Western Gas Announces Fourth-Quarter And Full-Year 2017 Results
HOUSTON, Feb. 15, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced fourth-quarter and full-year 2017 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for 2017 totaled $221.3 million, or $1.30 per common unit (diluted), with full-year 2017 Adjusted EBITDA((1)) of $1.1 billion and full-year 2017 Distributable cash flow((1)) of $929.0 million. Net income (loss) available to limited partners for the fourth quarter of 2017 totaled $67.7 million, or $0.39 per common unit (diluted), with fourth-quarter 2017 Adjusted EBITDA((1)) of $273.3 million and fourth-quarter 2017 Distributable cash flow((1)) of $233.4 million.
WES paid a quarterly distribution of $0.920 per unit for the fourth quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the fourth-quarter 2016 distribution of $0.860 per unit. The full-year 2017 distribution of $3.590 per unit represented a 7% increase over the full-year 2016 distribution of $3.350 per unit. The fourth-quarter 2017 Coverage ratio((1)) of 1.08 times was based on the quarterly distribution of $0.920 per unit. The Partnership's Coverage ratio((1)) for full-year 2017 was 1.13 times.
(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.
"Our impressive quarterly results were driven by strong volumetric growth in both the Delaware and DJ Basins where producer activity remains robust. In the Delaware Basin, we are pleased to report that Ramsey VI came online at the end of the quarter, just as the rest of the Ramsey facility was nearing capacity," said Chief Executive Officer, Benjamin Fink. "We still plan to execute our over $1 billion 2018 capital program without the need for additional equity, as we expect strong volumetric growth in the second half of the year once critical infrastructure is placed into service."
Total throughput attributable to WES for natural gas assets for the fourth quarter of 2017 averaged 3.5 Bcf/d, which was 1% above the prior quarter. Total throughput attributable to WES for natural gas assets for the fourth quarter of 2017 was approximately 3% above the prior quarter when adjusted for the non-cash impact of a one-time prior period volumetric adjustment. Additionally, total throughput attributable to WES for natural gas assets for the fourth quarter of 2017 was 14% below the fourth quarter of 2016 primarily due to the impact of the DBJV-for-Marcellus asset exchange that closed in March 2017. Total throughput for crude, NGL and produced water assets for the fourth quarter of 2017 averaged 240 MBbls/d, which was 15% above the prior quarter and 33% above the fourth quarter of 2016.
For full-year 2017, total throughput attributable to WES for natural gas assets averaged 3.6 Bcf/d, which was 9% below the prior-year average. For full-year 2017, total throughput for crude, NGL and produced water assets averaged 201 MBbls/d, which was 9% above the prior-year average.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $253.0 million on a cash basis and $291.6 million on an accrual basis during the fourth quarter of 2017, with maintenance capital expenditures on a cash basis of $16.6 million. For full-year 2017, capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $666.9 million on a cash basis and $792.0 million on an accrual basis, with maintenance capital expenditures on a cash basis of $49.7 million.
On February 15, 2018, WES amended its senior unsecured revolving credit facility to extend the maturity date from February 2020 to February 2023 and expand the borrowing capacity from $1.2 billion to $1.5 billion.
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 2017 totaled $376.6 million, or $1.72 per common unit (diluted). Net income (loss) available to limited partners for the fourth quarter of 2017 totaled $99.5 million, or $0.45 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.54875 per unit for the fourth quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 19% increase over the fourth-quarter 2016 distribution of $0.46250 per unit. The full-year 2017 distribution of $2.10500 per unit represented a 19% increase over the full-year 2016 distribution of $1.76750 per unit. WGP received distributions from WES of $122.3 million attributable to the fourth quarter and will pay $120.1 million in distributions for the same period.
On February 15, 2018, WGP amended its senior secured revolving credit facility by reducing total commitments from $250.0 million to $35.0 million.
