Western Gas Announces Third-Quarter 2017 Results
HOUSTON, Oct. 31, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced third-quarter 2017 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the third quarter of 2017 totaled $65.1 million, or $0.38 per common unit (diluted), with third-quarter 2017 Adjusted EBITDA((1)) of $257.8 million and third-quarter 2017 Distributable cash flow((1)) of $231.9 million.
WES previously declared a quarterly distribution of $0.905 per unit for the third quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the third-quarter 2016 distribution of $0.845 per unit. The third-quarter 2017 Coverage ratio((1)) of 1.09 times was based on the quarterly distribution of $0.905 per unit.
"Our portfolio continues to display strong quarterly performance, driven by accelerated producer activity in the DJ and Delaware Basins, despite the over $3.0 million impact to Adjusted EBITDA associated with extreme weather events," said Chief Executive Officer, Benjamin Fink. "Our Ramsey processing facility is nearing capacity as we prepare to commission Ramsey VI later this quarter, and we remain confident that the growing production in the Delaware and DJ Basins will support the significant processing capacity we are adding at our new Mentone and Latham facilities, both of which are on schedule."
(1) Please see the tables at the
end of this release for a
reconciliation of GAAP to non-
GAAP measures and calculation of
the Coverage ratio.
Total throughput attributable to WES for natural gas assets for the third quarter of 2017 averaged 3.4 Bcf/d, which was 1% below the prior quarter (virtually flat when adjusted for the Helper and Clawson divestitures in June 2017) and 16% below the third quarter of 2016. Total throughput for crude, NGL and produced water assets for the third quarter of 2017 averaged 209 MBbls/d, which was 15% above the prior quarter and 13% above the third quarter of 2016.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $156.5 million on a cash basis and $222.3 million on an accrual basis during the third quarter of 2017, with maintenance capital expenditures on a cash basis of $10.6 million. WES is updating its 2017 outlook for capital expenditures to a range of $800 million to $850 million and maintenance capital expenditures to a range of $50 million to $55 million.
WESTERN GAS EQUITY PARTNERS, LP
WGP indirectly owns the entire general partner interest in WES, 100% of the incentive distribution rights in WES and 50,132,046 WES common units. Net income (loss) available to limited partners for the third quarter of 2017 totaled $96.2 million, or $0.44 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.53750 per unit for the third quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 20% increase over the third-quarter 2016 distribution of $0.44750 per unit. WGP will receive distributions from WES of $119.3 million attributable to the third quarter and will pay $117.7 million in distributions for the same period.
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
WES and WGP will host a joint conference call on Wednesday, November 1, 2017, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss third-quarter 2017 results. Individuals who would like to participate should dial 877-883-0383 (Domestic) or 412-902-6506 (International) approximately 15 minutes before the scheduled conference call time, and enter participant access code 4666075. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, compressing, treating, processing and transporting natural gas; gathering, stabilizing and transporting condensate, natural gas liquids and crude oil; and gathering and disposing of produced water for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.
This news release contains forward-looking statements. WES and WGP's management believes that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs and related products or services; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in their other public filings and press releases. Western Gas Partners and Western Gas Equity Partners undertake no obligation to publicly update or revise any forward-looking statements.
WESTERN GAS CONTACT
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of (i) net income (loss) attributable to Western Gas Partners, LP (GAAP) to WES's Distributable cash flow (non-GAAP), (ii) net income (loss) attributable to Western Gas Partners, LP (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing its ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio should be considered in conjunction with net income (loss) attributable to Western Gas Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Distributable Cash Flow
WES defines Distributable cash flow as Adjusted EBITDA, plus interest income and the net settlement amounts from the sale and/or purchase of natural gas, condensate and NGLs under WES's commodity price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less net cash paid (or to be paid) for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, Series A Preferred unit distributions and income taxes.
