HOUSTON, July 29, 2015
/PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or
the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP)
("WGP") today announced second-quarter 2015 financial and operating
results.
WESTERN GAS PARTNERS, LP
Net income available to limited partners for the second quarter
of 2015 totaled $64.6 million, or
$0.44 per common unit (diluted). For
the second quarter of 2015, Adjusted EBITDA(1) was
$205.5 million and Distributable cash
flow(1) was $173.3
million, resulting in a Coverage ratio(1) of 1.24
times for the period.
WES previously declared a quarterly distribution of $0.750 per unit for the second quarter of
2015. This distribution represented a 3% increase over the prior
quarter's distribution and a 15% increase over the second-quarter
2014 distribution of $0.650 per
unit. The distribution will be paid on August 12, 2015, to
unitholders of record at the close of business on July 31,
2015. The second-quarter 2015 Coverage ratio(1) of
1.24 times was based on the quarterly distribution of
$0.750 per unit.
Total throughput attributable to WES for natural gas assets for
the second quarter of 2015 averaged 4.1 Bcf/d, which was 4% above
the prior quarter and 13% above the second quarter of 2014. Total
throughput for crude/NGL assets for the second quarter of 2015
averaged 134 MBbls/d, which was 2% above the prior quarter and 17%
above the second quarter of 2014.
"The successful startup of Lancaster Train II combined with
significant sequential volume growth in the DJ and Delaware Basins
has led to another quarter of solid operating performance," said
Chief Executive Officer, Don
Sinclair. "Furthermore, we have protected our cash flow in
the second half of the year by extending our DJ Basin and Hugoton
fixed-price agreements with Anadarko through December 31, 2015."
Capital expenditures attributable to WES on a cash basis,
including equity investments but excluding acquisitions, totaled
$136.3 million during the second
quarter of 2015. Of this amount, maintenance capital expenditures
were $10.3 million, or 5% of Adjusted
EBITDA(1). Capital expenditures attributable to WES on
an accrual basis, including equity investments but excluding
acquisitions, totaled $120.2 million
during the second quarter of 2015. The Partnership is slightly
revising its 2015 outlook for maintenance capital expenditures, now
estimating they will be between 7% and 10% of Adjusted EBITDA.
WESTERN GAS EQUITY PARTNERS, LP
WGP indirectly owns the entire general partner interest in WES,
100% of the incentive distribution rights in WES and 49,296,205 WES
common units. Net income available to limited partners for the
second quarter of 2015 totaled $67.8
million, or $0.31 per common
unit (diluted).
WGP previously declared a quarterly distribution of $0.36375 per unit for the second quarter of
2015. This distribution represented a 6% increase over the prior
quarter's distribution and a 34% increase over the second-quarter
2014 distribution of $0.27125. The
distribution will be paid on August 21, 2015, to unitholders
of record at the close of business on July 31, 2015. WGP will
receive distributions from WES of $80.3
million attributable to the second quarter and will pay
$79.6 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 Thursday, July 30, 2015, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss
second-quarter 2015 results. Individuals who would like to
participate should dial 866-777-2509 (Domestic) or 412-317-5413
(International) approximately 15 minutes before the scheduled
conference call time.Pre-registration is available through the
investor relations page at www.westerngas.com. Pre-registrants will
be issued a personal identification number to use when dialing in
to the live conference call, which will enable the participant to
bypass the operator and gain immediate access to the call. 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.
(1)
|
Please see the tables
at the end of this release for a reconciliation of non-GAAP to GAAP
measures and calculation of the Coverage ratio.
|
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, the Mid-Continent,
North-central Pennsylvania and
Texas, WES is engaged in the
business of gathering, processing, compressing, treating and
transporting natural gas, condensate, natural gas liquids and crude
oil 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.
Western Gas Partners and Western Gas Equity Partners believe 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 ability to obtain new sources
of natural gas supplies; the effect of fluctuations in commodity
prices and the demand for natural gas and related products; 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 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
Benjamin
Fink, CFA
SVP, Chief Financial Officer and Treasurer
832.636.6010
benjamin.fink@westerngas.com
Logo - http://photos.prnewswire.com/prnh/20150505/213920LOGO
Logo - http://photos.prnewswire.com/prnh/20150505/213919LOGO
Western Gas Partners, LP Reconciliation of
GAAP to Non-GAAP Measures
Below are reconciliations of (i) WES's Distributable cash flow
(non-GAAP) to net income attributable to Western Gas Partners, LP
(GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners,
LP ("Adjusted EBITDA") (non-GAAP) to net income attributable to
Western Gas Partners, LP (GAAP) and to net cash provided by
operating activities (GAAP), and (iii) Adjusted gross margin
attributable to Western Gas Partners, LP ("Adjusted gross margin")
(non-GAAP) to operating income (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
and other applicable performance measures, such as operating income
or cash flows from operating activities.