CONFERENCE CALL TOMORROW AT 8 A.M. CST
WES and WGP will host a joint conference call on Friday, February 16, 2018, at 8:00 a.m. Central Standard Time (9:00 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 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 5796412. 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 assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania, Texas and New Mexico, 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 third-party producers and customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs or condensate under certain of its contracts.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko Petroleum Corporation 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 Year Ended
December 31, December 31,
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 $148,637 $143,004 $567,483 $591,331
Add:
Distributions from equity
investments 29,897 27,160 110,465 103,423
Non-cash equity-based
compensation expense 1,468 1,573 4,947 5,591
Non-cash settled
interest expense, net
(1) - 4,350 71 (7,747)
Income tax (benefit)
expense (39) 941 4,866 8,372
Depreciation and
amortization (2) 73,874 72,633 288,087 270,311
Impairments 8,295 4,222 178,374 15,535
Above-market component
of swap agreements with
Anadarko 11,832 11,038 58,551 45,820
Other expense (2) 5 128 145 224
Less:
Gain (loss) on
divestiture and other,
net (2,629) (5,872) 132,388 (14,641)
Equity income, net -
affiliates 22,486 21,916 85,194 78,717
Cash paid for maintenance
capital expenditures (2) 16,569 8,342 49,684 63,630
Capitalized interest 2,835 888 6,826 5,562
Cash paid for
(reimbursement of)
income taxes 1,005 771 1,194 838
Series A Preferred unit
distributions - 14,908 7,453 45,784
Other income (2) 323 252 1,283 524
--------------- --- ----- ---
Distributable cash flow $233,380 $223,844 $928,967 $852,446
----------------------- -------- -------- -------- --------
Distributions declared
(3)
Limited partners - common
units $140,394 $538,244
General partner 76,192 286,624
--------------- ------ -------
Total $216,586 $824,868
----- -------- --------
Coverage ratio 1.08 x 1.13 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
$0.920 and $3.590 per unit
declared for the three months and
year ended December 31, 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 Year Ended
December 31, December 31,
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 $148,637 $143,004 $567,483 $591,331
Add:
Distributions from
equity investments 29,897 27,160 110,465 103,423
Non-cash equity-
based compensation
expense 1,468 1,573 4,947 5,591
Interest expense 35,592 39,234 142,386 114,921
Income tax expense - 941 4,905 8,372
Depreciation and
amortization (1) 73,874 72,633 288,087 270,311
Impairments 8,295 4,222 178,374 15,535
Other expense (1) 5 128 145 224
Less:
Gain (loss) on
divestiture and
other, net (2,629) (5,872) 132,388 (14,641)
Equity income, net -
affiliates 22,486 21,916 85,194 78,717
Interest income -
affiliates 4,225 4,225 16,900 16,900
Other income (1) 323 252 1,283 524
Income tax benefit 39 - 39 -
------------------ --- --- --- ---
Adjusted EBITDA
attributable to
Western Gas Partners,
LP $273,324 $268,374 $1,060,988 $1,028,208
---------------------- -------- -------- ---------- ----------
Reconciliation of Net
cash provided by
operating activities
to Adjusted EBITDA
attributable to
Western Gas Partners,
LP
Net cash provided by
operating activities $256,396 $259,847 $901,495 $917,585
Interest (income)
expense, net 31,367 35,009 125,486 98,021
Uncontributed cash-
based compensation
awards 119 408 25 856
Accretion and
amortization of long-
term obligations, net (1,060) (5,387) (4,254) 3,789
Current income tax
(benefit) expense 1,385 707 2,408 5,817
Other (income)
expense, net (330) (255) (1,299) (479)
Distributions from
equity investments in
excess of cumulative
earnings - affiliates 6,830 4,646 23,085 21,238
Changes in operating
working capital:
Accounts receivable,
net (30,845) 7,839 16,127 48,947
Accounts and imbalance
payables and accrued
liabilities, net 10,937 (34,256) 6,930 (58,359)
