HOUSTON, Feb. 15, 2018
/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 2017 financial
and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for 2017 totaled
$221.3 million, or $1.30 per common unit (diluted), with full-year
2017 Adjusted EBITDA(1) of $1.1
billion and full-year 2017 Distributable cash
flow(1) of $929.0 million.
Net income (loss) available to limited partners for the fourth
quarter of 2017 totaled $67.7
million, or $0.39 per common
unit (diluted), with fourth-quarter 2017 Adjusted
EBITDA(1) of $273.3
million and fourth-quarter 2017 Distributable cash
flow(1) of $233.4
million.
WES paid a quarterly distribution of $0.920 per unit for the fourth quarter of
2017. This distribution represented a 2% increase over the prior
quarter's distribution and a 7% increase over the fourth-quarter
2016 distribution of $0.860 per
unit. The full-year 2017 distribution of $3.590 per unit represented a 7% increase over
the full-year 2016 distribution of $3.350 per unit. The fourth-quarter 2017 Coverage
ratio(1) of 1.08 times was based on the quarterly
distribution of $0.920 per unit. The
Partnership's Coverage ratio(1) for full-year 2017 was
1.13 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.
|
"Our impressive quarterly results were driven by strong
volumetric growth in both the Delaware and DJ Basins where producer activity
remains robust. In the Delaware
Basin, we are pleased to report that Ramsey VI came online at the
end of the quarter, just as the rest of the Ramsey facility was
nearing capacity," said Chief Executive Officer, Benjamin Fink. "We still plan to execute our
over $1 billion 2018 capital program
without the need for additional equity, as we expect strong
volumetric growth in the second half of the year once critical
infrastructure is placed into service."
Total throughput attributable to WES for natural gas assets for
the fourth quarter of 2017 averaged 3.5 Bcf/d, which was 1% above
the prior quarter. Total throughput attributable to WES for natural
gas assets for the fourth quarter of 2017 was approximately 3%
above the prior quarter when adjusted for the non-cash impact of a
one-time prior period volumetric adjustment. Additionally, total
throughput attributable to WES for natural gas assets for the
fourth quarter of 2017 was 14% below the fourth quarter of 2016
primarily due to 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
fourth quarter of 2017 averaged 240 MBbls/d, which was 15% above
the prior quarter and 33% above the fourth quarter of 2016.
For full-year 2017, total throughput attributable to WES for
natural gas assets averaged 3.6 Bcf/d, which was 9% below the
prior-year average. For full-year 2017, total throughput for crude,
NGL and produced water assets averaged 201 MBbls/d, which was 9%
above the prior-year average.
Capital expenditures attributable to WES, including equity
investments but excluding acquisitions, totaled $253.0 million on a cash basis and $291.6 million on an accrual basis during the
fourth quarter of 2017, with maintenance capital expenditures on a
cash basis of $16.6 million. For
full-year 2017, capital expenditures attributable to WES, including
equity investments but excluding acquisitions, totaled $666.9 million on a cash basis and $792.0 million on an accrual basis, with
maintenance capital expenditures on a cash basis of $49.7 million.
On February 15, 2018, WES amended
its senior unsecured revolving credit facility to extend the
maturity date from February 2020 to
February 2023 and expand the
borrowing capacity from $1.2 billion
to $1.5 billion.
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
2017 totaled $376.6 million, or
$1.72 per common unit (diluted). Net
income (loss) available to limited partners for the fourth quarter
of 2017 totaled $99.5 million, or
$0.45 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.54875 per unit for the fourth quarter of
2017. This distribution represented a 2% increase over the prior
quarter's distribution and a 19% increase over the fourth-quarter
2016 distribution of $0.46250 per
unit. The full-year 2017 distribution of $2.10500 per unit represented a 19% increase over
the full-year 2016 distribution of $1.76750 per unit. WGP received distributions
from WES of $122.3 million
attributable to the fourth quarter and will pay $120.1 million in distributions for the same
period.
On February 15, 2018, WGP amended
its senior secured revolving credit facility by reducing total
commitments from $250.0 million to
$35.0 million.
CONFERENCE CALL TOMORROW AT 8 A.M.
CST
WES and WGP will host a joint conference call on Friday,
February 16, 2018, at 8:00 a.m. Central
Standard Time (9:00 a.m. Eastern
Standard Time) to discuss fourth-quarter and full-year 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 5796412. To access the live audio
webcast of the conference call, please visit the investor relations
section of the Partnership's website at www.westerngas.com. A
replay of the conference call will also be available on the website
for two weeks following the call.
