Western Gas InvestorRoom

Western Gas Announces Second-Quarter 2017 Results
ANNOUNCES NEW DJ BASIN PROCESSING PLANT

HOUSTON, July 25, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced second-quarter 2017 financial and operating results.

WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the second quarter of 2017 totaled $82.9 million, or $0.49 per common unit (diluted), with second-quarter 2017 Adjusted EBITDA(1) of $274.8 million and second-quarter 2017 Distributable cash flow(1) of $247.2 million.

WES previously declared a quarterly distribution of $0.890 per unit for the second quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the second-quarter 2016 distribution of $0.830 per unit. The second-quarter 2017 Coverage ratio(1) of 1.19 times was based on the quarterly distribution of $0.890 per unit.

"We continue to achieve significant milestones in the Delaware Basin that enhance both our competitive position in the area and our ability to serve the increasing needs of producers. These include the DBJV-for-Marcellus asset exchange, the early settlement of the DBJV Deferred Purchase Price Obligation, and the successful start-up of our produced water gathering and disposal systems," said Chief Executive Officer, Benjamin Fink. "Additionally, we are excited to announce the sanctioning of the Latham plant in the DJ Basin, which will consist of two cryogenic processing trains with a total capacity of 400 MMcf/d. These trains will be supported by long-term volumetric commitments from Anadarko, and are scheduled to come online in the first and third quarters of 2019."

(1)

Please see the tables at the end of this release for a reconciliation of GAAP to non-GAAP measures and calculation of the Coverage ratio.

Total throughput attributable to WES for natural gas assets for the second quarter of 2017 averaged 3.5 Bcf/d, which was 12% below the prior quarter and 10% below the second quarter of 2016. Total throughput attributable to WES for natural gas was 2% above the prior quarter when adjusted for 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 second quarter of 2017 averaged 182 MBbls/d, which was 8% above the prior quarter and 3% below the second quarter of 2016.

Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $133.6 million on a cash basis and $148.2 million on an accrual basis during the second quarter of 2017, with maintenance capital expenditures on a cash basis of $11.4 million.

WESTERN GAS EQUITY PARTNERS, LP
WGP indirectly owns the entire general partner interest in WES, 100% of the incentive distribution rights in WES and 50,132,046 WES common units. Net income (loss) available to limited partners for the second quarter of 2017 totaled $104.9 million, or $0.48 per common unit (diluted).

WGP previously declared a quarterly distribution of $0.52750 per unit for the second quarter of 2017. This distribution represented a 7% increase over the prior quarter's distribution and a 22% increase over the second-quarter 2016 distribution of $0.43375 per unit. WGP will receive distributions from WES of $116.3 million attributable to the second quarter and will pay $115.5 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, July 26, 2017, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss second-quarter 2017 results. Individuals who would like to participate should dial 877-883-0383 (Domestic) or 412-902-6506 (International) approximately 15 minutes before the scheduled conference call time, and enter participant access code 1783522. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.

Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, compressing, treating, processing and transporting natural gas; gathering, stabilizing and transporting condensate, natural gas liquids and crude oil; and gathering and disposing of produced water for Anadarko, as well as for other producers and customers.

Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.

For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.

This news release contains forward-looking statements. WES and WGP's management believes that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs and related products or services; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in their other public filings and press releases. Western Gas Partners and Western Gas Equity Partners undertake no obligation to publicly update or revise any forward-looking statements.

WESTERN GAS CONTACT
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000

Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of (i) net income (loss) attributable to Western Gas Partners, LP (GAAP) to WES's Distributable cash flow (non-GAAP), (ii) net income (loss) attributable to Western Gas Partners, LP (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing its ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio should be considered in conjunction with net income (loss) attributable to Western Gas Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.

Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued

Distributable Cash Flow

WES defines Distributable cash flow as Adjusted EBITDA, plus interest income and the net settlement amounts from the sale and/or purchase of natural gas, condensate and NGLs under WES's commodity price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less net cash paid (or to be paid) for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, Series A Preferred unit distributions and income taxes.