Distributable Cash Flow
WES defines Distributable cash flow as Adjusted EBITDA, plus
interest income, plus the net settlement amounts from the sale
and/or purchase of natural gas, drip condensate and NGLs under our
commodity price swap agreements to the extent such amounts are not
recognized as Adjusted EBITDA, less net cash paid for interest
expense (including amortization of deferred debt issuance costs
originally paid in cash, offset by non-cash capitalized interest),
maintenance capital expenditures, and income taxes.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
thousands except
Coverage ratio
|
|
2015
|
2014
(1)
|
|
2015
|
2014
(1)
|
Reconciliation of
Net income attributable to Western Gas Partners, LP to
Distributable cash flow and calculation of the Coverage
ratio
|
|
|
|
|
|
|
Net income
attributable to Western Gas Partners, LP
|
|
$
|
110,522
|
|
$
|
99,167
|
|
|
$
|
194,090
|
|
$
|
190,223
|
|
Add:
|
|
|
|
|
|
|
Distributions from
equity investees
|
|
25,902
|
|
24,328
|
|
|
47,572
|
|
36,641
|
|
Non-cash equity-based
compensation expense
|
|
1,163
|
|
1,057
|
|
|
2,275
|
|
2,154
|
|
Interest expense, net
(non-cash settled) (2)
|
|
4,190
|
|
—
|
|
|
5,610
|
|
—
|
|
Income tax (benefit)
expense
|
|
(1,816)
|
|
2,523
|
|
|
2,644
|
|
4,308
|
|
Depreciation,
amortization and impairments (3)
|
|
65,311
|
|
44,662
|
|
|
134,955
|
|
86,110
|
|
Less:
|
|
|
|
|
|
|
Equity income,
net
|
|
18,941
|
|
13,008
|
|
|
37,161
|
|
22,259
|
|
Cash paid for
maintenance capital expenditures (3)
|
|
10,262
|
|
12,849
|
|
|
22,894
|
|
22,993
|
|
Capitalized
interest
|
|
2,693
|
|
2,007
|
|
|
5,787
|
|
5,447
|
|
Cash paid for
(reimbursement of) income taxes
|
|
—
|
|
—
|
|
|
(138)
|
|
(340)
|
|
Other income (3)
(4)
|
|
68
|
|
79
|
|
|
137
|
|
157
|
|
Distributable cash
flow
|
|
$
|
173,308
|
|
$
|
143,794
|
|
|
$
|
321,305
|
|
$
|
268,920
|
|
Distributions
declared (5)
|
|
|
|
|
|
|
Limited
partners
|
|
$
|
96,431
|
|
|
|
$
|
189,570
|
|
|
General
partner
|
|
43,305
|
|
|
|
83,369
|
|
|
Total
|
|
$
|
139,736
|
|
|
|
$
|
272,939
|
|
|
Coverage
ratio
|
|
1.24
|
x
|
|
|
1.18
|
x
|
|
|
|
(1)
|
In March 2015, WES
acquired Anadarko's interest in Delaware Basin JV Gathering LLC,
which owns a 50% interest in a gathering system and related
facilities (the "DBJV system"). WES will make a cash payment on
March 1, 2020, to Anadarko as consideration for the acquisition.
The net present value of this future obligation has been recorded
on the consolidated balance sheet under Deferred purchase price
obligation - Anadarko. Financial information has been recast to
include the financial position and results attributable to the DBJV
system.
|
(2)
|
Includes accretion
expense related to the Deferred purchase price obligation -
Anadarko associated with the acquisition of DBJV.
|
(3)
|
Includes WES's 75%
share of depreciation, amortization and impairments; cash paid for
maintenance capital expenditures; and other income attributable to
Chipeta.
|
(4)
|
Excludes income of
zero and $0.1 million for the three months ended June 30, 2015 and
2014, respectively, and zero and $0.5 million for the six months
ended June 30, 2015 and 2014, respectively, related to a component
of a gas processing agreement accounted for as a capital
lease.
