Western Gas Announces Third-Quarter 2018 Results
HOUSTON, Oct. 30, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced third-quarter 2018 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the third quarter of 2018 totaled $66.1 million, or $0.39 per common unit (diluted), with third-quarter 2018 Adjusted EBITDA((1)) of $314.5 million and third-quarter 2018 Distributable cash flow((1)) of $248.2 million.
WES previously declared a quarterly distribution of $0.965 per unit for the third quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the third-quarter 2017 distribution. The third-quarter 2018 Coverage ratio((1)) of 1.08 times was based on the quarterly distribution of $0.965 per unit.
"We are delivering on our promise for the second half of the year: significant Delaware Basin volumetric growth as critical infrastructure comes online, meaningful growth in Adjusted EBITDA, and expanding coverage. Additionally, the firm takeaway secured by several of our large customers gives us significant visibility into our ability to grow throughout 2019 and beyond," said Chief Executive Officer, Benjamin Fink. "With this organic growth now materializing, we expect annual Adjusted EBITDA to grow by at least 20% in 2019."
Total throughput attributable to WES for natural gas assets for the third quarter of 2018 averaged 3.9 Bcf/d, which was 1% above the prior quarter and 12% above the third quarter of 2017. Total throughput for crude oil, NGL and produced water assets for the third quarter of 2018 averaged 421 MBbls/d, which was 23% above the prior quarter and 101% above the third quarter of 2017.
(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.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $332.4 million on a cash basis and $328.9 million on an accrual basis during the third quarter of 2018, with maintenance capital expenditures on a cash basis of $23.8 million. WES adjusted its outlook for full-year 2018 Adjusted EBITDA((1)) to a range of $1.175 billion to $1.225 billion((2)) and its outlook for full-year 2018 maintenance capital expenditures to a range of $85 million to $95 million. In addition, WES noted that commissioning activities for the first train at the Mentone facility are underway, with startup expected in the coming weeks. The second train is expected to be in service in the first quarter of 2019.
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 2018 totaled $107.5 million, or $0.49 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.5950 per unit for the third quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and an 11% increase over the third-quarter 2017 distribution. WGP will receive distributions from WES of $131.3 million attributable to the third quarter of 2018 and will pay $130.3 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, October 31, 2018, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss third-quarter 2018 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 3261919. 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 and condensate on behalf of itself and as agent for its customers 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, LP and Western Gas Equity Partners, LP undertake no obligation to publicly update or revise any forward-looking statements.
(1) Please see
the tables
at the end
of this
release for
a
reconciliation
of GAAP to
non-GAAP
measures.
(2) This press
release
contains
forward-
looking
estimates of
the range of
Adjusted
EBITDA
projected to
be generated
by WES in
its 2018
fiscal year.
A
reconciliation
of the
Adjusted
EBITDA range
to net cash
provided by
operating
activities
and net
income is
not provided
because the
items
necessary to
estimate
such amounts
are not
reasonably
accessible
or estimable
at this
time.
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 Service revenues - fee based recognized in Adjusted EBITDA (less than) in excess of customer billings, 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 2018 2017 2018 2017
---
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 $
154,646 $
143,506 $
336,717 $
418,846
Add:
Distributions from equity
investments 51,023 29,145 111,924 80,568
Non-cash equity-based
compensation expense 1,548 1,258 5,552 3,479
Non-cash settled
interest expense, net
(1) 71
Income tax (benefit)
expense 1,517 510 3,301 4,905
Depreciation and
amortization (2) 81,826 71,812 236,008 214,213
Impairments (2) 23,930 2,159 151,321 170,079
Above-market component
of swap agreements with
Anadarko 12,601 18,049 40,722 46,719
Other expense (2) 33 184 140
Less:
Recognized Service
revenues - fee based
(less than) in excess of
customer billings 4,397 536
Gain (loss) on
divestiture and other,
net 65 72 351 135,017
Equity income, net -
affiliates 43,110 21,519 102,752 62,708
Cash paid for maintenance
capital expenditures (2) 23,837 10,591 61,162 33,115
Capitalized interest 6,967 2,115 17,032 3,991
Cash paid for
(reimbursement of)
income taxes (87) 189
Series A Preferred unit
distributions 7,453
Other income (2) 592 283 2,592 960
---
Distributable cash flow $
248,156 $
231,859 $
701,391 $
695,587
---
Distributions declared
(3)
Limited partners - common
units $
147,268 $
434,930
General partner 82,971 242,133
---
Total $
230,239 $
677,063
---
Coverage ratio 1.08 x 1.04 x
---
(1) Includes amounts related to the
Deferred purchase price
obligation -Anadarko.