Western Gas Partners, LP ("WES") is a growth-oriented
Delaware master limited
partnership formed by Anadarko Petroleum Corporation to acquire,
own, develop and operate midstream assets. With midstream assets
located in the Rocky Mountains, North-central Pennsylvania, Texas and New
Mexico, WES is engaged in the business of gathering,
compressing, treating, processing and transporting natural gas;
gathering, stabilizing and transporting condensate, natural gas
liquids and crude oil; and gathering and disposing of produced
water for Anadarko, as well as for third-party producers and
customers. In addition, in its capacity as a processor of natural
gas, WES also buys and sells natural gas, NGLs or condensate under
certain of its contracts.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by
Anadarko Petroleum Corporation to own the following types of
interests in WES: (i) the general partner interest and all of the
incentive distribution rights in WES, both owned through WGP's 100%
ownership of WES's general partner, and (ii) a significant limited
partner interest in WES.
For more information about Western Gas Partners, LP and Western
Gas Equity Partners, LP, please visit www.westerngas.com.
This news release contains forward-looking statements. WES
and WGP's management believes that their expectations are based on
reasonable assumptions. No assurance, however, can be given that
such expectations will prove to have been correct. A number of
factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in
this news release. These factors include the ability to meet
financial guidance or distribution growth expectations; the ability
to safely and efficiently operate WES's assets; the supply of,
demand for, and price of oil, natural gas, NGLs and related
products or services; the ability to meet projected in-service
dates for capital growth projects; construction costs or capital
expenditures exceeding estimated or budgeted costs or expenditures;
and the other factors described in the "Risk Factors" sections of
WES's and WGP's most recent Forms 10-K and Forms 10-Q filed with
the Securities and Exchange Commission and in their other public
filings and press releases. Western Gas Partners 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
|
|
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
|
|
$
|
148,637
|
|
|
$
|
143,004
|
|
|
$
|
567,483
|
|
|
$
|
591,331
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
29,897
|
|
|
27,160
|
|
|
110,465
|
|
|
103,423
|
|
Non-cash equity-based
compensation expense
|
|
1,468
|
|
|
1,573
|
|
|
4,947
|
|
|
5,591
|
|
Non-cash settled
interest expense, net (1)
|
|
—
|
|
|
4,350
|
|
|
71
|
|
|
(7,747)
|
|
Income tax (benefit)
expense
|
|
(39)
|
|
|
941
|
|
|
4,866
|
|
|
8,372
|
|
Depreciation and
amortization (2)
|
|
73,874
|
|
|
72,633
|
|
|
288,087
|
|
|
270,311
|
|
Impairments
|
|
8,295
|
|
|
4,222
|
|
|
178,374
|
|
|
15,535
|
|
Above-market
component of swap agreements with Anadarko
|
|
11,832
|
|
|
11,038
|
|
|
58,551
|
|
|
45,820
|
|
Other expense
(2)
|
|
5
|
|
|
128
|
|
|
145
|
|
|
224
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,629)
|
|
|
(5,872)
|
|
|
132,388
|
|
|
(14,641)
|
|
Equity income, net –
affiliates
|
|
22,486
|
|
|
21,916
|
|
|
85,194
|
|
|
78,717
|
|
Cash paid for
maintenance capital expenditures (2)
|
|
16,569
|
|
|
8,342
|
|
|
49,684
|
|
|
63,630
|
|
Capitalized
interest
|
|
2,835
|
|
|
888
|
|
|
6,826
|
|
|
5,562
|
|
Cash paid for
