HOUSTON, Feb. 22, 2017 /PRNewswire/ -- Western Gas
Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western
Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced
fourth-quarter and full-year 2016 financial and operating
results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for 2016 totaled
$266.6 million, or $1.74 per common unit (diluted), with full-year
2016 Adjusted EBITDA(1) of $1.03
billion and full-year 2016 Distributable cash
flow(1) of $852.4
million.
Net income (loss) available to limited partners for the fourth
quarter of 2016 totaled $54.9
million, or $0.35 per common
unit (diluted), with fourth-quarter 2016 Adjusted
EBITDA(1) of $268.4
million and fourth-quarter 2016 Distributable cash
flow(1) of $223.8
million.
WES paid a quarterly distribution of $0.860 per unit for the fourth quarter of
2016. This distribution represented a 2% increase over the prior
quarter's distribution and an 8% increase over the fourth-quarter
2015 distribution of $0.800 per
unit. The full-year 2016 distribution of $3.350 per unit represented a 10% increase over
the full-year 2015 distribution of $3.050 per unit. The fourth-quarter 2016 Coverage
ratio(1) of 1.31 times was based on the quarterly
distribution of $0.860 per unit. The
Partnership's Coverage ratio(1) for full-year 2016 was
1.29 times.
(1) Please
see the tables at the end of this release for a reconciliation of
GAAP to non-GAAP measures and calculation of the Coverage
ratio.
|
"The Partnership delivered yet another outstanding financial
quarter highlighted by the resiliency of our portfolio and the
strength of our organic growth opportunities. Volumes and producer
activity continue to accelerate at our Ramsey plant in the
Delaware Basin, where Train V is
now online and Train II has returned to service," said Chief
Executive Officer, Benjamin Fink.
"Additionally, Ramsey Train VI remains on schedule to begin service
in the fourth quarter of 2017."
Total throughput attributable to WES for natural gas assets for
the fourth quarter of 2016 averaged 4.0 Bcf/d, which was 1% below
the prior quarter and 3% above the fourth quarter of 2015. For
full-year 2016, total throughput attributable to WES for natural
gas assets averaged 3.9 Bcf/d, which was 5% below the prior-year
average. Total throughput for crude/NGL assets for the fourth
quarter of 2016 averaged 181 MBbls/d, which was 2% below the prior
quarter and 3% below the fourth quarter of 2015. For full-year
2016, total throughput for crude/NGL assets averaged 184 MBbls/d,
which was 1% below the prior-year average.
Capital expenditures attributable to WES, including equity
investments but excluding acquisitions, totaled $105.3 million on a cash basis and $135.0 million on an accrual basis during the
fourth quarter of 2016, with maintenance capital expenditures on a
cash basis of $8.3 million, or 3% of
Adjusted EBITDA(1). For full-year 2016, capital
expenditures attributable to WES, including equity investments but
excluding acquisitions, totaled $468.3
million on a cash basis and $485.8
million on an accrual basis, with maintenance capital
expenditures on a cash basis of $63.6
million, or 6% of Adjusted EBITDA(1).
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
2016 totaled $334.4 million, or
$1.53 per common unit (diluted). Net
income (loss) available to limited partners for the fourth quarter
of 2016 totaled $83.7 million, or
$0.38 per common unit (diluted).
(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.
|
WGP paid a quarterly distribution of $0.46250 per unit for the fourth quarter of
2016. This distribution represented a 3% increase over the prior
quarter's distribution and a 15% increase over the fourth-quarter
2015 distribution of $0.40375 per
unit. The full-year 2016 distribution of $1.76750 per unit represented a 19% increase over
the full-year 2015 distribution of $1.49125 per unit. WGP received distributions
from WES of $101.4 million
attributable to the fourth quarter and will pay $101.3 million in distributions for the same
period.
2017 OUTLOOK
WES and WGP also announced their 2017 outlook:
- Adjusted EBTIDA(1) between $1.0 billion and $1.1 billion (Please refer to
slide 8 of the earnings call presentation available at
www.westerngas.com for a reconciliation of items impacting the
comparability of our 2017 Adjusted EBITDA(1) outlook to
2016 Adjusted EBITDA(1))
- Total capital expenditures between $900
million and $1.0 billion
- Maintenance capital expenditures between $60 million and $80 million
- 2017 and 2018 distribution growth targets of 7% to 9% for WES
and 12% to 18% for WGP
"2017 will feature the largest capital program in our history.
We continue to focus on the Delaware and DJ Basins, where Anadarko and
other third-party producer activity is accelerating," said Fink.