Other 1,426 2,922 4,491 4,367
Adjusted EBITDA
attributable to
noncontrolling
interest (2,901) (3,106) (13,506) (13,574)
------ ------- -------
Adjusted EBITDA
attributable to
Western Gas Partners,
LP $273,324 $268,374 $1,060,988 $1,028,208
---------------------- -------- -------- ---------- ----------
Cash flow information
of Western Gas
Partners, LP
Net cash provided by
operating activities $901,495 $917,585
Net cash used in
investing activities (763,604) (1,105,534)
Net cash provided by
(used in) financing
activities (417,002) 447,841
-------------------- -------- -------
(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 Year Ended
December 31, December 31,
thousands 2017 2016 2017 2016
--------- ---- ---- ---- ----
Reconciliation of
Operating income
(loss) to Adjusted
gross margin
attributable to
Western Gas Partners,
LP
Operating income
(loss) $181,815 $181,155 $707,271 $708,208
Add:
Distributions from
equity investments 29,897 27,160 110,465 103,423
Operation and
maintenance 86,550 81,869 315,994 308,010
General and
administrative 12,394 12,049 47,796 45,591
Property and other
taxes 11,385 7,047 46,818 40,145
Depreciation and
amortization 74,602 73,287 290,874 272,933
Impairments 8,295 4,222 178,374 15,535
Less:
Gain (loss) on
divestiture and
other, net (2,629) (5,872) 132,388 (14,641)
Proceeds from business
interruption
insurance claims - - 29,882 16,270
Equity income, net -
affiliates 22,486 21,916 85,194 78,717
Reimbursed
electricity-related
charges recorded as
revenues 14,485 14,026 56,823 59,733
Adjusted gross margin
attributable to
noncontrolling
interest 3,638 3,735 16,827 16,323
----- ----- ------ ------
Adjusted gross margin
attributable to
Western Gas Partners,
LP $366,958 $352,984 $1,376,478 $1,337,443
---------------------- -------- -------- ---------- ----------
Adjusted gross margin
attributable to
Western Gas Partners,
LP for natural gas
assets $318,012 $317,294 $1,222,632 $1,194,877
Adjusted gross margin
for crude, NGL and
produced water assets 48,946 35,690 153,846 142,566
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
thousands except per-unit
amounts 2017 2016 2017 2016
------------------------- ---- ---- ---- ----
Revenues and other
Gathering, processing,
transportation and disposal $324,513 $317,517 $1,237,949 $1,227,849
Natural gas and natural gas
liquids sales 299,443 192,728 989,933 572,313
Other 8,062 575 20,474 4,108
Total revenues and other 632,018 510,820 2,248,356 1,804,270
------------------------ ------- ------- --------- ---------
Equity income, net -
affiliates 22,486 21,916 85,194 78,717
------ ------ ------ ------
Operating expenses
Cost of product 276,834 167,235 908,693 494,194
Operation and maintenance 86,550 81,869 315,994 308,010
General and administrative 12,394 12,049 47,796 45,591
Property and other taxes 11,385 7,047 46,818 40,145
Depreciation and amortization 74,602 73,287 290,874 272,933
Impairments 8,295 4,222 178,374 15,535
----------- ----- ----- ------- ------
Total operating expenses 470,060 345,709 1,788,549 1,176,408
------------------------ ------- ------- --------- ---------
Gain (loss) on divestiture
and other, net (2,629) (5,872) 132,388 (14,641)
Proceeds from business
interruption insurance
claims - - 29,882 16,270
--- --- ------ ------
Operating income (loss) 181,815 181,155 707,271 708,208
Interest income - affiliates 4,225 4,225 16,900 16,900
Interest expense (35,592) (39,234) (142,386) (114,921)
Other income (expense), net 330 255 1,299 479
--- --- ----- ---
Income (loss) before income
taxes 150,778 146,401 583,084 610,666
Income tax (benefit) expense (39) 941 4,866 8,372
--- --- ----- -----
Net income (loss) 150,817 145,460 578,218 602,294
Net income attributable to
noncontrolling interest 2,180 2,456 10,735 10,963
-------------------------- ----- ----- ------ ------
Net income (loss)
attributable to Western Gas
Partners, LP $148,637 $143,004 $567,483 $591,331
Limited partners' interest in
net income (loss):
Net income (loss)
attributable to Western Gas
Partners, LP $148,637 $143,004 $567,483 $591,331