Three Months Ended Nine Months Ended
September 30, September 30,
thousands except Coverage
ratio 2017 2016 2017 2016
------------------------- ---- ---- ---- ----
Reconciliation of Net
income (loss)
attributable to Western
Gas Partners, LP to
Distributable cash flow
and calculation of the
Coverage ratio
Net income (loss)
attributable to Western
Gas Partners, LP $143,506 $167,746 $418,846 $448,327
Add:
Distributions from equity
investments 29,145 27,133 80,568 76,263
Non-cash equity-based
compensation expense 1,258 1,469 3,479 4,018
Non-cash settled -
interest expense, net
(1) - (1,173) 71 (12,097)
Income tax (benefit)
expense 510 472 4,905 7,431
Depreciation and
amortization (2) 71,812 66,589 214,213 197,678
Impairments 2,159 2,392 170,079 11,313
Above-market component
of swap agreements with
Anadarko 18,049 18,417 46,719 34,782
Other expense (2) - 40 140 96
Less:
Gain (loss) on
divestiture and other,
net 72 (6,230) 135,017 (8,769)
Equity income, net -
affiliates 21,519 20,294 62,708 56,801
Cash paid for maintenance
capital expenditures (2) 10,591 15,306 33,115 55,288
Capitalized interest 2,115 1,343 3,991 4,674
Cash paid for
(reimbursement of)
income taxes - - 189 67
Series A Preferred unit
distributions - 14,907 7,453 30,876
Other income (2) 283 150 960 272
--------------- --- --- ---
Distributable cash flow $231,859 $237,315 $695,587 $628,602
----------------------- -------- -------- -------- --------
Distributions declared
(3)
Limited partners - common
units $138,105 $397,850
General partner 73,933 210,432
--------------- ------ -------
Total $212,038 $608,282
----- -------- --------
Coverage ratio 1.09 x 1.14 x
-------------- ---- --- ----
(1) Includes amounts related to the
Deferred purchase price
obligation -Anadarko.
(2) Includes WES's 75% share of
depreciation and amortization;
other expense; cash paid for
maintenance capital expenditures;
and other income attributable to
Chipeta.
(3) Reflects cash distributions of
$0.905 and $2.670 per unit
declared for the three and nine
months ended September 30, 2017,
respectively.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted EBITDA Attributable to Western Gas Partners, LP
WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investments, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairments, and other expense (including lower of cost or market inventory adjustments recorded in cost of product), less gain (loss) on divestiture and other, net, income from equity investments, interest income, income tax benefit, and other income.
Three Months Ended Nine Months Ended
September 30, September 30,
thousands 2017 2016 2017 2016
--------- ---- ---- ---- ----
Reconciliation of Net
income (loss)
attributable to
Western Gas Partners,
LP to Adjusted EBITDA
attributable to
Western Gas Partners,
LP
Net income (loss)
attributable to
Western Gas Partners,
LP $143,506 $167,746 $418,846 $448,327
Add:
Distributions from
equity investments 29,145 27,133 80,568 76,263
Non-cash equity-
based compensation
expense 1,258 1,469 3,479 4,018
Interest expense 35,544 30,768 106,794 75,687
Income tax expense 510 472 4,905 7,431
Depreciation and
amortization (1) 71,812 66,589 214,213 197,678
Impairments 2,159 2,392 170,079 11,313
Other expense (1) - 40 140 96
Less:
Gain (loss) on
divestiture and
other, net 72 (6,230) 135,017 (8,769)
Equity income, net -
affiliates 21,519 20,294 62,708 56,801
Interest income -
affiliates 4,225 4,225 12,675 12,675
Other income (1) 283 150 960 272
Adjusted EBITDA
attributable to
Western Gas Partners,
LP $257,835 $278,170 $787,664 $759,834
---------------------- -------- -------- -------- --------
Reconciliation of Net
cash provided by
operating activities
to Adjusted EBITDA
attributable to
Western Gas Partners,
LP
Net cash provided by
operating activities $211,947 $263,872 $645,099 $657,738
Interest (income)
expense, net 31,319 26,543 94,119 63,012
Uncontributed cash-
based compensation
awards 78 290 (94) 448
Accretion and
amortization of long-
term obligations, net (1,055) 121 (3,194) 9,176
Current income tax
(benefit) expense 395 131 1,023 5,110
Other (income)
expense, net (286) (153) (969) (224)
Distributions from
equity investments in
excess of cumulative
earnings - affiliates 7,034 5,981 16,255 16,592
Changes in operating
working capital:
Accounts receivable,
net 56,335 7,866 46,972 41,108
Accounts and imbalance
payables and accrued
liabilities, net (45,982) (26,330) (4,007) (24,103)
Other 3,181 3,184 3,065 1,445
Adjusted EBITDA
attributable to
noncontrolling
interest (5,131) (3,335) (10,605) (10,468)
------ ------- -------
Adjusted EBITDA
attributable to
Western Gas Partners,
LP $257,835 $278,170 $787,664 $759,834
---------------------- -------- -------- -------- --------
Cash flow information
of Western Gas
Partners, LP
Net cash provided by
operating activities $645,099 $657,738
Net cash used in
investing activities (514,797) (1,040,692)
Net cash provided by