"These investments support our objective of providing sustainable
distribution growth over time, allowing us to extend our
distribution growth guidance to cover both 2017 and 2018.
Additionally, we have successfully negotiated an early conversion
of the Series A Preferred units in 2017, and therefore expect to be
able to fund this capital program without the need for additional
equity issuances."
The 2017 outlook includes the following assumptions:
- DBJV / Marcellus asset swap closing in the first quarter of
2017
- Ramsey Train VI start-up in the fourth quarter of 2017
- Mentone Trains I and II in the Delaware Basin beginning construction in 2017,
with anticipated start-up dates in the third and fourth quarters of
2018, respectively
- Conversion of 50% of the Series A Preferred units into common
units in February 2017 and 50% in
May 2017
- Extension of the Class C units conversion date to March 1, 2020
(1) This
press release contains forward-looking estimates of the range of
Adjusted EBITDA projected to be generated by WES in its 2017 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.
|
CONFERENCE CALL TOMORROW AT 8 A.M.
CST
WES and WGP will host a joint conference call on Thursday, February 23, 2017, at 8:00 a.m. Central Standard Time (9:00 a.m. Eastern Standard Time) to discuss
fourth-quarter and full-year 2016 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 confirmation number
5700160. 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.
Simultaneously with the issuance of this press release, the slide
presentation to accompany the earnings call has been posted to the
investor relations page of the Western Gas website.
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, and gathering, stabilizing and transporting
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 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
December 31,
|
|
Year Ended
December 31,
|
thousands except
Coverage ratio
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of
Net income (loss) attributable to Western Gas Partners, LP to
Distributable cash flow and calculation of the Coverage
ratio
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Gas Partners, LP
|
|
$
|
143,004
|
|
|
$
|
(155,881)
|
|
|
$
|
591,331
|
|
|
$
|
4,106
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
27,160
|
|
|
25,244
|
|
|
103,423
|
|
|
98,298
|
|
Non-cash equity-based
compensation expense
|
|
1,573
|
|
|
979
|
|
|
5,591
|
|
|
4,402
|
|
Non-cash settled -
interest expense, net (1)
|
|
4,350
|
|
|
4,480
|
|
|
(7,747)
|
|
|
14,400
|
|
Income tax (benefit)
expense
|
|
941
|
|
|
8,372
|
|
|
8,372
|
|
|
45,532
|
|
Depreciation and
amortization (2)
|
|
72,633
|
|
|
67,059
|
|
|
270,311
|
|
|
270,004
|
|
Impairments
|
|
4,222
|
|
|
238,879
|
|
|
15,535
|
|
|
515,458
|
|
Above-market
component of swap extensions with Anadarko
|
|
11,038
|
|
|
10,533
|
|
|
45,820
|
|
|
18,449
|
|
Other expense
(2)
|
|
128
|
|
|
1,290
|
|
|
224
|
|
|
1,290
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(5,872)
|
|
|
(20,224)
|
|
|
(14,641)
|
|
|
57,024
|
|
Equity income, net –
affiliates
|
|
21,916
|
|
|
12,114
|
|
|
78,717
|
|
|
71,251
|
|
Cash paid for
maintenance capital expenditures (2)
|
|
8,342
|
|
|
13,073
|
|
|
63,630
|
|
|
53,882
|
|
Capitalized
interest
|
|
888
|
|
|
1,492
|
|
|
5,562
|
|
|
8,318
|
|
Cash paid for
(reimbursement of) income taxes
|
|
771
|
|
|
—
|
|
|
838
|
|
|
(138)
|
|
Series A Preferred
unit distributions
|
|
14,908
|
|
|
—
|
|
|
45,784
|
|
|
—
|
|
Other income
(2)
|
|
252