Pre-acquisition net (income)
loss allocated to Anadarko - - - (11,326)
Series A Preferred units
interest in net (income)
loss - (25,904) (42,373) (76,893)
General partner interest in
net (income) loss (80,932) (62,229) (303,835) (236,561)
--------------------------- -------- --------
Common and Class C limited
partners' interest in net
income (loss) $67,705 $54,871 $221,275 $266,551
Net income (loss) per common
unit - basic and diluted $0.39 $0.35 $1.30 $1.74
Weighted-average common
units outstanding - basic
and diluted 152,602 130,672 147,194 130,253
Western Gas Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
thousands except
number of units 2017 2016
---------------- ---- ----
Current assets $254,062 $594,014
Note receivable -
Anadarko 260,000 260,000
Net property,
plant and
equipment 5,730,891 5,049,932
Other assets 1,769,397 1,829,082
--------- ---------
Total assets $8,014,350 $7,733,028
------------ ---------- ----------
Current
liabilities $424,333 $315,305
Long-term debt 3,464,712 3,091,461
Asset retirement
obligations and
other 154,294 149,043
Deferred purchase
price obligation
- Anadarko - 41,440
----------------- --- ------
Total liabilities $4,043,339 $3,597,249
----------------- ---------- ----------
Equity and
partners'
capital
Series A
Preferred units
(zero and
21,922,831 units
issued and
outstanding at
December 31,
2017 and 2016,
respectively) $ - $639,545
Common units
(152,602,105 and
130,671,970
units issued and
outstanding at
December 31,
2017 and 2016,
respectively) 2,950,010 2,536,872
Class C units
(13,243,883 and
12,358,123 units
issued and
outstanding at
December 31,
2017 and 2016,
respectively) 780,040 750,831
General partner
units (2,583,068
units issued and
outstanding at
December 31,
2017 and 2016) 179,232 143,968
Noncontrolling
interest 61,729 64,563
------ ------
Total
liabilities,
equity and
partners'
capital $8,014,350 $7,733,028
------------- ---------- ----------
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended
December 31,
thousands 2017 2016
--------- ---- ----
Cash flows from operating
activities
Net income (loss) $578,218 $602,294
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities and changes in
working capital:
Depreciation and amortization 290,874 272,933
Impairments 178,374 15,535
(Gain) loss on divestiture
and other, net (132,388) 14,641
Change in other items, net (13,583) 12,182
-------------------------- ------- ------
Net cash provided by
operating activities $901,495 $917,585
--------------------- -------- --------
Cash flows from investing
activities
Capital expenditures $(675,025) $(479,993)
Contributions in aid of
construction costs from
affiliates 1,387 6,135
Acquisitions from affiliates (3,910) (716,465)
Acquisitions from third
parties (155,298) -
Investments in equity
affiliates (384) (27)
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 23,085 21,238
Proceeds from the sale of
assets to affiliates - 623
Proceeds from the sale of
assets to third parties 23,564 45,490
Proceeds from property
insurance claims 22,977 17,465
------ ------
Net cash used in investing
activities $(763,604) $(1,105,534)
-------------------------- --------- -----------
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $369,989 $1,297,218
Repayments of debt - (900,000)
Settlement of the Deferred
purchase price obligation -
Anadarko (37,346) -
Increase (decrease) in
outstanding checks 5,593 2,079
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 (801,300) (671,938)
Distributions to
noncontrolling interest
owner (13,569) (13,784)
Net contributions from
(distributions to) Anadarko 1,263 (23,491)
Above-market component of
swap agreements with
Anadarko 58,551 45,820
------------------------- ------ ------
Net cash provided by (used
in) financing activities $(417,002) $447,841
-------------------------- --------- --------
Net increase (decrease) in
cash and cash equivalents $(279,111) $259,892
Cash and cash equivalents at
beginning of period 357,925 98,033
---------------------------- ------- ------
Cash and cash equivalents at