(used in) financing
activities (335,792) 429,368
-------------------- -------- -------
(1) Includes WES's 75% share of
depreciation and amortization;
other expense; and other income
attributable to Chipeta.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted Gross Margin Attributable to Western Gas Partners, LP
WES defines Adjusted gross margin as total revenues and other, less cost of product and reimbursements for electricity-related expenses recorded as revenue, plus distributions from equity investments and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended Nine Months Ended
September 30, September 30,
thousands 2017 2016 2017 2016
--------- ---- ---- ---- ----
Reconciliation of
Operating income
(loss) to Adjusted
gross margin
attributable to
Western Gas Partners,
LP
Operating income
(loss) $179,456 $197,288 $525,456 $527,053
Add:
Distributions from
equity investments 29,145 27,133 80,568 76,263
Operation and
maintenance 79,536 74,755 229,444 226,141
General and
administrative 12,158 11,382 35,402 33,542
Property and other
taxes 11,215 10,670 35,433 33,098
Depreciation and
amortization 72,539 67,246 216,272 199,646
Impairments 2,159 2,392 170,079 11,313
Less:
Gain (loss) on
divestiture and
other, net 72 (6,230) 135,017 (8,769)
Proceeds from business
interruption
insurance claims - 13,667 29,882 16,270
Equity income, net -
affiliates 21,519 20,294 62,708 56,801
Reimbursed
electricity-related
charges recorded as
revenues 14,323 15,170 42,338 45,707
Adjusted gross margin
attributable to
noncontrolling
interest 5,878 3,984 13,189 12,588
----- ----- ------ ------
Adjusted gross margin
attributable to
Western Gas Partners,
LP $344,416 $343,981 $1,009,520 $984,459
---------------------- -------- -------- ---------- --------
Adjusted gross margin
attributable to
Western Gas Partners,
LP for natural gas
assets $305,337 $306,393 $904,620 $877,583
Adjusted gross margin
for crude, NGL and
produced water assets 39,079 37,588 104,900 106,876
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
thousands except per-unit
amounts 2017 2016 2017 2016
------------------------- ---- ---- ---- ----
Revenues and other
Gathering, processing and
transportation $306,187 $315,192 $913,436 $910,332
Natural gas and natural gas
liquids sales 259,141 164,036 690,490 379,585
Other 9,367 2,417 12,412 3,533
Total revenues and other 574,695 481,645 1,616,338 1,293,450
------------------------ ------- ------- --------- ---------
Equity income, net -
affiliates 21,519 20,294 62,708 56,801
------ ------ ------ ------
Operating expenses
Cost of product 239,223 145,643 631,859 326,959
Operation and maintenance 79,536 74,755 229,444 226,141
General and administrative 12,158 11,382 35,402 33,542
Property and other taxes 11,215 10,670 35,433 33,098
Depreciation and amortization 72,539 67,246 216,272 199,646
Impairments 2,159 2,392 170,079 11,313
----------- ----- ----- ------- ------
Total operating expenses 416,830 312,088 1,318,489 830,699
------------------------ ------- ------- --------- -------
Gain (loss) on divestiture
and other, net 72 (6,230) 135,017 (8,769)
Proceeds from business
interruption insurance
claims - 13,667 29,882 16,270
--- ------ ------ ------
Operating income (loss) 179,456 197,288 525,456 527,053
Interest income - affiliates 4,225 4,225 12,675 12,675
Interest expense (35,544) (30,768) (106,794) (75,687)
Other income (expense), net 286 153 969 224
--- --- --- ---
Income (loss) before income
taxes 148,423 170,898 432,306 464,265
Income tax (benefit) expense 510 472 4,905 7,431
--- --- ----- -----
Net income (loss) 147,913 170,426 427,401 456,834
Net income attributable to
noncontrolling interest 4,407 2,680 8,555 8,507
-------------------------- ----- ----- ----- -----
Net income (loss)
attributable to Western Gas
Partners, LP $143,506 $167,746 $418,846 $448,327
Limited partners' interest in
net income (loss):
Net income (loss)
attributable to Western Gas
Partners, LP $143,506 $167,746 $418,846 $448,327
Pre-acquisition net (income)
loss allocated to Anadarko - - - (11,326)
Series A Preferred units
interest in net (income)
loss - (25,539) (42,373) (50,989)
General partner interest in
net (income) loss (78,376) (60,551) (222,903) (174,332)
--------------------------- -------- --------
Common and Class C limited
partners' interest in net
income (loss) $65,130 $81,656 $153,570 $211,680
Net income (loss) per common
unit - basic and diluted $0.38 $0.54 $0.91 $1.39
Weighted-average common
units outstanding - basic 152,602 130,672 145,371 130,112
Weighted-average common
units outstanding - diluted 165,475 164,658 165,258 157,107
---------------------------- ------- ------- ------- -------
Western Gas Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands
except
number of
units September 30, December 31,
2017 2016
--- ---- ----
Current
assets $358,346 $594,014
Note
receivable
-
Anadarko 260,000 260,000
Net
property,
plant
and
equipment 5,507,714 5,049,932