(reimbursement of) income taxes
|
|
1,005
|
|
|
771
|
|
|
1,194
|
|
|
838
|
|
Series A Preferred
unit distributions
|
|
—
|
|
|
14,908
|
|
|
7,453
|
|
|
45,784
|
|
Other income
(2)
|
|
323
|
|
|
252
|
|
|
1,283
|
|
|
524
|
|
Distributable cash
flow
|
|
$
|
233,380
|
|
|
$
|
223,844
|
|
|
$
|
928,967
|
|
|
$
|
852,446
|
|
Distributions
declared (3)
|
|
|
|
|
|
|
|
|
Limited partners –
common units
|
|
$
|
140,394
|
|
|
|
|
$
|
538,244
|
|
|
|
General
partner
|
|
76,192
|
|
|
|
|
286,624
|
|
|
|
Total
|
|
$
|
216,586
|
|
|
|
|
$
|
824,868
|
|
|
|
Coverage
ratio
|
|
1.08
|
|
x
|
|
|
1.13
|
|
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 $0.920 and $3.590 per unit declared for the three
months and year ended December 31, 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
December 31,
|
|
Year Ended
December 31,
|
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
|
|
$
|
148,637
|
|
|
$
|
143,004
|
|
|
$
|
567,483
|
|
|
$
|
591,331
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
29,897
|
|
|
27,160
|
|
|
110,465
|
|
|
103,423
|
|
Non-cash equity-based
compensation expense
|
|
1,468
|
|
|
1,573
|
|
|
4,947
|
|
|
5,591
|
|
Interest
expense
|
|
35,592
|
|
|
39,234
|
|
|
142,386
|
|
|
114,921
|
|
Income tax
expense
|
|
—
|
|
|
941
|
|
|
4,905
|
|
|
8,372
|
|
Depreciation and
amortization (1)
|
|
73,874
|
|
|
72,633
|
|
|
288,087
|
|
|
270,311
|
|
Impairments
|
|
8,295
|
|
|
4,222
|
|
|
178,374
|
|
|
15,535
|
|
Other expense
(1)
|
|
5
|
|
|
128
|
|
|
145
|
|
|
224
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,629)
|
|
|
(5,872)
|
|
|
132,388
|
|
|
(14,641)
|
|
Equity income, net –
affiliates
|
|
22,486
|
|
|
21,916
|
|
|
85,194
|
|
|
78,717
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
16,900
|
|
|
16,900
|
|
Other income
(1)
|
|
323
|
|
|
252
|
|
|
1,283
|
|
|
524
|
|
Income tax
benefit
|
|
39
|
|
|
—
|
|
|
39
|
|
|
—
|
|
Adjusted EBITDA
attributable to Western Gas Partners, LP
|
|
$
|
273,324
|
|
|
$
|
268,374
|
|
|
$
|
1,060,988
|
|
|
$
|
1,028,208
|
|
Reconciliation of
Net cash provided by operating activities to Adjusted EBITDA
attributable to Western Gas Partners, LP
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
256,396
|
|
|
$
|
259,847
|
|
|
$
|
901,495
|
|
|
$
|
917,585
|
|
Interest (income)
expense, net
|
|
31,367
|
|
|
35,009
|
|
|
125,486
|
|
|
98,021
|
|
Uncontributed
cash-based compensation awards
|
|
119
|
|
|
408
|
|
|
25
|
|
|
856
|
|
Accretion and
amortization of long-term obligations, net
|
|
(1,060)
|
|
|
(5,387)
|
|
|
(4,254)
|
|
|
3,789
|
|
Current income tax
(benefit) expense
|
|
1,385
|
|
|
707
|
|
|
2,408
|
|
|
5,817
|
|
Other (income)
expense, net
|
|
(330)
|
|
|
(255)
|
|
|
(1,299)
|
|
|
(479)
|
|
Distributions from
equity investments in excess of cumulative earnings –
affiliates
|
|
6,830
|
|
|
4,646
|
|
|
23,085
|
|
|
21,238
|
|
Changes in operating
working capital:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
(30,845)
|
|
|
7,839
|
|
|
16,127
|
|
|
48,947
|
|
Accounts and
imbalance payables and accrued liabilities, net
|
|
10,937
|
|
|
(34,256)
|
|
|
6,930
|
|
|
(58,359)
|
|
Other
|
|
1,426
|
|
|
2,922
|
|
|
4,491
|
|
|
4,367
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(2,901)
|
|
|
(3,106)
|
|
|
(13,506)
|
|
|
(13,574)
|
|
Adjusted EBITDA
attributable to Western Gas Partners, LP
|
|
$
|
273,324
|
|
|
$
|
268,374
|
|
|
$
|
1,060,988
|
|
|
$
|
1,028,208
|
|
Cash flow
information of Western Gas Partners, LP