end of period $78,814 $357,925
---------------------------- ------- --------
Western Gas Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2017 2016 2017 2016
---- ---- ---- ----
Throughput for natural gas assets
(MMcf/d)
Gathering, treating and
transportation 747 1,480 958 1,537
Processing 2,663 2,500 2,563 2,350
Equity investment (1) 158 173 159 177
-------------------- --- --- --- ---
Total throughput for natural gas
assets 3,568 4,153 3,680 4,064
-------------------------------- ----- ----- ----- -----
Throughput attributable to
noncontrolling interest for
natural gas assets 98 113 105 124
----------------------------
Total throughput attributable to
Western Gas Partners, LP for
natural gas assets 3,470 4,040 3,575 3,940
-------------------------------- ----- ----- ----- -----
Throughput for crude, NGL and
produced water assets (MBbls/d)
Gathering, treating,
transportation and disposal 111 49 71 57
Equity investment (2) 129 132 130 127
--- --- --- ---
Total throughput for crude, NGL
and produced water assets 240 181 201 184
------------------------------- --- --- --- ---
Adjusted gross margin per Mcf
attributable to Western Gas
Partners, LP for natural gas
assets (3) $1.00 $0.85 $0.94 $0.83
----------------------------- ----- ----- ----- -----
Adjusted gross margin per Bbl for
crude, NGL and produced water
assets (4) 2.21 2.15 2.10 2.11
--------------------------------- ---- ---- ---- ----
(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 Coverage ratio Three Months Ended
December 31, 2017
--- -----------------
Distributions declared by Western
Gas Partners, LP:
General partner interest $3,605
Incentive distribution rights 72,587
Common units held by WGP 46,121
Less:
Public company general and
administrative expense 679
Interest expense 576
---------------- ---
Cash available for distribution $121,058
------------------------------- --------
Declared distribution per common
unit $0.54875
-------------------------------- --------
Distributions declared by Western
Gas Equity Partners, LP $120,140
--------------------------------- --------
Coverage ratio 1.01 x
-------------- ---- ---
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
thousands except per-unit
amounts 2017 2016 2017 2016
------------------------- ---- ---- ---- ----
Revenues and other
Gathering, processing,
transportation and disposal $324,513 $317,517 $1,237,949 $1,227,849
Natural gas and natural gas
liquids sales 299,443 192,728 989,933 572,313
Other 8,062 575 20,474 4,108
--- ------ -----
Total revenues and other 632,018 510,820 2,248,356 1,804,270
------------------------ ------- ------- --------- ---------
Equity income, net -
affiliates 22,486 21,916 85,194 78,717
------ ------ ------ ------
Operating expenses
Cost of product 276,834 167,235 908,693 494,194
Operation and maintenance 86,550 81,869 315,994 308,010
General and administrative 13,073 12,734 50,668 49,248
Property and other taxes 11,385 7,048 46,818 40,161
Depreciation and amortization 74,602 73,287 290,874 272,933
Impairments 8,295 4,222 178,374 15,535
----------- ----- ----- ------- ------
Total operating expenses 470,739 346,395 1,791,421 1,180,081
------------------------ ------- ------- --------- ---------
Gain (loss) on divestiture
and other, net (2,629) (5,872) 132,388 (14,641)
-------------------------- ------ ------ ------- -------
Proceeds from business
interruption insurance
claims - - 29,882 16,270
--- --- ------ ------
Operating income (loss) 181,136 180,469 704,399 704,535
Interest income - affiliates 4,225 4,225 16,900 16,900
Interest expense (36,168) (39,759) (144,615) (116,628)
Other income (expense), net 355 275 1,384 545
--- --- ----- ---
Income (loss) before income
taxes 149,548 145,210 578,068 605,352
Income tax (benefit) expense (39) 941 4,866 8,372
--- --- ----- -----
Net income (loss) 149,587 144,269 573,202 596,980
Net income (loss)
attributable to
noncontrolling interests 50,066 60,573 196,595 251,208
------------------------- ------ ------ ------- -------
Net income (loss)
attributable to Western Gas