Three Months Ended
June 30,


Six Months Ended
June 30,

thousands except Coverage ratio


2017


2016


2017


2016

Reconciliation of Net income (loss) attributable to Western Gas Partners, LP to Distributable cash flow and calculation of the Coverage ratio









Net income (loss) attributable to Western Gas Partners, LP


$

173,451


$

164,521


$

275,340


$

280,581

Add:








Distributions from equity investments


28,856


24,491


51,423


49,130

Non-cash equity-based compensation expense


975


1,246


2,221


2,549

Non-cash settled - interest expense, net (1)



(15,461)


71


(10,924)

Income tax (benefit) expense


843


326


4,395


6,959

Depreciation and amortization (2)


73,352


66,650


142,401


131,089

Impairments


3,178


2,403


167,920


8,921

Above-market component of swap agreements with Anadarko


16,373


9,552


28,670


16,365

Other expense (2)


95


56


140


56

Less:








Gain (loss) on divestiture and other, net


15,458


(1,907)


134,945


(2,539)

Equity income, net – affiliates


21,728


19,693


41,189


36,507

Cash paid for maintenance capital expenditures (2)


11,402


21,085


22,524


39,982

Capitalized interest


1,060


1,482


1,876


3,331

Cash paid for (reimbursement of) income taxes




189


67

Series A Preferred unit distributions



14,082


7,453


15,969

Other income (2)


250



677


122

Distributable cash flow


$

247,225


$

199,349


$

463,728


$

391,287

Distributions declared (3)








Limited partners – common units


$

135,816




$

259,745



General partner


71,675




136,499



Total


$

207,491




$

396,244



Coverage ratio


1.19

x



1.17

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 $0.890 and $1.765 per unit declared for the three and six months ended June 30, 2017, respectively.

Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued

Adjusted EBITDA Attributable to Western Gas Partners, LP

WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investments, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairments, and other expense (including lower of cost or market inventory adjustments recorded in cost of product), less gain (loss) on divestiture and other, net, income from equity investments, interest income, income tax benefit, and other income.



Three Months Ended
June 30,


Six Months Ended
June 30,

thousands


2017


2016


2017


2016

Reconciliation of Net income (loss) attributable to Western Gas Partners, LP to Adjusted EBITDA attributable to Western Gas Partners, LP









Net income (loss) attributable to Western Gas Partners, LP


$

173,451



$

164,521



$

275,340



$

280,581


Add:









Distributions from equity investments


28,856



24,491



51,423



49,130


Non-cash equity-based compensation expense


975



1,246



2,221



2,549


Interest expense


35,746



12,883



71,250



44,919


Income tax expense


843



326



4,395



6,959


Depreciation and amortization (1)


73,352



66,650



142,401



131,089


Impairments


3,178



2,403



167,920



8,921


Other expense (1)


95



56



140



56


Less:









Gain (loss) on divestiture and other, net


15,458



(1,907)



134,945



(2,539)


Equity income, net – affiliates


21,728



19,693



41,189



36,507


Interest income – affiliates


4,225



4,225



8,450



8,450


Other income (1)


250





677



122


Adjusted EBITDA attributable to Western Gas Partners, LP


$

274,835



$

250,565



$

529,829



$

481,664


Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP









Net cash provided by (used in) operating activities


$

240,536



$

157,363



$

433,152



$

393,866


Interest (income) expense, net


31,521



8,658



62,800



36,469


Uncontributed cash-based compensation awards


(209)



86



(172)



158


Accretion and amortization of long-term obligations, net


(1,038)



14,522



(2,139)



9,055


Current income tax (benefit) expense


204



198



628



4,979


Other (income) expense, net


(253)



53



(683)



(71)


Distributions from equity investments in excess of cumulative earnings – affiliates


5,768



5,827



9,221



10,611


Changes in operating working capital:









Accounts receivable, net


(10,876)



45,800



(9,363)



33,242


Accounts and imbalance payables and accrued liabilities, net


12,035



20,205



41,975



2,227


Other


(131)



1,309



(116)



(1,739)


Adjusted EBITDA attributable to noncontrolling interest


(2,722)



(3,456)



(5,474)



(7,133)


Adjusted EBITDA attributable to Western Gas Partners, LP


$

274,835



$

250,565



$

529,829



$

481,664


Cash flow information of Western Gas Partners, LP









Net cash provided by (used in) operating activities






$

433,152



$

393,866


Net cash provided by (used in) investing activities






(363,131)



(952,824)


Net cash provided by (used in) financing activities






(239,749)



618,692


(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
June 30,


Six Months Ended
June 30,

thousands


2017


2016


2017


2016

Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP









Operating income (loss)


$

207,608



$

176,362



$

346,000



$

329,765


Add:









Distributions from equity investments


28,856



24,491



51,423



49,130


Operation and maintenance


76,148



75,173



149,908



151,386


General and administrative


10,585



10,883



23,244



22,160


Property and other taxes


11,924



12,078



24,218



22,428


Depreciation and amortization


74,031



67,305



143,733



132,400


Impairments


3,178



2,403



167,920



8,921


Less:









Gain (loss) on divestiture and other, net


15,458



(1,907)



134,945



(2,539)


Proceeds from business interruption insurance claims


24,115



2,603



29,882



2,603


Equity income, net – affiliates


21,728



19,693



41,189



36,507


Reimbursed electricity-related charges recorded as revenues


14,046



14,869



28,015



30,537


Adjusted gross margin attributable to noncontrolling interest


3,435



4,183



7,311



8,604


Adjusted gross margin attributable to Western Gas Partners, LP


$

333,548



$

329,254



$

665,104



$

640,478


Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets


$

297,778



$

294,661



$

599,283



$

571,190


Adjusted gross margin for crude, NGL and produced water assets


35,770



34,593



65,821



69,288


 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,

thousands except per-unit amounts


2017


2016


2017


2016

Revenues and other









Gathering, processing and transportation


$

299,435



$

301,136



$

607,249



$

595,140


Natural gas and natural gas liquids sales


224,824



126,993



431,349



215,549


Other


1,191



535



3,045



1,116


Total revenues and other


525,450



428,664



1,041,643



811,805


Equity income, net – affiliates


21,728



19,693



41,189



36,507


Operating expenses









Cost of product


203,277



104,849



392,636



181,316


Operation and maintenance


76,148



75,173



149,908



151,386


General and administrative


10,585



10,883



23,244



22,160


Property and other taxes


11,924



12,078



24,218



22,428


Depreciation and amortization


74,031



67,305



143,733



132,400


Impairments


3,178



2,403



167,920



8,921


Total operating expenses


379,143



272,691



901,659



518,611


Gain (loss) on divestiture and other, net


15,458



(1,907)



134,945



(2,539)


Proceeds from business interruption insurance claims


24,115



2,603



29,882



2,603


Operating income (loss)


207,608



176,362



346,000



329,765


Interest income – affiliates


4,225



4,225



8,450



8,450


Interest expense


(35,746)



(12,883)



(71,250)



(44,919)


Other income (expense), net


253



(53)



683



71


Income (loss) before income taxes


176,340



167,651



283,883



293,367


Income tax (benefit) expense


843



326



4,395



6,959


Net income (loss)


175,497



167,325



279,488



286,408


Net income attributable to noncontrolling interest


2,046



2,804



4,148



5,827


Net income (loss) attributable to Western Gas Partners, LP


$

173,451



$

164,521



$

275,340



$

280,581


Limited partners' interest in net income (loss):









Net income (loss) attributable to Western Gas Partners, LP


$

173,451



$

164,521



$

275,340



$

280,581


Pre-acquisition net (income) loss allocated to Anadarko








(11,326)


Series A Preferred units interest in net (income) loss


(14,199)



(23,121)



(42,373)



(25,450)


General partner interest in net (income) loss


(76,365)



(58,381)



(144,527)



(113,781)


Common and Class C limited partners' interest in net income (loss)


$

82,887



$

83,019



$

88,440



$

130,024


Net income (loss) per common unit – basic and diluted


$

0.49



$

0.55



$

0.53



$

0.86


Weighted-average common units outstanding – basic


148,864



130,669



141,696



129,830


Weighted-average common units outstanding – diluted


165,248



163,227



165,149



153,291


 

Western Gas Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


thousands except number of units


June 30,
2017


December 31,
2016

Current assets


$

334,802



$

594,014


Note receivable – Anadarko


260,000



260,000


Net property, plant and equipment


5,347,794



5,049,932


Other assets


1,803,119



1,829,082


Total assets


$

7,745,715



$

7,733,028


Current liabilities


$

277,395



$

315,305


Long-term debt


3,253,065



3,091,461


Asset retirement obligations and other


152,695



149,043


Deferred purchase price obligation – Anadarko




41,440


Total liabilities


$

3,683,155



$

3,597,249


Equity and partners' capital





Series A Preferred units (zero and 21,922,831 units issued and outstanding at June 30, 2017, and December 31, 2016, respectively)


$



$

639,545


Common units (152,602,105 and 130,671,970 units issued and outstanding at June 30, 2017, and December 31, 2016, respectively)


3,070,608



2,536,872


Class C units (21,743,318 and 12,358,123 units issued and outstanding at June 30, 2017, and December 31, 2016, respectively)


764,174



750,831


General partner units (2,583,068 units issued and outstanding at June 30, 2017, and December 31, 2016)