Other
assets 1,788,251 1,829,082
--------- ---------
Total
assets $7,914,311 $7,733,028
------- ---------- ----------
Current
liabilities $393,364 $315,305
Long-
term
debt 3,343,886 3,091,461
Asset
retirement
obligations
and
other 156,532 149,043
Deferred
purchase
price
obligation
-
Anadarko - 41,440
----------- --- ------
Total
liabilities $3,893,782 $3,597,249
------------ ---------- ----------
Equity
and
partners'
capital
Series A
Preferred September
units 30,
(zero 2017,
and and
21,922,831 December
units 31,
issued 2016,
and respectively)
outstanding
at $ - $639,545
Common
units 30,
(152,602,105 2017,
and and
130,671,970 December
units 31,
issued 2016,
and respectively)
outstanding
at
September 3,012,424 2,536,872
Class C
units 30,
(12,977,633 2017,
and and
12,358,123 December
units 31,
issued 2016,
and respectively)
outstanding
at
September 771,856 750,831
General
partner 2017,
units and
(2,583,068 December
units 31,
issued 2016)
and
outstanding
at
September
30, 172,180 143,968
Noncontrolling
interest 64,069 64,563
------ ------
Total
liabilities,
equity
and
partners'
capital $7,914,311 $7,733,028
------------- ---------- ----------
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
thousands 2017 2016
--------- ---- ----
Cash flows from operating
activities
Net income (loss) $427,401 $456,834
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities and changes in
working capital:
Depreciation and amortization 216,272 199,646
Impairments 170,079 11,313
(Gain) loss on divestiture
and other, net (135,017) 8,769
Change in other items, net (33,636) (18,824)
-------------------------- ------- -------
Net cash provided by
operating activities $645,099 $657,738
--------------------- -------- --------
Cash flows from investing
activities
Capital expenditures $(419,193) $(372,725)
Contributions in aid of
construction costs from
affiliates 1,386 4,927
Acquisitions from affiliates (3,910) (716,465)
Acquisitions from third
parties (155,298) -
Investments in equity
affiliates (384) 139
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 16,255 16,592
Proceeds from the sale of
assets to affiliates - 623
Proceeds from the sale of
assets to third parties 23,370 7,819
Proceeds from property
insurance claims 22,977 18,398
------ ------
Net cash used in investing
activities $(514,797) $(1,040,692)
-------------------------- --------- -----------
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $249,989 $1,094,600
Repayments of debt - (880,000)
Settlement of the Deferred
purchase price obligation -
Anadarko (37,346) -
Increase (decrease) in
outstanding checks 3,310 (1,070)
Proceeds from the issuance of
common units, net of
offering expenses (183) 25,000
Proceeds from the issuance of
Series A Preferred units,
net of offering expenses - 686,937
Distributions to unitholders (589,262) (490,289)
Distributions to
noncontrolling interest
owner (9,049) (11,257)
Net contributions from
(distributions to) Anadarko 30 (29,335)
Above-market component of
swap agreements with
Anadarko 46,719 34,782
------------------------- ------ ------
Net cash provided by (used
in) financing activities $(335,792) $429,368
-------------------------- --------- --------
Net increase (decrease) in
cash and cash equivalents $(205,490) $46,414
Cash and cash equivalents at
beginning of period 357,925 98,033
---------------------------- ------- ------
Cash and cash equivalents at
end of period $152,435 $144,447
---------------------------- -------- --------
Western Gas Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2017 2016 2017 2016
---- ---- ---- ----
Throughput for natural gas assets
(MMcf/d)
Gathering, treating and
transportation 784 1,562 1,029 1,556
Processing 2,588 2,448 2,528 2,301
Equity investment (1) 159 179 160 178
-------------------- --- --- --- ---
Total throughput for natural gas
assets 3,531 4,189 3,717 4,035
-------------------------------- ----- ----- ----- -----
Throughput attributable to
noncontrolling interest for
natural gas assets 104 119 107 127
----------------------------
Total throughput attributable to
Western Gas Partners, LP for
natural gas assets 3,427 4,070 3,610 3,908
-------------------------------- ----- ----- ----- -----
Throughput for crude, NGL and
produced water assets (MBbls/d)
Gathering, treating and
transportation 77 58 57 59
Equity investment (2) 132 127 130 126
--- --- --- ---
Total throughput for crude, NGL
and produced water assets 209 185 187 185
------------------------------- --- --- --- ---
Adjusted gross margin per Mcf
attributable to Western Gas
Partners, LP for natural gas
assets (3) $0.97 $0.82 $0.92 $0.82
----------------------------- ----- ----- ----- -----
Adjusted gross margin per Bbl for
crude, NGL and produced water
assets (4) 2.03 2.20 2.05 2.10
--------------------------------- ---- ---- ---- ----
(1) Represents WES's 14.81% share of
average Fort Union throughput and 22%
share of average Rendezvous
throughput.