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
$
|
901,495
|
|
|
$
|
917,585
|
|
Net cash used in
investing activities
|
|
|
|
|
|
(763,604)
|
|
|
(1,105,534)
|
|
Net cash provided by
(used in) financing activities
|
|
|
|
|
|
(417,002)
|
|
|
447,841
|
|
|
|
(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
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Reconciliation of
Operating income (loss) to Adjusted gross margin attributable to
Western Gas Partners, LP
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
|
181,815
|
|
|
$
|
181,155
|
|
|
$
|
707,271
|
|
|
$
|
708,208
|
|
Add:
|
|
|
|
|
|
|
|
|
Distributions from
equity investments
|
|
29,897
|
|
|
27,160
|
|
|
110,465
|
|
|
103,423
|
|
Operation and
maintenance
|
|
86,550
|
|
|
81,869
|
|
|
315,994
|
|
|
308,010
|
|
General and
administrative
|
|
12,394
|
|
|
12,049
|
|
|
47,796
|
|
|
45,591
|
|
Property and other
taxes
|
|
11,385
|
|
|
7,047
|
|
|
46,818
|
|
|
40,145
|
|
Depreciation and
amortization
|
|
74,602
|
|
|
73,287
|
|
|
290,874
|
|
|
272,933
|
|
Impairments
|
|
8,295
|
|
|
4,222
|
|
|
178,374
|
|
|
15,535
|
|
Less:
|
|
|
|
|
|
|
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,629)
|
|
|
(5,872)
|
|
|
132,388
|
|
|
(14,641)
|
|
Proceeds from
business interruption insurance claims
|
|
—
|
|
|
—
|
|
|
29,882
|
|
|
16,270
|
|
Equity income, net –
affiliates
|
|
22,486
|
|
|
21,916
|
|
|
85,194
|
|
|
78,717
|
|
Reimbursed
electricity-related charges recorded as revenues
|
|
14,485
|
|
|
14,026
|
|
|
56,823
|
|
|
59,733
|
|
Adjusted gross margin
attributable to noncontrolling interest
|
|
3,638
|
|
|
3,735
|
|
|
16,827
|
|
|
16,323
|
|
Adjusted gross margin
attributable to Western Gas Partners, LP
|
|
$
|
366,958
|
|
|
$
|
352,984
|
|
|
$
|
1,376,478
|
|
|
$
|
1,337,443
|
|
Adjusted gross margin
attributable to Western Gas Partners, LP for natural gas
assets
|
|
$
|
318,012
|
|
|
$
|
317,294
|
|
|
$
|
1,222,632
|
|
|
$
|
1,194,877
|
|
Adjusted gross margin
for crude, NGL and produced water assets
|
|
48,946
|
|
|
35,690
|
|
|
153,846
|
|
|
142,566
|
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
thousands except
per-unit amounts
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues and
other
|
|
|
|
|
|
|
|
|
Gathering,
processing, transportation and disposal
|
|
$
|
324,513
|
|
|
$
|
317,517
|
|
|
$
|
1,237,949
|
|
|
$
|
1,227,849
|
|
Natural gas and
natural gas liquids sales
|
|
299,443
|
|
|
192,728
|
|
|
989,933
|
|
|
572,313
|
|
Other
|
|
8,062
|
|
|
575
|
|
|
20,474
|
|
|
4,108
|
|
Total revenues and
other
|
|
632,018
|
|
|
510,820
|
|
|
2,248,356
|
|
|
1,804,270
|
|
Equity income, net
– affiliates
|
|
22,486
|
|
|
21,916
|
|
|
85,194
|
|
|
78,717
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
276,834
|
|
|
167,235
|
|
|
908,693
|
|
|
494,194
|
|
Operation and
maintenance
|
|
86,550
|
|
|
81,869
|
|
|
315,994
|
|
|
308,010
|
|
General and
administrative
|
|
12,394
|
|
|
12,049
|
|
|
47,796
|
|
|
45,591
|
|
Property and other
taxes
|
|
11,385
|
|
|
7,047
|
|
|
46,818
|
|
|
40,145
|
|
Depreciation and
amortization
|
|
74,602
|
|
|
73,287
|
|
|
290,874
|
|
|
272,933
|
|
Impairments
|
|
8,295
|
|
|
4,222
|
|
|
178,374
|
|
|
15,535
|
|
Total operating
expenses
|
|
470,060
|
|
|
345,709
|
|
|
1,788,549
|
|
|
1,176,408
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,629)
|
|
|
(5,872)
|
|
|
132,388
|
|
|
(14,641)
|
|
Proceeds from
business interruption insurance claims
|
|
—
|
|
|
—
|
|
|
29,882
