Western Midstream Partners, LP 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Commodity-price risk. There have been no significant changes to our commodity-price risk discussion from the disclosure set forth under Part II, Item 7A in our Form 10-K for the year ended December 31, 2023, except as noted below and in Outlook under Part I, Item 2 of this Form 10-Q. For the six months ended June 30, 2024, 95% of our wellhead natural - gas volume (excluding equity investments) and 100% of our crude - oil and produced - water throughput (excluding equity investments) were serviced under fee - based contracts. A 10% increase or decrease in commodity prices would not have a material impact on our operating income (loss), financial condition, or cash flows for the next 12 months, excluding the effect of imbalances. Interest-rate risk. The Federal Open Market Committee increased its target range four times for the federal funds rate in 2023 and has made no changes to its target range during the six months ended June 30, 2024. Any future increases in the federal funds rate likely will result in an increase in financing costs. As of June 30, 2024, WES Operating had (i) no outstanding borrowings under the RCF that bear interest at a rate based on the Secured Overnight Financing Rate (“SOFR”) or an alternative base rate at WES Operating’s option and (ii) no outstanding commercial paper borrowings. While a 10% change in the applicable benchmark interest rate would not materially impact interest expense on our outstanding borrowings at June 30, 2024, it would impact the fair value of the senior notes. Additional short-term or variable - rate debt may be issued in the future, either under the RCF or other financing sources, including commercial paper borrowings or debt issuances. 58 Table of Contents