165,442



143,968


Noncontrolling interest


62,336



64,563


Total liabilities, equity and partners' capital


$

7,745,715



$

7,733,028


 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Six Months Ended
June 30,

thousands


2017


2016

Cash flows from operating activities





Net income (loss)


$

279,488



$

286,408


Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital:





Depreciation and amortization


143,733



132,400


Impairments


167,920



8,921


(Gain) loss on divestiture and other, net


(134,945)



2,539


Change in other items, net


(23,044)



(36,402)


Net cash provided by (used in) operating activities


$

433,152



$

393,866


Cash flows from investing activities





Capital expenditures


$

(260,480)



$

(255,923)


Contributions in aid of construction costs from affiliates


1,343



3,854


Acquisitions from affiliates


(3,910)



(715,199)


Acquisitions from third parties


(155,287)




Investments in equity affiliates


(287)



139


Distributions from equity investments in excess of cumulative earnings – affiliates


9,221



10,611


Proceeds from the sale of assets to affiliates




613


Proceeds from the sale of assets to third parties


23,292



137


Proceeds from property insurance claims


22,977



2,944


Net cash provided by (used in) investing activities


$

(363,131)



$

(952,824)


Cash flows from financing activities





Borrowings, net of debt issuance costs


$

159,989



$

530,000


Repayments of debt




(290,000)


Settlement of the Deferred purchase price obligation – Anadarko


(37,346)




Increase (decrease) in outstanding checks


(2,763)



(1,314)


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




686,940


Distributions to unitholders


(381,771)



(313,380)


Distributions to noncontrolling interest owner


(6,375)



(7,460)


Net contributions from (distributions to) Anadarko


30



(27,459)


Above-market component of swap agreements with Anadarko


28,670



16,365


Net cash provided by (used in) financing activities


$

(239,749)



$

618,692


Net increase (decrease) in cash and cash equivalents


$

(169,728)



$

59,734


Cash and cash equivalents at beginning of period


357,925



98,033


Cash and cash equivalents at end of period


$

188,197



$

157,767


 

Western Gas Partners, LP

OPERATING STATISTICS

(Unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,



2017


2016


2017


2016

Throughput for natural gas assets (MMcf/d)









Gathering, treating and transportation


866



1,508



1,155



1,553


Processing


2,555



2,320



2,498



2,226


Equity investment (1)


158



170



160



178


   Total throughput for natural gas assets


3,579



3,998



3,813



3,957


   Throughput attributable to noncontrolling interest for natural gas assets


107



128



108



132


Total throughput attributable to Western Gas Partners, LP for natural gas assets


3,472



3,870



3,705



3,825


Throughput for crude, NGL and produced water assets (MBbls/d)









Gathering, treating and transportation


50



59



47



59


Equity investment (2)


132



128



129



127


   Total throughput for crude, NGL and produced water assets


182



187



176



186


Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (3)


$

0.94



$

0.84



$

0.89



$

0.82


Adjusted gross margin per Bbl for crude, NGL and produced water assets (4)


2.15



2.03



2.07



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, 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
June 30, 2017

Distributions declared by Western Gas Partners, LP:



General partner interest


$

3,454


Incentive distribution rights


68,221


Common units held by WGP


44,618


Less:



Public company general and administrative expense


612


Interest expense


551


Cash available for distribution


$

115,130


Declared distribution per common unit


$

0.52750


Distributions declared by Western Gas Equity Partners, LP


$

115,487


Coverage ratio


1.00

x

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three Months Ended
June 30,


Six Months Ended
June 30,

thousands except per-unit amounts


2017


2016


2017


2016

Revenues and other









Gathering, processing and transportation


$

299,435



$

301,136



$

607,249



$

595,140


Natural gas and natural gas liquids sales


224,824



126,993



431,349



215,549


Other


1,191



535



3,045



1,116


Total revenues and other


525,450



428,664



1,041,643



811,805


Equity income, net – affiliates


21,728



19,693



41,189



36,507


Operating expenses









Cost of product


203,277



104,849



392,636



181,316


Operation and maintenance


76,148



75,173



149,908



151,386


General and administrative


11,197



11,887



24,673



24,402


Property and other taxes


11,924



12,093



24,218



22,443


Depreciation and amortization


74,031



67,305



143,733



132,400


Impairments


3,178



2,403



167,920



8,921


Total operating expenses


379,755



273,710



903,088



520,868


Gain (loss) on divestiture and other, net


15,458



(1,907)



134,945



(2,539)


Proceeds from business interruption insurance claims


24,115



2,603



29,882



2,603


Operating income (loss)