(2) Includes WES's 75% share of
depreciation and amortization;
impairments; other expense; cash
paid for maintenance capital
expenditures; and other income
attributable to Chipeta.
(3) Reflects cash distributions of
$0.965 and $2.850 per unit
declared for the three and nine
months ended September 30, 2018,
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 2018 2017 2018 2017
---
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 $
154,646 $
143,506 $
336,717 $
418,846
Add:
Distributions from
equity investments 51,023 29,145 111,924 80,568
Non-cash equity-based
compensation expense 1,548 1,258 5,552 3,479
Interest expense 47,991 35,544 131,663 106,794
Income tax expense 1,517 510 3,301 4,905
Depreciation and
amortization (1) 81,826 71,812 236,008 214,213
Impairments (1) 23,930 2,159 151,321 170,079
Other expense (1) 33 184 140
Less:
Gain (loss) on
divestiture and other,
net 65 72 351 135,017
Equity income, net -
affiliates 43,110 21,519 102,752 62,708
Interest income -
affiliates 4,225 4,225 12,675 12,675
Other income (1) 592 283 2,592 960
Adjusted EBITDA
attributable to
Western Gas Partners,
LP $
314,522 $
257,835 $
858,300 $
787,664
---
Reconciliation of Net
cash provided by
operating activities
to Adjusted EBITDA
attributable to
Western Gas Partners,
LP
Net cash provided by
operating activities $
236,811 $
211,947 $
751,722 $
645,099
Interest (income)
expense, net 43,766 31,319 118,988 94,119
Uncontributed cash-
based compensation
awards (55) 78 932 (94)
Accretion and
amortization of long-
term obligations, net (1,257) (1,055) (3,883) (3,194)
Current income tax
(benefit) expense (14) 395 247 1,023
Other (income) expense,
net (598) (286) (2,609) (969)
Distributions from
equity investments in
excess of cumulative
earnings - affiliates 5,592 7,034 18,097 16,255
Changes in assets and
liabilities:
Accounts receivable,
net 57,535 56,335 64,544 46,972
Accounts and imbalance
payables and accrued
liabilities, net (14,781) (45,982) (55,354) (4,007)
Other items, net (9,379) 3,181 (24,049) 3,065
Adjusted EBITDA
attributable to
noncontrolling
interest (3,098) (5,131) (10,335) (10,605)
Adjusted EBITDA
attributable to
Western Gas Partners,
LP $
314,522 $
257,835 $
858,300 $
787,664
---
Cash flow information
of Western Gas
Partners, LP
Net cash provided by
operating activities $
751,722 $
645,099
Net cash used in
investing activities (1,160,684) (514,797)
Net cash provided by
(used in) financing
activities 460,816 (335,792)
---
(1) Includes WES's 75% share of
depreciation and amortization;
impairments; 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 reimbursements for electricity-related expenses recorded as revenue), less cost of product, 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 2018 2017 2018 2017
---
Reconciliation of
Operating income
(loss) to Adjusted
gross margin
attributable to
Western Gas Partners,
LP
Operating income
(loss) $
200,321 $
179,456 $
463,183 $
525,456
Add:
Distributions from
equity investments 51,023 29,145 111,924 80,568
Operation and
maintenance 111,359 79,536 300,266 229,444
General and
administrative 14,467 12,158 42,634 35,402
Property and other
taxes 10,954 11,215 35,090 35,433
Depreciation and
amortization 82,553 72,539 238,187 216,272
Impairments 25,317 2,159 152,708 170,079
Less:
Gain (loss) on
divestiture and
other, net 65 72 351 135,017
Proceeds from business
interruption
insurance claims 29,882
Equity income, net -
affiliates 43,110 21,519 102,752 62,708
Reimbursed
electricity-related
charges recorded as
revenues 17,455 14,323 50,139 42,338
Adjusted gross margin
attributable to
noncontrolling
interest 3,803 5,878 12,350 13,189
Adjusted gross margin
attributable to
Western Gas Partners,
LP $
431,561 $
344,416 $
1,178,400 $
1,009,520
---
Adjusted gross margin
attributable to
Western Gas Partners,
LP for natural gas
assets $
363,536 $
305,337 $
1,019,061 $
904,620
Adjusted gross margin
for crude oil, NGL
and produced water
