HOUSTON, Feb. 28, 2019 /PRNewswire/ -- Western Gas Equity Partners, LP ("WGP") and Western Gas Partners, LP ("WES") today announced the completion of their previously announced merger of a wholly owned subsidiary of WGP with and into WES, with WES continuing as the surviving entity and a subsidiary of WGP (the "Merger"). At the effective time of the Merger, each WES common unit (other than certain WES common units held by affiliates of WGP) converted into the right to receive 1.525 WGP common units. Based on the WES units outstanding, WGP issued approximately 234 million WGP common units to WES unitholders in connection with the Merger.
Immediately following the Merger, WGP changed its name to "Western Midstream Partners, LP", and its common units will begin trading on the New York Stock Exchange ("NYSE") under the ticker symbol "WES" when the market opens today. In addition, Western Gas Partners, LP has changed its name to "Western Midstream Operating, LP", and its common units will no longer trade on the NYSE.
"With the closing of these transformational transactions, Western Midstream has a simple, clean capital structure and offers its customers a uniquely scalable and integrated, multi-commodity solution," said Robin Fielder, Western Midstream's Chief Executive Officer. "As a result of our organic growth opportunities and the accretive acquisition of midstream assets completed today, our portfolio is projected to deliver more than 50% Adjusted EBITDA growth year-over-year and generate healthy distribution per unit growth and coverage through 2021 without the need for equity financing."
Effective upon the closing of the Merger, Messrs. Steven Arnold, Milton Carroll and James Crane, each of whom previously served as an independent director on the Board of Directors of Western Gas Partners, LP's general partner, joined the Board of Directors of Western Midstream Partners, LP's general partner. Biographical information and Board committee composition details are available at www.westernmidstream.com.
About Western Midstream
Western Midstream Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation ("Anadarko") 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 ("NGLs") and crude oil; and gathering and disposing of produced water for Anadarko, as well as for third-party customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs and condensate on behalf of itself and as agent for its customers under certain of its contracts.
This news release contains forward-looking statements. The management of Western Midstream Partners, LP (WES) and Western Midstream Operating, LP (Operating) 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, integrate the assets acquired in the simplification transaction and the other factors described in the "Risk Factors" sections of WES's and Operating'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. WES and Operating undertake no obligation to publicly update or revise any forward-looking statements.
For more information about Western Midstream Partners, LP, and Western Midstream Flash Feed updates, please visit www.westernmidstream.com.
Western Midstream Contact
Jack Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
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SOURCE Western Midstream Partners, LP
HOUSTON, Feb. 27, 2019 /PRNewswire/ -- Western Gas Equity Partners, LP (NYSE:WGP) and Western Gas Partners, LP (NYSE:WES) today announced that at a special meeting of WES's unitholders held earlier today, WES's unitholders voted to approve and adopt the Contribution Agreement and Agreement and Plan of Merger, dated as of November 7, 2018 (the "Merger Agreement"), pursuant to which a wholly owned subsidiary of WGP will merge with and into WES, with WES continuing as the surviving entity and a subsidiary of WGP ("the Merger").
Approximately 99.8% of the total WES units that were voted at the special meeting voted in favor of the Merger. With a quorum voting, the Merger Agreement and Merger were approved and adopted by the unitholders.
The Merger is expected to close on February 28, 2019. Immediately after the closing, WGP will change its name to "Western Midstream Partners, LP" and its common units will begin trading on the New York Stock Exchange under the ticker symbol "WES". In addition, Western Gas Partners, LP will change its name to "Western Midstream Operating, LP."
About Western Gas
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation ("Anadarko") 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 ("NGLs") and crude oil; and gathering and disposing of produced water for Anadarko, as well as for third-party customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs and condensate on behalf of itself and as agent for its customers under certain of its contracts.
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.
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 close the simplification transaction on the expected timeline 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, LP and Western Gas Equity Partners, LP undertake no obligation to publicly update or revise any forward-looking statements.
Western Gas Contact
Jack Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
DALLAS, Feb. 26, 2019 /PRNewswire/ -- Alerian announced today that Western Gas Partners (NYSE: WES) is expected to be removed from the Alerian Midstream Energy Index (AMNA), Alerian US Midstream Energy Index (AMUS), Alerian MLP Index (AMZ), Alerian MLP Equal Weight Index (AMZE), Alerian MLP Infrastructure Index (AMZI), and Alerian Natural Gas MLP Index (ANGI) in a special rebalancing.
In addition, Western Gas Equity Partners (NYSE: WGP) expects to change its name to Western Midstream Partners and its common units will trade under the WES ticker symbol. It is expected that Western Midstream Partners will be added to the AMZI and ANGI.
Special rebalancings are triggered by corporate actions such as mergers, bankruptcies, and liquidations. Pending unitholder approval, Western Gas Partners will cease to trade due to its merger with WGP. If approved, the rebalancing will take place after market close on Thursday, February 28.
Each index will be rebalanced in accordance with its existing methodology. Constituent additions to and deletions from an index do not reflect an opinion by Alerian on the investment merits of the respective securities.
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of January 31, 2019, over $13 billion is directly tied to the Alerian Index Series through exchange traded funds and notes, separately managed accounts, and structured products. Visit alerian.com to learn more.
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SOURCE Alerian
HOUSTON, Feb. 20, 2019 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) and Western Gas Equity Partners, LP (NYSE: WGP) have filed their Annual Reports on Form 10-K for the fiscal year ended December 31, 2018 with the Securities and Exchange Commission. Copies of the reports are available for viewing and downloading on the Western Gas web site at www.westerngas.com. Unitholders may request hard copies of the reports, which contain the applicable partnership's audited financial statements, free of charge, by emailing investors@westerngas.com or by submitting a written request to Western Gas Partners, LP or Western Gas Equity Partners, LP at the following address: P.O. Box 1330, Houston, TX 77251-1330, Attention: Investor Relations.
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 customers. In addition, in its capacity as a processor and under certain types of contracts, WES also buys and sells gas, NGLs or condensate.
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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Western Gas Contact
Jack Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
DALLAS, Feb. 20, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, and announce an upcoming interim change to the constituents of The Cushing® MLP Market Cap Index (the "Index"). On November 7, 2018, Index constituent Western Gas Partners, LP (NYSE: WES) entered into an Agreement and Plan of Merger ("Merger Agreement") with Index constituent Western Gas Equity Partners, LP (NYSE: WGP) and affiliated entities wherein WGP would acquire WES, subject to the approval of WES unitholders. A special meeting of WES unitholders is scheduled for February 27, 2019, for the purpose of voting on the Merger Agreement. Per the Index's methodology guide, after the market closes on February 27, 2019, and effective on February 28, 2019, EnLink Midstream, LLC (NYSE: ENLC) will replace WES as a constituent of the Index at WES's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® MLP MARKET CAP INDEX
The Cushing® MLP Market Cap Index provides a benchmark that is designed to track the performance of widely held midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). The Index is weighted on a float-adjusted market capitalization basis, with the weight of each constituent capped at 7.5% at rebalance. The Index price level is calculated by S&P Dow Jones Indices while the constituents are selected from the entire universe of publicly traded Midstream Companies. The Cushing® MLP Market Cap Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CMCI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of Midstream Companies and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY) ), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® MLP Market Cap Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CMCI
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, Feb. 20, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce an upcoming interim change to the constituents of The Cushing® 30 MLP Index (the "Index"). On November 7, 2018, Index constituent Western Gas Partners, LP (NYSE: WES) entered into an Agreement and Plan of Merger ("Merger Agreement") with Index constituent Western Gas Equity Partners, LP (NYSE: WGP) and affiliated entities wherein WGP would acquire WES, subject to the approval of WES unitholders. A special meeting of WES unitholders is scheduled for February 27, 2019, for the purpose of voting on the Merger Agreement. Per the Index's methodology guide, after the market closes on February 27, 2019, and effective on February 28, 2019, Suburban Propane Partners, L.P. (NYSE: SPH) will replace WES as a constituent of the Index at WES's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® 30 MLP INDEX
The Cushing® 30 MLP Index tracks the performance of 30 publicly traded midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP energy midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). Constituents of the Index are selected by using a formula-based proprietary valuation model developed by Cushing® Asset Management, LP to rank Midstream Companies for potential inclusion in the Index. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPX".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of Midstream Companies and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® 30 MLP Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-MLPX
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, Feb. 20, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce an upcoming interim change to constituents of The Cushing® MLP High Income Index (the "Index"). On November 7, 2018, Index constituent Western Gas Partners, LP (NYSE: WES) entered into an Agreement and Plan of Merger ("Merger Agreement") with Index constituent Western Gas Equity Partners, LP (NYSE: WGP) and affiliated entities wherein WGP would acquire WES, subject to the approval of WES unitholders. A special meeting of WES unitholders is scheduled for February 27, 2019, for the purpose of voting on the Merger Agreement. Per the Index's methodology guide, after the market closes on February 27, 2019, and effective on February 28, 2019, EnLink Midstream, LLC (NYSE: ENLC) will replace WES as a constituent of the Index at WES's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® MLP HIGH INCOME INDEX
The Cushing® MLP High Income Index provides a benchmark that is designed to track the performance of 30 higher-yielding publicly traded midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP energy midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). Constituents are chosen according to a three-tiered proprietary weighting system developed by Cushing® Asset Management, LP. The Cushing® MLP High Income Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPY".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of Midstream Companies and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® MLP High Income Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing® Asset Management, LP, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to maintain and calculate the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing® Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones S&P nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-MLPY
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
HOUSTON, Feb. 14, 2019 /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 2018 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for 2018 totaled $99.2 million, or $0.55 per common unit (diluted), with full-year 2018 Adjusted EBITDA(1) of $1.2 billion and full-year 2018 Distributable cash flow(1) of $958.7 million. Net income (loss) available to limited partners for the fourth quarter of 2018 totaled $18.7 million, or $0.10 per common unit (diluted), with fourth-quarter 2018 Adjusted EBITDA(1) of $347.5 million and fourth-quarter 2018 Distributable cash flow(1) of $257.3 million. These results were primarily impacted by lower than anticipated throughput and margins at our West Texas complex caused by the combined effect of: (i) unplanned weather-related and operational downtime in the field, (ii) operational constraints downstream of the West Texas complex, and (iii) less than optimal recoveries partially associated with the startup of Mentone Train I. Additionally, Adjusted EBITDA(1) includes a non-cash net increase to revenue of $27 million associated with the revenue recognition accounting standard adopted effective January 1, 2018 for certain cost of service contracts, which will be recognized as cash over the life of the applicable contracts.
"The Partnership remains acutely focused on closing the announced simplification transaction and strategic asset acquisition and delivering on our 2019 growth expectations," said Chief Executive Officer, Robin Fielder. "In 2018 we successfully completed the majority of our Delaware basin gathering backbone and placed into service the first train at the Mentone processing facility. With the premier footprint, scalable capacity, and operational leverage of our assets in the Delaware and DJ basins, we remain excited about the future growth and reiterate our full-year 2019 guidance announced in November."
WES paid a quarterly distribution of $0.980 per unit for the fourth quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the fourth-quarter 2017 distribution. The full-year 2018 distribution of $3.830 per unit represented a 7% increase over the full-year 2017 distribution of $3.590 per unit. The fourth-quarter 2018 Coverage ratio(1) of 1.10 times was based on the quarterly distribution of $0.980 per unit. The Partnership's Coverage ratio(1) for the full-year 2018 was 1.05 times.
Total throughput attributable to WES for natural gas assets for the fourth quarter of 2018 averaged 3.9 Bcf/d, which was 2% higher than the prior quarter and 13% higher than the fourth quarter of 2017. Total throughput for crude oil, NGLs and produced water assets for the fourth quarter of 2018 averaged 434 MBbls/d, which was 3% higher than the prior quarter and 81% higher than the fourth quarter of 2017. For full-year 2018, total throughput attributable to WES for natural gas assets averaged 3.8 Bcf/d, which was 6% higher than the prior-year average. For full-year 2018, total throughput for crude oil, NGLs and produced water assets averaged 365 MBbls/d, which was 82% higher than the prior-year average.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions and capitalized interest, totaled $303.7 million on a cash basis during the fourth quarter of 2018, with maintenance capital expenditures on a cash basis of $29.9 million. For full-year 2018, capital expenditures attributable to WES, including equity investments but excluding acquisitions and capitalized interest, totaled $1,304 million on a cash basis, with maintenance capital expenditures on a cash basis of $91.1 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 2018 totaled $369.4 million, or $1.69 per common unit (diluted). Net income (loss) available to limited partners for the fourth quarter of 2018 totaled $93.4 million, or $0.43 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.6025 per unit for the fourth quarter of 2018. This distribution represented a 1% increase over the prior quarter's distribution and a 10% increase over the fourth-quarter 2017 distribution. The full-year 2018 distribution of $2.34875 per unit represented a 12% increase over the full-year 2017 distribution of $2.1050 per unit. WGP received distributions from WES of $134.4 million attributable to the fourth quarter of 2018 and will pay $131.9 million in distributions for the same period.
(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. |
SIMPLIFICATION TRANSACTION AND STRATEGIC ACQUISITION
The special meeting of WES unitholders to vote on the WGP and WES merger transaction will be held on February 27, 2019. WGP and WES expect the merger and strategic asset acquisition transactions to close during the first quarter of 2019, subject to certain closing conditions under the terms of the merger agreement, including receipt of the required approval by WES's unitholders. Upon closing of the transactions, and as part of the merger, WGP will change its name to Western Midstream Partners, LP and its common units will trade on the New York Stock Exchange under the "WES" ticker symbol.
CONFERENCE CALL TOMORROW AT 11 A.M. CST
WES and WGP will host a joint conference call on Friday, February 15, 2019, at 11:00 a.m. Central Standard Time (12:00 p.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2018 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 8494579. 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.
ABOUT WESTERN GAS
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 customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs and condensate on behalf of itself and as agent for its customers 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.
Important Information for Investors and Unitholders
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.
In connection with the proposed merger agreement and the transactions contemplated thereby (the "Simplification Transaction"), WGP filed with the Securities and Exchange Commission (the "Commission") a registration statement on Form S-4, which includes a prospectus of WGP and a proxy statement of WES. WES and WGP also plan to file other documents with the Commission regarding the proposed Simplification Transaction. WES mailed a definitive proxy statement/prospectus to the unitholders of WES on January 28, 2019. INVESTORS AND UNITHOLDERS OF WES ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER DOCUMENTS RELATING TO THE PROPOSED SIMPLIFICATION TRANSACTION THAT HAVE BEEN OR WILL BE FILED WITH THE COMMISSION CAREFULLY AND IN THEIR ENTIRETY AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED SIMPLIFICATION TRANSACTION. Investors and unitholders will be able to obtain free copies of the proxy statement/prospectus and other documents containing important information about WES and WGP from the Commission, through the website maintained by the Commission at http://www.sec.gov. Copies of the documents filed with the Commission by WES and WGP will be available free of charge on their internet website at www.westerngas.com or by contacting their Investor Relations Department at 832-636-6000.
Participants in the Solicitation
WES, WGP, their respective general partners and their respective general partners' respective directors and certain of their executive officers may be deemed to be participants in the solicitation of proxies from the unitholders of WES in connection with the proposed Simplification Transaction. Information about the directors and executive officers of WES is set forth in WES's Annual Report on Form 10-K which was filed with the Commission on February 16, 2018. Information about the directors and executive officers of WGP is set forth in WGP's Annual Report on Form 10-K which was filed with the Commission on February 16, 2018. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the proxy statement/prospectus and other relevant materials to be filed with the Commission when they become available. Free copies of these documents can be obtained using the contact information above.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements. For example, statements regarding future financial performance, future competitive positioning and business synergies, future acquisition cost savings, future market demand, future benefits to unitholders, future economic and industry conditions, the proposed Simplification Transaction (including its benefits, results, effects and timing) and whether and when the Simplification Transaction will be consummated, are forward-looking statements within the meaning of federal securities laws. WES, WGP and their respective general 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. Such factors include, but are not limited to: the failure of the unitholders of WES to approve the proposed Simplification Transaction; the risk that the conditions to the closing of the proposed Simplification Transaction are not satisfied; the risk that regulatory approvals required for the proposed Simplification Transaction are not obtained or are obtained subject to conditions that are not anticipated; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed Simplification Transaction; uncertainties as to the timing of the proposed Simplification Transaction; competitive responses to the proposed Simplification Transaction; the inability to obtain or delay in obtaining cost savings and synergies from the proposed Simplification Transaction; unexpected costs, charges or expenses resulting from the proposed Simplification Transaction; the outcome of pending or potential litigation; the inability to retain key personnel; uncertainty of the expected financial performance of WGP following completion of the proposed Simplification Transaction; and any changes in general economic and/or industry specific conditions.
WES and WGP caution that the foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in WES's and WGP's most recently filed Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Commission filings, which are available at the Commission's website, http://www.sec.gov. All subsequent written and oral forward-looking statements concerning WES, WGP, the proposed Simplification Transaction or other matters attributable to WES and WGP or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, WES, WGP and their respective general partners undertake no obligation to publicly update or revise any forward-looking statements.
WESTERN GAS CONTACT
Jack Spinks
Manager, Investor Relations
jack.spinks@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 Service revenues – fee based recognized in Adjusted EBITDA (less than) in excess of customer billings, 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 | Year Ended | ||||||||||||||
thousands except Coverage ratio | 2018 | 2017 | 2018 | 2017 | |||||||||||
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 | $ | 109,058 | $ | 148,637 | $ | 445,775 | $ | 567,483 | |||||||
Add: | |||||||||||||||
Distributions from equity investments | 57,982 | 29,897 | 169,906 | 110,465 | |||||||||||
Non-cash equity-based compensation expense | 1,480 | 1,468 | 7,032 | 4,947 | |||||||||||
Non-cash settled interest expense, net (1) | — | — | — | 71 | |||||||||||
Income tax (benefit) expense | (355) | (39) | 2,946 | 4,866 | |||||||||||
Depreciation and amortization (2) | 98,637 | 73,874 | 334,645 | 288,087 | |||||||||||
Impairments (2) | 75,629 | 8,295 | 226,950 | 178,374 | |||||||||||
Above-market component of swap agreements with Anadarko | 10,896 | 11,832 | 51,618 | 58,551 | |||||||||||
Other expense (2) | 8,143 | 5 | 8,327 | 145 | |||||||||||
Less: | |||||||||||||||
Recognized Service revenues – fee based (less than) in excess of customer billings | 14,045 | — | 14,581 | — | |||||||||||
Gain (loss) on divestiture and other, net | 961 | (2,629) | 1,312 | 132,388 | |||||||||||
Equity income, net – affiliates | 50,272 | 22,486 | 153,024 | 85,194 | |||||||||||
Cash paid for maintenance capital expenditures (2) | 29,892 | 16,569 | 91,054 | 49,684 | |||||||||||
Capitalized interest | 6,489 | 2,835 | 23,521 | 6,826 | |||||||||||
Cash paid for (reimbursement of) income taxes | 2,495 | 1,005 | 2,408 | 1,194 | |||||||||||
Series A Preferred unit distributions | — | — | — | 7,453 | |||||||||||
Other income (2) | — | 323 | 2,592 | 1,283 | |||||||||||
Distributable cash flow | $ | 257,316 | $ | 233,380 | $ | 958,707 | $ | 928,967 | |||||||
Distributions declared (3) | |||||||||||||||
Limited partners – common units | $ | 149,557 | $ | 584,487 | |||||||||||
General partner | 85,230 | 327,363 | |||||||||||||
Total | $ | 234,787 | $ | 911,850 | |||||||||||
Coverage ratio | 1.10 | x | 1.05 | x |
(1) | Includes amounts related to the Deferred purchase price obligation - Anadarko. |
(2) | Includes WES's 75% share of depreciation and amortization; impairments; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. |
(3) | Reflects cash distributions of $0.980 and $3.830 per unit declared for the three months and year ended December 31, 2018, 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 | Year Ended | ||||||||||||||
thousands | 2018 | 2017 | 2018 | 2017 | |||||||||||
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 | $ | 109,058 | $ | 148,637 | $ | 445,775 | $ | 567,483 | |||||||
Add: | |||||||||||||||
Distributions from equity investments | 57,982 | 29,897 | 169,906 | 110,465 | |||||||||||
Non-cash equity-based compensation expense | 1,480 | 1,468 | 7,032 | 4,947 | |||||||||||
Interest expense | 52,345 | 35,592 | 184,008 | 142,386 | |||||||||||
Income tax expense | — | — | 3,301 | 4,905 | |||||||||||
Depreciation and amortization (1) | 98,637 | 73,874 | 334,645 | 288,087 | |||||||||||
Impairments (1) | 75,629 | 8,295 | 226,950 | 178,374 | |||||||||||
Other expense (1) | 8,143 | 5 | 8,327 | 145 | |||||||||||
Less: | |||||||||||||||
Gain (loss) on divestiture and other, net | 961 | (2,629) | 1,312 | 132,388 | |||||||||||
Equity income, net – affiliates | 50,272 | 22,486 | 153,024 | 85,194 | |||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | |||||||||||
Other income (1) | — | 323 | 2,592 | 1,283 | |||||||||||
Income tax benefit | 355 | 39 | 355 | 39 | |||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP | $ | 347,461 | $ | 273,324 | $ | 1,205,761 | $ | 1,060,988 | |||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP | |||||||||||||||
Net cash provided by operating activities | $ | 268,912 | $ | 256,396 | $ | 1,020,634 | $ | 901,495 | |||||||
Interest (income) expense, net | 48,120 | 31,367 | 167,108 | 125,486 | |||||||||||
Uncontributed cash-based compensation awards | (53) | 119 | 879 | 25 | |||||||||||
Accretion and amortization of long-term obligations, net | (1,259) | (1,060) | (5,142) | (4,254) | |||||||||||
Current income tax (benefit) expense | 233 | 1,385 | 480 | 2,408 | |||||||||||
Other (income) expense, net (2) | (408) | (330) | (3,017) | (1,299) | |||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 7,510 | 6,830 | 25,607 | 23,085 | |||||||||||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable, net | (7,877) | (30,845) | 56,667 | 16,127 | |||||||||||
Accounts and imbalance payables and accrued liabilities, net | 24,632 | 10,937 | (30,722) | 6,930 | |||||||||||
Other items, net | 10,176 | 1,426 | (13,873) | 4,491 | |||||||||||
Adjusted EBITDA attributable to noncontrolling interest | (2,525) | (2,901) | (12,860) | (13,506) | |||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP | $ | 347,461 | $ | 273,324 | $ | 1,205,761 | $ | 1,060,988 | |||||||
Cash flow information of Western Gas Partners, LP | |||||||||||||||
Net cash provided by operating activities | $ | 1,020,634 | $ | 901,495 | |||||||||||
Net cash used in investing activities | (1,459,798) | (763,604) | |||||||||||||
Net cash provided by (used in) financing activities | 450,798 | (417,002) |
(1) | Includes WES's 75% share of depreciation and amortization; impairments; other expense; and other income attributable to Chipeta. |
(2) | Excludes the non-cash loss on interest-rate swaps of $8.0 million for the three months and year ended December 31, 2018. |
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 reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended | Year Ended | ||||||||||||||
thousands | 2018 | 2017 | 2018 | 2017 | |||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP | |||||||||||||||
Operating income (loss) | $ | 166,210 | $ | 181,815 | $ | 629,393 | $ | 707,271 | |||||||
Add: | |||||||||||||||
Distributions from equity investments | 57,982 | 29,897 | 169,906 | 110,465 | |||||||||||
Operation and maintenance | 114,518 | 86,550 | 414,784 | 315,994 | |||||||||||
General and administrative | 17,072 | 12,394 | 59,706 | 47,796 | |||||||||||
Property and other taxes | 7,844 | 11,385 | 42,934 | 46,818 | |||||||||||
Depreciation and amortization | 99,349 | 74,602 | 337,536 | 290,874 | |||||||||||
Impairments | 75,630 | 8,295 | 228,338 | 178,374 | |||||||||||
Less: | |||||||||||||||
Gain (loss) on divestiture and other, net | 961 | (2,629) | 1,312 | 132,388 | |||||||||||
Proceeds from business interruption insurance claims | — | — | — | 29,882 | |||||||||||
Equity income, net – affiliates | 50,272 | 22,486 | 153,024 | 85,194 | |||||||||||
Reimbursed electricity-related charges recorded as revenues | 16,441 | 14,485 | 66,580 | 56,823 | |||||||||||
Adjusted gross margin attributable to noncontrolling interest | 3,525 | 3,638 | 15,875 | 16,827 | |||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP | $ | 467,406 | $ | 366,958 | $ | 1,645,806 | $ | 1,376,478 | |||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets | $ | 379,892 | $ | 318,012 | $ | 1,398,953 | $ | 1,222,632 | |||||||
Adjusted gross margin for crude oil, NGLs and produced water assets | 87,514 | 48,946 | 246,853 | 153,846 |
Western Gas Partners, LP | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
thousands except per-unit amounts | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues and other | |||||||||||||||
Service revenues – fee based | $ | 463,146 | $ | 324,513 | $ | 1,609,245 | $ | 1,237,949 | |||||||
Service revenues – product based | 18,120 | — | 85,553 | — | |||||||||||
Product sales | 76,254 | 299,443 | 293,992 | 989,933 | |||||||||||
Other | 273 | 8,062 | 1,486 | 20,474 | |||||||||||
Total revenues and other | 557,793 | 632,018 | 1,990,276 | 2,248,356 | |||||||||||
Equity income, net – affiliates | 50,272 | 22,486 | 153,024 | 85,194 | |||||||||||
Operating expenses | |||||||||||||||
Cost of product | 128,403 | 276,834 | 431,921 | 908,693 | |||||||||||
Operation and maintenance | 114,518 | 86,550 | 414,784 | 315,994 | |||||||||||
General and administrative | 17,072 | 12,394 | 59,706 | 47,796 | |||||||||||
Property and other taxes | 7,844 | 11,385 | 42,934 | 46,818 | |||||||||||
Depreciation and amortization | 99,349 | 74,602 | 337,536 | 290,874 | |||||||||||
Impairments | 75,630 | 8,295 | 228,338 | 178,374 | |||||||||||
Total operating expenses | 442,816 | 470,060 | 1,515,219 | 1,788,549 | |||||||||||
Gain (loss) on divestiture and other, net | 961 | (2,629) | 1,312 | 132,388 | |||||||||||
Proceeds from business interruption insurance claims | — | — | — | 29,882 | |||||||||||
Operating income (loss) | 166,210 | 181,815 | 629,393 | 707,271 | |||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | |||||||||||
Interest expense | (52,345) | (35,592) | (184,008) | (142,386) | |||||||||||
Other income (expense), net | (7,564) | 330 | (4,955) | 1,299 | |||||||||||
Income (loss) before income taxes | 110,526 | 150,778 | 457,330 | 583,084 | |||||||||||
Income tax expense (benefit) | (355) | (39) | 2,946 | 4,866 | |||||||||||
Net income (loss) | 110,881 | 150,817 | 454,384 | 578,218 | |||||||||||
Net income attributable to noncontrolling interest | 1,823 | 2,180 | 8,609 | 10,735 | |||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | 109,058 | $ | 148,637 | $ | 445,775 | $ | 567,483 | |||||||
Limited partners' interest in net income (loss): | |||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | 109,058 | $ | 148,637 | $ | 445,775 | $ | 567,483 | |||||||
Series A Preferred units interest in net (income) loss | — | — | — | (42,373) | |||||||||||
General partner interest in net (income) loss | (90,372) | (80,932) | (346,538) | (303,835) | |||||||||||
Common and Class C limited partners' interest in net income (loss) | $ | 18,686 | $ | 67,705 | $ | 99,237 | $ | 221,275 | |||||||
Net income (loss) per common unit – basic and diluted | $ | 0.10 | $ | 0.39 | $ | 0.55 | $ | 1.30 | |||||||
Weighted-average common units outstanding – basic and diluted | 152,609 | 152,602 | 152,606 | 147,194 |
Western Gas Partners, LP | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
thousands except number of units | December 31, | December 31, | |||||
Current assets | $ | 333,463 | $ | 254,062 | |||
Note receivable – Anadarko | 260,000 | 260,000 | |||||
Net property, plant and equipment | 6,612,073 | 5,730,891 | |||||
Other assets | 2,030,746 | 1,769,397 | |||||
Total assets | $ | 9,236,282 | $ | 8,014,350 | |||
Current liabilities | $ | 507,582 | $ | 424,333 | |||
Long-term debt | 4,787,381 | 3,464,712 | |||||
Asset retirement obligations | 259,976 | 143,394 | |||||
Other liabilities | 149,764 | 10,900 | |||||
Total liabilities | 5,704,703 | 4,043,339 | |||||
Equity and partners' capital | |||||||
Common units (152,609,285 and 152,602,105 units issued and outstanding at December 31, 2018 and 2017, respectively) | 2,475,540 | 2,950,010 | |||||
Class C units (14,372,665 and 13,243,883 units issued and outstanding at December 31, 2018 and 2017, respectively) | 791,410 | 780,040 | |||||
General partner units (2,583,068 units issued and outstanding at December 31, 2018 and 2017) | 206,862 | 179,232 | |||||
Noncontrolling interest | 57,767 | 61,729 | |||||
Total liabilities, equity and partners' capital | $ | 9,236,282 | $ | 8,014,350 |
Western Gas Partners, LP | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Year Ended | |||||||
thousands | 2018 | 2017 | |||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 454,384 | $ | 578,218 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | |||||||
Depreciation and amortization | 337,536 | 290,874 | |||||
Impairments | 228,338 | 178,374 | |||||
(Gain) loss on divestiture and other, net | (1,312) | (132,388) | |||||
Change in other items, net | 1,688 | (13,583) | |||||
Net cash provided by operating activities | $ | 1,020,634 | $ | 901,495 | |||
Cash flows from investing activities | |||||||
Capital expenditures | $ | (1,193,896) | $ | (675,025) | |||
Contributions in aid of construction costs from affiliates | — | 1,387 | |||||
Acquisitions from affiliates | (254) | (3,910) | |||||
Acquisitions from third parties | (161,858) | (155,298) | |||||
Investments in equity affiliates | (133,335) | (384) | |||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 25,607 | 23,085 | |||||
Proceeds from the sale of assets to third parties | 3,938 | 23,564 | |||||
Proceeds from property insurance claims | — | 22,977 | |||||