|
(5)
|
Reflects cash
distributions of $0.750 and $1.475 per unit declared for the three
and six months ended June 30, 2015, 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
investees, non-cash equity-based compensation expense, interest
expense, income tax expense, depreciation, amortization and
impairments, and other expense, less gains on divestitures, income
from equity investments, interest income, income tax benefit and
other income.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
thousands
|
|
2015
|
|
2014
(1)
|
|
2015
|
|
2014
(1)
|
Reconciliation of
Net income attributable to Western Gas Partners, LP to Adjusted
EBITDA attributable to Western Gas Partners, LP
|
|
|
|
|
|
|
|
|
Net income
attributable to Western Gas Partners, LP
|
|
$
|
110,522
|
|
|
$
|
99,167
|
|
|
$
|
194,090
|
|
|
$
|
190,223
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investees
|
|
25,902
|
|
|
24,328
|
|
|
47,572
|
|
|
36,641
|
|
Non-cash equity-based
compensation expense
|
|
1,163
|
|
|
1,057
|
|
|
2,275
|
|
|
2,154
|
|
Interest
expense
|
|
27,604
|
|
|
20,864
|
|
|
50,564
|
|
|
34,825
|
|
Income tax
expense
|
|
—
|
|
|
2,523
|
|
|
4,460
|
|
|
4,308
|
|
Depreciation,
amortization and impairments (2)
|
|
65,311
|
|
|
44,662
|
|
|
134,955
|
|
|
86,110
|
|
Less:
|
|
|
|
|
|
|
|
|
Equity income,
net
|
|
18,941
|
|
|
13,008
|
|
|
37,161
|
|
|
22,259
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
8,450
|
|
|
8,450
|
|
Other income (2)
(3)
|
|
68
|
|
|
79
|
|
|
137
|
|
|
157
|
|
Income tax
benefit
|
|
1,816
|
|
|
—
|
|
|
1,816
|
|
|
—
|
|
Adjusted EBITDA
attributable to Western Gas Partners, LP
|
|
$
|
205,452
|
|
|
$
|
175,289
|
|
|
$
|
386,352
|
|
|
$
|
323,395
|
|
|
Reconciliation of
Adjusted EBITDA attributable to Western Gas Partners, LP to Net
cash provided by operating activities
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
attributable to Western Gas Partners, LP
|
|
$
|
205,452
|
|
|
$
|
175,289
|
|
|
$
|
386,352
|
|
|
$
|
323,395
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
3,463
|
|
|
4,090
|
|
|
7,335
|
|
|
8,416
|
|
Interest income
(expense), net
|
|
(23,379)
|
|
|
(16,639)
|
|
|
(42,114)
|
|
|
(26,375)
|
|
Uncontributed
cash-based compensation awards
|
|
(68)
|
|
|
(20)
|
|
|
(145)
|
|
|
33
|
|
Accretion and
amortization of long-term obligations, net
|
|
4,958
|
|
|
678
|
|
|
7,070
|
|
|
1,358
|
|
Current income tax
benefit (expense)
|
|
(117)
|
|
|
(1,298)
|
|
|
(819)
|
|
|
(2,090)
|
|
Other income
(expense), net (3)
|
|
71
|
|
|
82
|
|
|
142
|
|
|
163
|
|
Distributions from
equity investments in excess of cumulative earnings
|
|
(5,574)
|
|
|
(7,804)
|
|
|
(8,538)
|
|
|
(9,848)
|
|
Changes in operating
working capital:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(28,463)
|
|
|
(8,421)
|
|
|
(46,135)
|
|
|
(23,860)
|
|
Accounts and natural
gas imbalance payables and accrued liabilities, net
|
|
(10,168)
|
|
|
(2,439)
|
|
|
283
|
|
|
4,267
|
|
Other
|
|
(744)
|
|
|
2,369
|
|
|
(1,964)
|
|
|
4,247
|
|
Net cash provided by
operating activities
|
|
$
|
145,431
|
|
|
$
|
145,887
|
|
|
$
|
301,467
|
|
|
$
|
279,706
|
|
Cash flow
information of Western Gas Partners, LP
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
$
|
301,467
|
|
|
$
|
279,706
|
|
Net cash used in
investing activities
|
|
|
|
|
|
$
|
(349,170)
|
|
|
$
|
(801,530)
|
|
Net cash provided by
financing activities
|
|
|
|
|
|
$
|
68,417
|
|
|
$
|
531,725
|
|
|
(1)
|
Financial information
has been recast to include the financial position and results
attributable to the DBJV system.
|
(2)
|
Includes WES's 75%
share of depreciation, amortization and impairments; and other
income attributable to Chipeta.
|
(3)
|
Excludes income of
zero and $0.1 million for the three months ended June 30, 2015 and
2014, respectively, and zero and $0.5 million for the six months
ended June 30, 2015 and 2014, respectively, related to a component
of a gas processing agreement accounted for as a capital
lease.