assets 68,025 39,079 159,339 104,900
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 2018 2017 2018 2017
---
Revenues and other
Service revenues - fee based $
409,106 $
306,187 $
1,146,099 $
913,436
Service revenues - product
based 22,735 67,433
Product sales 75,150 259,141 217,738 690,490
Other 771 9,367 1,213 12,412
Total revenues and other 507,762 574,695 1,432,483 1,616,338
Equity income, net -
affiliates 43,110 21,519 102,752 62,708
Operating expenses
Cost of product 105,966 239,223 303,518 631,859
Operation and maintenance 111,359 79,536 300,266 229,444
General and administrative 14,467 12,158 42,634 35,402
Property and other taxes 10,954 11,215 35,090 35,433
Depreciation and amortization 82,553 72,539 238,187 216,272
Impairments 25,317 2,159 152,708 170,079
---
Total operating expenses 350,616 416,830 1,072,403 1,318,489
Gain (loss) on divestiture
and other, net 65 72 351 135,017
Proceeds from business
interruption insurance
claims 29,882
---
Operating income (loss) 200,321 179,456 463,183 525,456
Interest income - affiliates 4,225 4,225 12,675 12,675
Interest expense (47,991) (35,544) (131,663) (106,794)
Other income (expense), net 598 286 2,609 969
Income (loss) before income
taxes 157,153 148,423 346,804 432,306
Income tax (benefit) expense 1,517 510 3,301 4,905
Net income (loss) 155,636 147,913 343,503 427,401
Net income attributable to
noncontrolling interest 990 4,407 6,786 8,555
---
Net income (loss)
attributable to Western Gas
Partners, LP $
154,646 $
143,506 $
336,717 $
418,846
Limited partners' interest in
net income (loss):
Net income (loss)
attributable to Western Gas
Partners, LP $
154,646 $
143,506 $
336,717 $
418,846
Series A Preferred units
interest in net (income)
loss (42,373)
General partner interest in
net (income) loss (88,551) (78,376) (256,166) (222,903)
---
Common and Class C limited
partners' interest in net
income (loss) $
66,095 $
65,130 $
80,551 $
153,570
Net income (loss) per common
unit - basic and diluted $
0.39 $
0.38 $
0.46 $
0.91
Weighted-average common
units outstanding - basic
and diluted 152,609 152,602 152,605 145,371
Western Gas Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands except number of
units September 30, December 31,
2018 2017
---
Current assets $
381,624 $
254,062
Note receivable - Anadarko 260,000 260,000
Net property, plant and
equipment 6,418,634 5,730,891
Other assets 1,971,040 1,769,397
Total assets $
9,031,298 $
8,014,350
---
Current liabilities $
512,060 $
424,333
Long-term debt 4,566,464 3,464,712
Asset retirement obligations 157,933 143,394
Other liabilities 152,242 10,900
---
Total liabilities 5,388,699 4,043,339
---
Equity and partners' capital
Common units (152,609,285
and 152,602,105 units
issued and outstanding at
September 30, 2018, and
December 31, 2017,
respectively) 2,595,719 2,950,010
Class C units (14,045,429
and 13,243,883 units issued
and outstanding at
September 30, 2018, and
December 31, 2017,
respectively) 787,420 780,040
General partner units
(2,583,068 units issued and
outstanding at September
30, 2018, and December 31,
2017) 199,433 179,232
Noncontrolling interest 60,027 61,729
Total liabilities, equity
and partners' capital $
9,031,298 $
8,014,350
---
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
thousands 2018 2017
---
Cash flows from operating
activities
Net income (loss) $
343,503 $
427,401
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities and changes in
assets and liabilities:
Depreciation and amortization 238,187 216,272
Impairments 152,708 170,079
(Gain) loss on divestiture
and other, net (351) (135,017)
Change in other items, net 17,675 (33,636)
---
Net cash provided by
operating activities $
751,722 $
645,099
---
Cash flows from investing
activities
Capital expenditures $
(949,022) $
(419,193)
Contributions in aid of
construction costs from
affiliates 1,386
Acquisitions from affiliates (254) (3,910)
Acquisitions from third