Net cash used in investing activities | $ | (1,459,798) | $ | (763,604) | |||
Cash flows from financing activities | |||||||
Borrowings, net of debt issuance costs | $ | 2,349,564 | $ | 369,989 | |||
Repayments of debt | (1,040,000) | — | |||||
Settlement of the Deferred purchase price obligation – Anadarko | — | (37,346) | |||||
Increase (decrease) in outstanding checks | (3,206) | 5,593 | |||||
Proceeds from the issuance of common units, net of offering expenses | — | (183) | |||||
Distributions to unitholders | (893,649) | (801,300) | |||||
Distributions to noncontrolling interest owner | (13,529) | (13,569) | |||||
Net contributions from (distributions to) Anadarko | — | 1,263 | |||||
Above-market component of swap agreements with Anadarko | 51,618 | 58,551 | |||||
Net cash provided by (used in) financing activities | $ | 450,798 | $ | (417,002) | |||
Net increase (decrease) in cash and cash equivalents | $ | 11,634 | $ | (279,111) | |||
Cash and cash equivalents at beginning of period | 78,814 | 357,925 | |||||
Cash and cash equivalents at end of period | $ | 90,448 | $ | 78,814 |
Western Gas Partners, LP | |||||||||||||||
OPERATING STATISTICS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Throughput for natural gas assets (MMcf/d) | |||||||||||||||
Gathering, treating and transportation (1) | 589 | 747 | 546 | 958 | |||||||||||
Processing (1) | 3,295 | 2,663 | 3,205 | 2,563 | |||||||||||
Equity investment (2) | 132 | 158 | 141 | 159 | |||||||||||
Total throughput for natural gas assets | 4,016 | 3,568 | 3,892 | 3,680 | |||||||||||
Throughput attributable to noncontrolling interest for natural gas assets | 84 | 98 | 90 | 105 | |||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets | 3,932 | 3,470 | 3,802 | 3,575 | |||||||||||
Throughput for crude oil, NGLs and produced water assets (MBbls/d) | |||||||||||||||
Gathering, treating, transportation and disposal | 162 | 111 | 146 | 71 | |||||||||||
Equity investment (3) | 272 | 129 | 219 | 130 | |||||||||||
Total throughput for crude oil, NGLs and produced water assets | 434 | 240 | 365 | 201 | |||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (4) | $ | 1.05 | $ | 1.00 | $ | 1.01 | $ | 0.94 | |||||||
Adjusted gross margin per Bbl for crude oil, NGLs and produced water assets (5) | 2.19 | 2.21 | 1.85 | 2.10 |
(1) | The combination of the DBM complex and DBJV and Haley systems, effective January 1, 2018, into a single complex now referred to as the "West Texas complex" resulted in DBJV and Haley systems throughput previously reported as "Gathering, treating and transportation" now being reported as "Processing." |
(2) | Represents WES's 14.81% share of average Fort Union throughput and 22% share of average Rendezvous throughput. |
(3) | 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, WES's 33.33% share of average FRP throughput and WES's 20% share of average Whitethorn throughput. |
(4) | 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, less cost of product for natural gas assets, plus distributions from WES's equity investments in Fort Union and Rendezvous, and excluding the noncontrolling interest 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. |
(5) | Average for period. Calculated as Adjusted gross margin for crude oil, NGLs and produced water assets (total revenues and other for crude oil, NGLs and produced water assets less reimbursements for electricity-related expenses recorded as revenue, less cost of product for crude oil, NGLs and produced water assets, and plus distributions from WES's equity investments in White Cliffs, the Mont Belvieu JV, TEG, TEP, FRP and Whitethorn), divided by total throughput (MBbls/d) for crude oil, NGLs 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 | |||
Distributions declared by Western Gas Partners, LP: | ||||
General partner interest | $ | 3,908 | ||
Incentive distribution rights | 81,322 | |||
Common units held by WGP | 49,129 | |||
Less: | ||||
Public company general and administrative expense | 1,810 | |||
Interest expense | 339 | |||
Cash available for distribution | $ | 132,210 | ||
Declared distribution per common unit | $ | 0.60250 | ||
Distributions declared by Western Gas Equity Partners, LP | $ | 131,910 | ||
Coverage ratio | 1.00 | x |
Western Gas Equity Partners, LP | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
thousands except per-unit amounts | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues and other | |||||||||||||||
Service revenues – fee based | $ | 463,146 | $ | 324,513 | $ | 1,609,245 | $ | 1,237,949 | |||||||
Service revenues – product based | 18,120 | — | 85,553 | — | |||||||||||
Product sales | 76,254 | 299,443 | 293,992 | 989,933 | |||||||||||
Other | 273 | 8,062 | 1,486 | 20,474 | |||||||||||
Total revenues and other | 557,793 | 632,018 | 1,990,276 | 2,248,356 | |||||||||||
Equity income, net – affiliates | 50,272 | 22,486 | 153,024 | 85,194 | |||||||||||
Operating expenses | |||||||||||||||
Cost of product | 128,403 | 276,834 | 431,921 | 908,693 | |||||||||||
Operation and maintenance | 114,518 | 86,550 | 414,784 | 315,994 | |||||||||||
General and administrative | 18,882 | 13,073 | 63,735 | 50,668 | |||||||||||
Property and other taxes | 7,844 | 11,385 | 42,934 | 46,818 | |||||||||||
Depreciation and amortization | 99,349 | 74,602 | 337,536 | 290,874 | |||||||||||
Impairments | 75,630 | 8,295 | 228,338 | 178,374 | |||||||||||
Total operating expenses | 444,626 | 470,739 | 1,519,248 | 1,791,421 | |||||||||||
Gain (loss) on divestiture and other, net | 961 | (2,629) | 1,312 | 132,388 | |||||||||||
Proceeds from business interruption insurance claims | — | — | — | 29,882 | |||||||||||
Operating income (loss) | 164,400 | 181,136 | 625,364 | 704,399 | |||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | |||||||||||
Interest expense | (52,684) | (36,168) | (186,043) | (144,615) | |||||||||||
Other income (expense), net | (7,512) | 355 | (4,763) | 1,384 | |||||||||||
Income (loss) before income taxes | 108,429 | 149,548 | 451,458 | 578,068 | |||||||||||
Income tax expense (benefit) | (355) | (39) | 2,946 | 4,866 | |||||||||||
Net income (loss) | 108,784 | 149,587 | 448,512 | 573,202 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 15,414 | 50,066 | 79,083 | 196,595 | |||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP | $ | 93,370 | $ | 99,521 | $ | 369,429 | $ | 376,607 | |||||||
Net income (loss) per common unit – basic and diluted | $ | 0.43 | $ | 0.45 | $ | 1.69 | $ | 1.72 | |||||||
Weighted-average common units outstanding – basic and diluted | 218,938 | 218,933 | 218,936 | 218,931 |
Western Gas Equity Partners, LP | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Unaudited) | |||||||
thousands except number of units | December 31, | December 31, | |||||
Current assets | $ | 335,824 | $ | 255,210 | |||
Note receivable – Anadarko | 260,000 | 260,000 | |||||
Net property, plant and equipment | 6,612,073 | 5,730,891 | |||||
Other assets | 2,030,746 | 1,770,210 | |||||
Total assets | $ | 9,238,643 | $ | 8,016,311 | |||
Current liabilities | $ | 536,857 | $ | 424,426 | |||
Long-term debt | 4,787,381 | 3,492,712 | |||||
Asset retirement obligations | 259,976 | 143,394 | |||||
Other liabilities | 149,764 | 10,900 | |||||
Total liabilities | 5,733,978 | 4,071,432 | |||||
Equity and partners' capital | |||||||
Common units (218,937,797 and 218,933,141 units issued and outstanding at December 31, 2018 and 2017, respectively) | 951,888 | 1,061,125 | |||||
Noncontrolling interests | 2,552,777 | 2,883,754 | |||||
Total liabilities, equity and partners' capital | $ | 9,238,643 | $ | 8,016,311 |
Western Gas Equity Partners, LP | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Unaudited) | |||||||
Year Ended | |||||||
thousands | 2018 | 2017 | |||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 448,512 | $ | 573,202 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | |||||||
Depreciation and amortization | 337,536 | 290,874 | |||||
Impairments | 228,338 | 178,374 | |||||
(Gain) loss on divestiture and other, net | (1,312) | (132,388) | |||||
Change in other items, net | 3,621 | (12,650) | |||||
Net cash provided by operating activities | $ | 1,016,695 | $ | 897,412 | |||
Cash flows from investing activities | |||||||
Capital expenditures | $ | (1,193,896) | $ | (675,025) | |||
Contributions in aid of construction costs from affiliates | — | 1,387 | |||||
Acquisitions from affiliates | (254) | (3,910) | |||||
Acquisitions from third parties | (161,858) | (155,298) | |||||
Investments in equity affiliates | (133,335) | (384) | |||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 25,607 | 23,085 | |||||
Proceeds from the sale of assets to third parties | 3,938 | 23,564 | |||||
Proceeds from property insurance claims | — | 22,977 | |||||
Net cash used in investing activities | $ | (1,459,798) | $ | (763,604) | |||
Cash flows from financing activities | |||||||
Borrowings, net of debt issuance costs | $ | 2,349,557 | $ | 369,989 | |||
Repayments of debt | (1,040,000) | — | |||||
Settlement of the Deferred purchase price obligation – Anadarko | — | (37,346) | |||||
Increase (decrease) in outstanding checks | (3,206) | 5,593 | |||||
Proceeds from the issuance of WES common units, net of offering expenses | — | (183) | |||||
Distributions to WGP unitholders | (502,457) | (441,967) | |||||
Distributions to Chipeta noncontrolling interest owner | (13,529) | (13,569) | |||||
Distributions to noncontrolling interest owners of WES | (386,326) | (355,623) | |||||
Net contributions from (distributions to) Anadarko | — | 1,263 | |||||
Above-market component of swap agreements with Anadarko | 51,618 | 58,551 | |||||
Net cash provided by (used in) financing activities | $ | 455,657 | $ | (413,292) | |||
Net increase (decrease) in cash and cash equivalents | $ | 12,554 | $ | (279,484) | |||
Cash and cash equivalents at beginning of period | 79,588 | 359,072 | |||||
Cash and cash equivalents at end of period | $ | 92,142 | $ | 79,588 |
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, Jan. 28, 2019 /PRNewswire/ -- Western Gas Equity Partners, LP (NYSE:WGP) and Western Gas Partners, LP (NYSE:WES) today announced that WGP's Registration Statement on Form S-4 relating to the previously announced merger transaction between WGP and WES has become effective as of January 28, 2019, and that WES has filed a definitive proxy statement/prospectus with the SEC for the special meeting of its unitholders to vote on the merger.
The special meeting of WES unitholders will be held on February 27, 2019, at 8:00 a.m. CST, at 1201 Lake Robbins Drive, The Woodlands, Texas 77380. All WES common and Class C unitholders of record as of the close of business on January 14, 2019, which is the record date for the special meeting, will be entitled to vote their units. The approval of the merger agreement and the transactions contemplated thereby requires the affirmative vote of at least a majority of the outstanding WES common and Class C units, voting together as a class, and as such, not voting will have the same effect as a vote against the merger.
Pursuant to the terms of the merger agreement, upon completion of the merger, WES unitholders (other than certain affiliates of WGP) will receive 1.525 common units of WGP for each common unit of WES they own.
WGP and WES expect the transaction to close during the first quarter of 2019, subject to certain closing conditions under the terms of the merger agreement, including receipt of the required approval by WES's unitholders and the satisfaction of other customary closing conditions.
Important information about the merger and the special meeting of WES's unitholders is included in the proxy statement/prospectus, which has been filed with the SEC and which will be mailed on or about January 28, 2019 to all WES unitholders as of the record date. WES unitholders whose units are held in "street name" by a bank, broker or other nominee will receive instructions from the bank, broker or other nominee that they must follow in order to have their WES units voted. Most brokers offer the ability for unitholders to submit voting instructions by mail by completing a voting instruction card, by telephone and via the internet. Any unitholders holding WES units in "street name" should instruct their bank, broker or other nominee to vote their units as soon as practicable to ensure that such units are voted at the special meeting.
WES unitholders and their brokers who have questions about the merger or the special meeting, or desire additional copies of the proxy statement/prospectus or additional proxy cards or voting instruction forms should contact Morrow Sodali LLC, WES's proxy solicitor, at: Morrow Sodali, toll free for unitholders at (800) 662-5200, and for brokers at (203) 658-9400.
About Western Gas
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation ("Anadarko") 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 ("NGLs") and crude oil; and gathering and disposing of produced water for Anadarko, as well as for third-party customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs and condensate on behalf of itself and as agent for its customers under certain of its contracts.
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.
Important Information for Investors and Unitholders
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.
In connection with the proposed merger agreement and the transactions contemplated thereby (the "Simplification Transaction"), WGP filed with the Securities and Exchange Commission (the "Commission") a registration statement on Form S-4, which includes a prospectus of WGP and a proxy statement of WES. WES and WGP also plan to file other documents with the Commission regarding the proposed Simplification Transaction. WES will commence mailing a definitive proxy statement/prospectus to the unitholders of WES on or about January 28, 2019. INVESTORS AND UNITHOLDERS OF WES ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER DOCUMENTS RELATING TO THE PROPOSED SIMPLIFICATION TRANSACTION THAT HAVE BEEN OR WILL BE FILED WITH THE COMMISSION CAREFULLY AND IN THEIR ENTIRETY AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED SIMPLIFICATION TRANSACTION. Investors and unitholders will be able to obtain free copies of the proxy statement/prospectus and other documents containing important information about WES and WGP from the Commission, through the website maintained by the Commission at http://www.sec.gov. Copies of the documents filed with the Commission by WES and WGP will be available free of charge on their internet website at www.westerngas.com or by contacting their Investor Relations Department at 832-636-6000.
Participants in the Solicitation
WES, WGP, their respective general partners and their respective general partners' respective directors and certain of their executive officers may be deemed to be participants in the solicitation of proxies from the unitholders of WES in connection with the proposed Simplification Transaction. Information about the directors and executive officers of WES is set forth in WES's Annual Report on Form 10-K which was filed with the Commission on February 16, 2018. Information about the directors and executive officers of WGP is set forth in WGP's Annual Report on Form 10-K which was filed with the Commission on February 16, 2018. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, are contained in the proxy statement/prospectus and other relevant materials to be filed with the Commission when they become available. Free copies of these documents can be obtained using the contact information above.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements. For example, statements regarding future financial performance, future competitive positioning and business synergies, future acquisition cost savings, future market demand, future benefits to unitholders, future economic and industry conditions, the proposed Simplification Transaction (including its benefits, results, effects and timing) and whether and when the Simplification Transaction will be consummated, are forward-looking statements within the meaning of federal securities laws. WES, WGP and their respective general 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. Such factors include, but are not limited to: the failure of the unitholders of WES to approve the proposed Simplification Transaction; the risk that the conditions to the closing of the proposed Simplification Transaction are not satisfied; the risk that regulatory approvals required for the proposed Simplification Transaction are not obtained or are obtained subject to conditions that are not anticipated; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed Simplification Transaction; uncertainties as to the timing of the proposed Simplification Transaction; competitive responses to the proposed Simplification Transaction; the inability to obtain or delay in obtaining cost savings and synergies from the proposed Simplification Transaction; unexpected costs, charges or expenses resulting from the proposed Simplification Transaction; the outcome of pending or potential litigation; the inability to retain key personnel; uncertainty of the expected financial performance of WGP following completion of the proposed Simplification Transaction; and any changes in general economic and/or industry specific conditions.
WES and WGP caution that the foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in WES's and WGP's most recently filed Annual Reports on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Commission filings, which are available at the Commission's website, http://www.sec.gov. All subsequent written and oral forward-looking statements concerning WES, WGP, the proposed Simplification Transaction or other matters attributable to WES and WGP or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, WES, WGP and their respective general partners undertake no obligation to publicly update or revise any forward-looking statements.
Western Gas Contacts
Jack Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, Jan. 22, 2019 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.980 per unit for the fourth quarter of 2018, resulting in a full-year 2018 distribution increase of 7-percent over the full-year 2017. This distribution represents a 2-percent increase over the prior quarter and a 7-percent increase over the fourth quarter of 2017. WES's fourth quarter 2018 distribution is payable on February 13, 2019, to unitholders of record at the close of business on February 1, 2019.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.6025 per unit for the fourth quarter of 2018, resulting in a full-year 2018 distribution increase of 12-percent over the full-year 2017. This distribution represents a 1-percent increase over the prior quarter and a 10-percent increase over the fourth quarter of 2017. WGP's fourth quarter 2018 distribution is payable on February 21, 2019, to unitholders of record at the close of business on February 1, 2019.
The Partnerships plan to report their fourth-quarter and full-year 2018 results after the market closes on Thursday, February 14, 2019. Management will host a conference call on Friday, February 15, 2019, at 11 a.m. CST (12 p.m. EST) to discuss the quarterly and annual results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Fourth-Quarter and Full-Year 2018 Results
Friday, February 15, 2019
11 a.m. CST (12 p.m. EST)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 8494579
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time and enter the access code when prompted.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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 customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs and condensate on behalf of itself and as agent for its customers under certain of its contracts.
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.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Western Gas Contact
Jack W. Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
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SOURCE Western Gas Partners, LP
DALLAS, Jan. 8, 2019 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to the constituents of The Cushing® Utility Index (the "Index"). The Cushing® 30 MLP Index (the "Sub-Index") announced today that after the market closes on January 14, 2019, and effective on January 15, 2019, Index constituent Dominion Energy Midstream Partners, LP (NYSE: DM) will be removed from the Sub-Index and replaced with Western Gas Equity Partners, LP (NYSE: WGP). Consequently, per the Index's Methodology Guide, after the market closes on January 14, 2019, and effective on January 15, 2019, WGP will replace DM in the Index at DM's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® UTILITY INDEX
The Cushing® Utility Index tracks the performance of widely held companies engaged in electric, gas and water utility services as well as master limited partnerships (MLPs) engaged in storage and transportation of oil, natural gas, coal and consumable fuels. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CUTI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI) and The Cushing® Transportation Index (Bloomberg Ticker: CTRI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® Utility Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CUTI
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, Jan. 8, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce an upcoming interim change to the constituents of The Cushing® Energy Index (the "Index"). The Cushing® 30 MLP Index (the "Sub-Index") announced today that after the market closes on January 14, 2019, and effective on January 15, 2019, Index constituent Dominion Energy Midstream Partners, LP (NYSE: DM) will be removed from the Sub-Index and replaced with Western Gas Equity Partners, LP (NYSE: WGP). Consequently, per the Index's Methodology Guide, after the market closes on January 14, 2019, and effective on January 15, 2019, WGP will replace DM in the Index at DM's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® ENERGY INDEX
The Cushing® Energy Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, and storage and transportation of oil, natural gas, coal and consumable fuels, as well as oil and natural gas equipment and services companies. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CENI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® Energy Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CENI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-a-constituent-change-to-the-cushing-energy-index-300774542.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, Dec. 14, 2018 /PRNewswire/ -- Alerian announced the results of the December quarterly review for the Alerian Index Series. All changes will be implemented as of the close of business on Friday, December 21, 2018.
AmeriGas Partners (NYSE: APU), Alliance Resource Partners (NASDAQ: ARLP), GasLog Partners (NYSE: GLOP), Golar LNG Partners (NASDAQ: GMLP), Hi-Crush Partners (NYSE: HCLP), Suburban Propane Partners (NYSE: SPH), Sunoco (NYSE: SUN), Teekay LNG Partners (NYSE: TGP), USA Compression Partners (NYSE: USAC), and Viper Energy Partners (NASDAQ: VNOM) will be removed.
There are no constituent changes to the Alerian MLP Infrastructure Index (AMZI) or the Alerian Natural Gas MLP Index (ANGI).
In addition, each index will be rebalanced in accordance with its existing methodology. Constituent additions to and deletions from an index do not reflect an opinion by Alerian on the investment merits of the respective securities.
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of November 30, 2018, over $13 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. Visit alerian.com to learn more.
View original content:http://www.prnewswire.com/news-releases/alerian-index-series-december-2018-index-review-300765593.html
SOURCE Alerian
HOUSTON, Nov. 15, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP" and collectively the "Partnerships") announced that effective today Robin H. Fielder has been named President of the Partnerships. She will succeed Benjamin M. Fink, who has been appointed Chairman of the Board of the Partnerships, replacing Robert G. Gwin who will continue to serve on the Partnerships' boards of directors. Fielder will also succeed Fink as CEO of the Partnerships effective Jan. 1, 2019.
Fielder will also join the Partnerships' boards of directors, along with Mitch Ingram, Anadarko's Executive Vice President, International, Deepwater and Exploration. Ingram will replace Bobby Reeves, who has resigned his position as a director of both entities, consistent with his intent to retire from Anadarko at the end of 2018.
"Since 2009, Ben has served in key leadership positions at WES and WGP and has been instrumental in the success and growth of the companies. He was also the driving force behind its recent simplification transaction, which will create one of the largest midstream service providers in the U.S.," said Bob Gwin, outgoing Chairman of the Boards of WES and WGP. "Robin's midstream, upstream, and financial experience will help ensure continuity within the organizations and Anadarko as their sponsor. Together, Ben's and Robin's leadership will position the Partnerships to commence their next growth phase, while maintaining the lower-risk, fee-based model, which has proven very successful for more than a decade."
Benjamin M. Fink
Fink has more than 25 years of financial and operational experience and joined Anadarko in 2007. He holds a Bachelor of Science in economics from the Wharton School of the University of Pennsylvania, and is a Chartered Financial Analyst. He has served as a director and President and CEO of the general partners of Western Gas Partners, LP and Western Gas Equity Partners, LP since February 2017.
Robin H. Fielder
Fielder has more than 15 years of midstream, upstream and financial experience in the oil and natural gas industry, beginning her career with Anadarko in 2002. She has held a variety of positions with the company, including most recently as Vice President, Investor Relations, and previously as Midstream Business Advisor, General Manager of East Texas and North Louisiana, Worldwide Operations Business Advisor and various exploration and operations engineering positions in both the U.S. onshore and the Gulf of Mexico. She holds a Bachelor of Science in petroleum engineering from Texas A&M University and is a registered Professional Engineer in the state of Texas and a member of the Society of Petroleum Engineers.
Mitchell W. Ingram
Mitch Ingram is Anadarko's Executive Vice President, International, Deepwater and Exploration, overseeing Anadarko's international and deepwater operations, including Global LNG, exploration and project-management. Mr. Ingram is also responsible for Anadarko's overall health, safety and environment (HSE) strategy. He has more than 30 years of oil and natural gas industry experience and holds a Bachelor of Engineering in mechanical engineering from Robert Gordon University.
About Western Gas
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 and condensate on behalf of itself and as agent for its customers under certain of its contracts.
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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Western Gas Contacts
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
Jack Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
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SOURCE Western Gas Partners, LP
HOUSTON, Nov. 15, 2018 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its 2019 capital expectations and guidance. The company's 2019 capital investment program is $4.3 to $4.7 billion,(1) which represents a decrease relative to its 2018 program and delivers 10-percent oil growth year over year. The capital investment plan is consistent with the company's durable strategy focused on enhancing shareholder value by delivering attractive margins and returns, while advancing the development of the company's core assets and generating material free cash flow at current strip prices.
In addition, Anadarko announced its board of directors has authorized a $1 billion increase to its share-repurchase program and a 20-percent increase to the company's quarterly dividend. The company also increased its debt-reduction program by an additional $500 million. To date, more than 10-percent of shares outstanding have been retired since the inception of the share-repurchase program, with $1.5 billion remaining authorization to repurchase shares through mid-year 2020.
2019 CAPITAL PROGRAM HIGHLIGHTS
FOCUSED ON SHAREHOLDER RETURNS
"Our 2019 investment plan further demonstrates the capital efficiency of our portfolio," said Anadarko Chairman and CEO Al Walker. "We believe our peer-leading ability to attractively grow oil volumes within cash flow in a $50 oil environment while delivering significant free cash flow above this break-even point, positions our company very well to execute on our expanded shareholder-return commitments in the near term and in a durable fashion well into the future."
2019 Capital Expectations ($4.3 - $4.7 Billion)(1) | |||||||||||||||||
By Area | Billions | By Type | |||||||||||||||
U.S. Onshore* | $ 3.15 | Resource Plays* | 70 % | ||||||||||||||
Deepwater Gulf of Mexico | 0.50 | Conventional Oil** | 16 % | ||||||||||||||
Algeria and Ghana | 0.20 | Exploration and LNG | 10 % | ||||||||||||||
Exploration | 0.25 | Corporate | 4 % | ||||||||||||||
LNG | 0.20 | ||||||||||||||||
* Delaware, Denver-Julesburg (DJ), and Powder River basins, and other. Also includes approximately $130 million midstream investment prior to closing the Western Gas Partners, LP (WES) midstream transaction, anticipated in the first quarter of 2019 | |||||||||||||||||
** Deepwater Gulf of Mexico, Algeria, and Ghana operations | |||||||||||||||||
Note: All amounts are approximates. | |||||||||||||||||
Sales-Volume Expectations(3) | |||
2018 Guidance | 2019 Expectations | ||
Total (MMBOE) | 240 - 245 | 260 - 270 | |
Oil (MBOPD) | 380 - 389 | 410 - 435 |
U.S. ONSHORE RESOURCE PLAYS
Anadarko plans to invest approximately 70 percent of its 2019 capital in the U.S. onshore, where it expects to operate an average of approximately 15 rigs and 10 completion crews focused primarily on development activities in the Delaware and DJ basins.
Approximately $1.4 billion is being allocated toward upstream activities in the Delaware Basin of West Texas.(1) The successful expansion of the company's infrastructure footprint, including oil gathering and treating throughout West Texas, has paved the way to transition to multi-well pad development, as illustrated by the encouraging early results at the Silvertip-A campaign.
In the DJ Basin of northeast Colorado, the company expects to invest approximately $1.3 billion on upstream activities in 2019,(1) with continued development of its minerals-interest ownership and infrastructure-advantaged position in the Wattenberg field.
In 2019, Anadarko also expects to continue its appraisal program in Wyoming's Powder River Basin. The company plans to complete 10 to 15 operated horizontal wells to progress the company's appraisal efforts in this high-potential acreage position targeting the southern Turner-formation fairway in Converse County.
CONVENTIONAL OIL
Anadarko plans to allocate approximately $500 million toward its deepwater Gulf of Mexico operations, which is about $300 million less than in 2018, while delivering a similar number of wells and maintaining production levels between 140,000 and 150,000 barrels of oil equivalent (BOE) per day.
The company also plans to allocate about $200 million toward its international cash-generating operations in Algeria and Ghana in 2019, where the company expects stable year-over-year, Brent-levered oil production. Offshore Ghana, investments will be focused on adding incremental wells to optimize capacity at the Jubilee and TEN floating, production, storage and offloading (FPSO) vessels.
EXPLORATION
The company's exploration investments in 2019 are expected to total about $250 million, focused on identifying material and scalable opportunities in the U.S. onshore and satellite opportunities near existing operated facilities in the deepwater Gulf of Mexico.
LNG
Approximately $200 million is being allocated toward the Mozambique LNG project, pre FID (final investment decision), for Anadarko's portion of the costs associated with ongoing site preparation for the shared onshore facilities. The company remains on track for FID consideration in the first half of 2019, and anticipates adjusting its capital-investment expectations associated with the Mozambique LNG project at the time of project sanction.
ANADARKO DECLARES DIVIDEND
On Nov. 15, 2018, Anadarko's board of directors declared a quarterly cash dividend on the company's common stock of 30 cents per share, payable Dec. 26, 2018 to shareholders of record at the close of business on Dec. 12, 2018. The amount of future dividends for Anadarko common stock will depend on earnings, financial condition, capital requirements and other factors. The board of directors will determine dividends on a quarterly basis.
PRESENTATION AND WEBCAST
Anadarko will provide additional details and information regarding the 2019 capital program during a presentation at the Bank of America Merrill Lynch 2018 Global Energy Conference today at 4:20 p.m. EST. The link to the audio webcast presentation will be available in the Investor section at www.anadarko.com. The replay and slide presentation also will be available on the company's website for approximately 30 days following the event.
(1) Does not include capital investments to be made by Western Gas Equity Partners, LP (NYSE: WGP) and capital investments resulting from Mozambique FID, anticipated in the first half of 2019.(2) See the accompanying table for a reconciliation of the GAAP to the non-GAAP financial measure and a statement indicating why management believes the non-GAAP financial measure provides useful information for investors.
(3) Amounts are divestiture adjusted.
(4) Debt-adjusted share(s) is computed as follows:
Average Anadarko Debt | + Average Shares Outstanding | ||
Average Share Price |
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Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2017, the company had approximately 1.44 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its 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, including Anadarko's ability to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to meet financial and operating guidance and achieve the production growth and cash flow levels identified in this news release; to successfully complete the transaction identified in this news release; to successfully complete the share-repurchase and debt-reduction programs; to successfully drill, complete, test and produce the wells identified in this news release; to timely complete and commercially operate the projects, and drilling prospects identified in this news release; and to successfully plan, secure additional government approvals, enter into long-term sales contracts, take FID and the timing thereof, finance, build, and operate the necessary infrastructure and LNG park in Mozambique. See "Risk Factors" in the company's 2017 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
Anadarko Contacts
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
Below are reconciliations of certain GAAP to non-GAAP financial measures, each as required under Regulation G of the Securities Exchange Act of 1934. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures. The company undertakes no obligation to publicly update or revise any non-GAAP financial measures or related reconciliation.