Equity Partners, LP $99,521 $83,696 $376,607 $345,772
Limited partners' interest in
net income (loss):
Net income (loss)
attributable to Western Gas
Equity Partners, LP $99,521 $83,696 $376,607 $345,772
Pre-acquisition net (income)
loss allocated to Anadarko - - - (11,326)
---------------------------- --- --- --- -------
Limited partners' interest in
net income (loss) $99,521 $83,696 $376,607 $334,446
Net income (loss) per common
unit - basic and diluted $0.45 $0.38 $1.72 $1.53
Weighted-average common
units outstanding - basic
and diluted 218,933 218,925 218,931 218,922
-------------------------- ------- ------- ------- -------
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
thousands except
number of units 2017 2016
---------------- ---- ----
Current assets $255,210 $595,591
Note receivable -
Anadarko 260,000 260,000
Net property,
plant and
equipment 5,730,891 5,049,932
Other assets 1,770,210 1,830,574
--------- ---------
Total assets $8,016,311 $7,736,097
------------ ---------- ----------
Current
liabilities $424,426 $315,387
Long-term debt 3,492,712 3,119,461
Asset retirement
obligations and
other 154,294 149,043
Deferred purchase
price obligation
- Anadarko - 41,440
----------------- ---
Total liabilities $4,071,432 $3,625,331
----------------- ---------- ----------
Equity and
partners'
capital
Common units
(218,933,141 and
218,928,570
units issued and
outstanding at
December 31,
2017 and 2016,
respectively) $1,061,125 $1,048,143
Noncontrolling
interests 2,883,754 3,062,623
--------- ---------
Total
liabilities,
equity and
partners'
capital $8,016,311 $7,736,097
------------- ---------- ----------
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended
December 31,
thousands 2017 2016
--------- ---- ----
Cash flows from operating
activities
Net income (loss) $573,202 $596,980
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities and changes in
working capital:
Depreciation and amortization 290,874 272,933
Impairments 178,374 15,535
(Gain) loss on divestiture
and other, net (132,388) 14,641
Change in other items, net (12,650) 12,987
-------------------------- ------- ------
Net cash provided by
operating activities $897,412 $913,076
--------------------- -------- --------
Cash flows from investing
activities
Capital expenditures $(675,025) $(479,993)
Contributions in aid of
construction costs from
affiliates 1,387 6,135
Acquisitions from affiliates (3,910) (716,465)
Acquisitions from third
parties (155,298) -
Investments in equity
affiliates (384) (27)
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 23,085 21,238
Proceeds from the sale of
assets to affiliates - 623
Proceeds from the sale of
assets to third parties 23,564 45,490
Proceeds from property
insurance claims 22,977 17,465
------ ------
Net cash used in investing
activities $(763,604) $(1,105,534)
-------------------------- --------- -----------
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $369,989 $1,323,198
Repayments of debt - (900,000)
Settlement of the Deferred
purchase price obligation -
Anadarko (37,346) -
Increase (decrease) in
outstanding checks 5,593 2,079
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 (441,967) (374,082)
Distributions to Chipeta
noncontrolling interest
owner (13,569) (13,784)
Distributions to
noncontrolling interest
owners of WES (355,623) (294,841)
Net contributions from
(distributions to) Anadarko 1,263 (23,491)
Above-market component of
swap agreements with
Anadarko 58,551 45,820
------------------------- ------ ------
Net cash provided by (used
in) financing activities $(413,292) $451,836
-------------------------- --------- --------
Net increase (decrease) in
cash and cash equivalents $(279,484) $259,378
Cash and cash equivalents at
beginning of period 359,072 99,694
---------------------------- ------- ------
Cash and cash equivalents at
end of period $79,588 $359,072
---------------------------- ------- --------
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-fourth-quarter-and-full-year-2017-results-300599768.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