(2) Represents WES's 10% share of average
White Cliffs throughput, WES's 25%
share of average Mont Belvieu JV
throughput, WES's 20% share of average
TEG and TEP throughput, and WES's
33.33% share of average FRP
throughput.
(3) Average for period. Calculated as
Adjusted gross margin attributable to
Western Gas Partners, LP for natural
gas assets (total revenues and other
for natural gas assets, less
reimbursements for electricity-
related expenses recorded as revenue
and cost of product for natural gas
assets, plus distributions from WES's
equity investments in Fort Union and
Rendezvous, and excluding the
noncontrolling interest owner's
proportionate share of revenue and
cost of product), divided by total
throughput (MMcf/d) attributable to
Western Gas Partners, LP for natural
gas assets.
(4) Average for period. Calculated as
Adjusted gross margin for crude, NGL
and produced water assets (total
revenues and other for crude, NGL and
produced water assets, less
reimbursements for electricity-
related expenses recorded as revenue
and cost of product for crude, NGL and
produced water assets, plus
distributions from WES's equity
investments in White Cliffs, the Mont
Belvieu JV, TEG, TEP and FRP), divided
by total throughput (MBbls/d) for
crude, NGL and produced water assets.
Western Gas Equity Partners, LP
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(Unaudited)
thousands except per-unit amount and Three Months
Coverage ratio Ended
September 30,
2017
--- --------------
Distributions declared by Western Gas
Partners, LP:
General partner interest $3,529
Incentive distribution rights 70,404
Common units held by WGP 45,370
Less:
Public company general and administrative
expense 764
Interest expense 573
---------------- ---
Cash available for distribution $117,966
------------------------------- --------
Declared distribution per common unit $0.53750
------------------------------------ --------
Distributions declared by Western Gas Equity
Partners, LP $117,677
-------------------------------------------- --------
Coverage ratio 1.00 x
-------------- ---- ---
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
thousands except per-unit
amounts 2017 2016 2017 2016
------------------------- ---- ---- ---- ----
Revenues and other
Gathering, processing and
transportation $306,187 $315,192 $913,436 $910,332
Natural gas and natural gas
liquids sales 259,141 164,036 690,490 379,585
Other 9,367 2,417 12,412 3,533
----- ------ -----
Total revenues and other 574,695 481,645 1,616,338 1,293,450
------------------------ ------- ------- --------- ---------
Equity income, net -
affiliates 21,519 20,294 62,708 56,801
------ ------ ------ ------
Operating expenses
Cost of product 239,223 145,643 631,859 326,959
Operation and maintenance 79,536 74,755 229,444 226,141
General and administrative 12,922 12,112 37,595 36,514
Property and other taxes 11,215 10,670 35,433 33,113
Depreciation and amortization 72,539 67,246 216,272 199,646
Impairments 2,159 2,392 170,079 11,313
----------- ----- ----- ------- ------
Total operating expenses 417,594 312,818 1,320,682 833,686
------------------------ ------- ------- --------- -------
Gain (loss) on divestiture
and other, net 72 (6,230) 135,017 (8,769)
-------------------------- --- ------ ------- ------
Proceeds from business
interruption insurance
claims - 13,667 29,882 16,270
--- ------ ------ ------
Operating income (loss) 178,692 196,558 523,263 524,066
Interest income - affiliates 4,225 4,225 12,675 12,675
Interest expense (36,117) (31,301) (108,447) (76,869)
Other income (expense), net 311 165 1,029 270
--- --- ----- ---
Income (loss) before income
taxes 147,111 169,647 428,520 460,142
Income tax (benefit) expense 510 472 4,905 7,431
--- --- ----- -----
Net income (loss) 146,601 169,175 423,615 452,711
Net income (loss)
attributable to
noncontrolling interests 50,399 77,778 146,529 190,635
------------------------- ------ ------ ------- -------
Net income (loss)
attributable to Western Gas
Equity Partners, LP $96,202 $91,397 $277,086 $262,076