Adjusted Discretionary Cash Flow from Operations (Adjusted DCF) and Adjusted Free Cash Flow (Adjusted FCF)
The Company defines Adjusted DCF as net cash provided by (used in) operating activities before changes in accounts receivable; changes in accounts payable and other current liabilities; other items, net; certain nonoperating and other excluded items; and Western Gas Partners, LP (WES)/Western Gas Equity Partners, LP (WGP) distributions to third parties.
The Company defines Adjusted FCF as Adjusted DCF, less APC capital expenditures, which excludes WES.
Management believes that these measures are useful to management and investors as a measure of a company's ability to internally fund its capital expenditures and to service or incur additional debt. These measures eliminate the impact of certain items that management does not consider to be indicative of the Company's performance from period to period. To assist in measuring the Company's performance, management will also evaluate Anadarko on a deconsolidated basis, which excludes WES.
The Company's press release includes a forward-looking Adjusted FCF estimate; however, the Company is unable to provide a quantitative reconciliation of the forward-looking non-GAAP measure to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measure. The reconciling items in future periods could be significant. Below is a reconciliation of Net cash provided by (used in) operating activities (GAAP) to Adjusted free cash flow (Non-GAAP) for the most recently reported quarterly periods of 2018.
2018 | |||||||||||
millions | Q1 | Q2 | Q3 | ||||||||
Net cash provided by (used in) operating activities (GAAP) | $ | 1,430 | $ | 1,225 | $ | 1,647 | |||||
Adjusted by: | |||||||||||
Increase (decrease) in accounts receivable | (23) | 114 | 253 | ||||||||
(Increase) decrease in accounts payable and other current liabilities | (45) | (46) | (139) | ||||||||
Other items, net | 40 | 162 | 61 | ||||||||
WES/WGP distributions to third parties | (118) | (120) | (127) | ||||||||
Adjusted discretionary cash flow from operations (Non-GAAP) | $ | 1,284 | $ | 1,335 | $ | 1,695 | |||||
Less APC capital expenditures (excludes WES) | 1,377 | 1,497 | 1,151 | ||||||||
Adjusted free cash flow (Non-GAAP) | $ | (93) | $ | (162) | $ | 544 |
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SOURCE Anadarko Petroleum Corporation
HOUSTON, Oct. 17, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.9650 per unit for the third quarter of 2018. This distribution represents a 2-percent increase over the prior quarter and a 7-percent increase over the third quarter of 2017. WES's third quarter 2018 distribution is payable on November 13, 2018, to unitholders of record at the close of business on October 31, 2018.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.5950 per unit for the third quarter of 2018. This distribution represents a 2-percent increase over the prior quarter and an 11-percent increase over the third quarter of 2017. WGP's third quarter 2018 distribution is payable on November 21, 2018, to unitholders of record at the close of business on October 31, 2018.
The Partnerships plan to report their third-quarter 2018 results after the market closes on Tuesday, October 30, 2018. Management will host a conference call on Wednesday, October 31, 2018, at 11 a.m. CDT (12 p.m. EDT) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Third-Quarter 2018 Results
Wednesday, October 31, 2018
11 a.m. CDT (12 p.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 3261919
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time and enter the access code when prompted.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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 and condensate on behalf of itself and as agent for its customers under certain of its contracts.
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.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
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
DALLAS, Aug. 1, 2018 /PRNewswire/ -- Alerian reported index linked product positions of $15.0 billion as of June 30, 2018. Linked products include exchange-traded funds, exchange-traded notes, return of capital notes, variable insurance portfolios, and mutual funds.
Below is a full list of energy master limited partnership (MLP) positions, as of June 30, 2018, in products linked to the Alerian Index Series.
Ticker |
Exposure in |
Exposure in |
Ticker |
Exposure in |
Exposure in | |
AM |
305,257,484 |
10,340,701 |
HEP |
151,911,915 |
5,375,510 | |
AMGP |
1,164,270 |
61,732 |
MMP |
1,501,453,809 |
21,735,000 | |
ANDX |
446,822,576 |
10,506,056 |
MPLX |
1,162,174,520 |
34,041,433 | |
APU |
58,778,057 |
1,392,185 |
NBLX |
22,166,701 |
434,130 | |
ARLP |
25,591,033 |
1,394,607 |
NGL |
165,162,738 |
13,213,019 | |
BPL |
604,497,037 |
17,197,640 |
NS |
210,933,016 |
9,312,716 | |
BPMP |
20,189,424 |
961,859 |
NSH |
239,822 |
19,340 | |
BWP |
170,678,160 |
14,688,310 |
PAA |
1,177,071,579 |
49,791,522 | |
CEQP |
183,499,246 |
5,779,504 |
PAGP |
3,213,393 |
134,395 | |
CQP |
173,601,824 |
4,828,980 |
PSXP |
318,554,875 |
6,238,834 | |
CVRR |
20,028,626 |
896,135 |
RMP |
147,346,450 |
8,657,253 | |
DCP |
421,401,442 |
10,654,904 |
SEP |
341,382,494 |
9,638,128 | |
DM |
13,475,016 |
990,810 |
SHLX |
322,823,077 |
14,554,692 | |
EEP |
277,227,481 |
25,363,905 |
SMLP |
12,744,536 |
827,567 | |
ENBL |
176,973,526 |
10,343,280 |
SPH |
28,830,596 |
1,227,356 | |
ENLC |
853,859 |
51,906 |
SUN |
27,065,571 |
1,084,358 | |
ENLK |
303,905,691 |
19,568,943 |
TCP |
165,868,659 |
6,391,856 | |
EPD |
1,503,782,388 |
54,347,032 |
TEGP |
386,005,955 |
17,419,041 | |
EQGP |
355,540 |
15,123 |
TGP |
18,444,324 |
1,094,619 | |
EQM |
356,373,011 |
6,907,792 |
USAC |
16,751,289 |
995,323 | |
ETE |
6,023,303 |
349,177 |
VLP |
17,131,051 |
449,988 | |
ETP |
1,481,856,983 |
77,828,623 |
VNOM |
25,953,041 |
813,320 | |
GEL |
281,851,288 |
12,864,048 |
WES |
571,788,034 |
11,816,244 | |
GLOP |
14,609,467 |
612,556 |
WGP |
826,761 |
23,126 | |
GMLP |
15,169,006 |
981,178 |
WPZ |
1,218,967,796 |
30,031,234 | |
HCLP |
18,789,000 |
1,592,288 |
||||
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of June 30, 2018, over $15 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
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SOURCE Alerian
HOUSTON, July 31, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced second-quarter 2018 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the second quarter of 2018 totaled $(51.5) million, or $(0.32) per common unit (diluted), with second-quarter 2018 Adjusted EBITDA(1) of $271.7 million and second-quarter 2018 Distributable cash flow(1) of $221.8 million. These results were impacted by the following amounts associated with the shutdown of two legacy gathering systems with less than 8 MMcf/d of throughput that had reached the end of their useful life: (i) an accrual of $10.9 million related to estimated future costs recorded as a reduction in affiliate product sales and (ii) $127.2 million recorded as impairment expense associated with reducing the net book value of the systems and additional asset retirement obligation. Adjusted EBITDA(1) includes the impact of the $10.9 million accrual.
WES previously declared a quarterly distribution of $0.950 per unit for the second quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the second-quarter 2017 distribution. The second-quarter 2018 Coverage ratio(1) of 0.98 times was impacted by 0.05 times due to the aforementioned $10.9 million accrual.
(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. |
"Since we initially provided our 2018 guidance last fall, we have been discussing our expectation of a volumetric and cash flow ramp in the second half of this year. I'm pleased to say that it has begun," said Chief Executive Officer, Benjamin Fink. "Anadarko has successfully brought two Regional Oil Treating facilities online, one late in the second quarter and one earlier this month, and the Delaware Basin generated strong volumetric growth in the second quarter, which should accelerate throughout the remainder of the year. Furthermore, we remain on track to bring both the Mentone I and II trains online late in the third and fourth quarters."
Total throughput attributable to WES for natural gas assets for the second quarter of 2018 averaged 3.8 Bcf/d, which was 5% above the prior quarter and 9% above the second quarter of 2017. Total throughput for crude oil, NGL and produced water assets for the second quarter of 2018 averaged 343 MBbls/d, which was 33% above the prior quarter and 88% above the second quarter of 2017. These increases were primarily driven by the continued growth behind our DBM water systems and our acquisition of a 20% interest in Whitethorn (which owns the Midland-to-Sealy pipeline and related storage facilities) in June.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $369.2 million on a cash basis and $322.0 million on an accrual basis during the second quarter of 2018, with maintenance capital expenditures on a cash basis of $20.9 million. The Partnership also announced the increase of its outlook for 2018 maintenance capital expenditures to a range of $90 million to $100 million from the previously stated range of $80 million to $90 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 2018 totaled $67.6 million, or $0.31 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.58250 per unit for the second quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and a 10% increase over the second-quarter 2017 distribution. WGP will receive distributions from WES of $128.3 million attributable to the second quarter of 2018 and will pay $127.5 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, August 1, 2018, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss second-quarter 2018 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 7387060. 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 and condensate on behalf of itself and as agent for its customers 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, LP and Western Gas Equity Partners, LP 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 Service revenues – fee based recognized in Adjusted EBITDA (less than) in excess of customer billings, 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 |
Six Months Ended | |||||||||||||||
thousands except Coverage ratio |
2018 |
2017 |
2018 |
2017 | ||||||||||||
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 |
$ |
32,708 |
$ |
173,451 |
$ |
182,071 |
$ |
275,340 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investments |
31,947 |
28,856 |
60,901 |
51,423 |
||||||||||||
Non-cash equity-based compensation expense |
1,852 |
975 |
4,004 |
2,221 |
||||||||||||
Non-cash settled interest expense, net (1) |
— |
— |
— |
71 |
||||||||||||
Income tax (benefit) expense |
282 |
843 |
1,784 |
4,395 |
||||||||||||
Depreciation and amortization (2) |
78,066 |
73,352 |
154,182 |
142,401 |
||||||||||||
Impairments |
127,243 |
3,178 |
127,391 |
167,920 |
||||||||||||
Above-market component of swap agreements with Anadarko |
13,839 |
16,373 |
28,121 |
28,670 |
||||||||||||
Other expense (2) |
8 |
95 |
151 |
140 |
||||||||||||
Less: |
||||||||||||||||
Recognized Service revenues – fee based (less than) in excess of customer billings |
(3,367) |
— |
(3,861) |
— |
||||||||||||
Gain (loss) on divestiture and other, net |
170 |
15,458 |
286 |
134,945 |
||||||||||||
Equity income, net – affiliates |
39,218 |
21,728 |
59,642 |
41,189 |
||||||||||||
Cash paid for maintenance capital expenditures (2) |
20,891 |
11,402 |
37,325 |
22,524 |
||||||||||||
Capitalized interest |
6,011 |
1,060 |
10,065 |
1,876 |
||||||||||||
Cash paid for (reimbursement of) income taxes |
— |
— |
(87) |
189 |
||||||||||||
Series A Preferred unit distributions |
— |
— |
— |
7,453 |
||||||||||||
Other income (2) |
1,223 |
250 |
2,000 |
677 |
||||||||||||
Distributable cash flow |
$ |
221,799 |
$ |
247,225 |
$ |
453,235 |
$ |
463,728 |
||||||||
Distributions declared (3) |
||||||||||||||||
Limited partners – common units |
$ |
144,979 |
$ |
287,662 |
||||||||||||
General partner |
80,712 |
159,162 |
||||||||||||||
Total |
$ |
225,691 |
$ |
446,824 |
||||||||||||
Coverage ratio |
0.98 |
x |
1.01 |
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 $0.950 and $1.885 per unit declared for the three and six months ended June 30, 2018, 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 |
Six Months Ended | |||||||||||||||
thousands |
2018 |
2017 |
2018 |
2017 | ||||||||||||
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 |
$ |
32,708 |
$ |
173,451 |
$ |
182,071 |
$ |
275,340 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investments |
31,947 |
28,856 |
60,901 |
51,423 |
||||||||||||
Non-cash equity-based compensation expense |
1,852 |
975 |
4,004 |
2,221 |
||||||||||||
Interest expense |
44,389 |
35,746 |
83,672 |
71,250 |
||||||||||||
Income tax expense |
282 |
843 |
1,784 |
4,395 |
||||||||||||
Depreciation and amortization (1) |
78,066 |
73,352 |
154,182 |
142,401 |
||||||||||||
Impairments |
127,243 |
3,178 |
127,391 |
167,920 |
||||||||||||
Other expense (1) |
8 |
95 |
151 |
140 |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
170 |
15,458 |
286 |
134,945 |
||||||||||||
Equity income, net – affiliates |
39,218 |
21,728 |
59,642 |
41,189 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
8,450 |
8,450 |
||||||||||||
Other income (1) |
1,223 |
250 |
2,000 |
677 |
||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
271,659 |
$ |
274,835 |
$ |
543,778 |
$ |
529,829 |
||||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP |
||||||||||||||||
Net cash provided by operating activities |
$ |
273,315 |
$ |
240,536 |
$ |
514,911 |
$ |
433,152 |
||||||||
Interest (income) expense, net |
40,164 |
31,521 |
75,222 |
62,800 |
||||||||||||
Uncontributed cash-based compensation awards |
398 |
(209) |
987 |
(172) |
||||||||||||
Accretion and amortization of long-term obligations, net |
(1,248) |
(1,038) |
(2,626) |
(2,139) |
||||||||||||
Current income tax (benefit) expense |
90 |
204 |
261 |
628 |
||||||||||||
Other (income) expense, net |
(1,229) |
(253) |
(2,011) |
(683) |
||||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
4,492 |
5,768 |
12,505 |
9,221 |
||||||||||||
Changes in assets and liabilities: |
||||||||||||||||
Accounts receivable, net |
(21,639) |
(10,876) |
7,009 |
(9,363) |
||||||||||||
Accounts and imbalance payables and accrued liabilities, net |
(13,498) |
12,035 |
(40,573) |
41,975 |
||||||||||||
Other items, net |
(5,655) |
(131) |
(14,670) |
(116) |
||||||||||||
Adjusted EBITDA attributable to noncontrolling interest |
(3,531) |
(2,722) |
(7,237) |
(5,474) |
||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
271,659 |
$ |
274,835 |
$ |
543,778 |
$ |
529,829 |
||||||||
Cash flow information of Western Gas Partners, LP |
||||||||||||||||
Net cash provided by operating activities |
$ |
514,911 |
$ |
433,152 |
||||||||||||
Net cash used in investing activities |
(826,653) |
(363,131) |
||||||||||||||
Net cash provided by (used in) financing activities |
286,163 |
(239,749) |
(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 reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended |
Six Months Ended | |||||||||||||||
thousands |
2018 |
2017 |
2018 |
2017 | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP |
||||||||||||||||
Operating income (loss) |
$ |
74,736 |
$ |
207,608 |
$ |
262,862 |
$ |
346,000 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investments |
31,947 |
28,856 |
60,901 |
51,423 |
||||||||||||
Operation and maintenance |
100,628 |
76,148 |
188,907 |
149,908 |
||||||||||||
General and administrative |
14,035 |
10,585 |
28,167 |
23,244 |
||||||||||||
Property and other taxes |
11,754 |
11,924 |
24,136 |
24,218 |
||||||||||||
Depreciation and amortization |
78,792 |
74,031 |
155,634 |
143,733 |
||||||||||||
Impairments |
127,243 |
3,178 |
127,391 |
167,920 |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
170 |
15,458 |
286 |
134,945 |
||||||||||||
Proceeds from business interruption insurance claims |
— |
24,115 |
— |
29,882 |
||||||||||||
Equity income, net – affiliates |
39,218 |
21,728 |
59,642 |
41,189 |
||||||||||||
Reimbursed electricity-related charges recorded as revenues |
17,231 |
14,046 |
32,684 |
28,015 |
||||||||||||
Adjusted gross margin attributable to noncontrolling interest |
4,223 |
3,435 |
8,547 |
7,311 |
||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP |
$ |
378,293 |
$ |
333,548 |
$ |
746,839 |
$ |
665,104 |
||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets |
$ |
329,653 |
$ |
297,778 |
$ |
655,525 |
$ |
599,283 |
||||||||
Adjusted gross margin for crude oil, NGL and produced water assets |
48,640 |
35,770 |
91,314 |
65,821 |
Western Gas Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||
thousands except per-unit amounts |
2018 |
2017 |
2018 |
2017 | ||||||||||||
Revenues and other |
||||||||||||||||
Service revenues – fee based |
$ |
359,544 |
$ |
299,435 |
$ |
697,963 |
$ |
607,249 |
||||||||
Service revenues – product based |
22,105 |
— |
44,698 |
— |
||||||||||||
Product sales |
54,077 |
224,824 |
130,014 |
431,349 |
||||||||||||
Other |
223 |
1,191 |
442 |
3,045 |
||||||||||||
Total revenues and other |
435,949 |
525,450 |
873,117 |
1,041,643 |
||||||||||||
Equity income, net – affiliates |
39,218 |
21,728 |
59,642 |
41,189 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
68,149 |
203,277 |
145,948 |
392,636 |
||||||||||||
Operation and maintenance |
100,628 |
76,148 |
188,907 |
149,908 |
||||||||||||
General and administrative |
14,035 |
10,585 |
28,167 |
23,244 |
||||||||||||
Property and other taxes |
11,754 |
11,924 |
24,136 |
24,218 |
||||||||||||
Depreciation and amortization |
78,792 |
74,031 |
155,634 |
143,733 |
||||||||||||
Impairments |
127,243 |
3,178 |
127,391 |
167,920 |
||||||||||||
Total operating expenses |
400,601 |
379,143 |
670,183 |
901,659 |
||||||||||||
Gain (loss) on divestiture and other, net |
170 |
15,458 |
286 |
134,945 |
||||||||||||
Proceeds from business interruption insurance claims |
— |
24,115 |
— |
29,882 |
||||||||||||
Operating income (loss) |
74,736 |
207,608 |
262,862 |
346,000 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
8,450 |
8,450 |
||||||||||||
Interest expense |
(44,389) |
(35,746) |
(83,672) |
(71,250) |
||||||||||||
Other income (expense), net |
1,229 |
253 |
2,011 |
683 |
||||||||||||
Income (loss) before income taxes |
35,801 |
176,340 |
189,651 |
283,883 |
||||||||||||
Income tax (benefit) expense |
282 |
843 |
1,784 |
4,395 |
||||||||||||
Net income (loss) |
35,519 |
175,497 |
187,867 |
279,488 |
||||||||||||
Net income attributable to noncontrolling interest |
2,811 |
2,046 |
5,796 |
4,148 |
||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
32,708 |
$ |
173,451 |
$ |
182,071 |
$ |
275,340 |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
32,708 |
$ |
173,451 |
$ |
182,071 |
$ |
275,340 |
||||||||
Series A Preferred units interest in net (income) loss |
— |
(14,199) |
— |
(42,373) |
||||||||||||
General partner interest in net (income) loss |
(84,176) |
(76,365) |
(167,615) |
(144,527) |
||||||||||||
Common and Class C limited partners' interest in net income (loss) |
$ |
(51,468) |
$ |
82,887 |
$ |
14,456 |
$ |
88,440 |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
(0.32) |
$ |
0.49 |
$ |
0.06 |
$ |
0.53 |
||||||||
Weighted-average common units outstanding – basic and diluted |
152,604 |
148,864 |
152,603 |
141,696 |
Western Gas Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
thousands except number of units |
June 30, |
December 31, | ||||||||||||||
Current assets |
$ |
247,138 |
$ |
254,062 |
||||||||||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||||||||||
Net property, plant and equipment |
6,213,574 |
5,730,891 |
||||||||||||||
Other assets |
1,945,898 |
1,769,397 |
||||||||||||||
Total assets |
$ |
8,666,610 |
$ |
8,014,350 |
||||||||||||
Current liabilities |
$ |
489,117 |
$ |
424,333 |
||||||||||||
Long-term debt |
4,177,353 |
3,464,712 |
||||||||||||||
Asset retirement obligations |
151,412 |
143,394 |
||||||||||||||
Other liabilities |
147,246 |
10,900 |
||||||||||||||
Total liabilities |
4,965,128 |
4,043,339 |
||||||||||||||
Equity and partners' capital |
||||||||||||||||
Common units (152,609,285 and 152,602,105 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively) |
2,666,799 |
2,950,010 |
||||||||||||||
Class C units (13,778,265 and 13,243,883 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively) |
781,057 |
780,040 |
||||||||||||||
General partner units (2,583,068 units issued and outstanding at June 30, 2018, and December 31, 2017) |
191,564 |
179,232 |
||||||||||||||
Noncontrolling interest |
62,062 |
61,729 |
||||||||||||||
Total liabilities, equity and partners' capital |
$ |
8,666,610 |
$ |
8,014,350 |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Six Months Ended | ||||||||
thousands |
2018 |
2017 | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
187,867 |
$ |
279,488 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: |
||||||||
Depreciation and amortization |
155,634 |
143,733 |
||||||
Impairments |
127,391 |
167,920 |
||||||
(Gain) loss on divestiture and other, net |
(286) |
(134,945) |
||||||
Change in other items, net |
44,305 |
(23,044) |
||||||
Net cash provided by operating activities |
$ |
514,911 |
$ |
433,152 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(650,096) |
$ |
(260,480) |
||||
Contributions in aid of construction costs from affiliates |
— |
1,343 |
||||||
Acquisitions from affiliates |
— |
(3,910) |
||||||
Acquisitions from third parties |
(161,858) |
(155,287) |
||||||
Investments in equity affiliates |
(27,490) |
(287) |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
12,505 |
9,221 |
||||||
Proceeds from the sale of assets to third parties |
286 |
23,292 |
||||||
Proceeds from property insurance claims |
— |
22,977 |
||||||
Net cash used in investing activities |
$ |
(826,653) |
$ |
(363,131) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
1,337,539 |
$ |
159,989 |
||||
Repayments of debt |
(630,000) |
— |
||||||
Settlement of the Deferred purchase price obligation – Anadarko |
— |
(37,346) |
||||||
Increase (decrease) in outstanding checks |
(5,357) |
(2,763) |
||||||
Proceeds from the issuance of common units, net of offering expenses |
— |
(183) |
||||||
Distributions to unitholders |
(437,719) |
(381,771) |
||||||
Distributions to noncontrolling interest owner |
(6,421) |
(6,375) |
||||||
Net contributions from (distributions to) Anadarko |
— |
30 |
||||||
Above-market component of swap agreements with Anadarko |
28,121 |
28,670 |
||||||
Net cash provided by (used in) financing activities |
$ |
286,163 |
$ |
(239,749) |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
(25,579) |
$ |
(169,728) |
||||
Cash and cash equivalents at beginning of period |
78,814 |
357,925 |
||||||
Cash and cash equivalents at end of period |
$ |
53,235 |
$ |
188,197 |
Western Gas Partners, LP | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||
2018 |
2017 |
2018 |
2017 | |||||||||||||
Throughput for natural gas assets (MMcf/d) |
||||||||||||||||
Gathering, treating and transportation |
887 |
866 |
852 |
1,155 |
||||||||||||
Processing |
2,860 |
2,555 |
2,808 |
2,498 |
||||||||||||
Equity investment (1) |
141 |
158 |
146 |
160 |
||||||||||||
Total throughput for natural gas assets |
3,888 |
3,579 |
3,806 |
3,813 |
||||||||||||
Throughput attributable to noncontrolling interest for natural gas assets |
94 |
107 |
95 |
108 |
||||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets |
3,794 |
3,472 |
3,711 |
3,705 |
||||||||||||
Throughput for crude oil, NGL and produced water assets (MBbls/d) |
||||||||||||||||
Gathering, treating, transportation and disposal |
145 |
50 |
134 |
47 |
||||||||||||
Equity investment (2) |
198 |
132 |
167 |
129 |
||||||||||||
Total throughput for crude oil, NGL and produced water assets |
343 |
182 |
301 |
176 | ||||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (3) |
$ |
0.95 |
$ |
0.94 |
$ |
0.98 |
$ |
0.89 |
||||||||
Adjusted gross margin per Bbl for crude oil, NGL and produced water assets (4) |
1.56 |
2.15 |
1.68 |
2.07 |
||||||||||||
(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, WES's 33.33% share of average FRP throughput and WES's 20% share of average Whitethorn 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, less cost of product for natural gas assets, plus distributions from WES's equity investments in Fort Union and Rendezvous, and excluding the noncontrolling interest 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 oil, NGL and produced water assets (total revenues and other for crude oil, NGL and produced water assets less reimbursements for electricity-related expenses recorded as revenue, less cost of product for crude oil, NGL and produced water assets, and plus distributions from WES's equity investments in White Cliffs, the Mont Belvieu JV, TEG, TEP, FRP and Whitethorn), divided by total throughput (MBbls/d) for crude oil, 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 | |||
Distributions declared by Western Gas Partners, LP: |
||||
General partner interest |
$ |
3,756 |
||
Incentive distribution rights |
76,956 |
|||
Common units held by WGP |
47,625 |
|||
Less: |
||||
Public company general and administrative expense |
696 |
|||
Interest expense |
309 |
|||
Cash available for distribution |
$ |
127,332 |
||
Declared distribution per common unit |
$ |
0.58250 |
||
Distributions declared by Western Gas Equity Partners, LP |
$ |
127,531 |
||
Coverage ratio |
1.00 |
x |
Western Gas Equity Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||
thousands except per-unit amounts |
2018 |
2017 |
2018 |
2017 | ||||||||||||
Revenues and other |
||||||||||||||||
Service revenues – fee based |
$ |
359,544 |
$ |
299,435 |
$ |
697,963 |
$ |
607,249 |
||||||||
Service revenues – product based |
22,105 |
— |
44,698 |
— |
||||||||||||
Product sales |
54,077 |
224,824 |
130,014 |
431,349 |
||||||||||||
Other |
223 |
1,191 |
442 |
3,045 |
||||||||||||
Total revenues and other |
435,949 |
525,450 |
873,117 |
1,041,643 |
||||||||||||
Equity income, net – affiliates |
39,218 |
21,728 |
59,642 |
41,189 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
68,149 |
203,277 |
145,948 |
392,636 |
||||||||||||
Operation and maintenance |
100,628 |
76,148 |
188,907 |
149,908 |
||||||||||||
General and administrative |
14,731 |
11,197 |
29,695 |
24,673 |
||||||||||||
Property and other taxes |
11,754 |
11,924 |
24,136 |
24,218 |
||||||||||||
Depreciation and amortization |
78,792 |
74,031 |
155,634 |
143,733 |
||||||||||||
Impairments |
127,243 |
3,178 |
127,391 |
167,920 |
||||||||||||
Total operating expenses |
401,297 |
379,755 |
671,711 |
903,088 |
||||||||||||
Gain (loss) on divestiture and other, net |
170 |
15,458 |
286 |
134,945 |
||||||||||||
Proceeds from business interruption insurance claims |
— |
24,115 |
— |
29,882 |
||||||||||||
Operating income (loss) |
74,040 |
206,996 |
261,334 |
344,571 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
8,450 |
8,450 |
||||||||||||
Interest expense |
(44,697) |
(36,297) |
(85,043) |
(72,330) |
||||||||||||
Other income (expense), net |
1,277 |
272 |
2,094 |
718 |
||||||||||||
Income (loss) before income taxes |
34,845 |
175,196 |
186,835 |
281,409 |
||||||||||||
Income tax (benefit) expense |
282 |
843 |
1,784 |
4,395 |
||||||||||||
Net income (loss) |
34,563 |
174,353 |
185,051 |
277,014 |
||||||||||||
Net income (loss) attributable to noncontrolling interests |
(33,017) |
69,409 |
16,466 |
96,130 |
||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
67,580 |
$ |
104,944 |
$ |
168,585 |
$ |
180,884 |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
0.31 |
$ |
0.48 |
$ |
0.77 |
$ |
0.83 |
||||||||
Weighted-average common units outstanding – basic and diluted |
218,934 |
218,931 |
218,934 |
218,930 |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units |
June 30, |
December 31, | ||||||
Current assets |
$ |
249,357 |
$ |
255,210 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
6,213,574 |
5,730,891 |
||||||
Other assets |
1,945,898 |
1,770,210 |
||||||
Total assets |
$ |
8,668,829 |
$ |
8,016,311 |
||||
Current liabilities |
$ |
517,163 |
$ |
424,426 |
||||
Long-term debt |
4,177,353 |
3,492,712 |
||||||
Asset retirement obligations |
151,412 |
143,394 |
||||||
Other liabilities |
147,246 |
10,900 |
||||||
Total liabilities |
4,993,174 |
4,071,432 |
||||||
Equity and partners' capital |
||||||||
Common units (218,937,797 and 218,933,141 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively) |
994,418 |
1,061,125 |
||||||
Noncontrolling interests |
2,681,237 |
2,883,754 |
||||||
Total liabilities, equity and partners' capital |
$ |
8,668,829 |
$ |
8,016,311 |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Six Months Ended | ||||||||
thousands |
2018 |
2017 | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
185,051 |
$ |
277,014 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: |
||||||||
Depreciation and amortization |
155,634 |
143,733 |
||||||
Impairments |
127,391 |
167,920 |
||||||
(Gain) loss on divestiture and other, net |
(286) |
(134,945) |
||||||
Change in other items, net |
45,457 |
(22,364) |
||||||
Net cash provided by operating activities |
$ |
513,247 |
$ |
431,358 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(650,096) |
$ |
(260,480) |
||||
Contributions in aid of construction costs from affiliates |
— |
1,343 |
||||||
Acquisitions from affiliates |
— |
(3,910) |
||||||
Acquisitions from third parties |
(161,858) |
(155,287) |
||||||
Investments in equity affiliates |
(27,490) |
(287) |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
12,505 |
9,221 |
||||||
Proceeds from the sale of assets to third parties |
286 |
23,292 |
||||||
Proceeds from property insurance claims |
— |
22,977 |
||||||
Net cash used in investing activities |
$ |
(826,653) |
$ |
(363,131) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
1,337,531 |
$ |
159,989 |
||||
Repayments of debt |
(630,000) |
— |
||||||
Settlement of the Deferred purchase price obligation – Anadarko |
— |
(37,346) |
||||||
Increase (decrease) in outstanding checks |
(5,357) |
(2,763) |
||||||
Proceeds from the issuance of WES common units, net of offering expenses |
— |
(183) |
||||||
Distributions to WGP unitholders |
(244,658) |
(208,803) |
||||||
Distributions to Chipeta noncontrolling interest owner |
(6,421) |
(6,375) |
||||||
Distributions to noncontrolling interest owners of WES |
(190,081) |
(171,689) |
||||||
Net contributions from (distributions to) Anadarko |
— |
30 |
||||||
Above-market component of swap agreements with Anadarko |
28,121 |
28,670 |
||||||
Net cash provided by (used in) financing activities |
$ |
289,135 |
$ |
(238,470) |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
(24,271) |
$ |
(170,243) |
||||
Cash and cash equivalents at beginning of period |
79,588 |
359,072 |
||||||
Cash and cash equivalents at end of period |
$ |
55,317 |
$ |
188,829 |
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-second-quarter-2018-results-300689524.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, July 17, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.9500 per unit for the second quarter of 2018. This distribution represents a 2-percent increase over the prior quarter and a 7-percent increase over the second quarter of 2017. WES's second quarter 2018 distribution is payable on August 13, 2018, to unitholders of record at the close of business on August 1, 2018.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.58250 per unit for the second quarter of 2018. This distribution represents a 2-percent increase over the prior quarter and a 10-percent increase over the second quarter of 2017. WGP's second quarter 2018 distribution is payable on August 23, 2018, to unitholders of record at the close of business on August 1, 2018.