|
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 less gains
on divestitures and cost of product, plus distributions from equity
investees and excluding the noncontrolling interest owner's
proportionate share of revenue and cost of product.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
thousands
|
|
2015
|
|
2014
(1)
|
|
2015
|
|
2014
(1)
|
Reconciliation of
Adjusted gross margin attributable to Western Gas Partners, LP to
Operating income
|
|
|
|
|
|
|
|
|
Adjusted gross margin
attributable to Western Gas Partners, LP for natural gas
assets
|
|
$
|
255,342
|
|
|
$
|
222,913
|
|
|
$
|
489,194
|
|
|
$
|
418,684
|
|
Adjusted gross margin
for crude/NGL assets
|
|
22,018
|
|
|
21,507
|
|
|
42,202
|
|
|
32,296
|
|
Adjusted gross margin
attributable to Western Gas Partners, LP
|
|
$
|
277,360
|
|
|
$
|
244,420
|
|
|
$
|
531,396
|
|
|
$
|
450,980
|
|
Adjusted gross margin
attributable to noncontrolling interest
|
|
$
|
4,661
|
|
|
$
|
4,935
|
|
|
$
|
9,469
|
|
|
$
|
10,029
|
|
Equity income,
net
|
|
18,941
|
|
|
13,008
|
|
|
37,161
|
|
|
22,259
|
|
Less:
|
|
|
|
|
|
|
|
|
Distributions from
equity investees
|
|
25,902
|
|
|
24,328
|
|
|
47,572
|
|
|
36,641
|
|
Operation and
maintenance
|
|
56,827
|
|
|
55,404
|
|
|
112,976
|
|
|
99,981
|
|
General and
administrative
|
|
8,667
|
|
|
8,445
|
|
|
19,179
|
|
|
17,349
|
|
Property and other
taxes
|
|
8,775
|
|
|
7,316
|
|
|
17,298
|
|
|
14,550
|
|
Depreciation,
amortization and impairments
|
|
65,961
|
|
|
45,305
|
|
|
136,253
|
|
|
87,390
|
|
Operating
income
|
|
$
|
134,830
|
|
|
$
|
121,565
|
|
|
$
|
244,748
|
|
|
$
|
227,357
|
|
|
(1)
|
Financial information
has been recast to include the financial position and results
attributable to the DBJV system.
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
thousands except
per-unit amounts
|
|
2015
|
|
2014
(1)
|
|
2015
|
|
2014
(1)
|
Revenues
|
|
|
|
|
|
|
|
|
Gathering, processing
and transportation of natural gas and natural gas
liquids
|
|
$
|
228,236
|
|
|
$
|
175,885
|
|
|
$
|
438,080
|
|
|
$
|
330,382
|
|
Natural gas, natural
gas liquids and drip condensate sales
|
|
173,261
|
|
|
167,628
|
|
|
337,429
|
|
|
305,277
|
|
Other
|
|
915
|
|
|
2,056
|
|
|
1,997
|
|
|
3,627
|
|
Total
revenues
|
|
402,412
|
|
|
345,569
|
|
|
777,506
|
|
|
639,286
|
|
Equity income,
net
|
|
18,941
|
|
|
13,008
|
|
|
37,161
|
|
|
22,259
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
146,293
|
|
|
120,542
|
|
|
284,213
|
|
|
214,918
|
|
Operation and
maintenance
|
|
56,827
|
|
|
55,404
|
|
|
112,976
|
|
|
99,981
|
|
General and
administrative
|
|
8,667
|
|
|
8,445
|
|
|
19,179
|
|
|
17,349
|
|
Property and other
taxes
|
|
8,775
|
|
|
7,316
|
|
|
17,298
|
|
|
14,550
|
|
Depreciation,
amortization and impairments
|
|
65,961
|
|
|
45,305
|
|
|
136,253
|
|
|
87,390
|
|
Total operating
expenses
|
|
286,523
|
|
|
237,012
|
|
|
569,919
|
|
|
434,188
|
|
Operating
income
|
|
134,830
|
|
|
121,565
|
|
|
244,748
|
|
|
227,357
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
8,450
|
|
|
8,450
|
|
Interest
expense
|
|
(27,604)
|
|
|
(20,864)
|
|
|
(50,564)
|