|
|
|
—
|
|
|
524
|
|
|
219
|
|
Distributable cash
flow
|
|
$
|
223,844
|
|
|
$
|
194,500
|
|
|
$
|
852,446
|
|
|
$
|
781,383
|
|
Distributions
declared (3)
|
|
|
|
|
|
|
|
|
Limited partners –
common units
|
|
$
|
112,378
|
|
|
|
|
$
|
437,747
|
|
|
|
General
partner
|
|
58,279
|
|
|
|
|
221,384
|
|
|
|
Total
|
|
$
|
170,657
|
|
|
|
|
$
|
659,131
|
|
|
|
Coverage
ratio
|
|
1.31
|
|
x
|
|
|
1.29
|
|
x
|
|
|
|
(1)
|
Includes accretion
revisions 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 $0.860 and $3.350 per unit declared for the three
months and year ended December 31, 2016,
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
December 31,
|
|
Year Ended
December 31,
|
thousands
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of
Net income (loss) attributable to Western Gas Partners, LP to
Adjusted EBITDA attributable to Western Gas Partners,
LP
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Gas Partners, LP
|
|
$
|
143,004
|
|
|
$
|
(155,881)
|
|
|
$
|
591,331
|
|
|
$
|
4,106
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
27,160
|
|
|
25,244
|
|
|
103,423
|
|
|
98,298
|
|
Non-cash equity-based
compensation expense
|
|
1,573
|
|
|
979
|
|
|
5,591
|
|
|
4,402
|
|
Interest
expense
|
|
39,234
|
|
|
31,535
|
|
|
114,921
|
|
|
113,872
|
|
Income tax
expense
|
|
941
|
|
|
8,372
|
|
|
8,372
|
|
|
45,532
|
|
Depreciation and
amortization (1)
|
|
72,633
|
|
|
67,059
|
|
|
270,311
|
|
|
270,004
|
|
Impairments
|
|
4,222
|
|
|
238,879
|
|
|
15,535
|
|
|
515,458
|
|
Other expense
(1)
|
|
128
|
|
|
1,290
|
|
|
224
|
|
|
1,290
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(5,872)
|
|
|
(20,224)
|
|
|
(14,641)
|
|
|
57,024
|
|
Equity income, net –
affiliates
|
|
21,916
|
|
|
12,114
|
|
|
78,717
|
|
|
71,251
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
16,900
|
|
|
16,900
|
|
Other income
(1)
|
|
252
|
|
|
—
|
|
|
524
|
|
|
219
|
|
Adjusted EBITDA
attributable to Western Gas Partners, LP
|
|
$
|
268,374
|
|
|
$
|
221,362
|
|
|
$
|
1,028,208
|
|
|
$
|
907,568
|
|
|
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
|
|
$
|
259,847
|
|
|
$
|
188,752
|
|
|
$
|
917,585
|
|
|
$
|
785,645
|
|
Interest (income)
expense, net
|
|
35,009
|
|
|
27,310
|
|
|
98,021
|
|
|
96,972
|
|
Uncontributed
cash-based compensation awards
|
|
408
|
|
|
48
|
|
|
856
|
|
|
214
|
|
Accretion and
amortization of long-term obligations, net
|
|
(5,387)
|
|
|
(5,402)
|
|
|
3,789
|
|
|
(17,698)
|
|
Current income tax
(benefit) expense
|
|
707
|
|
|
7,022
|
|
|
5,817
|
|
|
34,186
|
|
Other (income)
expense, net
|
|
(255)
|
|
|
846
|
|
|
(479)
|
|
|
619
|
|
Distributions from
equity investments in excess of cumulative earnings –
affiliates
|
|
4,646
|
|
|
3,835
|
|
|
21,238
|
|
|
16,244
|
|
Changes in operating
working capital:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
7,839
|
|
|
(14,246)
|
|
|
48,947
|
|
|
4,371
|
|
Accounts and
imbalance payables and accrued liabilities, net
|
|
(34,256)
|
|
|
16,689
|
|
|
(58,359)
|
|
|
(1,006)
|
|
Other
|
|
2,922
|
|
|
(966)
|
|
|
4,367
|
|
|
720
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(3,106)
|
|
|
(2,526)
|
|
|
(13,574)
|
|
|
(12,699)
|
|
Adjusted EBITDA
attributable to Western Gas Partners, LP
|
|
$
|
268,374
|
|
|
$
|
221,362
|
|
|
$
|
1,028,208
|
|
|
$
|
907,568
|
|
Cash flow
information of Western Gas Partners, LP
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
|
|
|
$
|
917,585
|
|
|
$
|
785,645
|
|
Net cash provided by
(used in) investing activities
|
|
|
|
|
|
(1,105,534)
|
|
|
(500,277)