The Partnerships plan to report their second-quarter 2018 results after the market closes on Tuesday, July 31, 2018. Management will host a conference call on Wednesday, August 1, 2018, at 11 a.m. CDT (12 p.m. EDT) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Second-Quarter 2018 Results
Wednesday, August 1, 2018
11 a.m. CDT (12 p.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 7387060
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time and enter the access code when prompted.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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 and condensate under certain of its contracts.
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.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-second-quarter-2018-distribution-and-schedules-earnings-conference-call-300682666.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
DALLAS, June 19, 2018 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to constituents of The Cushing® MLP High Income Index (the "Index"). On March 26, 2018, Index constituents Tallgrass Energy GP, LP (NYSE: TEGP) and Tallgrass Energy Partners, LP (NYSE: TEP) entered into an Agreement and Plan of Merger wherein TEGP would acquire TEP, subject to the approval of TEP unitholders. Under the terms of the proposed transaction, TEGP would terminate the master limited partnership ("MLP") structure of TEP and absorb it as a wholly-owned subsidiary within a publicly traded limited partnership treated as a C-corporation for income tax purposes; consequently, TEGP would cease to have an interest as a holder of general partner or limited partner units in an MLP and would, per the Methodology Guide for the Index, no longer be eligible for inclusion in the Index.
A special meeting of the TEP unitholders is scheduled for June 26, 2018, for the purpose of considering and voting on the proposed transaction. Per the Index's Methodology Guide, after the market closes on June 26, 2018, and effective on June 27, 2018, the following changes to the Index will take place:
Cushing® MLP High Income Index changes, effective June 27, 2018:
Constituent Removed |
Replacement Constituent | |||
Tallgrass Energy GP, LP |
TEGP |
Western Gas Equity Partners, LP |
WGP |
|
Tallgrass Energy Partners, LP |
TEP |
Shell Midstream Partners, L.P. |
SHLX |
Each replacement constituent will be added at the then-current weight of the removed constituent. There will be no changes to the remaining constituents of the Index.
ABOUT THE CUSHING® MLP HIGH INCOME INDEX
The Cushing® MLP High Income Index provides a benchmark that is designed to track the performance of 30 publicly traded energy and shipping master limited partnership (MLP) securities with an emphasis on current yield. The securities are chosen for inclusion according to a three-tier proprietary weighting system developed by Cushing® Asset Management, LP. The Cushing® MLP High Income Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPY".
ABOUT SWANK CAPITAL AND CUSHING® ASSET MANAGEMENT
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of MLPs and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI) ), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® MLP High Income Index (the "Index") is the exclusive property of Swank Capital, LLC and Cushing® Asset Management, LP, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to maintain and calculate the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing® Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones S&P nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-MLPY
View original content:http://www.prnewswire.com/news-releases/swank-capital-and-cushing-asset-management-announce-a-constituent-change-to-the-cushing-mlp-high-income-index-300668318.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
DALLAS, June 19, 2018 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to the constituents of The Cushing® MLP Market Cap Index (the "Index"). On March 26, 2018, Index constituents Tallgrass Energy GP, LP (NYSE: TEGP) and Tallgrass Energy Partners, LP (NYSE: TEP) entered into an Agreement and Plan of Merger wherein TEGP would acquire TEP, subject to the approval of TEP unitholders. Under the terms of the proposed transaction, TEGP would terminate the master limited partnership ("MLP") structure of TEP and absorb it as a wholly-owned subsidiary within a publicly traded limited partnership treated as a C-corporation for income tax purposes; consequently, TEGP would cease to have an interest as a holder of general partner or limited partner units in an MLP and would, per the Methodology Guide for the Index, no longer be eligible for inclusion in the Index.
A special meeting of the TEP unitholders is scheduled for June 26, 2018, for the purpose of considering and voting on the proposed transaction. Per the Index's Methodology Guide, after the market closes on June 26, 2018, and effective on June 27, 2018, the following changes to the Index will take place:
Cushing® MLP High Income Index changes, effective June 27, 2018:
Constituent Removed |
Replacement Constituent | |||
Tallgrass Energy GP, LP |
TEGP |
EnLink Midstream, LLC |
ENLC | |
Tallgrass Energy Partners, LP |
TEP |
Western Gas Equity Partners, LP |
WGP |
Each replacement constituent will be added at the then-current weight of the removed constituent. There will be no changes to the remaining constituents of the Index.
ABOUT THE CUSHING® MLP MARKET CAP INDEX
The Cushing® MLP Market Cap Index tracks the performance of widely held master limited partnerships (MLPs). The Index is weighted on a float-adjusted market capitalization basis, with the weight of each constituent capped at 7.5% at rebalance. The Index price level is calculated by S&P Dow Jones Indices while the constituents are selected from the entire universe of publicly traded MLPs. The Cushing® MLP Market Cap Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CMCI".
ABOUT SWANK CAPITAL AND CUSHING® ASSET MANAGEMENT
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of MLPs and other natural resource companies.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY) ), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® MLP Market Cap Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CMCI
View original content:http://www.prnewswire.com/news-releases/swank-capital-and-cushing-asset-management-announce-a-constituent-change-to-the-cushing-mlp-market-cap-index-300668317.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
HOUSTON, June 7, 2018 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) and Western Gas Equity Partners, LP (NYSE: WGP) today announced the settlement of 9,200,000 outstanding tangible equity units (TEUs), originally issued in 2015, in exchange for approximately 8,207,320 WGP common units and cash in lieu of fractional units. The WGP common units delivered to settle the TEUs were owned by a wholly owned subsidiary of Anadarko. WGP filed a prospectus for the WGP units delivered upon settlement, but did not issue any securities in connection with the settlement.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2017, the company had 1.44 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies.
Logo - http://photos.prnewswire.com/prnh/20141103/156201LOGO
Logo - https://mma.prnewswire.com/media/702535/Western_Gas_Logo.jpg
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 and condensate on behalf of itself and as agent for its customers 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.
Anadarko Contacts
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Kate Sloan, kate.sloan@anadarko.com, 832.636.2562
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content:http://www.prnewswire.com/news-releases/anadarko-and-western-gas-announce-settlement-of-tangible-equity-units-300661423.html
SOURCE Anadarko Petroleum Corporation
HOUSTON, June 7, 2018 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) and Western Gas Equity Partners, LP (NYSE:WGP) today announced the settlement of 9,200,000 outstanding tangible equity units (TEUs), originally issued in 2015, in exchange for approximately 8,207,320 WGP common units and cash in lieu of fractional units. The WGP common units delivered to settle the TEUs were owned by a wholly owned subsidiary of Anadarko. WGP filed a prospectus for the WGP units delivered upon settlement, but did not issue any securities in connection with the settlement.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2017, the company had 1.44 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies.
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 and condensate on behalf of itself and as agent for its customers 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.
Anadarko Contacts
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Kate Sloan, kate.sloan@anadarko.com, 832.636.2562
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/anadarko-and-western-gas-announce-settlement-of-tangible-equity-units-300661407.html
SOURCE Western Gas Equity Partners, LP
HOUSTON, June 1, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP (NYSE:WGP) today announced that Jaime Casas, SVP, Chief Financial Officer and Treasurer, will present at the Bank of America Merrill Lynch 2018 Energy Credit Conference, in New York City, on Thursday, June 7, 2018 at 10:40 a.m. EDT. 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 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 and 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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-to-present-at-upcoming-bank-of-america-merrill-lynch-conference-300658485.html
SOURCE Western Gas Partners, LP
HOUSTON, May 23, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP (NYSE:WGP) today announced that Benjamin Fink, President and CEO, will present at the 2018 Bernstein Strategic Decisions Conference, in New York City, on Wednesday, May 30, 2018 at 4:00 p.m. EDT. 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 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 and 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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-to-present-at-upcoming-bernstein-conference-300653906.html
SOURCE Western Gas Partners, LP
HOUSTON, May 13, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) and Western Gas Equity Partners, LP (NYSE: WGP) (collectively the "Partnerships") announced that the boards of directors of their general partners have appointed Gennifer F. Kelly as Senior Vice President and Chief Operating Officer.
"We are delighted to be able to add a proven leader with over 20 years of energy experience to our executive team," said Chief Executive Officer, Benjamin Fink. "Both her operations and safety expertise make her the ideal candidate to help us complete the execution of the largest capital program in our history."
Ms. Kelly is currently Vice President, Midstream and Marketing at Anadarko Petroleum Corporation ("Anadarko"), the sponsor of the Partnerships. Prior to her current positions, Ms. Kelly held a variety of leadership roles within Anadarko including Director of Operations Transformation, Director of Strategic Planning and General Manager of East Texas and North Louisiana as well as a variety of engineering and operations focused positions. She has been with Anadarko, or its predecessor companies, for over 20 years.
Additionally, the Partnerships today announced that Benjamin Fink, President and CEO, will present at the 2018 MLP & Energy Infrastructure Conference, sponsored by the Master Limited Partnership Association, in Orlando, Florida on Wednesday, May 23, 2018 at 8:25 a.m. EDT. 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 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 and 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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-names-new-chief-operating-officer-300647129.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, May 1, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced first-quarter 2018 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the first quarter of 2018 totaled $65.9 million, or $0.38 per common unit (diluted), with first-quarter 2018 Adjusted EBITDA(1) of $272.1 million and first-quarter 2018 Distributable cash flow(1) of $231.4 million.
WES previously declared a quarterly distribution of $0.935 per unit for the first quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the first-quarter 2017 distribution. The first-quarter 2018 Coverage ratio(1) of 1.05 times was based on the quarterly distribution of $0.935 per unit.
"Our first quarter results highlight the sustained growth in the DJ and Delaware Basins," said Chief Executive Officer, Benjamin Fink. "We and Anadarko continue to execute the largest midstream capital program in our history, and I am pleased to report that the program remains on schedule. We continue to anticipate a significant acceleration of Delaware Basin volumes during the second half of this year."
The Partnership also announced that it has secured the right to participate in two long haul crude pipelines from the Permian Basin: a 20% interest in Enterprise's Midland-to-Sealy pipeline and up to a 15% interest in Plains' Cactus II pipeline from West Texas to Corpus Christi.
(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. |
"These projects are outstanding business opportunities given our outlook for Permian Basin oil production relative to takeaway capacity," said Mr. Fink. "We are updating our 2018 outlook for capital expenditures, including equity investments, to a range of $1.35 billion to $1.45 billion to reflect our expected participation in these projects. Furthermore, we expect to fund our capital program without accessing the equity capital markets while maintaining investment grade credit metrics."
Total throughput attributable to WES for natural gas assets for the first quarter of 2018 averaged 3.6 Bcf/d, which was 5% above the prior quarter and 8% below the first quarter of 2017. Total throughput for crude oil, NGL and produced water assets for the first quarter of 2018 averaged 258 MBbls/d, which was 8% above the prior quarter and 53% above the first quarter of 2017, primarily due to throughput from the DBM water systems, which commenced operation during the second quarter of 2017.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $298.2 million on a cash basis and $323.4 million on an accrual basis during the first quarter of 2018, with maintenance capital expenditures on a cash basis of $16.4 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 2018 totaled $101.0 million, or $0.46 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.56875 per unit for the first quarter of 2018. This distribution represented a 4% increase over the prior quarter's distribution and a 16% increase over the first-quarter 2017 distribution. WGP received distributions from WES of $125.3 million attributable to the first quarter of 2018 and will pay $124.5 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, May 2, 2018, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss first-quarter 2018 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 8107313. 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 and condensate on behalf of itself and as agent for its producer customers 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, LP and Western Gas Equity Partners, LP 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 Service revenues – fee based recognized in Adjusted EBITDA (less than) in excess of customer billings, 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 | ||||||||
thousands except Coverage ratio |
2018 |
2017 | ||||||
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 |
$ |
149,363 |
$ |
101,889 | ||||
Add: |
||||||||
Distributions from equity investments |
28,954 |
22,567 | ||||||
Non-cash equity-based compensation expense |
2,152 |
1,246 | ||||||
Non-cash settled interest expense, net (1) |
— |
71 | ||||||
Income tax (benefit) expense |
1,502 |
3,552 | ||||||
Depreciation and amortization (2) |
76,116 |
69,049 | ||||||
Impairments |
148 |
164,742 | ||||||
Above-market component of swap agreements with Anadarko |
14,282 |
12,297 | ||||||
Other expense (2) |
143 |
45 | ||||||
Less: |
||||||||
Recognized Service revenues – fee based (less than) in excess of customer billings |
(494) |
— | ||||||
Gain (loss) on divestiture and other, net |
116 |
119,487 | ||||||
Equity income, net – affiliates |
20,424 |
19,461 | ||||||
Cash paid for maintenance capital expenditures (2) |
16,434 |
11,122 | ||||||
Capitalized interest |
4,054 |
816 | ||||||
Cash paid for (reimbursement of) income taxes |
(87) |
189 | ||||||
Series A Preferred unit distributions |
— |
7,453 | ||||||
Other income (2) |
777 |
427 | ||||||
Distributable cash flow |
$ |
231,436 |
$ |
216,503 | ||||
Distributions declared (3) |
||||||||
Limited partners – common units |
$ |
142,683 |
||||||
General partner |
78,450 |
|||||||
Total |
$ |
221,133 |
||||||
Coverage ratio |
1.05 |
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 $0.935 per unit declared for the three months ended March 31, 2018. |
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 | ||||||||
thousands |
2018 |
2017 | ||||||
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 |
$ |
149,363 |
$ |
101,889 | ||||
Add: |
||||||||
Distributions from equity investments |
28,954 |
22,567 | ||||||
Non-cash equity-based compensation expense |
2,152 |
1,246 | ||||||
Interest expense |
39,283 |
35,504 | ||||||
Income tax expense |
1,502 |
3,552 | ||||||
Depreciation and amortization (1) |
76,116 |
69,049 | ||||||
Impairments |
148 |
164,742 | ||||||
Other expense (1) |
143 |
45 | ||||||
Less: |
||||||||
Gain (loss) on divestiture and other, net |
116 |
119,487 | ||||||
Equity income, net – affiliates |
20,424 |
19,461 | ||||||
Interest income – affiliates |
4,225 |
4,225 | ||||||
Other income (1) |
777 |
427 | ||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
272,119 |
$ |
254,994 | ||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP |
||||||||
Net cash provided by operating activities |
$ |
241,596 |
$ |
192,616 | ||||
Interest (income) expense, net |
35,058 |
31,279 | ||||||
Uncontributed cash-based compensation awards |
589 |
37 | ||||||
Accretion and amortization of long-term obligations, net |
(1,378) |
(1,101) | ||||||
Current income tax (benefit) expense |
171 |
424 | ||||||
Other (income) expense, net |
(782) |
(430) | ||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
8,013 |
3,453 | ||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable, net |
28,648 |
1,513 | ||||||
Accounts and imbalance payables and accrued liabilities, net |
(27,075) |
29,940 | ||||||
Other items, net |
(9,015) |
15 | ||||||
Adjusted EBITDA attributable to noncontrolling interest |
(3,706) |
(2,752) | ||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
272,119 |
$ |
254,994 | ||||
Cash flow information of Western Gas Partners, LP |
||||||||
Net cash provided by operating activities |
$ |
241,596 |
$ |
192,616 | ||||
Net cash used in investing activities |
(294,168) |
(252,434) | ||||||
Net cash provided by (used in) financing activities |
495,184 |
(175,797) |
(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 reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended | ||||||||
thousands |
2018 |
2017 | ||||||
Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP |
||||||||
Operating income (loss) |
$ |
188,126 |
$ |
138,392 |
||||
Add: |
||||||||
Distributions from equity investments |
28,954 |
22,567 |
||||||
Operation and maintenance |
88,279 |
73,760 |
||||||
General and administrative |
14,132 |
12,659 |
||||||
Property and other taxes |
12,382 |
12,294 |
||||||
Depreciation and amortization |
76,842 |
69,702 |
||||||
Impairments |
148 |
164,742 |
||||||
Less: |
||||||||
Gain (loss) on divestiture and other, net |
116 |
119,487 |
||||||
Proceeds from business interruption insurance claims |
— |
5,767 |
||||||
Equity income, net – affiliates |
20,424 |
19,461 |
||||||
Reimbursed electricity-related charges recorded as revenues |
15,453 |
13,969 |
||||||
Adjusted gross margin attributable to noncontrolling interest |
4,324 |
3,876 |
||||||
Adjusted gross margin attributable to Western Gas Partners, LP |
$ |
368,546 |
$ |
331,556 |
||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets |
$ |
325,872 |
$ |
301,505 |
||||
Adjusted gross margin for crude oil, NGL and produced water assets |
42,674 |
30,051 |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands except per-unit amounts |
2018 |
2017 | ||||||
Revenues and other |
||||||||
Service revenues – fee based |
$ |
338,419 |
$ |
307,814 |
||||
Service revenues – product based |
22,593 |
— |
||||||
Product sales |
75,937 |
206,525 |
||||||
Other |
219 |
1,854 |
||||||
Total revenues and other |
437,168 |
516,193 |
||||||
Equity income, net – affiliates |
20,424 |
19,461 |
||||||
Operating expenses |
||||||||
Cost of product |
77,799 |
189,359 |
||||||
Operation and maintenance |
88,279 |
73,760 |
||||||
General and administrative |
14,132 |
12,659 |
||||||
Property and other taxes |
12,382 |
12,294 |
||||||
Depreciation and amortization |
76,842 |
69,702 |
||||||
Impairments |
148 |
164,742 |
||||||
Total operating expenses |
269,582 |
522,516 |
||||||
Gain (loss) on divestiture and other, net |
116 |
119,487 |
||||||
Proceeds from business interruption insurance claims |
— |
5,767 |
||||||
Operating income (loss) |
188,126 |
138,392 |
||||||
Interest income – affiliates |
4,225 |
4,225 |
||||||
Interest expense |
(39,283) |
(35,504) |
||||||
Other income (expense), net |
782 |
430 |
||||||
Income (loss) before income taxes |
153,850 |
107,543 |
||||||
Income tax (benefit) expense |
1,502 |
3,552 |
||||||
Net income (loss) |
152,348 |
103,991 |
||||||
Net income attributable to noncontrolling interest |
2,985 |
2,102 |
||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
149,363 |
$ |
101,889 |
||||
Limited partners' interest in net income (loss): |
||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
149,363 |
$ |
101,889 |
||||
Series A Preferred units interest in net (income) loss |
— |
(28,174) |
||||||
General partner interest in net (income) loss |
(83,439) |
(68,162) |
||||||
Common and Class C limited partners' interest in net income (loss) |
$ |
65,924 |
$ |
5,553 |
||||
Net income (loss) per common unit – basic and diluted |
$ |
0.38 |
$ |
0.01 |
||||
Weighted-average common units outstanding – basic and diluted |
152,602 |
134,448 |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units |
March 31, |
December 31, | ||||||
Current assets |
$ |
733,247 |
$ |
254,062 | ||||
Note receivable – Anadarko |
260,000 |
260,000 | ||||||
Net property, plant and equipment |
6,063,547 |
5,730,891 | ||||||
Other assets |
1,756,528 |
1,769,397 | ||||||
Total assets |
$ |
8,813,322 |
$ |
8,014,350 | ||||
Current liabilities |
$ |
477,697 |
$ |
424,333 | ||||
Long-term debt |
4,176,346 |
3,464,712 | ||||||
Asset retirement obligations |
147,082 |
143,394 | ||||||
Other liabilities |
137,349 |
10,900 | ||||||
Total liabilities |
$ |
4,938,474 |
$ |
4,043,339 | ||||
Equity and partners' capital |
||||||||
Common units (152,602,105 units issued and outstanding at March 31, 2018, and December 31, 2017) |
2,842,612 |
2,950,010 | ||||||
Class C units (13,505,277 and 13,243,883 units issued and outstanding at March 31, 2018, and December 31, 2017, respectively) |
784,105 |
780,040 | ||||||
General partner units (2,583,068 units issued and outstanding at March 31, 2018, and December 31, 2017) |
185,812 |
179,232 | ||||||
Noncontrolling interest |
62,319 |
61,729 | ||||||
Total liabilities, equity and partners' capital |
$ |
8,813,322 |
$ |
8,014,350 |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands |
2018 |
2017 | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
152,348 |
$ |
103,991 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: |
||||||||
Depreciation and amortization |
76,842 |
69,702 | ||||||
Impairments |
148 |
164,742 | ||||||
(Gain) loss on divestiture and other, net |
(116) |
(119,487) | ||||||
Change in other items, net |
12,374 |
(26,332) | ||||||
Net cash provided by operating activities |
$ |
241,596 |
$ |
192,616 | ||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(302,297) |
$ |
(125,944) | ||||
Contributions in aid of construction costs from affiliates |
— |
1,310 | ||||||
Acquisitions from third parties |
— |
(155,287) | ||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
8,013 |
3,453 | ||||||
Proceeds from the sale of assets to third parties |
116 |
34 | ||||||
Proceeds from property insurance claims |
— |
24,000 | ||||||
Net cash used in investing activities |
$ |
(294,168) |
$ |
(252,434) | ||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
1,337,525 |
$ |
(11) | ||||
Repayments of debt |
(630,000) |
— | ||||||
Increase (decrease) in outstanding checks |
(6,684) |
1,024 | ||||||
Proceeds from the issuance of common units, net of offering expenses |
— |
(158) | ||||||
Distributions to unitholders |
(216,586) |
(185,565) | ||||||
Distributions to noncontrolling interest owner |
(3,353) |
(3,370) | ||||||
Net contributions from (distributions to) Anadarko |
— |
(14) | ||||||
Above-market component of swap agreements with Anadarko |
14,282 |
12,297 | ||||||
Net cash provided by (used in) financing activities |
$ |
495,184 |
$ |
(175,797) | ||||
Net increase (decrease) in cash and cash equivalents |
$ |
442,612 |
$ |
(235,615) | ||||
Cash and cash equivalents at beginning of period |
78,814 |
357,925 | ||||||
Cash and cash equivalents at end of period |
$ |
521,426 |
$ |
122,310 |
Western Gas Partners, LP | ||||||||
OPERATING STATISTICS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
2018 |
2017 | |||||||
Throughput for natural gas assets (MMcf/d) |
||||||||
Gathering, treating and transportation |
816 |
1,443 | ||||||
Processing |
2,755 |
2,442 | ||||||
Equity investment (1) |
152 |
162 | ||||||
Total throughput for natural gas assets |
3,723 |
4,047 | ||||||
Throughput attributable to noncontrolling interest for natural gas assets |
96 |
109 | ||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets |
3,627 |
3,938 | ||||||
Throughput for crude oil, NGL and produced water assets (MBbls/d) |
||||||||
Gathering, treating, transportation and disposal |
124 |
44 | ||||||
Equity investment (2) |
134 |
125 | ||||||
Total throughput for crude oil, NGL and produced water assets |
258 |
169 | ||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (3) |
$ |
1.00 |
$ |
0.85 | ||||
Adjusted gross margin per Bbl for crude oil, NGL and produced water assets (4) |
1.84 |
1.98 | ||||||
(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), less cost of product for natural gas assets, plus distributions from WES's equity investments in Fort Union and Rendezvous, and excluding the noncontrolling interest 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 oil, NGL and produced water assets (total revenues and other for crude oil, NGL and produced water assets less reimbursements for electricity-related expenses recorded as revenue), less cost of product for crude oil, NGL and produced water assets, and 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 oil, 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 | |||
Distributions declared by Western Gas Partners, LP: |
||||
General partner interest |
$ |
3,681 | ||
Incentive distribution rights |
74,770 | |||
Common units held by WGP |
46,873 | |||
Less: |
||||
Public company general and administrative expense |
832 | |||
Interest expense |
1,063 | |||
Cash available for distribution |
$ |
123,429 | ||
Declared distribution per common unit |
$ |
0.56875 | ||
Distributions declared by Western Gas Equity Partners, LP |
$ |
124,518 | ||
Coverage ratio |
0.99x |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands except per-unit amounts |
2018 |
2017 | ||||||
Revenues and other |
||||||||
Service revenues – fee based |
$ |
338,419 |
$ |
307,814 | ||||
Service revenues – product based |
22,593 |
— | ||||||
Product sales |
75,937 |
206,525 | ||||||
Other |
219 |
1,854 | ||||||
Total revenues and other |
437,168 |
516,193 | ||||||
Equity income, net – affiliates |
20,424 |
19,461 | ||||||
Operating expenses |
||||||||
Cost of product |
77,799 |
189,359 | ||||||
Operation and maintenance |
88,279 |
73,760 | ||||||
General and administrative |
14,964 |
13,476 | ||||||
Property and other taxes |
12,382 |
12,294 | ||||||
Depreciation and amortization |
76,842 |
69,702 | ||||||
Impairments |
148 |
164,742 | ||||||
Total operating expenses |
270,414 |
523,333 | ||||||
Gain (loss) on divestiture and other, net |
116 |
119,487 | ||||||
Proceeds from business interruption insurance claims |
— |
5,767 | ||||||
Operating income (loss) |
187,294 |
137,575 | ||||||
Interest income – affiliates |
4,225 |
4,225 | ||||||
Interest expense |
(40,346) |
(36,033) | ||||||
Other income (expense), net |
817 |
446 | ||||||
Income (loss) before income taxes |
151,990 |
106,213 | ||||||
Income tax (benefit) expense |
1,502 |
3,552 | ||||||
Net income (loss) |
150,488 |
102,661 | ||||||
Net income (loss) attributable to noncontrolling interests |
49,483 |
26,721 | ||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
101,005 |
$ |
75,940 | ||||
Net income (loss) per common unit – basic and diluted |
$ |
0.46 |
$ |
0.35 | ||||
Weighted-average common units outstanding – basic and diluted |
218,933 |
218,929 |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units |
March 31, |
December 31, | ||||||
Current assets |
$ |
735,818 |
$ |
255,210 | ||||
Note receivable – Anadarko |
260,000 |
260,000 | ||||||
Net property, plant and equipment |
6,063,547 |
5,730,891 | ||||||
Other assets |
1,756,528 |
1,770,210 | ||||||
Total assets |
$ |
8,815,893 |
$ |
8,016,311 | ||||
Current liabilities |
$ |
506,021 |
$ |
424,426 | ||||
Long-term debt |
4,176,346 |
3,492,712 | ||||||
Asset retirement obligations |
147,082 |
143,394 | ||||||
Other liabilities |
137,349 |
10,900 | ||||||
Total liabilities |
$ |
4,966,798 |
$ |
4,071,432 | ||||
Equity and partners' capital |
||||||||
Common units (218,933,141 units issued and outstanding at March 31, 2018, and December 31, 2017) |
$ |
1,041,066 |
$ |
1,061,125 | ||||
Noncontrolling interests |
2,808,029 |
2,883,754 | ||||||
Total liabilities, equity and partners' capital |
$ |
8,815,893 |
$ |
8,016,311 |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands |
2018 |
2017 | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
150,488 |
$ |
102,661 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: |
||||||||
Depreciation and amortization |
76,842 |
69,702 | ||||||
Impairments |
148 |
164,742 | ||||||
(Gain) loss on divestiture and other, net |
(116) |
(119,487) | ||||||
Change in other items, net |
13,554 |
(25,945) | ||||||
Net cash provided by operating activities |
$ |
240,916 |
$ |
191,673 | ||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(302,297) |
$ |
(125,944) | ||||
Contributions in aid of construction costs from affiliates |
— |
1,310 | ||||||
Acquisitions from third parties |
— |
(155,287) | ||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
8,013 |
3,453 | ||||||
Proceeds from the sale of assets to third parties |
116 |
34 | ||||||
Proceeds from property insurance claims |
— |
24,000 | ||||||
Net cash used in investing activities |
$ |
(294,168) |
$ |
(252,434) | ||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
1,337,517 |
$ |
(11) | ||||
Repayments of debt |
(630,000) |
— | ||||||
Increase (decrease) in outstanding checks |
(6,684) |
1,024 | ||||||
Proceeds from the issuance of WES common units, net of offering expenses |
— |
(158) | ||||||
Distributions to WGP unitholders |
(120,140) |
(101,254) | ||||||
Distributions to Chipeta noncontrolling interest owner |
(3,353) |
(3,370) | ||||||
Distributions to noncontrolling interest owners of WES |
(94,272) |
(84,172) | ||||||
Net contributions from (distributions to) Anadarko |
— |
(14) | ||||||
Above-market component of swap agreements with Anadarko |
14,282 |
12,297 | ||||||
Net cash provided by (used in) financing activities |
$ |
497,350 |
$ |
(175,658) | ||||
Net increase (decrease) in cash and cash equivalents |
$ |
444,098 |
$ |
(236,419) | ||||
Cash and cash equivalents at beginning of period |
79,588 |
359,072 | ||||||
Cash and cash equivalents at end of period |
$ |
523,686 |
$ |
122,653 |
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-first-quarter-2018-results-300640431.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
DALLAS, Feb. 21, 2018 /PRNewswire/ -- Alerian reported index linked product positions of $16.3 billion as of December 31, 2017. Linked products include exchange-traded funds, exchange-traded notes, return of capital notes, variable insurance portfolios, and mutual funds.