parties (161,858) (155,298)
Investments in equity
affiliates (67,979) (384)
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 18,097 16,255
Proceeds from the sale of
assets to third parties 332 23,370
Proceeds from property
insurance claims 22,977
Net cash used in investing
activities $
(1,160,684) $
(514,797)
---
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $
2,135,637 $
249,989
Repayments of debt (1,040,000)
Settlement of the Deferred
purchase price obligation -
Anadarko (37,346)
Increase (decrease) in
outstanding checks (2,687) 3,310
Proceeds from the issuance of
common units, net of
offering expenses (183)
Distributions to unitholders (663,410) (589,262)
Distributions to
noncontrolling interest
owner (9,446) (9,049)
Net contributions from
(distributions to) Anadarko 30
Above-market component of
swap agreements with
Anadarko 40,722 46,719
---
Net cash provided by (used
in) financing activities $
460,816 $
(335,792)
---
Net increase (decrease) in
cash and cash equivalents $
51,854 $
(205,490)
Cash and cash equivalents at
beginning of period 78,814 357,925
---
Cash and cash equivalents at
end of period $
130,668 $
152,435
---
Western Gas Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2018 2017 2018 2017
Throughput for natural gas assets
(MMcf/d)
Gathering, treating and
transportation 954 784 886 1,029
Processing 2,844 2,588 2,820 2,528
Equity investment (1) 139 159 144 160
---
Total throughput for natural gas
assets 3,937 3,531 3,850 3,717
---
Throughput attributable to
noncontrolling interest for
natural gas assets 87 104 92 107
---
Total throughput attributable to
Western Gas Partners, LP for
natural gas assets 3,850 3,427 3,758 3,610
---
Throughput for crude oil, NGL and
produced water assets (MBbls/d)
Gathering, treating,
transportation and disposal 154 77 141 57
Equity investment (2) 267 132 200 130
Total throughput for crude oil,
NGL and produced water assets 421 209 341 187
---
Adjusted gross margin per Mcf
attributable to Western Gas
Partners, LP for natural gas
assets (3) $
1.03 $
0.97 $
0.99 $
0.92
---
Adjusted gross margin per Bbl for
crude oil, NGL and produced
water assets (4) 1.76 2.03 1.71 2.05
---
(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, WES's 33.33%
share of average FRP throughput and
WES's 20% share of average Whitethorn
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,
less 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 oil,
NGL and produced water assets (total
revenues and other for crude oil, NGL
and produced water assets less
reimbursements for electricity-
related expenses recorded as revenue,
less cost of product for crude oil,
NGL and produced water assets, and
plus distributions from WES's equity
investments in White Cliffs, the Mont
Belvieu JV, TEG, TEP, FRP and
Whitethorn), divided by total
throughput (MBbls/d) for crude oil,
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
September 30, 2018
---
Distributions declared by
Western Gas Partners, LP:
General partner interest $
3,832
Incentive distribution rights 79,139
Common units held by WGP 48,377
Less:
Public company general and
administrative expense 691
Interest expense 325
---
Cash available for
distribution $
130,332
---
Declared distribution per
common unit $
0.59500
---
Distributions declared by
Western Gas Equity Partners,
LP $
130,268
---
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 2018 2017 2018 2017
---
Revenues and other
Service revenues - fee based $
409,106 $
306,187 $
1,146,099 $
913,436
Service revenues - product
based 22,735 67,433
Product sales 75,150 259,141 217,738 690,490
Other 771 9,367 1,213 12,412
Total revenues and other 507,762 574,695 1,432,483 1,616,338
Equity income, net -
affiliates 43,110 21,519 102,752 62,708
Operating expenses
Cost of product 105,966 239,223 303,518 631,859
Operation and maintenance 111,359 79,536 300,266 229,444
General and administrative 15,158 12,922 44,853 37,595