|
|
Net cash provided by
(used in) financing activities
|
|
|
|
|
|
447,841
|
|
|
(254,389)
|
|
|
|
(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
December 31,
|
|
Year Ended
December 31,
|
thousands
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of
Operating income (loss) to Adjusted gross margin attributable to
Western Gas Partners, LP
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
181,155
|
|
|
$
|
(117,482)
|
|
|
$
|
708,208
|
|
|
$
|
157,330
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
27,160
|
|
|
25,244
|
|
|
103,423
|
|
|
98,298
|
|
Operation and
maintenance
|
|
81,869
|
|
|
89,228
|
|
|
308,010
|
|
|
331,972
|
|
General and
administrative
|
|
12,049
|
|
|
10,687
|
|
|
45,591
|
|
|
41,319
|
|
Property and other
taxes
|
|
7,047
|
|
|
5,380
|
|
|
40,145
|
|
|
33,288
|
|
Depreciation and
amortization
|
|
73,287
|
|
|
67,715
|
|
|
272,933
|
|
|
272,611
|
|
Impairments
|
|
4,222
|
|
|
238,879
|
|
|
15,535
|
|
|
515,458
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(5,872)
|
|
|
(20,224)
|
|
|
(14,641)
|
|
|
57,024
|
|
Proceeds from
business interruption insurance claims
|
|
—
|
|
|
—
|
|
|
16,270
|
|
|
—
|
|
Equity income, net –
affiliates
|
|
21,916
|
|
|
12,114
|
|
|
78,717
|
|
|
71,251
|
|
Reimbursed
electricity-related charges recorded as revenues
|
|
14,026
|
|
|
13,752
|
|
|
59,733
|
|
|
54,175
|
|
Adjusted gross margin
attributable to noncontrolling interest
|
|
3,735
|
|
|
3,557
|
|
|
16,323
|
|
|
16,779
|
|
Adjusted gross margin
attributable to Western Gas Partners, LP
|
|
$
|
352,984
|
|
|
$
|
310,452
|
|
|
$
|
1,337,443
|
|
|
$
|
1,251,047
|
|
Adjusted gross margin
attributable to Western Gas Partners, LP for natural gas
assets
|
|
$
|
317,294
|
|
|
$
|
277,342
|
|
|
$
|
1,194,877
|
|
|
$
|
1,119,555
|
|
Adjusted gross margin
for crude/NGL assets
|
|
35,690
|
|
|
33,110
|
|
|
142,566
|
|
|
131,492
|
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
thousands except
per-unit amounts
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues and
other
|
|
|
|
|
|
|
|
|
Gathering, processing
and transportation
|
|
$
|
317,517
|
|
|
$
|
284,641
|
|
|
$
|
1,227,849
|
|
|
$
|
1,128,838
|
|
Natural gas and
natural gas liquids sales
|
|
192,728
|
|
|
131,075
|
|
|
572,313
|
|
|
617,949
|
|
Other
|
|
575
|
|
|
842
|
|
|
4,108
|
|
|
5,285
|
|
Total revenues and
other
|
|
510,820
|
|
|
416,558
|
|
|
1,804,270
|
|
|
1,752,072
|
|
Equity income, net
– affiliates
|
|
21,916
|
|
|
12,114
|
|
|
78,717
|
|
|
71,251
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
167,235
|
|
|
114,041
|
|
|
494,194
|
|
|
528,369
|
|
Operation and
maintenance
|
|
81,869
|
|
|
89,228
|
|
|
308,010
|
|
|
331,972
|
|
General and
administrative
|
|
12,049
|
|
|
10,687
|
|
|
45,591
|
|
|
41,319
|
|
Property and other
taxes
|
|
7,047
|
|
|
5,380
|
|
|
40,145
|
|
|
33,288
|
|
Depreciation and
amortization
|
|
73,287
|
|
|
67,715
|
|
|
272,933
|
|
|
272,611
|
|
Impairments
|
|
4,222
|
|
|
238,879
|
|
|
15,535
|
|
|
515,458
|
|
Total operating
expenses
|
|
345,709
|
|
|
525,930
|
|
|
1,176,408
|
|
|
1,723,017
|
|
Gain (loss) on
divestiture and other, net
|
|
(5,872)
|
|
|
(20,224)
|
|
|
(14,641)
|
|
|
57,024
|
|
Proceeds from
business interruption insurance claims
|
|
—
|
|
|
—
|
|
|
16,270
|
|
|
—
|
|
Operating income
(loss)
|
|
181,155
|
|
|
(117,482)
|
|
|
708,208
|
|
|
157,330
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
16,900
|
|
|
16,900
|
|
Interest
expense
|
|
(39,234)
|
|
|
(31,535)
|
|
|
(114,921)
|
|
|
(113,872)
|
|
Other income