Below is a full list of energy master limited partnership (MLP) positions, as of December 31, 2017, in products linked to the Alerian Index Series.
Ticker |
Exposure in |
Exposure in |
Ticker |
Exposure in |
Exposure in | |
AM |
318,072,149 |
10,952,898 |
MMP |
1,644,568,414 |
23,182,526 | |
AMGP |
754,587 |
38,265 |
MPLX |
1,279,929,181 |
36,084,837 | |
ANDX |
516,099,522 |
11,173,404 |
NBLX |
21,404,873 |
428,097 | |
APU |
76,556,528 |
1,655,992 |
NGL |
195,952,022 |
13,946,763 | |
ARLP |
20,166,275 |
1,023,669 |
NS |
296,565,295 |
9,902,013 | |
BPL |
908,164,717 |
18,328,249 |
NSH |
236,356 |
15,055 | |
BWP |
201,509,203 |
15,608,769 |
PAA |
1,085,692,515 |
52,601,382 | |
CEQP |
30,317,020 |
1,175,078 |
PAGP |
3,567,709 |
162,538 | |
CQP |
30,774,953 |
1,038,291 |
PSXP |
303,822,210 |
5,803,672 | |
DCP |
411,714,791 |
11,332,639 |
RMP |
197,598,050 |
9,203,449 | |
DM |
186,044,367 |
6,109,831 |
SEP |
397,826,315 |
10,061,364 | |
EEP |
372,358,764 |
26,962,981 |
SHLX |
369,468,507 |
12,389,957 | |
ENBL |
30,305,242 |
2,131,170 |
SMLP |
20,113,987 |
981,170 | |
ENLC |
1,134,945 |
64,485 |
SPH |
35,347,307 |
1,459,426 | |
ENLK |
317,615,016 |
20,664,607 |
SUN |
36,559,156 |
1,287,294 | |
EPD |
1,672,410,145 |
63,086,011 |
TCP |
350,896,258 |
6,608,216 | |
EQGP |
315,059 |
11,712 |
TEGP |
1,533,669 |
59,583 | |
EQM |
536,502,790 |
7,339,299 |
TEP |
269,478,027 |
5,877,383 | |
ETE |
6,574,648 |
380,918 |
TGP |
26,220,374 |
1,301,259 | |
ETP |
1,669,396,449 |
93,158,284 |
VLP |
23,823,578 |
535,361 | |
GEL |
300,264,393 |
13,434,648 |
VNOM |
20,179,418 |
864,956 | |
GLOP |
17,814,465 |
719,776 |
WES |
604,184,334 |
12,563,617 | |
GMLP |
26,442,305 |
1,159,750 |
WGP |
664,201 |
17,874 | |
HEP |
168,157,229 |
5,175,661 |
WPZ |
1,231,920,496 |
31,766,903 |
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of December 31, 2017, over $16 billion was directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-december-31-2017-index-linked-product-positions-300602316.html
SOURCE Alerian
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 |
Year Ended | |||||||||||||||
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 |
Year Ended | |||||||||||||||
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 |
Year Ended | |||||||||||||||
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 |
Year Ended | |||||||||||||||
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 | ||||||||
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 |
Year Ended | |||||||||||||||
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 | |||
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 |
Year Ended | |||||||||||||||
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 | ||||||||
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 |
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-fourth-quarter-and-full-year-2017-results-300599768.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, Jan. 19, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.920 per unit for the fourth quarter of 2017, marking a full-year 2017 distribution increase of 7-percent over the full-year 2016. This distribution represents a 2-percent increase over the prior quarter and a 7-percent increase over the fourth quarter of 2016. WES's fourth quarter 2017 distribution is payable on February 13, 2018, to unitholders of record at the close of business on February 1, 2018.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.54875 per unit for the fourth quarter of 2017, marking a full-year 2017 distribution increase of 19% over the full-year 2016. This distribution represents a 2-percent increase over the prior quarter and a 19-percent increase over the fourth quarter of 2016. WGP's fourth quarter 2017 distribution is payable on February 22, 2018, to unitholders of record at the close of business on February 1, 2018.
The Partnerships plan to report their fourth-quarter and full-year 2017 results after the market closes on Thursday, February 15, 2018. Management will host a conference call on Friday, February 16, 2018, at 8 a.m. CST (9 a.m. EST) to discuss quarterly and annual results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Fourth-Quarter and Full-Year 2017 Results
Friday, February 16, 2018
8 a.m. CST (9 a.m. EST)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 5796412
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time and enter the access code when prompted.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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 of 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.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-fourth-quarter-2017-distribution-and-schedules-earnings-conference-call-300585450.html
SOURCE Western Gas Partners, LP
DALLAS, Jan. 3, 2018 /PRNewswire/ -- Alerian announced today the real-time launch of the Alerian Energy Infrastructure Capital Strength Select Index, a composite of North American midstream, refining, and utility companies chosen for their ownership of pipeline transportation assets, leverage profile, and above-market dividend payments. The index is disseminated real-time on a price-return basis (AMCS) and on a total-return basis (AMCST).
"The AMCS was designed with the understanding that the portion of the North American energy value chain from midstream to distribution has become increasingly integrated," said Alerian President and CEO Kenny Feng. "The composition of this index also seeks to address growing investor focus on strengthening balance sheets and improving corporate governance."
Constituents as of January 2, 2018
Name |
Ticker |
AltaGas Ltd |
ALA |
Antero Midstream Partners LP |
AM |
Andeavor |
ANDV |
Buckeye Partners LP |
BPL |
Boardwalk Pipeline Partners LP |
BWP |
CenterPoint Energy Inc |
CNP |
Cheniere Energy Partners LP Holdings LLC |
CQH |
Dominion Energy Inc |
D |
Enbridge Inc |
ENB |
EnLink Midstream LLC |
ENLC |
Enterprise Products Partners LP |
EPD |
EQT GP Holdings LP |
EQGP |
Gibson Energy Inc |
GEI |
HollyFrontier Corp |
HFC |
Inter Pipeline Ltd |
IPL |
Keyera Corp |
KEY |
Kinder Morgan Inc |
KMI |
Macquarie Infrastructure Corp |
MIC |
Magellan Midstream Partners LP |
MMP |
Marathon Petroleum Corp |
MPC |
OGE Energy Corp |
OGE |
ONEOK Inc |
OKE |
Plains GP Holdings LP |
PAGP |
Pembina Pipeline Corp |
PPL |
Phillips 66 |
PSX |
Sempra Energy |
SRE |
Tallgrass Energy GP LP |
TEGP |
TransCanada Corp |
TRP |
Valero Energy Corp |
VLO |
Western Gas Equity Partners LP |
WGP |
The Williams Companies Inc |
WMB |
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of December 31, 2017, over $16 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-announces-real-time-launch-of-the-alerian-energy-infrastructure-capital-strength-select-index-300576838.html
SOURCE Alerian
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
"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:
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
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-2018-outlook-300566920.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, Dec. 1, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP (NYSE:WGP) today announced that Benjamin Fink, President and CEO, will present at the 2017 Wells Fargo Securities Pipeline, MLP, and Utilities Symposium, in New York City, on Wednesday, December 6, 2017 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.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-to-present-at-upcoming-wells-fargo-conference-300565477.html
SOURCE Western Gas Partners, LP
HOUSTON, Nov. 22, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) and Western Gas Equity Partners, LP (NYSE: WGP) today announced that Benjamin Fink, President and CEO, will present at the 2017 Jefferies Energy Conference, in Houston, on Tuesday, November 28, 2017 at 1:50 p.m. CST. 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.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-to-present-at-upcoming-jefferies-energy-conference-300561157.html
SOURCE Western Gas Partners, LP
HOUSTON, Oct. 31, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced third-quarter 2017 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the third quarter of 2017 totaled $65.1 million, or $0.38 per common unit (diluted), with third-quarter 2017 Adjusted EBITDA(1) of $257.8 million and third-quarter 2017 Distributable cash flow(1) of $231.9 million.
WES previously declared a quarterly distribution of $0.905 per unit for the third quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the third-quarter 2016 distribution of $0.845 per unit. The third-quarter 2017 Coverage ratio(1) of 1.09 times was based on the quarterly distribution of $0.905 per unit.
"Our portfolio continues to display strong quarterly performance, driven by accelerated producer activity in the DJ and Delaware Basins, despite the over $3.0 million impact to Adjusted EBITDA associated with extreme weather events," said Chief Executive Officer, Benjamin Fink. "Our Ramsey processing facility is nearing capacity as we prepare to commission Ramsey VI later this quarter, and we remain confident that the growing production in the Delaware and DJ Basins will support the significant processing capacity we are adding at our new Mentone and Latham facilities, both of which are on schedule."
(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 third quarter of 2017 averaged 3.4 Bcf/d, which was 1% below the prior quarter (virtually flat when adjusted for the Helper and Clawson divestitures in June 2017) and 16% below the third quarter of 2016. Total throughput for crude, NGL and produced water assets for the third quarter of 2017 averaged 209 MBbls/d, which was 15% above the prior quarter and 13% above the third quarter of 2016.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $156.5 million on a cash basis and $222.3 million on an accrual basis during the third quarter of 2017, with maintenance capital expenditures on a cash basis of $10.6 million. WES is updating its 2017 outlook for capital expenditures to a range of $800 million to $850 million and maintenance capital expenditures to a range of $50 million to $55 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 third quarter of 2017 totaled $96.2 million, or $0.44 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.53750 per unit for the third quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 20% increase over the third-quarter 2016 distribution of $0.44750 per unit. WGP will receive distributions from WES of $119.3 million attributable to the third quarter and will pay $117.7 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, November 1, 2017, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss third-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 4666075. 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 |
Nine Months Ended | |||||||||||||||
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 |
$ |
143,506 |
$ |
167,746 |
$ |
418,846 |
$ |
448,327 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investments |
29,145 |
27,133 |
80,568 |
76,263 |
||||||||||||
Non-cash equity-based compensation expense |
1,258 |
1,469 |
3,479 |
4,018 |
||||||||||||
Non-cash settled - interest expense, net (1) |
— |
(1,173) |
71 |
(12,097) |
||||||||||||
Income tax (benefit) expense |
510 |
472 |
4,905 |
7,431 |
||||||||||||
Depreciation and amortization (2) |
71,812 |
66,589 |
214,213 |
197,678 |
||||||||||||
Impairments |
2,159 |
2,392 |
170,079 |
11,313 |
||||||||||||
Above-market component of swap agreements with Anadarko |
18,049 |
18,417 |
46,719 |
34,782 |
||||||||||||
Other expense (2) |
— |
40 |
140 |
96 |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
72 |
(6,230) |
135,017 |
(8,769) |
||||||||||||
Equity income, net – affiliates |
21,519 |
20,294 |
62,708 |
56,801 |
||||||||||||
Cash paid for maintenance capital expenditures (2) |
10,591 |
15,306 |
33,115 |
55,288 |
||||||||||||
Capitalized interest |
2,115 |
1,343 |
3,991 |
4,674 |
||||||||||||
Cash paid for (reimbursement of) income taxes |
— |
— |
189 |
67 |
||||||||||||
Series A Preferred unit distributions |
— |
14,907 |
7,453 |
30,876 |
||||||||||||
Other income (2) |
283 |
150 |
960 |
272 |
||||||||||||
Distributable cash flow |
$ |
231,859 |
$ |
237,315 |
$ |
695,587 |
$ |
628,602 |
||||||||
Distributions declared (3) |
||||||||||||||||
Limited partners – common units |
$ |
138,105 |
$ |
397,850 |
||||||||||||
General partner |
73,933 |
210,432 |
||||||||||||||
Total |
$ |
212,038 |
$ |
608,282 |
||||||||||||
Coverage ratio |
1.09 |
x |
1.14 |
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 $0.905 and $2.670 per unit declared for the three and nine months ended September 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 |
Nine Months Ended | |||||||||||||||
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 |
$ |
143,506 |
$ |
167,746 |
$ |
418,846 |
$ |
448,327 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investments |
29,145 |
27,133 |
80,568 |
76,263 |
||||||||||||
Non-cash equity-based compensation expense |
1,258 |
1,469 |
3,479 |
4,018 |
||||||||||||
Interest expense |
35,544 |
30,768 |
106,794 |
75,687 |
||||||||||||
Income tax expense |
510 |
472 |
4,905 |
7,431 |
||||||||||||
Depreciation and amortization (1) |
71,812 |
66,589 |
214,213 |
197,678 |
||||||||||||
Impairments |
2,159 |
2,392 |
170,079 |
11,313 |
||||||||||||
Other expense (1) |
— |
40 |
140 |
96 |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
72 |
(6,230) |
135,017 |
(8,769) |
||||||||||||
Equity income, net – affiliates |
21,519 |
20,294 |
62,708 |
56,801 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
12,675 |
12,675 |
||||||||||||
Other income (1) |
283 |
150 |
960 |
272 |
||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
257,835 |
$ |
278,170 |
$ |
787,664 |
$ |
759,834 |
||||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP |
||||||||||||||||
Net cash provided by operating activities |
$ |
211,947 |
$ |
263,872 |
$ |
645,099 |
$ |
657,738 |
||||||||
Interest (income) expense, net |
31,319 |
26,543 |
94,119 |
63,012 |
||||||||||||
Uncontributed cash-based compensation awards |
78 |
290 |
(94) |
448 |
||||||||||||
Accretion and amortization of long-term obligations, net |
(1,055) |
121 |
(3,194) |
9,176 |
||||||||||||
Current income tax (benefit) expense |
395 |
131 |
1,023 |
5,110 |
||||||||||||
Other (income) expense, net |
(286) |
(153) |
(969) |
(224) |
||||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
7,034 |
5,981 |
16,255 |
16,592 |
||||||||||||
Changes in operating working capital: |
||||||||||||||||
Accounts receivable, net |
56,335 |
7,866 |
46,972 |
41,108 |
||||||||||||
Accounts and imbalance payables and accrued liabilities, net |
(45,982) |
(26,330) |
(4,007) |
(24,103) |
||||||||||||
Other |
3,181 |
3,184 |
3,065 |
1,445 |
||||||||||||
Adjusted EBITDA attributable to noncontrolling interest |
(5,131) |
(3,335) |
(10,605) |
(10,468) |
||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
257,835 |
$ |
278,170 |
$ |
787,664 |
$ |
759,834 |
||||||||
Cash flow information of Western Gas Partners, LP |
||||||||||||||||
Net cash provided by operating activities |
$ |
645,099 |
$ |
657,738 |
||||||||||||
Net cash used in investing activities |
(514,797) |
(1,040,692) |
||||||||||||||
Net cash provided by (used in) financing activities |
(335,792) |
429,368 |
(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 |
Nine Months Ended | |||||||||||||||
thousands |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP |
||||||||||||||||
Operating income (loss) |
$ |
179,456 |
$ |
197,288 |
$ |
525,456 |
$ |
527,053 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investments |
29,145 |
27,133 |
80,568 |
76,263 |
||||||||||||
Operation and maintenance |
79,536 |
74,755 |
229,444 |
226,141 |
||||||||||||
General and administrative |
12,158 |
11,382 |
35,402 |
33,542 |
||||||||||||
Property and other taxes |
11,215 |
10,670 |
35,433 |
33,098 |
||||||||||||
Depreciation and amortization |
72,539 |
67,246 |
216,272 |
199,646 |
||||||||||||
Impairments |
2,159 |
2,392 |
170,079 |
11,313 |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
72 |
(6,230) |
135,017 |
(8,769) |
||||||||||||
Proceeds from business interruption insurance claims |
— |
13,667 |
29,882 |
16,270 |
||||||||||||
Equity income, net – affiliates |
21,519 |
20,294 |
62,708 |
56,801 |
||||||||||||
Reimbursed electricity-related charges recorded as revenues |
14,323 |
15,170 |
42,338 |
45,707 |
||||||||||||
Adjusted gross margin attributable to noncontrolling interest |
5,878 |
3,984 |
13,189 |
12,588 |
||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP |
$ |
344,416 |
$ |
343,981 |
$ |
1,009,520 |
$ |
984,459 |
||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets |
$ |
305,337 |
$ |
306,393 |
$ |
904,620 |
$ |
877,583 |
||||||||
Adjusted gross margin for crude, NGL and produced water assets |
39,079 |
37,588 |
104,900 |
106,876 |
Western Gas Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
thousands except per-unit amounts |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Revenues and other |
||||||||||||||||
Gathering, processing and transportation |
$ |
306,187 |
$ |
315,192 |
$ |
913,436 |
$ |
910,332 |
||||||||
Natural gas and natural gas liquids sales |
259,141 |
164,036 |
690,490 |
379,585 |
||||||||||||
Other |
9,367 |
2,417 |
12,412 |
3,533 |
||||||||||||
Total revenues and other |
574,695 |
481,645 |
1,616,338 |
1,293,450 |
||||||||||||
Equity income, net – affiliates |
21,519 |
20,294 |
62,708 |
56,801 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
239,223 |
145,643 |
631,859 |
326,959 |
||||||||||||
Operation and maintenance |
79,536 |
74,755 |
229,444 |
226,141 |
||||||||||||
General and administrative |
12,158 |
11,382 |
35,402 |
33,542 |
||||||||||||
Property and other taxes |
11,215 |
10,670 |
35,433 |
33,098 |
||||||||||||
Depreciation and amortization |
72,539 |
67,246 |
216,272 |
199,646 |
||||||||||||
Impairments |
2,159 |
2,392 |
170,079 |
11,313 |
||||||||||||
Total operating expenses |
416,830 |
312,088 |
1,318,489 |
830,699 |
||||||||||||
Gain (loss) on divestiture and other, net |
72 |
(6,230) |
135,017 |
(8,769) |
||||||||||||
Proceeds from business interruption insurance claims |
— |
13,667 |
29,882 |
16,270 |
||||||||||||
Operating income (loss) |
179,456 |
197,288 |
525,456 |
527,053 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
12,675 |
12,675 |
||||||||||||
Interest expense |
(35,544) |
(30,768) |
(106,794) |
(75,687) |
||||||||||||
Other income (expense), net |
286 |
153 |
969 |
224 |
||||||||||||
Income (loss) before income taxes |
148,423 |
170,898 |
432,306 |
464,265 |
||||||||||||
Income tax (benefit) expense |
510 |
472 |
4,905 |
7,431 |
||||||||||||
Net income (loss) |
147,913 |
170,426 |
427,401 |
456,834 |
||||||||||||
Net income attributable to noncontrolling interest |
4,407 |
2,680 |
8,555 |
8,507 |
||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
143,506 |
$ |
167,746 |
$ |
418,846 |
$ |
448,327 |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
143,506 |
$ |
167,746 |
$ |
418,846 |
$ |
448,327 |
||||||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
— |
— |
(11,326) |
||||||||||||
Series A Preferred units interest in net (income) loss |
— |
(25,539) |
(42,373) |
(50,989) |
||||||||||||
General partner interest in net (income) loss |
(78,376) |
(60,551) |
(222,903) |
(174,332) |
||||||||||||
Common and Class C limited partners' interest in net income (loss) |
$ |
65,130 |
$ |
81,656 |
$ |
153,570 |
$ |
211,680 |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
0.38 |
$ |
0.54 |
$ |
0.91 |
$ |
1.39 |
||||||||
Weighted-average common units outstanding – basic |
152,602 |
130,672 |
145,371 |
130,112 |
||||||||||||
Weighted-average common units outstanding – diluted |
165,475 |
164,658 |
165,258 |
157,107 |
Western Gas Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
thousands except number of units |
September 30, |
December 31, | ||||||
Current assets |
$ |
358,346 |
$ |
594,014 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
5,507,714 |
5,049,932 |
||||||
Other assets |
1,788,251 |
1,829,082 |
||||||
Total assets |
$ |
7,914,311 |
$ |
7,733,028 |
||||
Current liabilities |
$ |
393,364 |
$ |
315,305 |
||||
Long-term debt |
3,343,886 |
3,091,461 |
||||||
Asset retirement obligations and other |
156,532 |
149,043 |
||||||
Deferred purchase price obligation – Anadarko |
— |
41,440 |
||||||
Total liabilities |
$ |
3,893,782 |
$ |
3,597,249 |
||||
Equity and partners' capital |
||||||||
Series A Preferred units (zero and 21,922,831 units issued and outstanding at September 30, 2017, and December 31, 2016, respectively) |
$ |
— |
$ |
639,545 |
||||
Common units (152,602,105 and 130,671,970 units issued and outstanding at September 30, 2017, and December 31, 2016, respectively) |
3,012,424 |
2,536,872 |
||||||
Class C units (12,977,633 and 12,358,123 units issued and outstanding at September 30, 2017, and December 31, 2016, respectively) |
771,856 |
750,831 |
||||||
General partner units (2,583,068 units issued and outstanding at September 30, 2017, and December 31, 2016) |
172,180 |
143,968 |
||||||
Noncontrolling interest |
64,069 |
64,563 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,914,311 |
$ |
7,733,028 |
Western Gas Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Nine Months Ended | ||||||||
thousands |
2017 |
2016 | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
427,401 |
$ |
456,834 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
216,272 |
199,646 |
||||||
Impairments |
170,079 |
11,313 |
||||||
(Gain) loss on divestiture and other, net |
(135,017) |
8,769 |
||||||
Change in other items, net |
(33,636) |
(18,824) |
||||||
Net cash provided by operating activities |
$ |
645,099 |
$ |
657,738 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(419,193) |
$ |
(372,725) |
||||
Contributions in aid of construction costs from affiliates |
1,386 |
4,927 |
||||||
Acquisitions from affiliates |
(3,910) |
(716,465) |
||||||
Acquisitions from third parties |
(155,298) |
— |
||||||
Investments in equity affiliates |
(384) |
139 |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
16,255 |
16,592 |
||||||
Proceeds from the sale of assets to affiliates |
— |
623 |
||||||
Proceeds from the sale of assets to third parties |
23,370 |
7,819 |
||||||
Proceeds from property insurance claims |
22,977 |
18,398 |
||||||
Net cash used in investing activities |
$ |
(514,797) |
$ |
(1,040,692) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
249,989 |
$ |
1,094,600 |
||||
Repayments of debt |
— |
(880,000) |
||||||
Settlement of the Deferred purchase price obligation – Anadarko |
(37,346) |
— |
||||||
Increase (decrease) in outstanding checks |
3,310 |
(1,070) |
||||||
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 |
(589,262) |
(490,289) |
||||||
Distributions to noncontrolling interest owner |
(9,049) |
(11,257) |
||||||
Net contributions from (distributions to) Anadarko |
30 |
(29,335) |
||||||
Above-market component of swap agreements with Anadarko |
46,719 |
34,782 |
||||||
Net cash provided by (used in) financing activities |
$ |
(335,792) |
$ |
429,368 |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
(205,490) |
$ |
46,414 |
||||
Cash and cash equivalents at beginning of period |
357,925 |
98,033 |
||||||
Cash and cash equivalents at end of period |
$ |
152,435 |
$ |
144,447 |
Western Gas Partners, LP OPERATING STATISTICS (Unaudited) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
Throughput for natural gas assets (MMcf/d) |
||||||||||||||||
Gathering, treating and transportation |
784 |
1,562 |
1,029 |
1,556 |
||||||||||||
Processing |
2,588 |
2,448 |
2,528 |
2,301 |
||||||||||||
Equity investment (1) |
159 |
179 |
160 |
178 |
||||||||||||
Total throughput for natural gas assets |
3,531 |
4,189 |
3,717 |
4,035 |
||||||||||||
Throughput attributable to noncontrolling interest for natural gas assets |
104 |
119 |
107 |
127 |
||||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets |
3,427 |
4,070 |
3,610 |
3,908 |
||||||||||||
Throughput for crude, NGL and produced water assets (MBbls/d) |
||||||||||||||||
Gathering, treating and transportation |
77 |
58 |
57 |
59 |
||||||||||||
Equity investment (2) |
132 |
127 |
130 |
126 |
||||||||||||
Total throughput for crude, NGL and produced water assets |
209 |
185 |
187 |
185 |
||||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (3) |
$ |
0.97 |
$ |
0.82 |
$ |
0.92 |
$ |
0.82 |
||||||||
Adjusted gross margin per Bbl for crude, NGL and produced water assets (4) |
2.03 |
2.20 |
2.05 |
2.10 |
||||||||||||
(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 | |||
Distributions declared by Western Gas Partners, LP: |
||||
General partner interest |
$ |
3,529 |
||
Incentive distribution rights |
70,404 |
|||
Common units held by WGP |
45,370 |
|||
Less: |
||||
Public company general and administrative expense |
764 |
|||
Interest expense |
573 |
|||
Cash available for distribution |
$ |
117,966 |
||
Declared distribution per common unit |
$ |
0.53750 |
||
Distributions declared by Western Gas Equity Partners, LP |
$ |
117,677 |
||
Coverage ratio |
1.00 |
x |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
thousands except per-unit amounts |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Revenues and other |
||||||||||||||||
Gathering, processing and transportation |
$ |
306,187 |
$ |
315,192 |
$ |
913,436 |
$ |
910,332 |
||||||||
Natural gas and natural gas liquids sales |
259,141 |
164,036 |
690,490 |
379,585 |
||||||||||||
Other |
9,367 |
2,417 |
12,412 |
3,533 |
||||||||||||
Total revenues and other |
574,695 |
481,645 |
1,616,338 |
1,293,450 |
||||||||||||
Equity income, net – affiliates |
21,519 |
20,294 |
62,708 |
56,801 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
239,223 |
145,643 |
631,859 |
326,959 |
||||||||||||
Operation and maintenance |
79,536 |
74,755 |
229,444 |
226,141 |
||||||||||||
General and administrative |
12,922 |
12,112 |
37,595 |
36,514 |
||||||||||||
Property and other taxes |
11,215 |
10,670 |
35,433 |
33,113 |
||||||||||||
Depreciation and amortization |
72,539 |
67,246 |
216,272 |
199,646 |
||||||||||||
Impairments |
2,159 |
2,392 |
170,079 |
11,313 |
||||||||||||
Total operating expenses |
417,594 |
312,818 |
1,320,682 |
833,686 |
||||||||||||
Gain (loss) on divestiture and other, net |
72 |
(6,230) |
135,017 |
(8,769) |
||||||||||||
Proceeds from business interruption insurance claims |
— |
13,667 |
29,882 |
16,270 |
||||||||||||
Operating income (loss) |
178,692 |
196,558 |
523,263 |
524,066 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
12,675 |
12,675 |
||||||||||||
Interest expense |
(36,117) |
(31,301) |
(108,447) |
(76,869) |
||||||||||||
Other income (expense), net |
311 |
165 |
1,029 |
270 |
||||||||||||
Income (loss) before income taxes |
147,111 |
169,647 |
428,520 |
460,142 |
||||||||||||
Income tax (benefit) expense |
510 |
472 |
4,905 |
7,431 |
||||||||||||
Net income (loss) |
146,601 |
169,175 |
423,615 |
452,711 |
||||||||||||
Net income (loss) attributable to noncontrolling interests |
50,399 |
77,778 |
146,529 |
190,635 |
||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
96,202 |
$ |
91,397 |
$ |
277,086 |
$ |
262,076 |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
96,202 |
$ |
91,397 |
$ |
277,086 |
$ |
262,076 |
||||||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
— |
— |
(11,326) |
||||||||||||
Limited partners' interest in net income (loss) |
$ |
96,202 |
$ |
91,397 |
$ |
277,086 |
$ |
250,750 |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
0.44 |
$ |
0.42 |
$ |
1.27 |
$ |
1.15 |
||||||||
Weighted-average common units outstanding – basic and diluted |
218,933 |
218,922 |
218,931 |
218,921 |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
thousands except number of units |
September 30, |
December 31, | ||||||
Current assets |
$ |
358,970 |
$ |
595,591 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
5,507,714 |
5,049,932 |
||||||
Other assets |
1,789,235 |
1,830,574 |
||||||
Total assets |
$ |
7,915,919 |
$ |
7,736,097 |
||||
Current liabilities |
$ |
393,567 |
$ |
315,387 |
||||
Long-term debt |
3,371,886 |
3,119,461 |
||||||
Asset retirement obligations and other |
156,532 |
149,043 |
||||||
Deferred purchase price obligation – Anadarko |
— |
41,440 |
||||||
Total liabilities |
$ |
3,921,985 |
$ |
3,625,331 |
||||
Equity and partners' capital |
||||||||
Common units (218,933,141 and 218,928,570 units issued and outstanding at September 30, 2017, and December 31, 2016, respectively) |
$ |
1,067,269 |
$ |
1,048,143 |
||||
Noncontrolling interests |
2,926,665 |
3,062,623 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,915,919 |
$ |
7,736,097 |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Nine Months Ended | ||||||||
thousands |
2017 |
2016 | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
423,615 |
$ |
452,711 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
216,272 |
199,646 |
||||||
Impairments |
170,079 |
11,313 |
||||||
(Gain) loss on divestiture and other, net |
(135,017) |
8,769 |
||||||
Change in other items, net |
(32,480) |
(17,739) |
||||||
Net cash provided by operating activities |
$ |
642,469 |
$ |
654,700 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(419,193) |
$ |
(372,725) |
||||
Contributions in aid of construction costs from affiliates |
1,386 |
4,927 |
||||||
Acquisitions from affiliates |
(3,910) |
(716,465) |
||||||
Acquisitions from third parties |
(155,298) |
— |
||||||
Investments in equity affiliates |
(384) |
139 |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
16,255 |
16,592 |
||||||
Proceeds from the sale of assets to affiliates |
— |
623 |
||||||
Proceeds from the sale of assets to third parties |
23,370 |
7,819 |
||||||
Proceeds from property insurance claims |
22,977 |
18,398 |
||||||
Net cash used in investing activities |
$ |
(514,797) |
$ |
(1,040,692) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
249,989 |
$ |
1,120,580 |
||||
Repayments of debt |
— |
(880,000) |
||||||
Settlement of the Deferred purchase price obligation – Anadarko |
(37,346) |
— |
||||||
Increase (decrease) in outstanding checks |
3,310 |
(1,070) |
||||||
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 |
(324,290) |
(276,114) |
||||||
Distributions to Chipeta noncontrolling interest owner |
(9,049) |
(11,257) |
||||||
Distributions to noncontrolling interest owners of WES |
(262,888) |
(211,877) |
||||||
Net contributions from (distributions to) Anadarko |
30 |
(29,335) |
||||||
Above-market component of swap agreements with Anadarko |
46,719 |
34,782 |
||||||
Net cash provided by (used in) financing activities |
$ |
(333,708) |
$ |
432,646 |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
(206,036) |
$ |
46,654 |
||||
Cash and cash equivalents at beginning of period |
359,072 |
99,694 |
||||||
Cash and cash equivalents at end of period |
$ |
153,036 |
$ |
146,348 |
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-third-quarter-2017-results-300546750.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, Oct. 12, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.905 per unit for the third quarter of 2017. This distribution represents a 2-percent increase over the prior quarter and a 7-percent increase over the third quarter of 2016. WES's third quarter 2017 distribution is payable on November 13, 2017, to unitholders of record at the close of business on November 2, 2017.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.53750 per unit for the third quarter of 2017. This distribution represents a 2-percent increase over the prior quarter and a 20-percent increase over the third quarter of 2016. WGP's third quarter 2017 distribution is payable on November 22, 2017, to unitholders of record at the close of business on November 2, 2017.