|
|
|
16,270
|
|
Operating income
(loss)
|
|
181,815
|
|
|
181,155
|
|
|
707,271
|
|
|
708,208
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
16,900
|
|
|
16,900
|
|
Interest
expense
|
|
(35,592)
|
|
|
(39,234)
|
|
|
(142,386)
|
|
|
(114,921)
|
|
Other income
(expense), net
|
|
330
|
|
|
255
|
|
|
1,299
|
|
|
479
|
|
Income (loss)
before income taxes
|
|
150,778
|
|
|
146,401
|
|
|
583,084
|
|
|
610,666
|
|
Income tax (benefit)
expense
|
|
(39)
|
|
|
941
|
|
|
4,866
|
|
|
8,372
|
|
Net income
(loss)
|
|
150,817
|
|
|
145,460
|
|
|
578,218
|
|
|
602,294
|
|
Net income
attributable to noncontrolling interest
|
|
2,180
|
|
|
2,456
|
|
|
10,735
|
|
|
10,963
|
|
Net income (loss)
attributable to Western Gas Partners, LP
|
|
$
|
148,637
|
|
|
$
|
143,004
|
|
|
$
|
567,483
|
|
|
$
|
591,331
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Gas Partners, LP
|
|
$
|
148,637
|
|
|
$
|
143,004
|
|
|
$
|
567,483
|
|
|
$
|
591,331
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,326)
|
|
Series A Preferred
units interest in net (income) loss
|
|
—
|
|
|
(25,904)
|
|
|
(42,373)
|
|
|
(76,893)
|
|
General partner
interest in net (income) loss
|
|
(80,932)
|
|
|
(62,229)
|
|
|
(303,835)
|
|
|
(236,561)
|
|
Common and Class C
limited partners' interest in net income (loss)
|
|
$
|
67,705
|
|
|
$
|
54,871
|
|
|
$
|
221,275
|
|
|
$
|
266,551
|
|
Net income (loss)
per common unit – basic and diluted
|
|
$
|
0.39
|
|
|
$
|
0.35
|
|
|
$
|
1.30
|
|
|
$
|
1.74
|
|
Weighted-average
common units outstanding – basic and diluted
|
|
152,602
|
|
|
130,672
|
|
|
147,194
|
|
|
130,253
|
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
December
31,
|
thousands except
number of units
|
|
2017
|
|
2016
|
Current
assets
|
|
$
|
254,062
|
|
|
$
|
594,014
|
|
Note receivable –
Anadarko
|
|
260,000
|
|
|
260,000
|
|
Net property, plant
and equipment
|
|
5,730,891
|
|
|
5,049,932
|
|
Other
assets
|
|
1,769,397
|
|
|
1,829,082
|
|
Total
assets
|
|
$
|
8,014,350
|
|
|
$
|
7,733,028
|
|
Current
liabilities
|
|
$
|
424,333
|
|
|
$
|
315,305
|
|
Long-term
debt
|
|
3,464,712
|
|
|
3,091,461
|
|
Asset retirement
obligations and other
|
|
154,294
|
|
|
149,043
|
|
Deferred purchase
price obligation – Anadarko
|
|
—
|
|
|
41,440
|
|
Total
liabilities
|
|
$
|
4,043,339
|
|
|
$
|
3,597,249
|
|
Equity and
partners' capital
|
|
|
|
|
Series A Preferred
units (zero and 21,922,831 units issued and outstanding at December
31, 2017 and 2016, respectively)
|
|
$
|
—
|
|
|
$
|
639,545
|
|
Common units
(152,602,105 and 130,671,970 units issued and outstanding at
December 31, 2017 and 2016, respectively)
|
|
2,950,010
|
|
|
2,536,872
|
|
Class C units
(13,243,883 and 12,358,123 units issued and outstanding at December
31, 2017 and 2016, respectively)
|
|
780,040
|
|
|
750,831
|
|
General partner units
(2,583,068 units issued and outstanding at December 31, 2017 and
2016)
|
|
179,232
|
|
|
143,968
|
|
Noncontrolling
interest
|
|
61,729
|
|
|
64,563
|
|
Total liabilities,
equity and partners' capital
|
|
$
|
8,014,350
|
|
|
$
|
7,733,028
|
|
Western Gas
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
thousands
|
|
2017
|
|
2016
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
578,218
|
|
|
$
|
602,294
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and changes in working capital:
|
|
|
|
|
Depreciation and
amortization
|
|
290,874
|
|
|
272,933
|
|
Impairments
|
|
178,374
|
|
|
15,535
|
|
(Gain) loss on
divestiture and other, net