(expense), net
|
|
255
|
|
|
(846)
|
|
|
479
|
|
|
(619)
|
|
Income (loss)
before income taxes
|
|
146,401
|
|
|
(145,638)
|
|
|
610,666
|
|
|
59,739
|
|
Income tax (benefit)
expense
|
|
941
|
|
|
8,372
|
|
|
8,372
|
|
|
45,532
|
|
Net income
(loss)
|
|
145,460
|
|
|
(154,010)
|
|
|
602,294
|
|
|
14,207
|
|
Net income
attributable to noncontrolling interest
|
|
2,456
|
|
|
1,871
|
|
|
10,963
|
|
|
10,101
|
|
Net income (loss)
attributable to Western Gas Partners, LP
|
|
$
|
143,004
|
|
|
$
|
(155,881)
|
|
|
$
|
591,331
|
|
|
$
|
4,106
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Gas Partners, LP
|
|
$
|
143,004
|
|
|
$
|
(155,881)
|
|
|
$
|
591,331
|
|
|
$
|
4,106
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
|
—
|
|
|
(15,780)
|
|
|
(11,326)
|
|
|
(79,386)
|
|
Series A Preferred
units interest in net (income) loss
|
|
(25,904)
|
|
|
—
|
|
|
(76,893)
|
|
|
—
|
|
General partner
interest in net (income) loss
|
|
(62,229)
|
|
|
(47,581)
|
|
|
(236,561)
|
|
|
(180,996)
|
|
Common and Class C
limited partners' interest in net income (loss)
|
|
$
|
54,871
|
|
|
$
|
(219,242)
|
|
|
$
|
266,551
|
|
|
$
|
(256,276)
|
|
Net income (loss)
per common unit – basic and diluted
|
|
$
|
0.35
|
|
|
$
|
(1.60)
|
|
|
$
|
1.74
|
|
|
$
|
(1.95)
|
|
Weighted-average
common units outstanding – basic
|
|
130,672
|
|
|
128,576
|
|
|
130,253
|
|
|
128,345
|
|
Weighted-average
common units outstanding – diluted
|
|
164,867
|
|
|
139,905
|
|
|
159,058
|
|
|
139,459
|
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
December
31,
|
thousands except
number of units
|
|
2016
|
|
2015
|
Current
assets
|
|
$
|
594,014
|
|
|
$
|
299,217
|
|
Note receivable –
Anadarko
|
|
260,000
|
|
|
260,000
|
|
Net property, plant
and equipment
|
|
5,049,932
|
|
|
4,858,779
|
|
Other
assets
|
|
1,829,082
|
|
|
1,883,201
|
|
Total
assets
|
|
$
|
7,733,028
|
|
|
$
|
7,301,197
|
|
Current
liabilities
|
|
$
|
315,305
|
|
|
$
|
235,488
|
|
Long-term
debt
|
|
3,091,461
|
|
|
2,690,651
|
|
Asset retirement
obligations and other
|
|
149,043
|
|
|
268,356
|
|
Deferred purchase
price obligation – Anadarko
|
|
41,440
|
|
|
188,674
|
|
Total
liabilities
|
|
$
|
3,597,249
|
|
|
$
|
3,383,169
|
|
Equity and
partners' capital
|
|
|
|
|
Series A Preferred
units (21,922,831 and zero units issued and outstanding at
December 31, 2016 and 2015, respectively)
|
|
$
|
639,545
|
|
|
$
|
—
|
|
Common units
(130,671,970 and 128,576,965 units issued and outstanding at
December 31, 2016 and 2015, respectively)
|
|
2,536,872
|
|
|
2,588,991
|
|
Class C units
(12,358,123 and 11,411,862 units issued and outstanding at
December 31, 2016 and 2015, respectively)
|
|
750,831
|
|
|
710,891
|
|
General partner units
(2,583,068 units issued and outstanding at December
31, 2016
and 2015)
|
|
143,968
|
|
|
120,164
|
|
Net investment by
Anadarko
|
|
—
|
|
|
430,598
|
|
Noncontrolling
interest
|
|
64,563
|
|
|
67,384
|
|
Total liabilities,
equity and partners' capital
|
|
$
|
7,733,028
|
|
|
$
|
7,301,197
|
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
thousands
|
|
2016
|
|
2015
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
602,294
|
|
|
$
|
14,207
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and changes in working capital:
|
|
|
|
|
Depreciation and
amortization
|
|
272,933
|
|
|
272,611
|
|
Impairments
|
|
15,535
|
|
|
515,458
|
|
(Gain) loss on
divestiture and other, net
|
|
14,641
|
|
|
(57,024)
|
|
Change in other
items, net
|
|
12,182
|
|
|
40,393
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
