of accidents or disruptions.

Value Propositions

1. Reliable and secure transportation of natural gas: Western Midstream Partners, LP (WES) offers a reliable and secure transportation network for natural gas, ensuring that our customers receive their gas in a timely and efficient manner. With pipelines and infrastructure strategically located throughout key producing regions, we are able to deliver natural gas to various markets with ease.

2. Competitive processing and storage solutions: WES provides state-of-the-art processing and storage facilities that are equipped to handle high volumes of natural gas. Our facilities are designed to meet the demands of our customers and provide competitive pricing and superior service.

3. Commitment to safety and environmental compliance: At WES, safety and environmental compliance are top priorities. We adhere to strict regulations and standards to ensure the safety of our employees, customers, and the environment. By prioritizing safety and compliance, we can build trust with our stakeholders and operate in a sustainable manner.

• Reliable and secure transportation of natural gas
• Competitive processing and storage solutions
• Commitment to safety and environmental compliance

Overall, Western Midstream Partners, LP (WES) provides value to its customers through its reliable transportation services, competitive processing and storage solutions, and commitment to safety and environmental compliance. By prioritizing these value propositions, WES aims to establish itself as a leader in the midstream energy sector.

Customer Relationships

Long-term contracts and agreements: Western Midstream Partners, LP (WES) focuses on establishing long-term contracts and agreements with its customers. By entering into these agreements, WES ensures a stable and predictable revenue stream while also building strong, lasting relationships with its clients.

Dedicated support and service management: WES provides dedicated support and service management to all its customers. This includes a team of experts who are available to address any issues or concerns that may arise, as well as proactively managing the performance of the services provided to ensure the highest level of satisfaction.

Regular communication and updates on service performance: WES believes in transparent communication with its customers. Regular updates on service performance, including progress reports and key performance indicators, are provided to clients to ensure they are informed and satisfied with the services being provided.

• Long-term contracts and agreements
• Dedicated support and service management
• Regular communication and updates on service performance

Channels

Direct Sales Teams: Western Midstream Partners, LP (WES) utilizes direct sales teams to engage with potential customers and negotiate contracts for the transportation and storage of natural gas and crude oil. These teams are responsible for building relationships with clients, understanding their specific needs, and offering tailored solutions to meet those needs.

Company Website: The company's website serves as a central hub for information and updates regarding WES's services, projects, and industry news. Potential customers can explore the website to learn more about the company's offerings, view case studies, and contact representatives for further inquiries.

Industry Conferences and Trade Shows: WES actively participates in industry conferences and trade shows to network with potential customers, suppliers, and partners. These events provide opportunities for the company to showcase its expertise, establish relationships, and secure deals with key players in the energy industry.

• Direct sales teams for contract negotiations
• Company website for information and updates
• Industry conferences and trade shows for networking and deals

Customer Segments

Western Midstream Partners, LP (WES) serves a diverse range of customers within the energy industry. The following are the key customer segments for WES:

• WES provides midstream services such as gathering, processing, and transportation of natural gas to upstream producers. These producers rely on WES to efficiently and safely transport their natural gas to market.
• WES also offers storage solutions for natural gas producers, allowing them to store excess gas during periods of low demand and access it when needed.

• WES caters to petrochemical and refining companies by providing transportation and storage solutions for natural gas liquids (NGLs) and other related products. These companies rely on WES to deliver NGLs to their facilities for use in manufacturing processes.
• Additionally, WES offers logistics and marketing services to petrochemical and refining companies, helping them optimize their supply chain and reach new markets.

• WES serves utilities and large-scale energy consumers by providing access to natural gas transportation infrastructure. These customers rely on WES to deliver natural gas to power plants, industrial facilities, and other end-users in a reliable and cost-effective manner.
• WES also offers natural gas storage services to utilities and large-scale energy consumers, allowing them to maintain supply security and manage fluctuations in demand.

Cost Structure

Operation and maintenance of pipeline systems: Western Midstream Partners, LP incurs significant costs in operating and maintaining its network of pipeline systems. This includes expenses related to monitoring, inspecting, repairing, and replacing pipelines to ensure their optimal functionality and safety. These costs cover a range of activities such as regular maintenance, emergency repairs, and integrity management programs.

Capital investments in infrastructure expansion: WES also dedicates a portion of its budget to capital investments in expanding its infrastructure. This may involve constructing new pipelines, compressor stations, or other facilities to meet the growing demand for midstream services. These investments are essential for the company to keep pace with industry trends and remain competitive in the market.

Regulatory compliance and safety measures: Compliance with regulations and safety measures is a top priority for WES. The company allocates resources to ensure that its operations adhere to federal, state, and local regulations governing the midstream sector. This includes conducting regular audits, implementing safety training programs, and investing in technologies to enhance pipeline monitoring and control.

• Regular maintenance
• Emergency repairs
• Integrity management programs

Overall, Western Midstream Partners, LP's cost structure is designed to support its core operations and strategic growth initiatives while prioritizing safety, compliance, and efficiency in its day-to-day activities.

Revenue Streams

Western Midstream Partners, LP generates revenue through various streams that contribute to its overall financial performance. These revenue streams include:

• Fees from transportation and processing services: WES earns revenue by providing transportation and processing services to oil and gas producers. These fees are typically based on the volume of natural gas transported or processed, as well as the distance the gas travels and the complexity of the processing involved.
• Sales of processed natural gas liquids: Another source of revenue for WES is the sale of processed natural gas liquids (NGLs). Once the natural gas has been processed, the NGLs are separated and sold to customers for various industrial and commercial uses.
• Long-term contracts and throughput agreements: WES also generates revenue through long-term contracts and throughput agreements with its customers. These agreements provide a steady stream of income for the company and help to mitigate the risks associated with fluctuations in commodity prices.

Overall, Western Midstream Partners, LP's diverse revenue streams help to ensure a stable and sustainable financial performance for the company.