Property and other taxes 10,954 11,215 35,090 35,433
Depreciation and amortization 82,553 72,539 238,187 216,272
Impairments 25,317 2,159 152,708 170,079
---
Total operating expenses 351,307 417,594 1,074,622 1,320,682
Gain (loss) on divestiture
and other, net 65 72 351 135,017
Proceeds from business
interruption insurance
claims 29,882
---
Operating income (loss) 199,630 178,692 460,964 523,263
Interest income - affiliates 4,225 4,225 12,675 12,675
Interest expense (48,316) (36,117) (133,359) (108,447)
Other income (expense), net 655 311 2,749 1,029
Income (loss) before income
taxes 156,194 147,111 343,029 428,520
Income tax (benefit) expense 1,517 510 3,301 4,905
Net income (loss) 154,677 146,601 339,728 423,615
Net income (loss)
attributable to
noncontrolling interests 47,203 50,399 63,669 146,529
---
Net income (loss)
attributable to Western Gas
Equity Partners, LP $
107,474 $
96,202 $
276,059 $
277,086
Net income (loss) per common
unit - basic and diluted $
0.49 $
0.44 $
1.26 $
1.27
Weighted-average common
units outstanding - basic
and diluted 218,938 218,933 218,935 218,931
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands except number of
units September 30, December 31, 2017
2018
---
Current assets $
383,883 $
255,210
Note receivable - Anadarko 260,000 260,000
Net property, plant and
equipment 6,418,634 5,730,891
Other assets 1,971,040 1,770,210
Total assets $
9,033,557 $
8,016,311
---
Current liabilities $
540,278 $
424,426
Long-term debt 4,566,464 3,492,712
Asset retirement obligations 157,933 143,394
Other liabilities 152,242 10,900
---
Total liabilities 5,416,917 4,071,432
---
Equity and partners' capital
Common units (218,937,797
and 218,933,141 units
issued and outstanding at
September 30, 2018, and
December 31, 2017,
respectively) 981,408 1,061,125
Noncontrolling interests 2,635,232 2,883,754
Total liabilities, equity
and partners' capital $
9,033,557 $
8,016,311
---
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
thousands 2018 2017
---
Cash flows from operating
activities
Net income (loss) $
339,728 $
423,615
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities and changes in
assets and liabilities:
Depreciation and amortization 238,187 216,272
Impairments 152,708 170,079
(Gain) loss on divestiture
and other, net (351) (135,017)
Change in other items, net 19,107 (32,480)
---
Net cash provided by
operating activities $
749,379 $
642,469
---
Cash flows from investing
activities
Capital expenditures $
(949,022) $
(419,193)
Contributions in aid of
construction costs from
affiliates 1,386
Acquisitions from affiliates (254) (3,910)
Acquisitions from third
parties (161,858) (155,298)
Investments in equity
affiliates (67,979) (384)
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 18,097 16,255
Proceeds from the sale of
assets to third parties 332 23,370
Proceeds from property
insurance claims 22,977
Net cash used in investing
activities $
(1,160,684) $
(514,797)
---
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $
2,135,629 $
249,989
Repayments of debt (1,040,000)
Settlement of the Deferred
purchase price obligation -
Anadarko (37,346)
Increase (decrease) in
outstanding checks (2,687) 3,310
Proceeds from the issuance of
WES common units, net of
offering expenses (183)
Distributions to WGP
unitholders (372,189) (324,290)
Distributions to Chipeta
noncontrolling interest
owner (9,446) (9,049)
Distributions to
noncontrolling interest
owners of WES (287,435) (262,888)
Net contributions from
(distributions to) Anadarko 30
Above-market component of
swap agreements with
Anadarko 40,722 46,719
---
Net cash provided by (used
in) financing activities $
464,594 $
(333,708)
---
Net increase (decrease) in
cash and cash equivalents $
53,289 $
(206,036)
Cash and cash equivalents at
beginning of period 79,588 359,072
---
Cash and cash equivalents at
end of period $
132,877 $
153,036
---
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