917,585
|
|
|
$
|
785,645
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
$
|
(479,993)
|
|
|
$
|
(637,964)
|
|
Contributions in aid
of construction costs from affiliates
|
|
6,135
|
|
|
461
|
|
Acquisitions from
affiliates
|
|
(716,465)
|
|
|
(10,903)
|
|
Acquisitions from
third parties
|
|
—
|
|
|
(3,514)
|
|
Investments in equity
affiliates
|
|
(27)
|
|
|
(11,442)
|
|
Distributions from
equity investments in excess of cumulative earnings –
affiliates
|
|
21,238
|
|
|
16,244
|
|
Proceeds from the
sale of assets to affiliates
|
|
623
|
|
|
925
|
|
Proceeds from the
sale of assets to third parties
|
|
45,490
|
|
|
145,916
|
|
Proceeds from
property insurance claims
|
|
17,465
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
|
$
|
(1,105,534)
|
|
|
$
|
(500,277)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
|
$
|
1,297,218
|
|
|
$
|
889,606
|
|
Repayments of
debt
|
|
(900,000)
|
|
|
(610,000)
|
|
Increase (decrease)
in outstanding checks
|
|
2,079
|
|
|
(2,666)
|
|
Proceeds from the
issuance of common units, net of offering expenses
|
|
25,000
|
|
|
57,353
|
|
Proceeds from the
issuance of Series A Preferred units, net of offering
expenses
|
|
686,937
|
|
|
—
|
|
Distributions to
unitholders
|
|
(671,938)
|
|
|
(545,143)
|
|
Distributions to
noncontrolling interest owner
|
|
(13,784)
|
|
|
(12,187)
|
|
Net contributions
from (distributions to) Anadarko
|
|
(23,491)
|
|
|
(49,801)
|
|
Above-market
component of swap extensions with Anadarko
|
|
45,820
|
|
|
18,449
|
|
Net cash provided by
(used in) financing activities
|
|
$
|
447,841
|
|
|
$
|
(254,389)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
259,892
|
|
|
$
|
30,979
|
|
Cash and cash
equivalents at beginning of period
|
|
98,033
|
|
|
67,054
|
|
Cash and cash
equivalents at end of period
|
|
$
|
357,925
|
|
|
$
|
98,033
|
|
Western Gas
Partners, LP
|
OPERATING
STATISTICS
|
(Unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Throughput for
natural gas assets (MMcf/d)
|
|
|
|
|
|
|
|
|
Gathering, treating
and transportation
|
|
1,480
|
|
|
1,581
|
|
|
1,537
|
|
|
1,791
|
|
Processing
|
|
2,500
|
|
|
2,272
|
|
|
2,350
|
|
|
2,331
|
|
Equity investment
(1)
|
|
173
|
|
|
196
|
|
|
177
|
|
|
178
|
|
Total
throughput for natural gas assets
|
|
4,153
|
|
|
4,049
|
|
|
4,064
|
|
|
4,300
|
|
Throughput
attributable to noncontrolling interest for natural gas
assets
|
|
113
|
|
|
122
|
|
|
124
|
|
|
142
|
|
Total throughput
attributable to Western Gas Partners, LP for natural gas
assets
|
|
4,040
|
|
|
3,927
|
|
|
3,940
|
|
|
4,158
|
|
Throughput for
crude/NGL assets (MBbls/d)
|
|
|
|
|
|
|
|
|
Gathering, treating
and transportation
|
|
49
|
|
|
60
|
|
|
57
|
|
|
69
|
|
Equity investment
(2)
|
|
132
|
|
|
127
|
|
|
127
|
|
|
117
|
|
Total
throughput for crude/NGL assets
|
|
181
|
|
|
187
|
|
|
184
|
|
|
186
|
|
Adjusted gross margin
per Mcf attributable to Western Gas Partners, LP for natural gas
assets (3)
|
|
$
|
0.85
|
|
|
$
|
0.77
|
|
|
$
|
0.83
|
|
|
$
|
0.74
|
|
Adjusted gross margin
per Bbl for crude/NGL assets (4)
|
|
2.15
|
|
|
1.92
|
|
|
2.11
|
|
|
1.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 assets (total
revenues and other for crude/NGL assets, less reimbursements for
electricity-related expenses recorded as revenue and 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)
|
|
thousands except
per-unit amount and Coverage ratio
|
|
Three Months
Ended
December 31, 2016
|
Distributions
declared by Western Gas Partners, LP:
|
|
|
General partner
interest
|
|
$
|
3,308