|
|
(34,825)
|
|
Other income
(expense), net
|
|
71
|
|
|
214
|
|
|
142
|
|
|
691
|
|
Income before
income taxes
|
|
111,522
|
|
|
105,140
|
|
|
202,776
|
|
|
201,673
|
|
Income tax (benefit)
expense
|
|
(1,816)
|
|
|
2,523
|
|
|
2,644
|
|
|
4,308
|
|
Net
income
|
|
113,338
|
|
|
102,617
|
|
|
200,132
|
|
|
197,365
|
|
Net income
attributable to noncontrolling interest
|
|
2,816
|
|
|
3,450
|
|
|
6,042
|
|
|
7,142
|
|
Net income
attributable to Western Gas Partners, LP
|
|
$
|
110,522
|
|
|
$
|
99,167
|
|
|
$
|
194,090
|
|
|
$
|
190,223
|
|
Limited partners'
interest in net income:
|
|
|
|
|
|
|
|
|
Net income
attributable to Western Gas Partners, LP
|
|
$
|
110,522
|
|
|
$
|
99,167
|
|
|
$
|
194,090
|
|
|
$
|
190,223
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
|
—
|
|
|
(4,135)
|
|
|
(1,742)
|
|
|
(6,800)
|
|
General partner
interest in net (income) loss
|
|
(45,915)
|
|
|
(28,047)
|
|
|
(87,908)
|
|
|
(52,881)
|
|
Limited partners'
interest in net income
|
|
64,607
|
|
|
66,985
|
|
|
$
|
104,440
|
|
|
$
|
130,542
|
|
Net income per
common unit – basic
|
|
$
|
0.44
|
|
|
$
|
0.57
|
|
|
$
|
0.70
|
|
|
$
|
1.11
|
|
Net income per
common unit – diluted
|
|
0.44
|
|
|
0.57
|
|
|
0.70
|
|
|
1.11
|
|
Weighted-average
common units outstanding – basic
|
|
128,481
|
|
|
118,177
|
|
|
128,111
|
|
|
117,948
|
|
Weighted-average
common units outstanding – diluted
|
|
139,504
|
|
|
118,177
|
|
|
139,092
|
|
|
117,948
|
|
|
(1)
|
Financial information
has been recast to include the financial position and results
attributable to the DBJV system.
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
thousands except
number of units
|
|
June 30, 2015
|
|
December 31,
2014 (1)
|
Current
assets
|
|
$
|
272,101
|
|
|
$
|
186,364
|
|
Note receivable –
Anadarko
|
|
260,000
|
|
|
260,000
|
|
Net property, plant
and equipment
|
|
4,782,541
|
|
|
4,571,443
|
|
Other
assets
|
|
1,901,400
|
|
|
1,936,725
|
|
Total
assets
|
|
$
|
7,216,042
|
|
|
$
|
6,954,532
|
|
Current
liabilities
|
|
$
|
213,063
|
|
|
$
|
239,833
|
|
Long-term
debt
|
|
2,677,023
|
|
|
2,422,954
|
|
Asset retirement
obligations and other
|
|
125,910
|
|
|
157,370
|
|
Deferred purchase
price obligation – Anadarko
|
|
179,886
|
|
|
—
|
|
Total
liabilities
|
|
$
|
3,195,882
|
|
|
$
|
2,820,157
|
|
Equity and
partners' capital
|
|
|
|
|
Common units
(128,574,646 and 127,695,130 units issued and outstanding at June
30, 2015, and December 31, 2014, respectively)
|
|
$
|
3,102,772
|
|
|
$
|
3,119,714
|
|
Class C units
(11,077,794 and 10,913,853 units issued and outstanding at June 30,
2015, and December 31, 2014, respectively)
|
|
732,192
|
|
|
716,957
|
|
General partner units
(2,583,068 units issued and outstanding at June 30, 2015, and
December 31, 2014)
|
|
116,859
|
|
|
105,725
|
|
Net investment by
Anadarko
|
|
—
|
|
|
122,509
|
|
Noncontrolling
interest
|
|
68,337
|
|
|
69,470
|
|
Total liabilities,
equity and partners' capital
|
|
$
|
7,216,042
|
|
|
$
|
6,954,532
|
|
|
(1)
|
Financial information
has been recast to include the financial position and results
attributable to the DBJV system.