The Partnerships plan to report their third-quarter 2017 results after the market closes on Tuesday, October 31, 2017. Management will host a conference call on Wednesday, November 1, 2017, at 11 a.m. CDT (12 p.m. EDT) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Third-Quarter 2017 Results
Wednesday, November 1, 2017
11 a.m. CDT (12 p.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 4666075
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time and enter the access code when prompted.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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 of 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.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-third-quarter-2017-distribution-and-schedules-earnings-conference-call-300536221.html
SOURCE Western Gas Partners, LP
HOUSTON, Aug. 31, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP (NYSE:WGP) today announced that Benjamin Fink, President and CEO, will present at the 2017 CEO Energy-Power Conference, sponsored by Barclays Capital, in New York, on Tuesday, September 5, 2017 at 12:25 p.m. EDT. 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.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-to-present-at-upcoming-barclays-ceo-energy-power-conference-300512824.html
SOURCE Western Gas Partners, LP
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 |
Six Months Ended | |||||||||||
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 |
Six Months Ended | |||||||||||||||
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 |
Six Months Ended | |||||||||||||||
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 |
Six Months Ended | |||||||||||||||
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, |
December 31, | ||||||
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 | ||||||||
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 |
Six Months Ended | |||||||||||||||
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 | |||
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 |
Six Months Ended | |||||||||||||||
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, |
December 31, | ||||||
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 | ||||||||
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 |
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-second-quarter-2017-results-300493915.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, July 18, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.890 per unit for the second quarter of 2017. This distribution represents a 2-percent increase over the prior quarter and a 7-percent increase over the second quarter of 2016. WES's second quarter 2017 distribution is payable on August 11, 2017, to unitholders of record at the close of business on July 31, 2017.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.52750 per unit for the second quarter of 2017. This distribution represents a 7-percent increase over the prior quarter and a 22-percent increase over the second quarter of 2016. WGP's second quarter 2017 distribution is payable on August 21, 2017, to unitholders of record at the close of business on July 31, 2017.
The Partnerships plan to report their second-quarter 2017 results after the market closes on Tuesday, July 25, 2017. Management will host a conference call on Wednesday, July 26, 2017, at 11 a.m. CDT (12 p.m. EDT) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Second-Quarter 2017 Results
Wednesday, July 26, 2017
11 a.m. CDT (12 p.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 1783522
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time and enter the access code when prompted.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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 of 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.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-second-quarter-2017-distribution-and-schedules-earnings-conference-call-300490382.html
SOURCE Western Gas Partners, LP
HOUSTON, May 10, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) and Western Gas Equity Partners, LP (NYSE: WGP) announced today the following notice to the brokers and nominees of their non-U.S. unitholders:
Note regarding Non-United States Investors: This is intended to be notice under Treasury Regulation Section 1.1446-4(b) with respect to the quarterly distributions to be paid by Western Gas Partners, LP on May 12, 2017, and Western Gas Equity Partners, LP on May 22, 2017, in each case to holders of record as of May 1, 2017. Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
WESTERN GAS PARTNERS, LP and WESTERN GAS EQUITY PARTNERS, LP CONTACT:
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, May 2, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced first-quarter 2017 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the first quarter of 2017 totaled $5.6 million, or $0.01 per common unit (diluted), with first-quarter 2017 Adjusted EBITDA(1) of $255.0 million and first-quarter 2017 Distributable cash flow(1) of $216.5 million.
WES previously declared a quarterly distribution of $0.875 per unit for the first quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the first-quarter 2016 distribution of $0.815 per unit. The first-quarter 2017 Coverage ratio(1) of 1.15 times was based on the quarterly distribution of $0.875 per unit.
"During the quarter, we began executing the largest capital program in our history, with three Delaware Basin processing plants in various stages of development. Ramsey train VI remains on schedule to begin service in the fourth quarter of this year, and Mentone trains I and II remain on schedule for start-up in the second half of 2018," said Chief Executive Officer, Benjamin Fink. "Furthermore, during the quarter we closed our DBJV-for-Marcellus asset exchange and successfully converted half of our outstanding convertible preferred units into common units, with the other half to be converted this month. Both of these transactions are critical steps toward achieving our objective of providing sustainable distribution growth over time."
(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 first quarter of 2017 averaged 3.9 Bcf/d, which was 3% below the prior quarter and 4% above the first quarter of 2016. Total throughput for crude/NGL assets for the first quarter of 2017 averaged 169 MBbls/d, which was 7% below the prior quarter and 8% below the first quarter of 2016.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $123.8 million on a cash basis and $129.8 million on an accrual basis during the first quarter of 2017, with maintenance capital expenditures on a cash basis of $11.1 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 first quarter of 2017 totaled $75.9 million, or $0.35 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.49125 per unit for the first quarter of 2017. This distribution represented a 6% increase over the prior quarter's distribution and a 16% increase over the first-quarter 2016 distribution of $0.42375 per unit. WGP received distributions from WES of $108.7 million attributable to the first quarter and will pay $107.5 million in distributions for the same period.
(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. |
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
WES and WGP will host a joint conference call on Wednesday, May 3, 2017, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss first-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 5700314. 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, 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. 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 | ||||||||
thousands except Coverage ratio |
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 |
$ |
101,889 |
$ |
116,060 |
||||
Add: |
||||||||
Distributions from equity investments |
22,567 |
24,639 |
||||||
Non-cash equity-based compensation expense |
1,246 |
1,303 |
||||||
Non-cash settled - interest expense, net (1) |
71 |
4,537 |
||||||
Income tax (benefit) expense |
3,552 |
6,633 |
||||||
Depreciation and amortization (2) |
69,049 |
64,439 |
||||||
Impairments |
164,742 |
6,518 |
||||||
Above-market component of swap extensions with Anadarko |
12,297 |
6,813 |
||||||
Other expense (2) |
45 |
— |
||||||
Less: |
||||||||
Gain (loss) on divestiture and other, net |
119,487 |
(632) |
||||||
Equity income, net – affiliates |
19,461 |
16,814 |
||||||
Cash paid for maintenance capital expenditures (2) |
11,122 |
18,897 |
||||||
Capitalized interest |
816 |
1,849 |
||||||
Cash paid for (reimbursement of) income taxes |
189 |
67 |
||||||
Series A Preferred unit distributions |
7,453 |
1,887 |
||||||
Other income (2) |
427 |
122 |
||||||
Distributable cash flow |
$ |
216,503 |
$ |
191,938 |
||||
Distributions declared (3) |
||||||||
Limited partners – common units |
$ |
123,929 |
||||||
General partner |
64,824 |
|||||||
Total |
$ |
188,753 |
||||||
Coverage ratio |
1.15 |
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 $0.875 per unit declared for the three months ended March 31, 2017. |
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 | ||||||||
thousands |
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 |
$ |
101,889 |
$ |
116,060 |
||||
Add: |
||||||||
Distributions from equity investments |
22,567 |
24,639 |
||||||
Non-cash equity-based compensation expense |
1,246 |
1,303 |
||||||
Interest expense |
35,504 |
32,036 |
||||||
Income tax expense |
3,552 |
6,633 |
||||||
Depreciation and amortization (1) |
69,049 |
64,439 |
||||||
Impairments |
164,742 |
6,518 |
||||||
Other expense (1) |
45 |
— |
||||||
Less: |
||||||||
Gain (loss) on divestiture and other, net |
119,487 |
(632) |
||||||
Equity income, net – affiliates |
19,461 |
16,814 |
||||||
Interest income – affiliates |
4,225 |
4,225 |
||||||
Other income (1) |
427 |
122 |
||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
254,994 |
$ |
231,099 |
||||
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 |
$ |
192,616 |
$ |
236,503 |
||||
Interest (income) expense, net |
31,279 |
27,811 |
||||||
Uncontributed cash-based compensation awards |
37 |
72 |
||||||
Accretion and amortization of long-term obligations, net |
(1,101) |
(5,467) |
||||||
Current income tax (benefit) expense |
424 |
4,781 |
||||||
Other (income) expense, net |
(430) |
(124) |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
3,453 |
4,784 |
||||||
Changes in operating working capital: |
||||||||
Accounts receivable, net |
1,513 |
(12,558) |
||||||
Accounts and imbalance payables and accrued liabilities, net |
29,940 |
(17,978) |
||||||
Other |
15 |
(3,048) |
||||||
Adjusted EBITDA attributable to noncontrolling interest |
(2,752) |
(3,677) |
||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
254,994 |
$ |
231,099 |
||||
Cash flow information of Western Gas Partners, LP |
||||||||
Net cash provided by (used in) operating activities |
$ |
192,616 |
$ |
236,503 |
||||
Net cash provided by (used in) investing activities |
(252,434) |
(842,818) |
||||||
Net cash provided by (used in) financing activities |
(175,797) |
616,761 |
(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 | ||||||||
thousands |
2017 |
2016 | ||||||
Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP |
||||||||
Operating income (loss) |
$ |
138,392 |
$ |
153,403 |
||||
Add: |
||||||||
Distributions from equity investments |
22,567 |
24,639 |
||||||
Operation and maintenance |
73,760 |
76,213 |
||||||
General and administrative |
12,659 |
11,277 |
||||||
Property and other taxes |
12,294 |
10,350 |
||||||
Depreciation and amortization |
69,702 |
65,095 |
||||||
Impairments |
164,742 |
6,518 |
||||||
Less: |
||||||||
Gain (loss) on divestiture and other, net |
119,487 |
(632) |
||||||
Proceeds from business interruption insurance claims |
5,767 |
— |
||||||
Equity income, net – affiliates |
19,461 |
16,814 |
||||||
Reimbursed electricity-related charges recorded as revenues |
13,969 |
15,668 |
||||||
Adjusted gross margin attributable to noncontrolling interest |
3,876 |
4,421 |
||||||
Adjusted gross margin attributable to Western Gas Partners, LP |
$ |
331,556 |
$ |
311,224 |
||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets |
$ |
301,505 |
$ |
276,529 |
||||
Adjusted gross margin for crude/NGL assets |
30,051 |
34,695 |
Western Gas Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands except per-unit amounts |
2017 |
2016 | ||||||
Revenues and other |
||||||||
Gathering, processing and transportation |
$ |
307,814 |
$ |
294,004 |
||||
Natural gas and natural gas liquids sales |
206,525 |
88,556 |
||||||
Other |
1,854 |
581 |
||||||
Total revenues and other |
516,193 |
383,141 |
||||||
Equity income, net – affiliates |
19,461 |
16,814 |
||||||
Operating expenses |
||||||||
Cost of product |
189,359 |
76,467 |
||||||
Operation and maintenance |
73,760 |
76,213 |
||||||
General and administrative |
12,659 |
11,277 |
||||||
Property and other taxes |
12,294 |
10,350 |
||||||
Depreciation and amortization |
69,702 |
65,095 |
||||||
Impairments |
164,742 |
6,518 |
||||||
Total operating expenses |
522,516 |
245,920 |
||||||
Gain (loss) on divestiture and other, net |
119,487 |
(632) |
||||||
Proceeds from business interruption insurance claims |
5,767 |
— |
||||||
Operating income (loss) |
138,392 |
153,403 |
||||||
Interest income – affiliates |
4,225 |
4,225 |
||||||
Interest expense |
(35,504) |
(32,036) |
||||||
Other income (expense), net |
430 |
124 |
||||||
Income (loss) before income taxes |
107,543 |
125,716 |
||||||
Income tax (benefit) expense |
3,552 |
6,633 |
||||||
Net income (loss) |
103,991 |
119,083 |
||||||
Net income attributable to noncontrolling interest |
2,102 |
3,023 |
||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
101,889 |
$ |
116,060 |
||||
Limited partners' interest in net income (loss): |
||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
101,889 |
$ |
116,060 |
||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
(11,326) |
||||||
Series A Preferred units interest in net (income) loss |
(28,174) |
(2,329) |
||||||
General partner interest in net (income) loss |
(68,162) |
(55,400) |
||||||
Common and Class C limited partners' interest in net income (loss) |
$ |
5,553 |
$ |
47,005 |
||||
Net income (loss) per common unit – basic and diluted |
$ |
0.01 |
$ |
0.31 |
||||
Weighted-average common units outstanding – basic |
134,448 |
128,990 |
||||||
Weighted-average common units outstanding – diluted |
165,047 |
143,355 |
Western Gas Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
thousands except number of units |
March 31, |
December 31, 2016 | ||||||
Current assets |
$ |
285,619 |
$ |
594,014 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
5,266,813 |
5,049,932 |
||||||
Other assets |
1,820,408 |
1,829,082 |
||||||
Total assets |
$ |
7,632,840 |
$ |
7,733,028 |
||||
Current liabilities |
$ |
280,063 |
$ |
315,305 |
||||
Long-term debt |
3,092,257 |
3,091,461 |
||||||
Asset retirement obligations and other |
154,871 |
149,043 |
||||||
Deferred purchase price obligation – Anadarko |
37,346 |
41,440 |
||||||
Total liabilities |
$ |
3,564,537 |
$ |
3,597,249 |
||||
Equity and partners' capital |
||||||||
Series A Preferred units (10,961,416 and 21,922,831 units issued and outstanding at March 31, 2017, and December 31, 2016, respectively) |
$ |
336,722 |
$ |
639,545 |
||||
Common units (141,633,385 and 130,671,970 units issued and outstanding at March 31, 2017, and December 31, 2016, respectively) |
2,759,744 |
2,536,872 |
||||||
Class C units (12,537,100 and 12,358,123 units issued and outstanding at March 31, 2017, and December 31, 2016, respectively) |
754,670 |
750,831 |
||||||
General partner units (2,583,068 units issued and outstanding at March 31, 2017, and December 31, 2016) |
153,872 |
143,968 |
||||||
Noncontrolling interest |
63,295 |
64,563 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,632,840 |
$ |
7,733,028 |
Western Gas Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands |
2017 |
2016 | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
103,991 |
$ |
119,083 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
69,702 |
65,095 |
||||||
Impairments |
164,742 |
6,518 |
||||||
(Gain) loss on divestiture and other, net |
(119,487) |
632 |
||||||
Change in other items, net |
(26,332) |
45,175 |
||||||
Net cash provided by (used in) operating activities |
$ |
192,616 |
$ |
236,503 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(125,944) |
$ |
(136,987) |
||||
Contributions in aid of construction costs from affiliates |
1,310 |
2,369 |
||||||
Acquisitions from affiliates |
— |
(713,596) |
||||||
Acquisitions from third parties |
(155,287) |
— |
||||||
Investments in equity affiliates |
— |
474 |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
3,453 |
4,784 |
||||||
Proceeds from the sale of assets to third parties |
34 |
138 |
||||||
Proceeds from property insurance claims |
24,000 |
— |
||||||
Net cash provided by (used in) investing activities |
$ |
(252,434) |
$ |
(842,818) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
(11) |
$ |
330,000 |
||||
Increase (decrease) in outstanding checks |
1,024 |
(994) |
||||||
Proceeds from the issuance of common units, net of offering expenses |
(158) |
25,000 |
||||||
Proceeds from the issuance of Series A Preferred units, net of offering expenses |
— |
440,000 |
||||||
Distributions to unitholders |
(185,565) |
(152,588) |
||||||
Distributions to noncontrolling interest owner |
(3,370) |
(3,838) |
||||||
Net contributions from (distributions to) Anadarko |
(14) |
(27,632) |
||||||
Above-market component of swap extensions with Anadarko |
12,297 |
6,813 |
||||||
Net cash provided by (used in) financing activities |
$ |
(175,797) |
$ |
616,761 |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
(235,615) |
$ |
10,446 |
||||
Cash and cash equivalents at beginning of period |
357,925 |
98,033 |
||||||
Cash and cash equivalents at end of period |
$ |
122,310 |
$ |
108,479 |
Western Gas Partners, LP OPERATING STATISTICS (Unaudited) | ||||||||
Three Months Ended | ||||||||
2017 |
2016 | |||||||
Throughput for natural gas assets (MMcf/d) |
||||||||
Gathering, treating and transportation |
1,443 |
1,597 |
||||||
Processing |
2,442 |
2,134 |
||||||
Equity investment (1) |
162 |
185 |
||||||
Total throughput for natural gas assets |
4,047 |
3,916 |
||||||
Throughput attributable to noncontrolling interest for natural gas assets |
109 |
135 |
||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets |
3,938 |
3,781 |
||||||
Throughput for crude/NGL assets (MBbls/d) |
||||||||
Gathering, treating and transportation |
44 |
60 |
||||||
Equity investment (2) |
125 |
124 |
||||||
Total throughput for crude/NGL assets |
169 |
184 |
||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (3) |
$ |
0.85 |
$ |
0.80 |
||||
Adjusted gross margin per Bbl for crude/NGL assets (4) |
1.98 |
2.07 |
||||||
(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 | |||
Distributions declared by Western Gas Partners, LP: |
||||
General partner interest |
$ |
3,381 |
||
Incentive distribution rights |
61,443 |
|||
Common units held by WGP |
43,866 |
|||
Less: |
||||
Public company general and administrative expense |
817 |
|||
Interest expense |
529 |
|||
Cash available for distribution |
$ |
107,344 |
||
Declared distribution per common unit |
$ |
0.49125 |
||
Distributions declared by Western Gas Equity Partners, LP |
$ |
107,549 |
||
Coverage ratio |
1.00 |
x |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands except per-unit amounts |
2017 |
2016 | ||||||
Revenues and other |
||||||||
Gathering, processing and transportation |
$ |
307,814 |
$ |
294,004 |
||||
Natural gas and natural gas liquids sales |
206,525 |
88,556 |
||||||
Other |
1,854 |
581 |
||||||
Total revenues and other |
516,193 |
383,141 |
||||||
Equity income, net – affiliates |
19,461 |
16,814 |
||||||
Operating expenses |
||||||||
Cost of product |
189,359 |
76,467 |
||||||
Operation and maintenance |
73,760 |
76,213 |
||||||
General and administrative |
13,476 |
12,515 |
||||||
Property and other taxes |
12,294 |
10,350 |
||||||
Depreciation and amortization |
69,702 |
65,095 |
||||||
Impairments |
164,742 |
6,518 |
||||||
Total operating expenses |
523,333 |
247,158 |
||||||
Gain (loss) on divestiture and other, net |
119,487 |
(632) |
||||||
Proceeds from business interruption insurance claims |
5,767 |
— |
||||||
Operating income (loss) |
137,575 |
152,165 |
||||||
Interest income – affiliates |
4,225 |
4,225 |
||||||
Interest expense |
(36,033) |
(32,139) |
||||||
Other income (expense), net |
446 |
141 |
||||||
Income (loss) before income taxes |
106,213 |
124,392 |
||||||
Income tax (benefit) expense |
3,552 |
6,633 |
||||||
Net income (loss) |
102,661 |
117,759 |
||||||
Net income (loss) attributable to noncontrolling interests |
26,721 |
35,943 |
||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
75,940 |
$ |
81,816 |
||||
Limited partners' interest in net income (loss): |
||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
75,940 |
$ |
81,816 |
||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
(11,326) |
||||||
Limited partners' interest in net income (loss) |
$ |
75,940 |
$ |
70,490 |
||||
Net income (loss) per common unit – basic and diluted |
$ |
0.35 |
$ |
0.32 |
||||
Weighted-average common units outstanding – basic and diluted |
218,929 |
218,919 |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
thousands except number of units |
March 31, |
December 31, 2016 | ||||||
Current assets |
$ |
286,235 |
$ |
595,591 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
5,266,813 |
5,049,932 |
||||||
Other assets |
1,821,734 |
1,830,574 |
||||||
Total assets |
$ |
7,634,782 |
$ |
7,736,097 |
||||
Current liabilities |
$ |
280,150 |
$ |
315,387 |
||||
Long-term debt |
3,120,257 |
3,119,461 |
||||||
Asset retirement obligations and other |
154,871 |
149,043 |
||||||
Deferred purchase price obligation – Anadarko |
37,346 |
41,440 |
||||||
Total liabilities |
$ |
3,592,624 |
$ |
3,625,331 |
||||
Equity and partners' capital |
||||||||
Common units (218,928,570 units issued and outstanding at March 31, 2017, and December 31, 2016) |
$ |
1,042,403 |
$ |
1,048,143 |
||||
Noncontrolling interests |
2,999,755 |
3,062,623 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,634,782 |
$ |
7,736,097 |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands |
2017 |
2016 | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
102,661 |
$ |
117,759 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
69,702 |
65,095 |
||||||
Impairments |
164,742 |
6,518 |
||||||
(Gain) loss on divestiture and other, net |
(119,487) |
632 |
||||||
Change in other items, net |
(25,945) |
45,879 |
||||||
Net cash provided by (used in) operating activities |
$ |
191,673 |
$ |
235,883 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(125,944) |
$ |
(136,987) |
||||
Contributions in aid of construction costs from affiliates |
1,310 |
2,369 |
||||||
Acquisitions from affiliates |
— |
(713,596) |
||||||
Acquisitions from third parties |
(155,287) |
— |
||||||
Investments in equity affiliates |
— |
474 |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
3,453 |
4,784 |
||||||
Proceeds from the sale of assets to third parties |
34 |
138 |
||||||
Proceeds from property insurance claims |
24,000 |
— |
||||||
Net cash provided by (used in) investing activities |
$ |
(252,434) |
$ |
(842,818) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
(11) |
$ |
356,162 |
||||
Increase (decrease) in outstanding checks |
1,024 |
(994) |
||||||
Proceeds from the issuance of WES common units, net of offering expenses |
(158) |
— |
||||||
Proceeds from the issuance of WES Series A Preferred units, net of offering expenses |
— |
440,000 |
||||||
Distributions to WGP unitholders |
(101,254) |
(88,389) |
||||||
Distributions to Chipeta noncontrolling interest owner |
(3,370) |
(3,838) |
||||||
Distributions to noncontrolling interest owners of WES |
(84,172) |
(63,425) |
||||||
Net contributions from (distributions to) Anadarko |
(14) |
(27,632) |
||||||
Above-market component of swap extensions with Anadarko |
12,297 |
6,813 |
||||||
Net cash provided by (used in) financing activities |
$ |
(175,658) |
$ |
618,697 |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
(236,419) |
$ |
11,762 |
||||
Cash and cash equivalents at beginning of period |
359,072 |
99,694 |
||||||
Cash and cash equivalents at end of period |
$ |
122,653 |
$ |
111,456 |
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, April 13, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.875 per unit for the first quarter of 2017. This distribution represents a 2-percent increase over the prior quarter and a 7-percent increase over the first quarter of 2016. WES's first quarter 2017 distribution is payable on May 12, 2017, to unitholders of record at the close of business on May 1, 2017.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.49125 per unit for the first quarter of 2017. This distribution represents a 6-percent increase over the prior quarter and a 16-percent increase over the first quarter of 2016. WGP's first quarter 2017 distribution is payable on May 22, 2017, to unitholders of record at the close of business on May 1, 2017.
The Partnerships plan to report their first-quarter 2017 results after the market closes on Tuesday, May 2, 2017. Management will host a conference call on Wednesday, May 3, 2017, at 11 a.m. CDT (12 p.m. EDT) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
First-Quarter 2017 Results
Wednesday, May 3, 2017
11 a.m. CDT (12 p.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 5700314
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time and enter the access code when prompted.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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, 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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
SOURCE Western Gas
HOUSTON, Feb. 23, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) and Western Gas Equity Partners, LP (NYSE: WGP) have filed their Annual Reports on Form 10-K for the fiscal year ended December 31, 2016 with the Securities and Exchange Commission. Copies of the reports are available for viewing and downloading on the Western Gas Web site at www.westerngas.com. Unitholders may request hard copies of the reports, which contain the applicable partnership's audited financial statements, free of charge, by emailing investors@westerngas.com or by submitting a written request to Western Gas Partners, LP or Western Gas Equity Partners, LP at the following address: P.O. Box 1330, Houston, TX 77251-1330, Attention: Investor Relations.
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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com .
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
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:
"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:
(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 |
Year Ended | |||||||||||||||
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 |
(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 |
Year Ended | |||||||||||||||
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 |
Year Ended | |||||||||||||||
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 |
Year Ended | |||||||||||||||
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 |
$ |
639,545 |
$ |
— |
||||
Common units (130,671,970 and 128,576,965 units issued and outstanding at |
2,536,872 |
2,588,991 |
||||||
Class C units (12,358,123 and 11,411,862 units issued and outstanding at |
750,831 |
710,891 |
||||||
General partner units (2,583,068 units issued and outstanding at December 31, 2016 |
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 | ||||||||
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 |
Year Ended | |||||||||||||||
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 | |||
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 |
Year Ended | |||||||||||||||
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 | ||||||||
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 |
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, Feb. 13, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP" and collectively the "Partnerships") announced that effective today Benjamin M. Fink has been named President and CEO. Fink has served as the Sr. Vice President (SVP), Finance and CFO of WES since 2009 and of WGP since its formation in 2012. Don Sinclair, in anticipation of his ultimate retirement, has stepped down from his WES and WGP officer positions, as well as his role as SVP, Midstream at the Partnerships' sponsor, Anadarko Petroleum Corporation (NYSE: APC) ("Anadarko"). Sinclair will continue to serve as Senior Advisor to Anadarko and the Partnerships. Fink also will replace Sinclair as a director of the Partnerships and will remain the Partnerships' principal financial and accounting officer until his successor is named.
"Don has been a tremendous part of the success of both Western Gas partnerships since he joined us as President in 2009," said Robert Gwin, Chairman of WES and WGP. "We thank him for his seven years of leadership and contributions, and are very happy that he has chosen to remain part of our organizations in an advisory capacity, as he possesses a unique combination of industry knowledge and commercial talent.
"We are very pleased that Ben will succeed Don, ensuring the continuity of our successful strategy and execution," added Gwin. "Over the past seven years, Ben's financial and tactical leadership has been a critical component of the exceptional performance that Western Gas has consistently delivered to its stakeholders, and I am confident that he, along with his talented leadership team, will advance Western Gas through its next stage of growth."
In addition, Craig W. Collins has been named SVP, Operations and Chief Operating Officer of the Partnerships, and Philip H. Peacock has been named SVP, General Counsel and Corporate Secretary of the Partnerships. Peacock previously served as Vice President, General Counsel and Corporate Secretary beginning in 2012.
BENJAMIN M. FINK
Fink has 25 years of financial and operational experience and joined Anadarko in 2006. He holds a Bachelor of Science degree in Economics from the Wharton School of the University of Pennsylvania, and is a Chartered Financial Analyst.
CRAIG W. COLLINS
Collins joined Anadarko in 2003 and has held positions of increasing responsibility including general manager of midstream commercial development, and most recently as director of midstream engineering. He holds a Bachelor of Science degree in Chemical Engineering from Texas A&M University and a Master of Business Administration degree from Rice University.
PHILIP H. PEACOCK
Peacock joined Western Gas in 2012. Previously, he was a partner practicing corporate and securities law at the law firm of Andrews Kurth LLP, which he joined in 2003. Peacock holds a Bachelor of Arts degree from Princeton University, a Master of Arts degree from the University of Houston, and a Juris Doctor degree from the University of Virginia. He is licensed to practice law in the state of Texas.