|
|
Incentive
distribution rights
|
|
54,971
|
|
Common units held by
WGP
|
|
43,114
|
|
Less:
|
|
|
Public company
general and administrative expense
|
|
685
|
|
Interest
expense
|
|
525
|
|
Cash available for
distribution
|
|
$
|
100,183
|
|
Declared distribution
per common unit
|
|
$
|
0.46250
|
|
Distributions
declared by Western Gas Equity Partners, LP
|
|
$
|
101,254
|
|
Coverage
ratio
|
|
0.99
|
x
|
Western Gas Equity
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
thousands except
per-unit amounts
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues and
other
|
|
|
|
|
|
|
|
|
Gathering, processing
and transportation
|
|
$
|
317,517
|
|
|
$
|
284,641
|
|
|
$
|
1,227,849
|
|
|
$
|
1,128,838
|
|
Natural gas and
natural gas liquids sales
|
|
192,728
|
|
|
131,075
|
|
|
572,313
|
|
|
617,949
|
|
Other
|
|
575
|
|
|
842
|
|
|
4,108
|
|
|
5,285
|
|
Total revenues and
other
|
|
510,820
|
|
|
416,558
|
|
|
1,804,270
|
|
|
1,752,072
|
|
Equity income, net
– affiliates
|
|
21,916
|
|
|
12,114
|
|
|
78,717
|
|
|
71,251
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
167,235
|
|
|
114,041
|
|
|
494,194
|
|
|
528,369
|
|
Operation and
maintenance
|
|
81,869
|
|
|
89,228
|
|
|
308,010
|
|
|
331,972
|
|
General and
administrative
|
|
12,734
|
|
|
11,445
|
|
|
49,248
|
|
|
44,428
|
|
Property and other
taxes
|
|
7,048
|
|
|
5,381
|
|
|
40,161
|
|
|
33,327
|
|
Depreciation and
amortization
|
|
73,287
|
|
|
67,715
|
|
|
272,933
|
|
|
272,611
|
|
Impairments
|
|
4,222
|
|
|
238,879
|
|
|
15,535
|
|
|
515,458
|
|
Total operating
expenses
|
|
346,395
|
|
|
526,689
|
|
|
1,180,081
|
|
|
1,726,165
|
|
Gain (loss) on
divestiture and other, net
|
|
(5,872)
|
|
|
(20,224)
|
|
|
(14,641)
|
|
|
57,024
|
|
Proceeds from
business interruption insurance claims
|
|
—
|
|
|
—
|
|
|
16,270
|
|
|
—
|
|
Operating income
(loss)
|
|
180,469
|
|
|
(118,241)
|
|
|
704,535
|
|
|
154,182
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
16,900
|
|
|
16,900
|
|
Interest
expense
|
|
(39,759)
|
|
|
(31,535)
|
|
|
(116,628)
|
|
|
(113,874)
|
|
Other income
(expense), net
|
|
275
|
|
|
(834)
|
|
|
545
|
|
|
(578)
|
|
Income (loss)
before income taxes
|
|
145,210
|
|
|
(146,385)
|
|
|
605,352
|
|
|
56,630
|
|
Income tax (benefit)
expense
|
|
941
|
|
|
8,372
|
|
|
8,372
|
|
|
45,532
|
|
Net income
(loss)
|
|
144,269
|
|
|
(154,757)
|
|
|
596,980
|
|
|
11,098
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
60,573
|
|
|
(139,766)
|
|
|
251,208
|
|
|
(154,409)
|
|
Net income (loss)
attributable to Western Gas Equity Partners, LP
|
|
$
|
83,696
|
|
|
$
|
(14,991)
|
|
|
$
|
345,772
|
|
|
$
|
165,507
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Gas Equity Partners, LP
|
|
$
|
83,696
|
|
|
$
|
(14,991)
|
|
|
$
|
345,772
|
|
|
$
|
165,507
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
|
—
|
|
|
(15,780)
|
|
|
(11,326)
|
|
|
(79,386)
|
|
Limited partners'
interest in net income (loss)
|
|
$
|
83,696
|
|
|
$
|
(30,771)
|
|
|
$
|
334,446
|
|
|
$
|
86,121
|
|
Net income (loss)
per common unit – basic and diluted
|
|
$
|
0.38
|
|
|
$
|
(0.14)
|
|
|
$
|
1.53
|
|
|
$
|
0.39
|
|
Weighted-average
common units outstanding – basic and diluted
|
|
218,925
|
|
|
218,916
|
|
|
218,922
|
|
|
218,913
|
|
Western Gas Equity
Partners, LP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
December
31,
|
thousands except
number of units
|
|
2016
|
|
2015
|
Current
assets
|
|
$
|
595,591
|
|
|
$
|
301,364
|
|
Note receivable –
Anadarko
|
|
260,000
|
|
|
260,000
|
|
Net property, plant