|
|
(132,388)
|
|
|
14,641
|
|
Change in other
items, net
|
|
(13,583)
|
|
|
12,182
|
|
Net cash provided by
operating activities
|
|
$
|
901,495
|
|
|
$
|
917,585
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
$
|
(675,025)
|
|
|
$
|
(479,993)
|
|
Contributions in aid
of construction costs from affiliates
|
|
1,387
|
|
|
6,135
|
|
Acquisitions from
affiliates
|
|
(3,910)
|
|
|
(716,465)
|
|
Acquisitions from
third parties
|
|
(155,298)
|
|
|
—
|
|
Investments in equity
affiliates
|
|
(384)
|
|
|
(27)
|
|
Distributions from
equity investments in excess of cumulative earnings –
affiliates
|
|
23,085
|
|
|
21,238
|
|
Proceeds from the
sale of assets to affiliates
|
|
—
|
|
|
623
|
|
Proceeds from the
sale of assets to third parties
|
|
23,564
|
|
|
45,490
|
|
Proceeds from
property insurance claims
|
|
22,977
|
|
|
17,465
|
|
Net cash used in
investing activities
|
|
$
|
(763,604)
|
|
|
$
|
(1,105,534)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
|
$
|
369,989
|
|
|
$
|
1,297,218
|
|
Repayments of
debt
|
|
—
|
|
|
(900,000)
|
|
Settlement of the
Deferred purchase price obligation – Anadarko
|
|
(37,346)
|
|
|
—
|
|
Increase (decrease)
in outstanding checks
|
|
5,593
|
|
|
2,079
|
|
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
|
|
—
|
|
|
686,937
|
|
Distributions to
unitholders
|
|
(801,300)
|
|
|
(671,938)
|
|
Distributions to
noncontrolling interest owner
|
|
(13,569)
|
|
|
(13,784)
|
|
Net contributions
from (distributions to) Anadarko
|
|
1,263
|
|
|
(23,491)
|
|
Above-market
component of swap agreements with Anadarko
|
|
58,551
|
|
|
45,820
|
|
Net cash provided by
(used in) financing activities
|
|
$
|
(417,002)
|
|
|
$
|
447,841
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
(279,111)
|
|
|
$
|
259,892
|
|
Cash and cash
equivalents at beginning of period
|
|
357,925
|
|
|
98,033
|
|
Cash and cash
equivalents at end of period
|
|
$
|
78,814
|
|
|
$
|
357,925
|
|
Western Gas
Partners, LP
|
OPERATING
STATISTICS
|
(Unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Throughput for
natural gas assets (MMcf/d)
|
|
|
|
|
|
|
|
|
Gathering, treating
and transportation
|
|
747
|
|
|
1,480
|
|
|
958
|
|
|
1,537
|
|
Processing
|
|
2,663
|
|
|
2,500
|
|
|
2,563
|
|
|
2,350
|
|
Equity investment
(1)
|
|
158
|
|
|
173
|
|
|
159
|
|
|
177
|
|
Total
throughput for natural gas assets
|
|
3,568
|
|
|
4,153
|
|
|
3,680
|
|
|
4,064
|
|
Throughput
attributable to noncontrolling interest for natural gas
assets
|
|
98
|
|
|
113
|
|
|
105
|
|
|
124
|
|
Total throughput
attributable to Western Gas Partners, LP for natural gas
assets
|
|
3,470
|
|
|
4,040
|
|
|
3,575
|
|
|
3,940
|
|
Throughput for crude,
NGL and produced water assets (MBbls/d)
|
|
|
|
|
|
|
|
|
Gathering, treating,
transportation and disposal
|
|
111
|
|
|
49
|
|
|
71
|
|
|
57
|
|
Equity investment
(2)
|
|
129
|
|
|
132
|
|
|
130
|
|
|
127
|
|
Total
throughput for crude, NGL and produced water assets
|
|
240
|
|
|
181
|
|
|
201
|
|
|
184
|
|
Adjusted gross margin
per Mcf attributable to Western Gas Partners, LP for natural gas
assets (3)
|
|
$
|
1.00
|
|
|
$
|
0.85
|
|
|
$
|
0.94
|
|
|
$
|
0.83
|
|
Adjusted gross margin
per Bbl for crude, NGL and produced water assets
(4)
|
|
2.21
|
|
|
2.15
|
|
|
2.10
|
|
|
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
December 31, 2017
|
Distributions
declared by Western Gas Partners, LP:
|
|
|
General partner
interest
|
|
$
|
3,605
|
|
Incentive
distribution rights