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 ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K 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
SOURCE Western Gas
HOUSTON, Jan. 17, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.86 per unit for the fourth quarter of 2016, marking a full-year 2016 distribution increase of 10-percent over the full-year 2015. This distribution represents a 2-percent increase over the prior quarter and an 8-percent increase over the fourth quarter of 2015. WES's fourth quarter 2016 distribution is payable on February 13, 2017, to unitholders of record at the close of business on February 2, 2017.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.46250 per unit for the fourth quarter of 2016, marking a full-year 2016 distribution increase of 19% over the full year 2015. This distribution represents a 3-percent increase over the prior quarter and a 15-percent increase over the fourth quarter of 2015. WGP's fourth quarter 2016 distribution is payable on February 22, 2017, to unitholders of record at the close of business on February 2, 2017.
The Partnerships plan to report their fourth-quarter and full-year 2016 results after the market closes on Wednesday, February 22, 2017. Management will host a conference call on Thursday, February 23, 2017, at 8 a.m. CST (9 a.m. EST) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Fourth-Quarter and Full-Year 2016 Results
Thursday, February 23, 2017
8 a.m. CST (9 a.m. EST)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Conference Call Identification: 5700160
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN GAS PARTNERS, LP and WESTERN GAS EQUITY PARTNERS, LP CONTACT:
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.1007
SOURCE Western Gas
HOUSTON, Dec. 1, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP (NYSE:WGP) today announced that Benjamin Fink, Senior Vice President and CFO, will present at the Wells Fargo Pipeline, MLP and Utilities Symposium, in New York City, on Tuesday, December 6, 2016 at 3:25 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, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
832.636.1007
jon.vandenbrand@anadarko.com
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SOURCE Western Gas
HOUSTON, Nov. 23, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP (NYSE:WGP) today announced that Don Sinclair, President and CEO, will present at the Jefferies 2016 Energy Conference, in Houston, on Tuesday, November 29, 2016 at 9:00 a.m. CST. 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, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
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Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
832.636.1007
jon.vandenbrand@anadarko.com
SOURCE Western Gas Partners, LP
HOUSTON, Nov. 1, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced third-quarter 2016 financial and operating results.
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WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the third quarter of 2016 totaled $81.7 million, or $0.54 per common unit (diluted), with third-quarter 2016 Adjusted EBITDA(1) of $278.2 million and third-quarter 2016 Distributable cash flow(1) of $237.3 million.
WES previously declared a quarterly distribution of $0.845 per unit for the third quarter of 2016. This distribution represented a 2% increase over the prior quarter's distribution and a 9% increase over the third-quarter 2015 distribution of $0.775 per unit. The third-quarter 2016 Coverage ratio(1) of 1.42 times was based on the quarterly distribution of $0.845 per unit and was calculated by dividing the quarter's Distributable cash flow(1) by quarterly distributions declared payable to the general partner and common unitholders.
"The Partnership delivered yet another outstanding financial quarter highlighted by the resiliency of our asset portfolio. We continue to experience strong growth in the Delaware Basin with Ramsey IV successfully ramping to capacity during the quarter, and Ramsey V being placed into service last week," said Chief Executive Officer, Don Sinclair. "Additionally, Ramsey II remains on schedule to return to service by the end of the year, and we have accelerated the scheduled start-up of Ramsey VI to the fourth quarter of 2017."
(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. Distributable cash flow for the quarter includes $13.7 million of business interruption insurance proceeds received during the quarter, and does not include any amounts related to WES's anticipated range of $0 to $5 million in reimbursable amounts attributable to the quarter. |
Total throughput attributable to WES for natural gas assets for the third quarter of 2016 averaged 4.1 Bcf/d, which was 5% above the prior quarter and remained constant compared to the third quarter of 2015(2). Total throughput for crude/NGL assets for the third quarter of 2016 averaged 185 MBbls/d, which was 1% below the prior quarter and 3% below the third quarter of 2015(2).
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $114.4 million on a cash basis and $93.0 million on an accrual basis during the third quarter of 2016, with maintenance capital expenditures on a cash basis of $15.3 million, or 6% of Adjusted EBITDA(1). WES is adjusting its outlook ranges for full-year Adjusted EBITDA(1) and maintenance capital expenditures as a percentage of full-year Adjusted EBITDA(1) to $980 million to $1.0 billion(3) and 6% to 8%, respectively.
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 third quarter of 2016 totaled $91.4 million, or $0.42 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.44750 per unit for the third quarter of 2016. This distribution represented a 3% increase over the prior quarter's distribution and a 17% increase over the third-quarter 2015 distribution of $0.38125 per unit. WGP received distributions from WES of $98.7 million attributable to the third quarter and will pay $98.0 million in distributions for the same period. WGP expects full-year 2016 distribution growth to be 19%.
(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. |
(2) |
Financial and operational information for the third quarter of 2015 has been recast for the acquisition of Springfield. |
(3) |
This press release contains forward-looking estimates of the range of Adjusted EBITDA projected to be generated by WES in its 2016 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. CDT
WES and WGP will host a joint conference call on Wednesday, November 2, 2016, at 8:00 a.m. Central Daylight Time (9:00 a.m. Eastern Daylight Time) to discuss third-quarter 2016 results. Individuals who would like to participate should dial 844-836-8745 (Domestic) or 412-317-5439 (International) approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.
This news release contains forward-looking statements. Western Gas Partners and Western Gas Equity Partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K 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
832.636.1007
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) 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 |
Nine Months Ended | |||||||||||||||
thousands except Coverage ratio |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
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 |
$ |
167,746 |
$ |
184,137 |
$ |
448,327 |
$ |
159,987 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
27,133 |
25,482 |
76,263 |
73,054 |
||||||||||||
Non-cash equity-based compensation expense |
1,469 |
1,148 |
4,018 |
3,423 |
||||||||||||
Interest expense, net (non-cash settled) (2) |
(1,173) |
4,310 |
(12,097) |
9,920 |
||||||||||||
Income tax (benefit) expense |
472 |
12,644 |
7,431 |
37,160 |
||||||||||||
Depreciation and amortization (3) |
66,589 |
66,714 |
197,678 |
202,945 |
||||||||||||
Impairments |
2,392 |
2,335 |
11,313 |
276,579 |
||||||||||||
Above-market component of swap extensions with Anadarko |
18,417 |
7,916 |
34,782 |
7,916 |
||||||||||||
Other expense (3) |
40 |
— |
96 |
— |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
(6,230) |
77,254 |
(8,769) |
77,248 |
||||||||||||
Equity income, net – affiliates |
20,294 |
21,976 |
56,801 |
59,137 |
||||||||||||
Cash paid for maintenance capital expenditures (3) |
15,306 |
14,704 |
55,288 |
40,809 |
||||||||||||
Capitalized interest |
1,343 |
1,039 |
4,674 |
6,826 |
||||||||||||
Cash paid for (reimbursement of) income taxes |
— |
— |
67 |
(138) |
||||||||||||
Series A Preferred unit distributions |
14,907 |
— |
30,876 |
— |
||||||||||||
Other income (3) |
150 |
82 |
272 |
219 |
||||||||||||
Distributable cash flow |
$ |
237,315 |
$ |
189,631 |
$ |
628,602 |
$ |
586,883 |
||||||||
Distributions declared (4) |
||||||||||||||||
Limited partners – common units |
$ |
110,418 |
$ |
325,369 |
||||||||||||
General partner |
56,324 |
163,105 |
||||||||||||||
Total |
$ |
166,742 |
$ |
488,474 |
||||||||||||
Coverage ratio |
1.42 |
x |
1.29 |
x |
(1) |
In March 2016, WES acquired Springfield Pipeline LLC ("Springfield") from Anadarko. Springfield owns a 50.1% interest in an oil gathering system and a gas gathering system, such interest being referred to as the "Springfield interest." Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
(2) |
Includes accretion revisions related to the Deferred purchase price obligation - Anadarko. |
(3) |
Includes WES's 75% share of depreciation and amortization; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. |
(4) |
Reflects cash distributions of $0.845 and $2.490 per unit declared for the three and nine months ended September 30, 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 investees, 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 |
Nine Months Ended | |||||||||||||||
thousands |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
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 |
$ |
167,746 |
$ |
184,137 |
$ |
448,327 |
$ |
159,987 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
27,133 |
25,482 |
76,263 |
73,054 |
||||||||||||
Non-cash equity-based compensation expense |
1,469 |
1,148 |
4,018 |
3,423 |
||||||||||||
Interest expense |
30,768 |
31,773 |
75,687 |
82,337 |
||||||||||||
Income tax expense |
472 |
12,644 |
7,431 |
37,160 |
||||||||||||
Depreciation and amortization (2) |
66,589 |
66,714 |
197,678 |
202,945 |
||||||||||||
Impairments |
2,392 |
2,335 |
11,313 |
276,579 |
||||||||||||
Other expense (2) |
40 |
— |
96 |
— |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
(6,230) |
77,254 |
(8,769) |
77,248 |
||||||||||||
Equity income, net – affiliates |
20,294 |
21,976 |
56,801 |
59,137 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
12,675 |
12,675 |
||||||||||||
Other income (2) |
150 |
82 |
272 |
219 |
||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
278,170 |
$ |
220,696 |
$ |
759,834 |
$ |
686,206 |
||||||||
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 |
$ |
263,872 |
$ |
224,572 |
$ |
657,738 |
$ |
596,893 |
||||||||
Interest (income) expense, net |
26,543 |
27,548 |
63,012 |
69,662 |
||||||||||||
Uncontributed cash-based compensation awards |
290 |
21 |
448 |
166 |
||||||||||||
Accretion and amortization of long-term obligations, net |
121 |
(5,226) |
9,176 |
(12,296) |
||||||||||||
Current income tax (benefit) expense |
131 |
9,030 |
5,110 |
27,164 |
||||||||||||
Other (income) expense, net |
(153) |
(85) |
(224) |
(227) |
||||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
5,981 |
3,871 |
16,592 |
12,409 |
||||||||||||
Changes in operating working capital: |
||||||||||||||||
Accounts receivable, net |
7,866 |
(22,741) |
41,108 |
18,617 |
||||||||||||
Accounts and imbalance payables and accrued liabilities, net |
(26,330) |
(13,288) |
(24,103) |
(17,695) |
||||||||||||
Other |
3,184 |
(168) |
1,445 |
1,686 |
||||||||||||
Adjusted EBITDA attributable to noncontrolling interest |
(3,335) |
(2,838) |
(10,468) |
(10,173) |
||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
278,170 |
$ |
220,696 |
$ |
759,834 |
$ |
686,206 |
||||||||
Cash flow information of Western Gas Partners, LP |
||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
657,738 |
$ |
596,893 |
||||||||||||
Net cash provided by (used in) investing activities |
(1,040,692) |
(368,651) |
||||||||||||||
Net cash provided by (used in) financing activities |
429,368 |
(222,096) |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
(2) |
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 investees and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended |
Nine Months Ended | |||||||||||||||
thousands |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP |
||||||||||||||||
Operating income (loss) |
$ |
197,288 |
$ |
226,432 |
$ |
527,053 |
$ |
274,812 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
27,133 |
25,482 |
76,263 |
73,054 |
||||||||||||
Operation and maintenance |
74,755 |
88,722 |
226,141 |
242,744 |
||||||||||||
General and administrative |
11,382 |
10,143 |
33,542 |
30,632 |
||||||||||||
Property and other taxes |
10,670 |
9,042 |
33,098 |
27,908 |
||||||||||||
Depreciation and amortization |
67,246 |
67,367 |
199,646 |
204,896 |
||||||||||||
Impairments |
2,392 |
2,335 |
11,313 |
276,579 |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
(6,230) |
77,254 |
(8,769) |
77,248 |
||||||||||||
Proceeds from business interruption insurance claims |
13,667 |
— |
16,270 |
— |
||||||||||||
Equity income, net – affiliates |
20,294 |
21,976 |
56,801 |
59,137 |
||||||||||||
Reimbursed electricity-related charges recorded as revenues |
15,170 |
15,392 |
45,707 |
40,423 |
||||||||||||
Adjusted gross margin attributable to noncontrolling interest |
3,984 |
3,753 |
12,588 |
13,222 |
||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP |
$ |
343,981 |
$ |
311,148 |
$ |
984,459 |
$ |
940,595 |
||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets |
$ |
306,393 |
$ |
277,407 |
$ |
877,583 |
$ |
842,213 |
||||||||
Adjusted gross margin for crude/NGL assets |
37,588 |
33,741 |
106,876 |
98,382 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
thousands except per-unit amounts |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
Revenues and other |
||||||||||||||||
Gathering, processing and transportation |
$ |
315,192 |
$ |
283,029 |
$ |
910,332 |
$ |
844,197 |
||||||||
Natural gas and natural gas liquids sales |
164,036 |
147,000 |
379,585 |
486,874 |
||||||||||||
Other |
2,417 |
2,486 |
3,533 |
4,443 |
||||||||||||
Total revenues and other |
481,645 |
432,515 |
1,293,450 |
1,335,514 |
||||||||||||
Equity income, net – affiliates |
20,294 |
21,976 |
56,801 |
59,137 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
145,643 |
127,704 |
326,959 |
414,328 |
||||||||||||
Operation and maintenance |
74,755 |
88,722 |
226,141 |
242,744 |
||||||||||||
General and administrative |
11,382 |
10,143 |
33,542 |
30,632 |
||||||||||||
Property and other taxes |
10,670 |
9,042 |
33,098 |
27,908 |
||||||||||||
Depreciation and amortization |
67,246 |
67,367 |
199,646 |
204,896 |
||||||||||||
Impairments |
2,392 |
2,335 |
11,313 |
276,579 |
||||||||||||
Total operating expenses |
312,088 |
305,313 |
830,699 |
1,197,087 |
||||||||||||
Gain (loss) on divestiture and other, net |
(6,230) |
77,254 |
(8,769) |
77,248 |
||||||||||||
Proceeds from business interruption insurance claims |
13,667 |
— |
16,270 |
— |
||||||||||||
Operating income (loss) |
197,288 |
226,432 |
527,053 |
274,812 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
12,675 |
12,675 |
||||||||||||
Interest expense |
(30,768) |
(31,773) |
(75,687) |
(82,337) |
||||||||||||
Other income (expense), net |
153 |
85 |
224 |
227 |
||||||||||||
Income (loss) before income taxes |
170,898 |
198,969 |
464,265 |
205,377 |
||||||||||||
Income tax (benefit) expense |
472 |
12,644 |
7,431 |
37,160 |
||||||||||||
Net income (loss) |
170,426 |
186,325 |
456,834 |
168,217 |
||||||||||||
Net income attributable to noncontrolling interest |
2,680 |
2,188 |
8,507 |
8,230 |
||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
167,746 |
$ |
184,137 |
$ |
448,327 |
$ |
159,987 |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
167,746 |
$ |
184,137 |
$ |
448,327 |
$ |
159,987 |
||||||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
(19,848) |
(11,326) |
(63,606) |
||||||||||||
Series A Preferred units interest in net (income) loss |
(25,539) |
— |
(50,989) |
— |
||||||||||||
General partner interest in net (income) loss |
(60,551) |
(50,267) |
(174,332) |
(133,415) |
||||||||||||
Common and Class C limited partners' interest in net income (loss) |
$ |
81,656 |
$ |
114,022 |
$ |
211,680 |
$ |
(37,034) |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
0.54 |
$ |
0.79 |
$ |
1.39 |
$ |
(0.35) |
||||||||
Weighted-average common units outstanding – basic |
130,672 |
128,575 |
130,112 |
128,267 |
||||||||||||
Weighted-average common units outstanding – diluted |
164,658 |
139,736 |
157,107 |
139,309 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units |
September 30, |
December 31, 2015 (1) | ||||||
Current assets |
$ |
367,814 |
$ |
299,217 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
5,030,894 |
4,858,779 |
||||||
Other assets |
1,842,390 |
1,883,201 |
||||||
Total assets |
$ |
7,501,098 |
$ |
7,301,197 |
||||
Current liabilities |
$ |
254,385 |
$ |
235,488 |
||||
Long-term debt |
2,907,395 |
2,690,651 |
||||||
Asset retirement obligations and other |
145,964 |
268,356 |
||||||
Deferred purchase price obligation – Anadarko |
16,425 |
188,674 |
||||||
Total liabilities |
$ |
3,324,169 |
$ |
3,383,169 |
||||
Equity and partners' capital |
||||||||
Series A Preferred units (21,922,831 and zero units issued and outstanding at September 30, 2016, and December 31, 2015, respectively) |
$ |
628,548 |
$ |
— |
||||
Common units (130,671,970 and 128,576,965 units issued and outstanding at September 30, 2016, and December 31, 2015, respectively) |
2,604,524 |
2,588,991 |
||||||
Class C units (12,160,424 and 11,411,862 units issued and outstanding at September 30, 2016, and December 31, 2015, respectively) |
741,183 |
710,891 |
||||||
General partner units (2,583,068 units issued and outstanding at September 30, 2016, and December 31, 2015) |
138,040 |
120,164 |
||||||
Net investment by Anadarko |
— |
430,598 |
||||||
Noncontrolling interest |
64,634 |
67,384 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,501,098 |
$ |
7,301,197 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months Ended | ||||||||
thousands |
2016 |
2015 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
456,834 |
$ |
168,217 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
199,646 |
204,896 |
||||||
Impairments |
11,313 |
276,579 |
||||||
(Gain) loss on divestiture and other, net |
8,769 |
(77,248) |
||||||
Change in other items, net |
(18,824) |
24,449 |
||||||
Net cash provided by (used in) operating activities |
$ |
657,738 |
$ |
596,893 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(372,725) |
$ |
(505,848) |
||||
Contributions in aid of construction costs from affiliates |
4,927 |
— |
||||||
Acquisitions from affiliates |
(716,465) |
(10,369) |
||||||
Acquisitions from third parties |
— |
(3,514) |
||||||
Investments in equity affiliates |
139 |
(9,052) |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
16,592 |
12,409 |
||||||
Proceeds from the sale of assets to affiliates |
623 |
700 |
||||||
Proceeds from the sale of assets to third parties |
7,819 |
147,023 |
||||||
Proceeds from property insurance claims |
18,398 |
— |
||||||
Net cash provided by (used in) investing activities |
$ |
(1,040,692) |
$ |
(368,651) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
1,094,600 |
$ |
769,606 |
||||
Repayments of debt |
(880,000) |
(610,000) |
||||||
Increase (decrease) in outstanding checks |
(1,070) |
(2,435) |
||||||
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 |
(490,289) |
(398,983) |
||||||
Distributions to noncontrolling interest owner |
(11,257) |
(10,150) |
||||||
Net contributions from (distributions to) Anadarko |
(29,335) |
(35,403) |
||||||
Above-market component of swap extensions with Anadarko |
34,782 |
7,916 |
||||||
Net cash provided by (used in) financing activities |
$ |
429,368 |
$ |
(222,096) |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
46,414 |
$ |
6,146 |
||||
Cash and cash equivalents at beginning of period |
98,033 |
67,054 |
||||||
Cash and cash equivalents at end of period |
$ |
144,447 |
$ |
73,200 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Partners, LP | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
2016 |
2015 (1) |
2016 |
2015 (1) | |||||||||||||
Throughput for natural gas assets (MMcf/d) |
||||||||||||||||
Gathering, treating and transportation |
1,562 |
1,704 |
1,556 |
1,862 |
||||||||||||
Processing |
2,448 |
2,327 |
2,301 |
2,351 |
||||||||||||
Equity investment (2) |
179 |
177 |
178 |
171 |
||||||||||||
Total throughput for natural gas assets |
4,189 |
4,208 |
4,035 |
4,384 |
||||||||||||
Throughput attributable to noncontrolling interest for natural gas assets |
119 |
126 |
127 |
149 |
||||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets |
4,070 |
4,082 |
3,908 |
4,235 |
||||||||||||
Throughput for crude/NGL assets (MBbls/d) |
||||||||||||||||
Gathering, treating and transportation |
58 |
66 |
59 |
72 |
||||||||||||
Equity investment (3) |
127 |
125 |
126 |
114 |
||||||||||||
Total throughput for crude/NGL assets |
185 |
191 |
185 |
186 |
||||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (4) |
$ |
0.82 |
$ |
0.74 |
$ |
0.82 |
$ |
0.73 |
||||||||
Adjusted gross margin per Bbl for crude/NGL assets (5) |
2.20 |
1.92 |
2.10 |
1.94 |
||||||||||||
(1) |
Throughput and adjusted gross margin have been recast to include results attributable to the Springfield interest. |
(2) |
Represents WES's 14.81% share of average Fort Union throughput and 22% share of average Rendezvous throughput. |
(3) |
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. |
(4) |
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. |
(5) |
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 | |||
Distributions declared by Western Gas Partners, LP: |
||||
General partner interest |
$ |
3,232 |
||
Incentive distribution rights |
53,092 |
|||
Common units held by WGP |
42,362 |
|||
Less: |
||||
Public company general and administrative expense |
730 |
|||
Interest expense |
534 |
|||
Cash available for distribution |
$ |
97,422 |
||
Declared distribution per common unit |
$ |
0.44750 |
||
Distributions declared by Western Gas Equity Partners, LP |
$ |
97,968 |
||
Coverage ratio |
0.99 |
x |
Western Gas Equity Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
thousands except per-unit amounts |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
Revenues and other |
||||||||||||||||
Gathering, processing and transportation |
$ |
315,192 |
$ |
283,029 |
$ |
910,332 |
$ |
844,197 |
||||||||
Natural gas and natural gas liquids sales |
164,036 |
147,000 |
379,585 |
486,874 |
||||||||||||
Other |
2,417 |
2,486 |
3,533 |
4,443 |
||||||||||||
Total revenues and other |
481,645 |
432,515 |
1,293,450 |
1,335,514 |
||||||||||||
Equity income, net – affiliates |
20,294 |
21,976 |
56,801 |
59,137 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
145,643 |
127,704 |
326,959 |
414,328 |
||||||||||||
Operation and maintenance |
74,755 |
88,722 |
226,141 |
242,744 |
||||||||||||
General and administrative |
12,112 |
10,884 |
36,514 |
32,983 |
||||||||||||
Property and other taxes |
10,670 |
9,054 |
33,113 |
27,946 |
||||||||||||
Depreciation and amortization |
67,246 |
67,367 |
199,646 |
204,896 |
||||||||||||
Impairments |
2,392 |
2,335 |
11,313 |
276,579 |
||||||||||||
Total operating expenses |
312,818 |
306,066 |
833,686 |
1,199,476 |
||||||||||||
Gain (loss) on divestiture and other, net |
(6,230) |
77,254 |
(8,769) |
77,248 |
||||||||||||
Proceeds from business interruption insurance claims |
13,667 |
— |
16,270 |
— |
||||||||||||
Operating income (loss) |
196,558 |
225,679 |
524,066 |
272,423 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
12,675 |
12,675 |
||||||||||||
Interest expense |
(31,301) |
(31,773) |
(76,869) |
(82,339) |
||||||||||||
Other income (expense), net |
165 |
96 |
270 |
256 |
||||||||||||
Income (loss) before income taxes |
169,647 |
198,227 |
460,142 |
203,015 |
||||||||||||
Income tax (benefit) expense |
472 |
12,644 |
7,431 |
37,160 |
||||||||||||
Net income (loss) |
169,175 |
185,583 |
452,711 |
165,855 |
||||||||||||
Net income (loss) attributable to noncontrolling interests |
77,778 |
76,364 |
190,635 |
(14,643) |
||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
91,397 |
$ |
109,219 |
$ |
262,076 |
$ |
180,498 |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
91,397 |
$ |
109,219 |
$ |
262,076 |
$ |
180,498 |
||||||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
(19,848) |
(11,326) |
(63,606) |
||||||||||||
Limited partners' interest in net income (loss) |
$ |
91,397 |
$ |
89,371 |
$ |
250,750 |
$ |
116,892 |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
0.42 |
$ |
0.41 |
$ |
1.15 |
$ |
0.53 |
||||||||
Weighted-average common units outstanding – basic and diluted |
218,922 |
218,914 |
218,921 |
218,912 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units |
September 30, |
December 31, | ||||||
Current assets |
$ |
369,750 |
$ |
301,364 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
5,030,894 |
4,858,779 |
||||||
Other assets |
1,844,055 |
1,883,201 |
||||||
Total assets |
$ |
7,504,699 |
$ |
7,303,344 |
||||
Current liabilities |
$ |
254,585 |
$ |
235,565 |
||||
Long-term debt |
2,935,395 |
2,690,651 |
||||||
Asset retirement obligations and other |
145,964 |
268,356 |
||||||
Deferred purchase price obligation – Anadarko |
16,425 |
188,674 |
||||||
Total liabilities |
$ |
3,352,369 |
$ |
3,383,246 |
||||
Equity and partners' capital |
||||||||
Common units (218,922,303 and 218,919,380 units issued and outstanding at September 30, 2016, and December 31, 2015, respectively) |
$ |
1,071,185 |
$ |
1,060,842 |
||||
Net investment by Anadarko |
— |
430,598 |
||||||
Noncontrolling interests |
3,081,145 |
2,428,658 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,504,699 |
$ |
7,303,344 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months Ended | ||||||||
thousands |
2016 |
2015 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
452,711 |
$ |
165,855 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
199,646 |
204,896 |
||||||
Impairments |
11,313 |
276,579 |
||||||
(Gain) loss on divestiture and other, net |
8,769 |
(77,248) |
||||||
Change in other items, net |
(17,739) |
25,214 |
||||||
Net cash provided by (used in) operating activities |
$ |
654,700 |
$ |
595,296 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(372,725) |
$ |
(505,848) |
||||
Contributions in aid of construction costs from affiliates |
4,927 |
— |
||||||
Acquisitions from affiliates |
(716,465) |
(10,369) |
||||||
Acquisitions from third parties |
— |
(3,514) |
||||||
Investments in equity affiliates |
139 |
(9,052) |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
16,592 |
12,409 |
||||||
Proceeds from the sale of assets to affiliates |
623 |
700 |
||||||
Proceeds from the sale of assets to third parties |
7,819 |
147,023 |
||||||
Proceeds from property insurance claims |
18,398 |
— |
||||||
Net cash provided by (used in) investing activities |
$ |
(1,040,692) |
$ |
(368,651) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
1,120,580 |
$ |
769,606 |
||||
Repayments of debt |
(880,000) |
(611,150) |
||||||
Increase (decrease) in outstanding checks |
(1,070) |
(2,435) |
||||||
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 |
(276,114) |
(223,016) |
||||||
Distributions to Chipeta noncontrolling interest owner |
(11,257) |
(10,150) |
||||||
Distributions to noncontrolling interest owners of WES |
(211,877) |
(171,737) |
||||||
Net contributions from (distributions to) Anadarko |
(29,335) |
(35,403) |
||||||
Above-market component of swap extensions with Anadarko |
34,782 |
7,916 |
||||||
Net cash provided by (used in) financing activities |
$ |
432,646 |
$ |
(219,016) |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
46,654 |
$ |
7,629 |
||||
Cash and cash equivalents at beginning of period |
99,694 |
67,213 |
||||||
Cash and cash equivalents at end of period |
$ |
146,348 |
$ |
74,842 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
HOUSTON, Oct. 18, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.845 per unit for the third quarter of 2016. This distribution represents a 2-percent increase over the prior quarter and a 9-percent increase over the third quarter of 2015. WES's third quarter 2016 distribution is payable on November 10, 2016, to unitholders of record at the close of business on October 31, 2016.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.4475 per unit for the third quarter of 2016. This distribution represents a 3-percent increase over the prior quarter and a 17-percent increase over the third quarter of 2015. WGP's third quarter 2016 distribution is payable on November 22, 2016, to unitholders of record at the close of business on October 31, 2016.
The Partnerships plan to report their third-quarter 2016 results after the market closes on Tuesday, November 1, 2016. Management will host a conference call on Wednesday, November 2, 2016, at 8 a.m. CDT (9 a.m. EDT) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Third-Quarter 2016 Results
Wednesday, November 2, 2016
8 a.m. CDT (9 a.m. EDT)
Dial-in number: 844-836-8745
International dial-in number: 412-317-5439
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN GAS PARTNERS, LP and WESTERN GAS EQUITY PARTNERS, LP CONTACT:
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.1007
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SOURCE Western Gas Partners, LP
HOUSTON, Sept. 1, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP (NYSE:WGP) today announced that Don Sinclair, President and CEO, will present at the CEO Energy-Power Conference, sponsored by Barclays Capital, in New York, on Tuesday, September 6, 2016 at 3:45 p.m. EDT. The presentation materials and a link to the webcast presentation will be available at www.westerngas.com.
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Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Western Gas Contact
Jonathon E. VandenBrand
Director, Investor Relations
832.636.1007
jon.vandenbrand@anadarko.com
SOURCE Western Gas Partners, LP
HOUSTON, Aug. 23, 2016 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced that Darrell Hollek, formerly Executive Vice President, U.S. Onshore Exploration and Production, has been named Executive Vice President, Operations with responsibility for the company's U.S. onshore exploration, production and midstream activities, along with its Gulf of Mexico and international operations. The company also announced Ernie Leyendecker, formerly Sr. Vice President, International Exploration, has been named Executive Vice President, International and Deepwater Exploration.
Bob Daniels, formerly Executive Vice President, International and Deepwater Exploration, will continue as an Executive Vice President and member of the company's Executive Committee until his retirement later this year. Jim Kleckner, formerly Executive Vice President, International and Deepwater Operations also is retiring.
"We are fortunate to have the quality and depth of leadership to make these appointments and to effect executive management succession with such talented individuals," Anadarko Chairman, President and CEO Al Walker said. "Darrell and Ernie have significant experience and strong leadership track records of success as they assume these expanded responsibilities. They have been instrumental in advancing Anadarko's exploration, production and development worldwide, and we are confident they will continue to create value for our stakeholders. I would also like to express my sincere appreciation to Bob for his enduring contributions as a pioneer who helped solidify Anadarko's reputation as an industry-leading exploration company, and also to Jim for his leadership and numerous successes over his distinguished career. They each made Anadarko a better company."