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
Six Months Ended
June 30,
|
thousands
|
|
2015
|
|
2014
(1)
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
|
$
|
200,132
|
|
|
$
|
197,365
|
|
Adjustments to
reconcile net income to net cash provided by operating activities
and changes in working capital:
|
|
|
|
|
Depreciation,
amortization and impairments
|
|
136,253
|
|
|
87,390
|
|
Change in other
items, net
|
|
(34,918)
|
|
|
(5,049)
|
|
Net cash provided by
operating activities
|
|
301,467
|
|
|
279,706
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(338,178)
|
|
|
(390,506)
|
|
Contributions in aid
of construction costs from affiliates
|
|
—
|
|
|
182
|
|
Acquisitions from
affiliates
|
|
(9,968)
|
|
|
(360,952)
|
|
Acquisitions from
third parties
|
|
(3,514)
|
|
|
—
|
|
Investments in equity
affiliates
|
|
(6,770)
|
|
|
(60,102)
|
|
Distributions from
equity investments in excess of cumulative earnings
|
|
8,538
|
|
|
9,848
|
|
Proceeds from the
sale of assets to affiliates
|
|
700
|
|
|
—
|
|
Proceeds from the
sale of assets to third parties
|
|
22
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(349,170)
|
|
|
(801,530)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
|
769,694
|
|
|
1,076,895
|
|
Repayments of
debt
|
|
(520,000)
|
|
|
(480,000)
|
|
Increase (decrease)
in outstanding checks
|
|
(2,327)
|
|
|
2,517
|
|
Proceeds from the
issuance of common and general partner units, net of offering
expenses
|
|
57,376
|
|
|
92,588
|
|
Distributions to
unitholders
|
|
(259,247)
|
|
|
(191,359)
|
|
Distributions to
noncontrolling interest owner
|
|
(7,175)
|
|
|
(7,949)
|
|
Net contributions
from Anadarko
|
|
30,096
|
|
|
39,033
|
|
Net cash provided by
financing activities
|
|
68,417
|
|
|
531,725
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
20,714
|
|
|
9,901
|
|
Cash and cash
equivalents at beginning of period
|
|
67,054
|
|
|
100,728
|
|
Cash and cash
equivalents at end of period
|
|
$
|
87,768
|
|
|
$
|
110,629
|
|
|
(1)
|
Financial information
has been recast to include the financial position and results
attributable to the DBJV system.
|
Western Gas
Partners, LP
|
OPERATING
STATISTICS
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
MMcf/d except
throughput measured in barrels and per-unit amounts
|
|
2015
|
|
2014
(1)
|
|
2015
|
|
2014
(1)
|
|
|
|
|
|
|
|
|
|
Throughput for
natural gas assets
|
|
|
|
|
|
|
|
|
Gathering, treating
and transportation
|
|
1,605
|
|
|
1,673
|
|
|
1,630
|
|
|
1,660
|
|
Processing
|
|
2,465
|
|
|
1,971
|
|
|
2,362
|
|
|
1,885
|
|
Equity investment
(2)
|
|
172
|
|
|
153
|
|
|
169
|
|
|
170
|
|
Total throughput for
natural gas assets
|
|
4,242
|
|
|
3,797
|
|
|
4,161
|
|
|
3,715
|
|
Throughput
attributable to noncontrolling interest for natural gas
assets
|
|
159
|
|
|
171
|
|
|
161
|
|
|
172
|
|
Total throughput
attributable to Western Gas Partners, LP for natural gas assets
(3)
|
|
4,083
|
|
|
3,626
|
|
|
4,000
|
|
|
3,543
|
|
Total throughput
(MBbls/d) for crude/NGL assets (4)
|
|
134
|
|
|
115
|
|
|
133
|
|
|
97
|
|
Adjusted gross margin
per Mcf attributable to Western Gas Partners, LP for natural gas
assets (5)
|
|
$
|
0.69
|
|
|
$
|
0.68
|
|
|
$
|
0.68
|
|
|
$
|
0.65
|
|
Adjusted gross margin
per Bbl for crude/NGL assets (6)
|
|
$
|
1.80
|
|
|
$
|
2.06
|
|
|
$
|
1.76
|
|
|
$
|
1.84
|
|
|
(1)
|
Throughput has been
recast to include throughput attributable to the DBJV
system.
|
(2)
|
Represents WES's
14.81% share of average Fort Union and 22% share of average
Rendezvous throughput. Excludes equity investment throughput
measured in barrels (captured in "Total throughput (MBbls/d) for
crude/NGL assets" as noted below).
|
(3)
|
Includes affiliate,
third-party and equity investment throughput (as equity investment
throughput is defined in the above footnote), excluding the
noncontrolling interest owner's proportionate share of
throughput.
|
(4)
|
Represents total
throughput measured in barrels, consisting of throughput from WES's
Chipeta NGL pipeline, 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.
|
(5)
|
Average for period.
Calculated as Adjusted gross margin attributable to Western Gas
Partners, LP for natural gas assets (total revenues for natural gas
assets 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 owners'
proportionate share of revenue and cost of product) divided by
total throughput (MMcf/d) attributable to Western Gas Partners, LP
for natural gas assets.
|
(6)
|
Average for period.