Limited partners' interest in
net income (loss):
Net income (loss)
attributable to Western Gas
Equity Partners, LP $96,202 $91,397 $277,086 $262,076
Pre-acquisition net (income)
loss allocated to Anadarko - - - (11,326)
---------------------------- --- --- --- -------
Limited partners' interest in
net income (loss) $96,202 $91,397 $277,086 $250,750
Net income (loss) per common
unit - basic and diluted $0.44 $0.42 $1.27 $1.15
Weighted-average common
units outstanding - basic
and diluted 218,933 218,922 218,931 218,921
-------------------------- ------- ------- ------- -------
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands
except
number of
units September 30, December 31,
2017 2016
--- ---- ----
Current
assets $358,970 $595,591
Note
receivable
-
Anadarko 260,000 260,000
Net
property,
plant
and
equipment 5,507,714 5,049,932
Other
assets 1,789,235 1,830,574
--------- ---------
Total
assets $7,915,919 $7,736,097
------- ---------- ----------
Current
liabilities $393,567 $315,387
Long-
term
debt 3,371,886 3,119,461
Asset
retirement
obligations
and
other 156,532 149,043
Deferred
purchase
price
obligation
-
Anadarko - 41,440
----------- ---
Total
liabilities $3,921,985 $3,625,331
------------ ---------- ----------
Equity
and
partners'
capital
Common
units 30,
(218,933,141 2017,
and and
218,928,570 December
units 31,
issued 2016,
and respectively)
outstanding
at
September $1,067,269 $1,048,143
Noncontrolling
interests 2,926,665 3,062,623
--------- ---------
Total
liabilities,
equity
and
partners'
capital $7,915,919 $7,736,097
------------- ---------- ----------
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
thousands 2017 2016
--------- ---- ----
Cash flows from operating
activities
Net income (loss) $423,615 $452,711
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities and changes in
working capital:
Depreciation and amortization 216,272 199,646
Impairments 170,079 11,313
(Gain) loss on divestiture
and other, net (135,017) 8,769
Change in other items, net (32,480) (17,739)
-------------------------- ------- -------
Net cash provided by
operating activities $642,469 $654,700
--------------------- -------- --------
Cash flows from investing
activities
Capital expenditures $(419,193) $(372,725)
Contributions in aid of
construction costs from
affiliates 1,386 4,927
Acquisitions from affiliates (3,910) (716,465)
Acquisitions from third
parties (155,298) -
Investments in equity
affiliates (384) 139
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 16,255 16,592
Proceeds from the sale of
assets to affiliates - 623
Proceeds from the sale of
assets to third parties 23,370 7,819
Proceeds from property
insurance claims 22,977 18,398
------ ------
Net cash used in investing
activities $(514,797) $(1,040,692)
-------------------------- --------- -----------
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $249,989 $1,120,580
Repayments of debt - (880,000)
Settlement of the Deferred
purchase price obligation -
Anadarko (37,346) -
Increase (decrease) in
outstanding checks 3,310 (1,070)
Proceeds from the issuance of
WES common units, net of
offering expenses (183) -
Proceeds from the issuance of
WES Series A Preferred
units, net of offering
expenses - 686,937
Distributions to WGP
unitholders (324,290) (276,114)
Distributions to Chipeta
noncontrolling interest
owner (9,049) (11,257)
Distributions to
noncontrolling interest
owners of WES (262,888) (211,877)
Net contributions from
(distributions to) Anadarko 30 (29,335)
Above-market component of
swap agreements with
Anadarko 46,719 34,782
------------------------- ------ ------
Net cash provided by (used
in) financing activities $(333,708) $432,646
-------------------------- --------- --------
Net increase (decrease) in
cash and cash equivalents $(206,036) $46,654
Cash and cash equivalents at
beginning of period 359,072 99,694
---------------------------- ------- ------
Cash and cash equivalents at
end of period $153,036 $146,348
---------------------------- -------- --------
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