|
|
72,587
|
|
Common units held by
WGP
|
|
46,121
|
|
Less:
|
|
|
Public company
general and administrative expense
|
|
679
|
|
Interest
expense
|
|
576
|
|
Cash available for
distribution
|
|
$
|
121,058
|
|
Declared distribution
per common unit
|
|
$
|
0.54875
|
|
Distributions
declared by Western Gas Equity Partners, LP
|
|
$
|
120,140
|
|
Coverage
ratio
|
|
1.01
|
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
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues and
other
|
|
|
|
|
|
|
|
|
Gathering,
processing, transportation and disposal
|
|
$
|
324,513
|
|
|
$
|
317,517
|
|
|
$
|
1,237,949
|
|
|
$
|
1,227,849
|
|
Natural gas and
natural gas liquids sales
|
|
299,443
|
|
|
192,728
|
|
|
989,933
|
|
|
572,313
|
|
Other
|
|
8,062
|
|
|
575
|
|
|
20,474
|
|
|
4,108
|
|
Total revenues and
other
|
|
632,018
|
|
|
510,820
|
|
|
2,248,356
|
|
|
1,804,270
|
|
Equity income, net
– affiliates
|
|
22,486
|
|
|
21,916
|
|
|
85,194
|
|
|
78,717
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
product
|
|
276,834
|
|
|
167,235
|
|
|
908,693
|
|
|
494,194
|
|
Operation and
maintenance
|
|
86,550
|
|
|
81,869
|
|
|
315,994
|
|
|
308,010
|
|
General and
administrative
|
|
13,073
|
|
|
12,734
|
|
|
50,668
|
|
|
49,248
|
|
Property and other
taxes
|
|
11,385
|
|
|
7,048
|
|
|
46,818
|
|
|
40,161
|
|
Depreciation and
amortization
|
|
74,602
|
|
|
73,287
|
|
|
290,874
|
|
|
272,933
|
|
Impairments
|
|
8,295
|
|
|
4,222
|
|
|
178,374
|
|
|
15,535
|
|
Total operating
expenses
|
|
470,739
|
|
|
346,395
|
|
|
1,791,421
|
|
|
1,180,081
|
|
Gain (loss) on
divestiture and other, net
|
|
(2,629)
|
|
|
(5,872)
|
|
|
132,388
|
|
|
(14,641)
|
|
Proceeds from
business interruption insurance claims
|
|
—
|
|
|
—
|
|
|
29,882
|
|
|
16,270
|
|
Operating income
(loss)
|
|
181,136
|
|
|
180,469
|
|
|
704,399
|
|
|
704,535
|
|
Interest income –
affiliates
|
|
4,225
|
|
|
4,225
|
|
|
16,900
|
|
|
16,900
|
|
Interest
expense
|
|
(36,168)
|
|
|
(39,759)
|
|
|
(144,615)
|
|
|
(116,628)
|
|
Other income
(expense), net
|
|
355
|
|
|
275
|
|
|
1,384
|
|
|
545
|
|
Income (loss)
before income taxes
|
|
149,548
|
|
|
145,210
|
|
|
578,068
|
|
|
605,352
|
|
Income tax (benefit)
expense
|
|
(39)
|
|
|
941
|
|
|
4,866
|
|
|
8,372
|
|
Net income
(loss)
|
|
149,587
|
|
|
144,269
|
|
|
573,202
|
|
|
596,980
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
50,066
|
|
|
60,573
|
|
|
196,595
|
|
|
251,208
|
|
Net income (loss)
attributable to Western Gas Equity Partners, LP
|
|
$
|
99,521
|
|
|
$
|
83,696
|
|
|
$
|
376,607
|
|
|
$
|
345,772
|
|
Limited partners'
interest in net income (loss):
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Western Gas Equity Partners, LP
|
|
$
|
99,521
|
|
|
$
|
83,696
|
|
|
$
|
376,607
|
|
|
$
|
345,772
|
|
Pre-acquisition net
(income) loss allocated to Anadarko
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,326)
|
|
Limited partners'
interest in net income (loss)
|
|
$
|
99,521
|
|
|
$
|
83,696
|
|
|
$
|
376,607
|
|
|
$
|
334,446
|
|
Net income (loss)
per common unit – basic and diluted
|
|
$
|
0.45
|
|
|
$
|
0.38
|
|
|
$
|
1.72
|
|
|
$
|
1.53
|
|
Weighted-average
common units outstanding – basic and diluted
|
|
218,933
|
|
|
218,925
|
|
|
218,931
|
|
|
218,922
|
|
Western Gas Equity
Partners, LP
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
December
31,
|
thousands except
number of units
|
|
2017
|
|
2016
|
Current
assets
|
|
$
|
255,210
|
|
|
$
|
595,591
|
|