Calculated as Adjusted gross margin for crude/NGL assets (total
revenues for crude/NGL assets less cost of product for crude/NGL
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 assets.
|
Western Gas Equity
Partners, LP
|
CALCULATION OF
CASH AVAILABLE FOR DISTRIBUTION
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
thousands except
per-unit amount and Coverage ratio
|
June 30,
2015
|
Distributions
declared by Western Gas Partners, LP:
|
|
General partner
interest
|
$
|
2,752
|
|
Incentive
distribution rights
|
40,553
|
|
Common units held by
WGP
|
36,972
|
|
Less:
|
|
Public company
general and administrative expense
|
640
|
|
Cash available for
distribution
|
$
|
79,637
|
|
Declared distribution
per common unit
|
$
|
0.36375
|
|
Distributions
declared by Western Gas Equity Partners, LP
|
$
|
79,630
|
|
Coverage
ratio
|
1.00
|
x
|
Western Gas Equity
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
thousands except
per-unit amounts
|
|
2015
|
|
2014
(1)
|
|
2015
|
|
2014
(1)
|
Revenues
|
|
|
|
|
|
|
|
|
Gathering, processing
and transportation of natural gas and natural gas
liquids
|
|
$
|
228,236
|
|
|
$
|
175,885
|
|
|
$
|
438,080
|
|
|
$
|
330,382
|
|
Natural gas, natural
gas liquids and drip condensate sales
|
|
173,261
|
|
|
167,628
|
|
|
337,429
|
|
|
305,277
|
|
Other
|
|
915
|
|
|
2,056
|
|
|
1,997
|
|
|
3,627
|
|
Total
revenues
|
|
402,412
|
|
|
345,569
|
|
|
777,506
|
|
|
639,286
|
|
Equity income,
net
|
|
18,941
|
|
|
13,008
|
|
|
37,161
|
|
|
22,259
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
146,293
|
|
|
120,542
|
|
|
284,213
|
|
|
214,918
|
|
Operation and
maintenance
|
|
56,827
|
|
|
55,404
|
|
|
112,976
|
|
|
99,981
|
|
General and
administrative
|
|
9,442
|
|
|
9,202
|
|
|
20,789
|
|
|
19,077
|
|
Property and other
taxes
|
|
8,801
|
|
|
7,316
|
|
|
17,324
|
|
|
14,550
|
|
Depreciation,
amortization and impairments
|
|
65,961
|
|
|
45,305
|
|
|
136,253
|
|
|
87,390
|
|
Total operating
expenses
|
|
287,324
|
|
|
237,769
|
|
|
571,555
|
|
|
435,916
|
|
Operating
income
|
|
134,029
|
|
|
120,808
|
|
|
243,112
|
|
|
225,629
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
8,450
|
|
|
8,450
|
|
Interest
expense
|
|
(27,604)
|
|
|
(20,864)
|
|
|
(50,566)
|
|
|
(34,825)
|
|
Other income
(expense), net
|
|
80
|
|
|
235
|
|
|
160
|
|
|
731
|
|
Income before
income taxes
|
|
110,730
|
|
|
104,404
|
|
|
201,156
|
|
|
199,985
|
|
Income tax (benefit)
expense
|
|
(1,816)
|
|
|
2,523
|
|
|
2,644
|
|
|
4,308
|
|
Net
income
|
|
112,546
|
|
|
101,881
|
|
|
198,512
|
|
|
195,677
|
|
Net income
attributable to noncontrolling interests
|
|
44,751
|
|
|
42,492
|
|
|
73,688
|
|
|
83,126
|
|
Net income
attributable to Western Gas Equity Partners, LP
|
|
$
|
67,795
|
|
|
$
|
59,389
|
|
|
$
|
124,824
|
|
|
$
|
112,551
|
|
Limited partners'
interest in net income:
|
|
|
|
|
|
|
|
|
Net income
attributable to Western Gas Equity Partners, LP
|
|
$
|
67,795
|
|
|
$
|
59,389
|
|
|
$
|
124,824
|
|
|
$
|
112,551
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
|
—
|
|
|
(4,135)
|
|
|
(1,742)
|
|
|
(6,800)
|
|
Limited partners'
interest in net income
|
|
67,795
|
|
|
55,254
|
|
|
$
|
123,082
|
|
|
$
|
105,751
|
|
Net income per
common unit – basic and diluted
|
|
$
|
0.31
|
|
|
$
|
0.25
|
|
|
$
|
0.56
|
|
|
$
|
0.48
|
|
Weighted-average
number of common units outstanding – basic and
diluted
|
|
218,912
|
|
|
218,903
|
|
|
218,911
|
|
|
218,903
|
|
|
(1)
|
Financial information
has been recast to include the financial position and results
attributable to the DBJV system.
