HOUSTON, Dec. 5, 2017 /PRNewswire/ -- Western Gas
Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP
(NYSE:WGP) today announced their 2018 outlook.
2018 WES OUTLOOK HIGHLIGHTS
- Adjusted EBITDA(1) between $1.15 billion and $1.25
billion
- Total capital expenditures between $1.0
billion and $1.1 billion
- Maintenance capital expenditures between $80 million and $90
million
- Full year distribution coverage ratio above 1.1 times, driven
by a first half coverage ratio above 1.0 times, widening to above
1.2 times for the second half of the year
- Distribution growth of 1.5 cents
per quarter through 2019
"We expect to generate significant Adjusted EBITDA growth in
2018 driven by the returns on our strategic investments in the
Delaware and DJ Basins," said
President and Chief Executive Officer, Benjamin Fink. "Our 2018 capital program is
focused on further development of the infrastructure backbone in
the Delaware Basin and continued
capacity expansion in the DJ Basin. I am also excited to announce
that Ramsey VI is currently starting up and will begin processing
gas this month."
The 2018 outlook includes the following assumptions:
- Mentone Trains I and II start-up late in the third and fourth
quarters of 2018, respectively
- Extension of the DJ Basin and MGR fixed price agreements with
Anadarko through 2018
In addition, this outlook does not include any impacts from
acquisitions or exercises of investment options.
2018 Capital
Expectations ($1.0 Billion to $1.1 Billion)
|
By
Area
|
|
By
Type
|
|
Delaware
Basin
|
53%
|
Gathering
|
57%
|
DJ
Basin
|
40%
|
Processing
|
30%
|
Equity
Investments & Other
|
7%
|
Maintenance
|
8%
|
|
|
Equity
Investments & Other
|
5%
|
Note: All percentages and amounts are approximate.
Furthermore, Anadarko previously announced plans to deploy
approximately $550 million towards
midstream infrastructure in the Delaware and DJ Basins. Highlights of the
Anadarko midstream capital plan include the completion of two
regional oil treating facilities which will enable strong
volumetric growth in the second half of the year in West Texas. The midstream assets at Anadarko
are expected to generate EBITDA of over $300
million in 2018.
"We are very proud of the fact we have positioned Western Gas to
fund this robust capital program without needing to issue equity,"
said Mr. Fink. "We further believe that we can sustain our current
distribution growth rate of $0.015
per quarter through 2019 while generating strong coverage levels
consistent with the second half of 2018."
2018 WGP OUTLOOK
Based on the expected WES distribution growth rate and assuming
no WES equity issuances, WGP's expected distribution growth rate is
forecasted to be approximately 12%.
PRESENTATION AND WEBCAST
Mr. Fink will provide additional details and information
regarding the 2018 outlook during his presentation at the 2017
Wells Fargo Securities Pipeline, MLP, and Utility Symposium
tomorrow at 1:55 p.m. EST. The
presentation materials and a link to the webcast presentation will
be available at www.westerngas.com.
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, Western Gas Equity Partners, LP, and Western Gas Flash
Feed updates, please visit www.westerngas.com.
(1) This press release contains forward-looking
estimates of the range of Adjusted EBITDA projected to be generated
by WES in its 2018 fiscal year. A reconciliation of the Adjusted
EBITDA range to net cash provided by operating activities and net
income is not provided because the items necessary to estimate such
amounts are not reasonably accessible or estimable at this
time.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners,
LP