Note receivable –
Anadarko
|
|
260,000
|
|
|
260,000
|
|
Net property, plant
and equipment
|
|
5,730,891
|
|
|
5,049,932
|
|
Other
assets
|
|
1,770,210
|
|
|
1,830,574
|
|
Total
assets
|
|
$
|
8,016,311
|
|
|
$
|
7,736,097
|
|
Current
liabilities
|
|
$
|
424,426
|
|
|
$
|
315,387
|
|
Long-term
debt
|
|
3,492,712
|
|
|
3,119,461
|
|
Asset retirement
obligations and other
|
|
154,294
|
|
|
149,043
|
|
Deferred purchase
price obligation – Anadarko
|
|
—
|
|
|
41,440
|
|
Total
liabilities
|
|
$
|
4,071,432
|
|
|
$
|
3,625,331
|
|
Equity and
partners' capital
|
|
|
|
|
Common units
(218,933,141 and 218,928,570 units issued and outstanding at
December 31, 2017 and 2016, respectively)
|
|
$
|
1,061,125
|
|
|
$
|
1,048,143
|
|
Noncontrolling
interests
|
|
2,883,754
|
|
|
3,062,623
|
|
Total liabilities,
equity and partners' capital
|
|
$
|
8,016,311
|
|
|
$
|
7,736,097
|
|
Western Gas Equity
Partners, LP
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
thousands
|
|
2017
|
|
2016
|
Cash flows from
operating activities
|
|
|
|
|
Net income
(loss)
|
|
$
|
573,202
|
|
|
$
|
596,980
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities and changes in working capital:
|
|
|
|
|
Depreciation and
amortization
|
|
290,874
|
|
|
272,933
|
|
Impairments
|
|
178,374
|
|
|
15,535
|
|
(Gain) loss on
divestiture and other, net
|
|
(132,388)
|
|
|
14,641
|
|
Change in other
items, net
|
|
(12,650)
|
|
|
12,987
|
|
Net cash provided by
operating activities
|
|
$
|
897,412
|
|
|
$
|
913,076
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
$
|
(675,025)
|
|
|
$
|
(479,993)
|
|
Contributions in aid
of construction costs from affiliates
|
|
1,387
|
|
|
6,135
|
|
Acquisitions from
affiliates
|
|
(3,910)
|
|
|
(716,465)
|
|
Acquisitions from
third parties
|
|
(155,298)
|
|
|
—
|
|
Investments in equity
affiliates
|
|
(384)
|
|
|
(27)
|
|
Distributions from
equity investments in excess of cumulative earnings –
affiliates
|
|
23,085
|
|
|
21,238
|
|
Proceeds from the
sale of assets to affiliates
|
|
—
|
|
|
623
|
|
Proceeds from the
sale of assets to third parties
|
|
23,564
|
|
|
45,490
|
|
Proceeds from
property insurance claims
|
|
22,977
|
|
|
17,465
|
|
Net cash used in
investing activities
|
|
$
|
(763,604)
|
|
|
$
|
(1,105,534)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings, net of
debt issuance costs
|
|
$
|
369,989
|
|
|
$
|
1,323,198
|
|
Repayments of
debt
|
|
—
|
|
|
(900,000)
|
|
Settlement of the
Deferred purchase price obligation – Anadarko
|
|
(37,346)
|
|
|
—
|
|
Increase (decrease)
in outstanding checks
|
|
5,593
|
|
|
2,079
|
|
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
|
|
—
|
|
|
686,937
|
|
Distributions to WGP
unitholders
|
|
(441,967)
|
|
|
(374,082)
|
|
Distributions to
Chipeta noncontrolling interest owner
|
|
(13,569)
|
|
|
(13,784)
|
|
Distributions to
noncontrolling interest owners of WES
|
|
(355,623)
|
|
|
(294,841)
|
|
Net contributions
from (distributions to) Anadarko
|
|
1,263
|
|
|
(23,491)
|
|
Above-market
component of swap agreements with Anadarko
|
|
58,551
|
|
|
45,820
|
|
Net cash provided by
(used in) financing activities
|
|
$
|
(413,292)
|
|
|
$
|
451,836
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
$
|
(279,484)
|
|
|
$
|
259,378
|
|
Cash and cash
equivalents at beginning of period
|
|
359,072
|
|
|
99,694
|
|
Cash and cash
equivalents at end of period
|
|
$
|
79,588
|
|
|
$
|
359,072
|
|
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners,
LP