206,996



175,343



344,571



327,508


Interest income – affiliates


4,225



4,225



8,450



8,450


Interest expense


(36,297)



(13,429)



(72,330)



(45,568)


Other income (expense), net


272



(36)



718



105


Income (loss) before income taxes


175,196



166,103



281,409



290,495


Income tax (benefit) expense


843



326



4,395



6,959


Net income (loss)


174,353



165,777



277,014



283,536


Net income (loss) attributable to noncontrolling interests


69,409



76,914



96,130



112,857


Net income (loss) attributable to Western Gas Equity Partners, LP


$

104,944



$

88,863



$

180,884



$

170,679


Limited partners' interest in net income (loss):









Net income (loss) attributable to Western Gas Equity Partners, LP


$

104,944



$

88,863



$

180,884



$

170,679


Pre-acquisition net (income) loss allocated to Anadarko








(11,326)


Limited partners' interest in net income (loss)


$

104,944



$

88,863



$

180,884



$

159,353


Net income (loss) per common unit – basic and diluted


$

0.48



$

0.41



$

0.83



$

0.73


Weighted-average common units outstanding – basic and diluted


218,931



218,921



218,930



218,920


 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


thousands except number of units


June 30,
2017


December 31,
2016

Current assets


$

335,683



$

595,591


Note receivable – Anadarko


260,000



260,000


Net property, plant and equipment


5,347,794



5,049,932


Other assets


1,804,275



1,830,574


Total assets


$

7,747,752



$

7,736,097


Current liabilities


$

277,536



$

315,387


Long-term debt


3,281,065



3,119,461


Asset retirement obligations and other


152,695



149,043


Deferred purchase price obligation – Anadarko




41,440


Total liabilities


$

3,711,296



$

3,625,331


Equity and partners' capital





Common units (218,933,141 and 218,928,570 units issued and outstanding at June 30, 2017, and December 31, 2016, respectively)


$

1,070,254



$

1,048,143


Noncontrolling interests


2,966,202



3,062,623


Total liabilities, equity and partners' capital


$

7,747,752



$

7,736,097


 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Six Months Ended
June 30,

thousands


2017


2016

Cash flows from operating activities





Net income (loss)


$

277,014



$

283,536


Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital:





Depreciation and amortization


143,733



132,400


Impairments


167,920



8,921


(Gain) loss on divestiture and other, net


(134,945)



2,539


Change in other items, net


(22,364)



(35,581)


Net cash provided by (used in) operating activities


$

431,358



$

391,815


Cash flows from investing activities





Capital expenditures


$

(260,480)



$

(255,923)


Contributions in aid of construction costs from affiliates


1,343



3,854


Acquisitions from affiliates


(3,910)



(715,199)


Acquisitions from third parties


(155,287)




Investments in equity affiliates


(287)



139


Distributions from equity investments in excess of cumulative earnings – affiliates


9,221



10,611


Proceeds from the sale of assets to affiliates




613


Proceeds from the sale of assets to third parties


23,292



137


Proceeds from property insurance claims


22,977



2,944


Net cash provided by (used in) investing activities


$

(363,131)



$

(952,824)


Cash flows from financing activities





Borrowings, net of debt issuance costs


$

159,989



$

556,017


Repayments of debt




(290,000)


Settlement of the Deferred purchase price obligation – Anadarko


(37,346)




Increase (decrease) in outstanding checks


(2,763)



(1,314)


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




686,940


Distributions to WGP unitholders


(208,803)



(181,156)


Distributions to Chipeta noncontrolling interest owner


(6,375)



(7,460)


Distributions to noncontrolling interest owners of WES


(171,689)



(130,947)


Net contributions from (distributions to) Anadarko


30



(27,459)


Above-market component of swap agreements with Anadarko


28,670



16,365


Net cash provided by (used in) financing activities


$

(238,470)



$

620,986


Net increase (decrease) in cash and cash equivalents


$

(170,243)



$

59,977


Cash and cash equivalents at beginning of period


359,072



99,694


Cash and cash equivalents at end of period


$

188,829



$

159,671


 

Western Gas Partners (PRNewsFoto/Western Gas Partners, LP) (PRNewsFoto/Western Gas Partners, LP)

 

Western Gas Equity Partners (PRNewsFoto/Western Gas Partners, LP) (PRNewsFoto/Western Gas Partners, LP)

SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP


http://investors.westerngaspartners.com/2017-07-25-Western-Gas-Announces-Second-Quarter-2017-Results