and equipment
|
|
5,049,932
|
|
|
4,858,779
|
|
Other
assets
|
|
1,830,574
|
|
|
1,883,201
|
|
Total
assets
|
|
$
|
7,736,097
|
|
|
$
|
7,303,344
|
|
Current
liabilities
|
|
$
|
315,387
|
|
|
$
|
235,565
|
|
Long-term
debt
|
|
3,119,461
|
|
|
2,690,651
|
|
Asset retirement
obligations and other
|
|
149,043
|
|
|
268,356
|
|
Deferred purchase
price obligation – Anadarko
|
|
41,440
|
|
|
188,674
|
|
Total
liabilities
|
|
$
|
3,625,331
|
|
|
$
|
3,383,246
|
|
Equity and
partners' capital
|
|
|
|
|
Common units
(218,928,570 and 218,919,380 units issued and outstanding at
December 31, 2016 and 2015, respectively)
|
|
$
|
1,048,143
|
|
|
$
|
1,060,842
|
|
Net investment by
Anadarko
|
|
—
|
|
|
430,598
|
|
Noncontrolling
interests
|
|
3,062,623
|
|
|
2,428,658
|
|
Total liabilities,
equity and partners' capital
|
|
$
|
7,736,097
|
|
|
$
|
7,303,344
|
|
Western Gas Equity
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
thousands
|
|
2016
|
|
2015
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
596,980
|
|
|
$
|
11,098
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and changes in working capital:
|
|
|
|
|
Depreciation and amortization
|
|
272,933
|
|
|
272,611
|
|
Impairments
|
|
15,535
|
|
|
515,458
|
|
(Gain) loss on
divestiture and other, net
|
|
14,641
|
|
|
(57,024)
|
|
Change in other
items, net
|
|
12,987
|
|
|
40,666
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
913,076
|
|
|
$
|
782,809
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
$
|
(479,993)
|
|
|
$
|
(637,964)
|
|
Contributions in aid
of construction costs from affiliates
|
|
6,135
|
|
|
461
|
|
Acquisitions from
affiliates
|
|
(716,465)
|
|
|
(10,903)
|
|
Acquisitions from
third parties
|
|
—
|
|
|
(3,514)
|
|
Investments in equity
affiliates
|
|
(27)
|
|
|
(11,442)
|
|
Distributions from
equity investments in excess of cumulative earnings –
affiliates
|
|
21,238
|
|
|
16,244
|
|
Proceeds from the
sale of assets to affiliates
|
|
623
|
|
|
925
|
|
Proceeds from the
sale of assets to third parties
|
|
45,490
|
|
|
145,916
|
|
Proceeds from
property insurance claims
|
|
17,465
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
|
$
|
(1,105,534)
|
|
|
$
|
(500,277)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
|
$
|
1,323,198
|
|
|
$
|
889,606
|
|
Repayments of
debt
|
|
(900,000)
|
|
|
(611,150)
|
|
Increase (decrease)
in outstanding checks
|
|
2,079
|
|
|
(2,666)
|
|
Proceeds from the
issuance of WES common units, net of offering expenses
|
|
—
|
|
|
57,353
|
|
Proceeds from the
issuance of WES Series A Preferred units, net of offering
expenses
|
|
686,937
|
|
|
—
|
|
Distributions to WGP
unitholders
|
|
(374,082)
|
|
|
(306,477)
|
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(13,784)
|
|
|
(12,187)
|
|
Distributions to
noncontrolling interest owners of WES
|
|
(294,841)
|
|
|
(233,178)
|
|
Net contributions
from (distributions to) Anadarko
|
|
(23,491)
|
|
|
(49,801)
|
|
Above-market
component of swap extensions with Anadarko
|
|
45,820
|
|
|
18,449
|
|
Net cash provided by
(used in) financing activities
|
|
$
|
451,836
|
|
|
$
|
(250,051)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
259,378
|
|
|
$
|
32,481
|
|
Cash and cash
equivalents at beginning of period
|
|
99,694
|
|
|
67,213
|
|
Cash and cash
equivalents at end of period
|
|
$
|
359,072
|
|
|
$
|
99,694
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/western-gas-announces-fourth-quarter-and-full-year-2016-results-300411959.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners,
LP