|
Western Gas Equity
Partners, LP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
thousands except
number of units
|
|
June 30, 2015
|
|
December 31,
2014 (1)
|
Current
assets
|
|
$
|
273,712
|
|
|
$
|
187,073
|
|
Note receivable –
Anadarko
|
|
260,000
|
|
|
260,000
|
|
Net property, plant
and equipment
|
|
4,782,541
|
|
|
4,571,443
|
|
Other
assets
|
|
1,901,400
|
|
|
1,936,725
|
|
Total
assets
|
|
$
|
7,217,653
|
|
|
$
|
6,955,241
|
|
Current
liabilities
|
|
$
|
213,143
|
|
|
$
|
241,058
|
|
Long-term
debt
|
|
2,677,023
|
|
|
2,422,954
|
|
Asset retirement
obligations and other
|
|
125,910
|
|
|
157,370
|
|
Deferred purchase
price obligation – Anadarko
|
|
179,886
|
|
|
—
|
|
Total
liabilities
|
|
$
|
3,195,962
|
|
|
$
|
2,821,382
|
|
Equity and
partners' capital
|
|
|
|
|
Common units
(218,913,688 and 218,909,977 units issued and outstanding at June
30, 2015, and December 31, 2014, respectively)
|
|
$
|
1,244,765
|
|
|
$
|
1,260,195
|
|
Net investment by
Anadarko
|
|
—
|
|
|
122,509
|
|
Noncontrolling
interests
|
|
2,776,926
|
|
|
2,751,155
|
|
Total liabilities,
equity and partners' capital
|
|
$
|
7,217,653
|
|
|
$
|
6,955,241
|
|
|
(1)
|
Financial information
has been recast to include the financial position and results
attributable to the DBJV system.
|
Western Gas Equity
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
Six Months Ended
June 30,
|
thousands
|
|
2015
|
|
2014
(1)
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
|
$
|
198,512
|
|
|
$
|
195,677
|
|
Adjustments to
reconcile net income to net cash provided by operating activities
and changes in working capital:
|
|
|
|
|
Depreciation,
amortization and impairments
|
|
136,253
|
|
|
87,390
|
|
Change in other
items, net
|
|
(34,396)
|
|
|
(5,425)
|
|
Net cash provided by
operating activities
|
|
300,369
|
|
|
277,642
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
$
|
(338,178)
|
|
|
$
|
(390,506)
|
|
Contributions in aid
of construction costs from affiliates
|
|
—
|
|
|
182
|
|
Acquisitions from
affiliates
|
|
(9,968)
|
|
|
(360,952)
|
|
Acquisitions from
third parties
|
|
(3,514)
|
|
|
—
|
|
Investments in equity
affiliates
|
|
(6,770)
|
|
|
(60,102)
|
|
Distributions from
equity investments in excess of cumulative earnings
|
|
8,538
|
|
|
9,848
|
|
Proceeds from the
sale of assets to affiliates
|
|
700
|
|
|
—
|
|
Proceeds from the
sale of assets to third parties
|
|
22
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(349,170)
|
|
|
(801,530)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
|
$
|
769,694
|
|
|
$
|
1,076,895
|
|
Repayments of
debt
|
|
(521,150)
|
|
|
(480,000)
|
|
Increase (decrease)
in outstanding checks
|
|
(2,327)
|
|
|
2,517
|
|
Proceeds from the
issuance of WES common units, net of offering expenses
|
|
57,376
|
|
|
91,690
|
|
Distributions to WGP
unitholders
|
|
(143,386)
|
|
|
(105,347)
|
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(7,175)
|
|
|
(7,949)
|
|
Distributions to
noncontrolling interest owners of WES
|
|
(112,278)
|
|
|
(83,894)
|
|
Net contributions
from Anadarko
|
|
30,096
|
|
|
39,033
|
|
Net cash provided by
financing activities
|
|
70,850
|
|
|
532,945
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
22,049
|
|
|
9,057
|
|
Cash and cash
equivalents at beginning of period
|
|
67,213
|
|
|
113,085
|
|
Cash and cash
equivalents at end of period
|
|
$
|
89,262
|
|
|
$
|
122,142
|
|
|
(1)
|
Financial information
has been recast to include the financial position and results
attributable to the DBJV system.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/western-gas-announces-second-quarter-2015-results-300120775.html
SOURCE Western Gas