Hollek has been with the company since 1980, when he joined as a field engineer. Since that time he has held positions of increasing responsibilities overseeing global deepwater drilling, international, Gulf of Mexico and U.S. onshore exploration and production, as well as environmental, health, safety and regulatory. Hollek will also remain a director of Western Gas Holdings, LLC, a subsidiary of Anadarko, and Western Gas Equity Holdings, LLC, the general partner of Western Gas Equity Partners, LP (NYSE: WGP), a publicly traded midstream limited partnership.
Leyendecker has more than 30 years of experience and joined the company in 2002. He has held positions of increasing responsibility including General Manager for Worldwide Exploration Engineering, Planning and International Negotiations, Vice President of Corporate Planning and Sr. Vice President, Gulf of Mexico Exploration.
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Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2015, the company had approximately 2.06 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and Flash Feed updates, please visit www.anadarko.com.
ANADARKO CONTACTS
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
INVESTORS:
John Colglazier, john.colglazier@anadarko.com, 832.636.2306
Brian Kuck, brian.kuck@anadarko.com, 832.636.7135
Shandell Szabo, shandell.szabo@anadarko.com, 832.636.3977
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
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SOURCE Anadarko Petroleum Corporation
HOUSTON, July 26, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced second-quarter 2016 financial and operating results.
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WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the second quarter of 2016 totaled $83.0 million, or $0.55 per common unit (diluted), with second-quarter 2016 Adjusted EBITDA(1) of $250.6 million and second-quarter 2016 Distributable cash flow(1) of $199.3 million.
WES previously declared a quarterly distribution of $0.830 per unit for the second quarter of 2016. This distribution represented a 2% increase over the prior quarter's distribution and an 11% increase over the second-quarter 2015 distribution of $0.750 per unit. The second-quarter 2016 Coverage ratio(1) of 1.22 times was based on the quarterly distribution of $0.830 per unit and was calculated by dividing the quarter's Distributable cash flow(1) by quarterly distributions declared payable to the general partner and common unitholders. Inclusion of $9.9 million(2) of the expected recoveries under WES's business interruption insurance in Distributable cash flow(1) would result in a ratio of 1.29 times.
(1) |
Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio. |
(2) |
Represents the midpoint of WES's anticipated range of $10 million to $15 million in reimbursable amounts for the quarter, less $2.6 million of proceeds received during the quarter which are included in Adjusted EBITDA. |
"In addition to delivering another solid financial quarter, we reached several important milestones in the Delaware Basin. We resumed full service at Ramsey III, and also completed Ramsey IV on schedule," said Chief Executive Officer, Don Sinclair. "Furthermore, Ramsey V and related facilities are due to come online at the end of the third quarter."
Total throughput attributable to WES for natural gas assets for the second quarter of 2016 averaged 3.9 Bcf/d, which was 2% above the prior quarter and 12% below the second quarter of 2015(2). Total throughput for crude/NGL assets for the second quarter of 2016 averaged 187 MBbls/d, which was 2% above the prior quarter and 1% above the second quarter of 2015(2).
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $116.3 million on a cash basis and $118.9 million on an accrual basis during the second quarter of 2016, with maintenance capital expenditures on a cash basis of $21.1 million, or 8% of Adjusted EBITDA(1). WES is adjusting its outlook ranges for full-year Adjusted EBITDA(1) to $930 million to $970 million(3), and for total capital expenditures (including equity investments but excluding acquisitions) to $490 million to $530 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 2016 totaled $88.9 million, or $0.41 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.43375 per unit for the second quarter of 2016. This distribution represented a 2% increase over the prior quarter's distribution and a 19% increase over the second-quarter 2015 distribution of $0.36375 per unit. WGP received distributions from WES of $96.0 million attributable to the second quarter and will pay $95.0 million in distributions for the same period. The excellent performance of WES's portfolio has reduced its need for additional equity, and WGP's 2016 distribution growth rate will therefore be 19% to 21% depending on the size and timing of additional WES equity issuances, if any.
(1) |
Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio. |
(2) |
Financial and operational information for the second quarter of 2015 has been recast for the acquisition of Springfield. |
(3) |
This press release contains a forward-looking estimate of the range of Adjusted EBITDA projected to be generated by WES in its 2016 fiscal year. A reconciliation of such estimated 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 11 A.M. CDT
WES and WGP will host a joint conference call on Wednesday, July 27, 2016, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss second-quarter 2016 results. Individuals who would like to participate should dial 844-836-8745 (Domestic) or 412-317-5439 (International) approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.
This news release contains forward-looking statements. Western Gas Partners and Western Gas Equity Partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K 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
832.636.1007
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of (i) WES's Distributable cash flow (non-GAAP) to net income (loss) attributable to Western Gas Partners, LP (GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP) to net income (loss) attributable to Western Gas Partners, LP (GAAP) and to net cash provided by operating activities (GAAP), and (iii) Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-GAAP) to operating income (loss) (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) 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 |
Six Months Ended | |||||||||||||||
thousands except Coverage ratio |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
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 |
$ |
164,521 |
$ |
132,343 |
$ |
280,581 |
$ |
(24,150) |
||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
24,491 |
25,902 |
49,130 |
47,572 |
||||||||||||
Non-cash equity-based compensation expense |
1,246 |
1,163 |
2,549 |
2,275 |
||||||||||||
Interest expense, net (non-cash settled) (2) |
(15,461) |
4,190 |
(10,924) |
5,610 |
||||||||||||
Income tax (benefit) expense |
326 |
12,246 |
6,959 |
24,516 |
||||||||||||
Depreciation and amortization (3) |
66,650 |
67,904 |
131,089 |
136,231 |
||||||||||||
Impairments |
2,403 |
1,620 |
8,921 |
274,244 |
||||||||||||
Above-market component of swap extensions with Anadarko |
9,552 |
— |
16,365 |
— |
||||||||||||
Other expense (3) |
56 |
— |
56 |
— |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
(1,907) |
— |
(2,539) |
(6) |
||||||||||||
Equity income, net – affiliates |
19,693 |
18,941 |
36,507 |
37,161 |
||||||||||||
Cash paid for maintenance capital expenditures (3) |
21,085 |
11,992 |
39,982 |
26,105 |
||||||||||||
Capitalized interest |
1,482 |
2,693 |
3,331 |
5,787 |
||||||||||||
Cash paid for (reimbursement of) income taxes |
— |
— |
67 |
(138) |
||||||||||||
Series A Preferred unit distributions |
14,082 |
— |
15,969 |
— |
||||||||||||
Other income (3) |
— |
68 |
122 |
137 |
||||||||||||
Distributable cash flow |
$ |
199,349 |
$ |
211,674 |
$ |
391,287 |
$ |
397,252 |
||||||||
Distributions declared (4) |
||||||||||||||||
Limited partners – common units |
$ |
108,458 |
$ |
214,951 |
||||||||||||
General partner |
54,369 |
106,781 |
||||||||||||||
Total |
$ |
162,827 |
$ |
321,732 |
||||||||||||
Coverage ratio |
1.22 |
x |
1.22 |
x |
(1) |
In March 2016, WES acquired Springfield Pipeline LLC ("Springfield") from Anadarko. Springfield owns a 50.1% interest in an oil gathering system and a gas gathering system, such interest being referred to as the "Springfield interest." Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
(2) |
Includes accretion revisions related to the Deferred purchase price obligation - Anadarko associated with the acquisition of DBJV. |
(3) |
Includes WES's 75% share of depreciation and amortization; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. |
(4) |
Reflects cash distributions of $0.830 and $1.645 per unit declared for the three and six months ended June 30, 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 investees, 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 |
Six Months Ended | |||||||||||||||
thousands |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
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 |
$ |
164,521 |
$ |
132,343 |
$ |
280,581 |
$ |
(24,150) |
||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
24,491 |
25,902 |
49,130 |
47,572 |
||||||||||||
Non-cash equity-based compensation expense |
1,246 |
1,163 |
2,549 |
2,275 |
||||||||||||
Interest expense |
12,883 |
27,604 |
44,919 |
50,564 |
||||||||||||
Income tax expense |
326 |
12,246 |
6,959 |
24,516 |
||||||||||||
Depreciation and amortization (2) |
66,650 |
67,904 |
131,089 |
136,231 |
||||||||||||
Impairments |
2,403 |
1,620 |
8,921 |
274,244 |
||||||||||||
Other expense (2) |
56 |
— |
56 |
— |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
(1,907) |
— |
(2,539) |
(6) |
||||||||||||
Equity income, net – affiliates |
19,693 |
18,941 |
36,507 |
37,161 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
8,450 |
8,450 |
||||||||||||
Other income (2) |
— |
68 |
122 |
137 |
||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
250,565 |
$ |
245,548 |
$ |
481,664 |
$ |
465,510 |
||||||||
Reconciliation of Adjusted EBITDA attributable to Western Gas Partners, LP to Net cash provided by operating activities |
||||||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
250,565 |
$ |
245,548 |
$ |
481,664 |
$ |
465,510 |
||||||||
Adjusted EBITDA attributable to noncontrolling interest |
3,456 |
3,463 |
7,133 |
7,335 |
||||||||||||
Interest income (expense), net |
(8,658) |
(23,379) |
(36,469) |
(42,114) |
||||||||||||
Uncontributed cash-based compensation awards |
(86) |
(68) |
(158) |
(145) |
||||||||||||
Accretion and amortization of long-term obligations, net |
(14,522) |
4,958 |
(9,055) |
7,070 |
||||||||||||
Current income tax benefit (expense) |
(198) |
(11,673) |
(4,979) |
(18,134) |
||||||||||||
Other income (expense), net |
(53) |
71 |
71 |
142 |
||||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
(5,827) |
(5,574) |
(10,611) |
(8,538) |
||||||||||||
Changes in operating working capital: |
||||||||||||||||
Accounts receivable, net |
(45,800) |
(26,725) |
(33,242) |
(41,358) |
||||||||||||
Accounts and imbalance payables and accrued liabilities, net |
(20,205) |
(8,389) |
(2,227) |
4,407 |
||||||||||||
Other |
(1,309) |
(744) |
1,739 |
(1,854) |
||||||||||||
Net cash provided by (used in) operating activities |
$ |
157,363 |
$ |
177,488 |
$ |
393,866 |
$ |
372,321 |
||||||||
Cash flow information of Western Gas Partners, LP |
||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
393,866 |
$ |
372,321 |
||||||||||||
Net cash provided by (used in) investing activities |
(952,824) |
(371,878) |
||||||||||||||
Net cash provided by (used in) financing activities |
618,692 |
20,271 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
(2) |
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 investees and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended |
Six Months Ended | |||||||||||||||
thousands |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
Reconciliation of Adjusted gross margin attributable to Western Gas Partners, LP to Operating income (loss) |
||||||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets |
$ |
294,661 |
$ |
293,560 |
$ |
571,190 |
$ |
564,806 |
||||||||
Adjusted gross margin for crude/NGL assets |
34,593 |
33,237 |
69,288 |
64,641 |
||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP |
329,254 |
326,797 |
640,478 |
629,447 |
||||||||||||
Adjusted gross margin attributable to noncontrolling interest |
4,183 |
4,661 |
8,604 |
9,469 |
||||||||||||
Gain (loss) on divestiture and other, net |
(1,907) |
— |
(2,539) |
(6) |
||||||||||||
Proceeds from business interruption insurance claims |
2,603 |
— |
2,603 |
— |
||||||||||||
Equity income, net – affiliates |
19,693 |
18,941 |
36,507 |
37,161 |
||||||||||||
Reimbursed electricity-related charges recorded as revenues |
14,869 |
13,221 |
30,537 |
25,031 |
||||||||||||
Less: |
||||||||||||||||
Distributions from equity investees |
24,491 |
25,902 |
49,130 |
47,572 |
||||||||||||
Operation and maintenance |
75,173 |
77,837 |
151,386 |
154,022 |
||||||||||||
General and administrative |
10,883 |
9,408 |
22,160 |
20,489 |
||||||||||||
Property and other taxes |
12,078 |
9,586 |
22,428 |
18,866 |
||||||||||||
Depreciation and amortization |
67,305 |
68,554 |
132,400 |
137,529 |
||||||||||||
Impairments |
2,403 |
1,620 |
8,921 |
274,244 |
||||||||||||
Operating income (loss) |
$ |
176,362 |
$ |
170,713 |
$ |
329,765 |
$ |
48,380 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||
thousands except per-unit amounts |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
Revenues and other |
||||||||||||||||
Gathering, processing and transportation |
$ |
301,136 |
$ |
290,900 |
$ |
595,140 |
$ |
561,168 |
||||||||
Natural gas and natural gas liquids sales |
126,993 |
174,202 |
215,549 |
339,874 |
||||||||||||
Other |
535 |
891 |
1,116 |
1,957 |
||||||||||||
Total revenues and other |
428,664 |
465,993 |
811,805 |
902,999 |
||||||||||||
Equity income, net – affiliates |
19,693 |
18,941 |
36,507 |
37,161 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
104,849 |
147,216 |
181,316 |
286,624 |
||||||||||||
Operation and maintenance |
75,173 |
77,837 |
151,386 |
154,022 |
||||||||||||
General and administrative |
10,883 |
9,408 |
22,160 |
20,489 |
||||||||||||
Property and other taxes |
12,078 |
9,586 |
22,428 |
18,866 |
||||||||||||
Depreciation and amortization |
67,305 |
68,554 |
132,400 |
137,529 |
||||||||||||
Impairments |
2,403 |
1,620 |
8,921 |
274,244 |
||||||||||||
Total operating expenses |
272,691 |
314,221 |
518,611 |
891,774 |
||||||||||||
Gain (loss) on divestiture and other, net |
(1,907) |
— |
(2,539) |
(6) |
||||||||||||
Proceeds from business interruption insurance claims |
2,603 |
— |
2,603 |
— |
||||||||||||
Operating income (loss) |
176,362 |
170,713 |
329,765 |
48,380 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
8,450 |
8,450 |
||||||||||||
Interest expense |
(12,883) |
(27,604) |
(44,919) |
(50,564) |
||||||||||||
Other income (expense), net |
(53) |
71 |
71 |
142 |
||||||||||||
Income (loss) before income taxes |
167,651 |
147,405 |
293,367 |
6,408 |
||||||||||||
Income tax (benefit) expense |
326 |
12,246 |
6,959 |
24,516 |
||||||||||||
Net income (loss) |
167,325 |
135,159 |
286,408 |
(18,108) |
||||||||||||
Net income attributable to noncontrolling interest |
2,804 |
2,816 |
5,827 |
6,042 |
||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
164,521 |
$ |
132,343 |
$ |
280,581 |
$ |
(24,150) |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
164,521 |
$ |
132,343 |
$ |
280,581 |
$ |
(24,150) |
||||||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
(18,719) |
(11,326) |
(43,758) |
||||||||||||
Series A Preferred units interest in net (income) loss |
(23,121) |
— |
(25,450) |
— |
||||||||||||
General partner interest in net (income) loss |
(58,381) |
(45,971) |
(113,781) |
(83,148) |
||||||||||||
Common and Class C limited partners' interest in net income (loss) |
$ |
83,019 |
$ |
67,653 |
$ |
130,024 |
$ |
(151,056) |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
0.55 |
$ |
0.46 |
$ |
0.86 |
$ |
(1.14) |
||||||||
Weighted-average common units outstanding – basic |
130,669 |
128,481 |
129,830 |
128,111 |
||||||||||||
Weighted-average common units outstanding – diluted |
163,227 |
139,504 |
153,291 |
139,092 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
thousands except number of units |
June 30, |
December 31, | ||||||
Current assets |
$ |
385,253 |
$ |
299,217 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
5,002,144 |
4,858,779 |
||||||
Other assets |
1,856,705 |
1,883,201 |
||||||
Total assets |
$ |
7,504,102 |
$ |
7,301,197 |
||||
Current liabilities |
$ |
241,565 |
$ |
235,488 |
||||
Long-term debt |
2,932,004 |
2,690,651 |
||||||
Asset retirement obligations and other |
143,159 |
268,356 |
||||||
Deferred purchase price obligation – Anadarko |
29,150 |
188,674 |
||||||
Total liabilities |
$ |
3,345,878 |
$ |
3,383,169 |
||||
Equity and partners' capital |
||||||||
Series A Preferred units (21,922,831 and zero units issued and outstanding at June 30, 2016, and December 31, 2015, respectively) |
$ |
617,094 |
$ |
— |
||||
Common units (130,671,970 and 128,576,965 units issued and outstanding at June 30, 2016, and December 31, 2015, respectively) |
2,613,806 |
2,588,991 |
||||||
Class C units (11,946,008 and 11,411,862 units issued and outstanding at June 30, 2016, and December 31, 2015, respectively) |
729,731 |
710,891 |
||||||
General partner units (2,583,068 units issued and outstanding at June 30, 2016, and December 31, 2015) |
131,842 |
120,164 |
||||||
Net investment by Anadarko |
— |
430,598 |
||||||
Noncontrolling interest |
65,751 |
67,384 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,504,102 |
$ |
7,301,197 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Six Months Ended | ||||||||
thousands |
2016 |
2015 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
286,408 |
$ |
(18,108) |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
132,400 |
137,529 |
||||||
Impairments |
8,921 |
274,244 |
||||||
(Gain) loss on divestiture and other, net |
2,539 |
6 |
||||||
Change in other items, net |
(36,402) |
(21,350) |
||||||
Net cash provided by (used in) operating activities |
$ |
393,866 |
$ |
372,321 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(255,923) |
$ |
(361,798) |
||||
Contributions in aid of construction costs from affiliates |
3,854 |
— |
||||||
Acquisitions from affiliates |
(715,199) |
(9,056) |
||||||
Acquisitions from third parties |
— |
(3,514) |
||||||
Investments in equity affiliates |
139 |
(6,770) |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
10,611 |
8,538 |
||||||
Proceeds from the sale of assets to affiliates |
613 |
700 |
||||||
Proceeds from the sale of assets to third parties |
137 |
22 |
||||||
Proceeds from property insurance claims |
2,944 |
— |
||||||
Net cash provided by (used in) investing activities |
$ |
(952,824) |
$ |
(371,878) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
530,000 |
$ |
769,694 |
||||
Repayments of debt |
(290,000) |
(520,000) |
||||||
Increase (decrease) in outstanding checks |
(1,314) |
(2,938) |
||||||
Proceeds from the issuance of common units, net of offering expenses |
25,000 |
57,376 |
||||||
Proceeds from the issuance of Series A Preferred units, net of offering expenses |
686,940 |
— |
||||||
Distributions to unitholders |
(313,380) |
(259,247) |
||||||
Distributions to noncontrolling interest owner |
(7,460) |
(7,175) |
||||||
Net contributions from (distributions to) Anadarko |
(27,459) |
(17,439) |
||||||
Above-market component of swap extensions with Anadarko |
16,365 |
— |
||||||
Net cash provided by (used in) financing activities |
$ |
618,692 |
$ |
20,271 |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
59,734 |
$ |
20,714 |
||||
Cash and cash equivalents at beginning of period |
98,033 |
67,054 |
||||||
Cash and cash equivalents at end of period |
$ |
157,767 |
$ |
87,768 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Partners, LP OPERATING STATISTICS (Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||
2016 |
2015 (1) |
2016 |
2015 (1) | |||||||||||||
Throughput for natural gas assets (MMcf/d) |
||||||||||||||||
Gathering, treating and transportation |
1,508 |
1,920 |
1,553 |
1,942 |
||||||||||||
Processing |
2,320 |
2,465 |
2,226 |
2,362 |
||||||||||||
Equity investment (2) |
170 |
172 |
178 |
169 |
||||||||||||
Total throughput for natural gas assets |
3,998 |
4,557 |
3,957 |
4,473 |
||||||||||||
Throughput attributable to noncontrolling interest for natural gas assets |
128 |
159 |
132 |
161 |
||||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets |
3,870 |
4,398 |
3,825 |
4,312 |
||||||||||||
Throughput for crude/NGL assets (MBbls/d) |
||||||||||||||||
Gathering, treating and transportation |
59 |
74 |
59 |
75 |
||||||||||||
Equity investment (3) |
128 |
111 |
127 |
109 |
||||||||||||
Total throughput for crude/NGL assets |
187 |
185 |
186 |
184 |
||||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (4) |
$ |
0.84 |
$ |
0.73 |
$ |
0.82 |
$ |
0.72 |
||||||||
Adjusted gross margin per Bbl for crude/NGL assets (5) |
2.03 |
1.98 |
2.05 |
1.95 |
||||||||||||
(1) |
Throughput and adjusted gross margin have been recast to include results attributable to the Springfield interest. |
(2) |
Represents WES's 14.81% share of average Fort Union throughput and 22% share of average Rendezvous throughput. |
(3) |
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. |
(4) |
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. |
(5) |
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 | |||
Distributions declared by Western Gas Partners, LP: |
||||
General partner interest |
$ |
3,156 |
||
Incentive distribution rights |
51,213 |
|||
Common units held by WGP |
41,610 |
|||
Less: |
||||
Public company general and administrative expense |
1,004 |
|||
Interest expense |
547 |
|||
Cash available for distribution |
$ |
94,428 |
||
Declared distribution per common unit |
$ |
0.43375 |
||
Distributions declared by Western Gas Equity Partners, LP |
$ |
94,958 |
||
Coverage ratio |
0.99 |
x |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||
thousands except per-unit amounts |
2016 |
2015 (1) |
2016 |
2015 (1) | ||||||||||||
Revenues and other |
||||||||||||||||
Gathering, processing and transportation |
$ |
301,136 |
$ |
290,900 |
$ |
595,140 |
$ |
561,168 |
||||||||
Natural gas and natural gas liquids sales |
126,993 |
174,202 |
215,549 |
339,874 |
||||||||||||
Other |
535 |
891 |
1,116 |
1,957 |
||||||||||||
Total revenues and other |
428,664 |
465,993 |
811,805 |
902,999 |
||||||||||||
Equity income, net – affiliates |
19,693 |
18,941 |
36,507 |
37,161 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
104,849 |
147,216 |
181,316 |
286,624 |
||||||||||||
Operation and maintenance |
75,173 |
77,837 |
151,386 |
154,022 |
||||||||||||
General and administrative |
11,887 |
10,183 |
24,402 |
22,099 |
||||||||||||
Property and other taxes |
12,093 |
9,612 |
22,443 |
18,892 |
||||||||||||
Depreciation and amortization |
67,305 |
68,554 |
132,400 |
137,529 |
||||||||||||
Impairments |
2,403 |
1,620 |
8,921 |
274,244 |
||||||||||||
Total operating expenses |
273,710 |
315,022 |
520,868 |
893,410 |
||||||||||||
Gain (loss) on divestiture and other, net |
(1,907) |
— |
(2,539) |
(6) |
||||||||||||
Proceeds from business interruption insurance claims |
2,603 |
— |
2,603 |
— |
||||||||||||
Operating income (loss) |
175,343 |
169,912 |
327,508 |
46,744 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
8,450 |
8,450 |
||||||||||||
Interest expense |
(13,429) |
(27,604) |
(45,568) |
(50,566) |
||||||||||||
Other income (expense), net |
(36) |
80 |
105 |
160 |
||||||||||||
Income (loss) before income taxes |
166,103 |
146,613 |
290,495 |
4,788 |
||||||||||||
Income tax (benefit) expense |
326 |
12,246 |
6,959 |
24,516 |
||||||||||||
Net income (loss) |
165,777 |
134,367 |
283,536 |
(19,728) |
||||||||||||
Net income (loss) attributable to noncontrolling interests |
76,914 |
46,716 |
112,857 |
(91,007) |
||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
88,863 |
$ |
87,651 |
$ |
170,679 |
$ |
71,279 |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
88,863 |
$ |
87,651 |
$ |
170,679 |
$ |
71,279 |
||||||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
(18,719) |
(11,326) |
(43,758) |
||||||||||||
Limited partners' interest in net income (loss) |
$ |
88,863 |
$ |
68,932 |
$ |
159,353 |
$ |
27,521 |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
0.41 |
$ |
0.31 |
$ |
0.73 |
$ |
0.13 |
||||||||
Weighted-average common units outstanding – basic and diluted |
218,921 |
218,912 |
218,920 |
218,911 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
thousands except number of units |
June 30, |
December 31, | ||||||
Current assets |
$ |
387,167 |
$ |
301,364 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
5,002,144 |
4,858,779 |
||||||
Other assets |
1,858,502 |
1,883,201 |
||||||
Total assets |
$ |
7,507,813 |
$ |
7,303,344 |
||||
Current liabilities |
$ |
241,706 |
$ |
235,565 |
||||
Long-term debt |
2,960,004 |
2,690,651 |
||||||
Asset retirement obligations and other |
143,159 |
268,356 |
||||||
Deferred purchase price obligation – Anadarko |
29,150 |
188,674 |
||||||
Total liabilities |
$ |
3,374,019 |
$ |
3,383,246 |
||||
Equity and partners' capital |
||||||||
Common units (218,922,303 and 218,919,380 units issued and outstanding at June 30, 2016, and December 31, 2015, respectively) |
$ |
1,052,619 |
$ |
1,060,842 |
||||
Net investment by Anadarko |
— |
430,598 |
||||||
Noncontrolling interests |
3,081,175 |
2,428,658 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,507,813 |
$ |
7,303,344 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Six Months Ended | ||||||||
thousands |
2016 |
2015 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
283,536 |
$ |
(19,728) |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
132,400 |
137,529 |
||||||
Impairments |
8,921 |
274,244 |
||||||
(Gain) loss on divestiture and other, net |
2,539 |
6 |
||||||
Change in other items, net |
(35,581) |
(20,828) |
||||||
Net cash provided by (used in) operating activities |
$ |
391,815 |
$ |
371,223 |
||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(255,923) |
$ |
(361,798) |
||||
Contributions in aid of construction costs from affiliates |
3,854 |
— |
||||||
Acquisitions from affiliates |
(715,199) |
(9,056) |
||||||
Acquisitions from third parties |
— |
(3,514) |
||||||
Investments in equity affiliates |
139 |
(6,770) |
||||||
Distributions from equity investments in excess of cumulative earnings – affiliates |
10,611 |
8,538 |
||||||
Proceeds from the sale of assets to affiliates |
613 |
700 |
||||||
Proceeds from the sale of assets to third parties |
137 |
22 |
||||||
Proceeds from property insurance claims |
2,944 |
— |
||||||
Net cash provided by (used in) investing activities |
$ |
(952,824) |
$ |
(371,878) |
||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
556,017 |
$ |
769,694 |
||||
Repayments of debt |
(290,000) |
(521,150) |
||||||
Increase (decrease) in outstanding checks |
(1,314) |
(2,938) |
||||||
Proceeds from the issuance of WES common units, net of offering expenses |
— |
57,376 |
||||||
Proceeds from the issuance of WES Series A Preferred units, net of offering expenses |
686,940 |
— |
||||||
Distributions to WGP unitholders |
(181,156) |
(143,386) |
||||||
Distributions to Chipeta noncontrolling interest owner |
(7,460) |
(7,175) |
||||||
Distributions to noncontrolling interest owners of WES |
(130,947) |
(112,278) |
||||||
Net contributions from (distributions to) Anadarko |
(27,459) |
(17,439) |
||||||
Above-market component of swap extensions with Anadarko |
16,365 |
— |
||||||
Net cash provided by (used in) financing activities |
$ |
620,986 |
$ |
22,704 |
||||
Net increase (decrease) in cash and cash equivalents |
$ |
59,977 |
$ |
22,049 |
||||
Cash and cash equivalents at beginning of period |
99,694 |
67,213 |
||||||
Cash and cash equivalents at end of period |
$ |
159,671 |
$ |
89,262 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield interest. |
SOURCE Western Gas
HOUSTON, July 26, 2016 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the second quarter of 2016, including a net loss attributable to common stockholders of $692 million, or $1.36 per share (diluted). The net loss includes certain items typically excluded by the investment community in published estimates, which in the aggregate decreased net income by $388 million or $0.76 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the second quarter of 2016 was $1.229 billion. Discretionary cash flow from operations totaled $669 million.(2)
HIGHLIGHTS
"Our portfolio continues to perform exceptionally well, and we've continued to significantly reduce our cost structure throughout the year," said Al Walker, Anadarko Chairman, President and CEO. "As a result of the record sales volumes from our Lucius and Caesar/Tonga fields in the Gulf of Mexico, as well as the improving well performance in the Delaware and DJ basins, we are increasing the midpoint of our full-year divestiture-adjusted(3) sales-volume guidance by 2 million BOE (barrels of oil equivalent). Additionally, we've been very successful monetizing assets through the first six months of this year and have increased the high end of our target range to $3.5 billion in total proceeds expected by year end. As stated previously, we intend to use sales proceeds to retire debt, including the remaining $750 million of 2017 maturities. In addition, should the commodity-price outlook continue to improve, we will evaluate redeploying some of the additional cash generated via operations and asset sales toward our highest-quality U.S. onshore opportunities."
OPERATIONS SUMMARY
Anadarko's second-quarter sales volumes of natural gas, oil and natural gas liquids (NGLs) totaled 72 million BOE, or an average of 792,000 BOE per day.
In the Delaware Basin of West Texas, Anadarko averaged record net sales volumes of 41,000 BOE per day, and exited the quarter at approximately 45,000 BOE per day. The company has continued its delineation program, running six rigs to further its understanding of both the vertical and areal potential across its 600,000-gross-acre position in the heart of the play. In the DJ Basin of northeast Colorado, Anadarko continued to optimize the performance of its base production during the second quarter, achieving record net sales volumes of approximately 243,000 BOE per day.
In the Gulf of Mexico, the company achieved several production records. The Lucius platform achieved a 24-hour gross production record and averaged sales volumes above the facility's 80,000 barrels of oil per day (BOPD) nameplate capacity. In addition, the company's Constitution spar recently achieved a production record of 65,000 BOPD, and its K2 complex also achieved an eight-year-high production rate of 28,000 BOPD. During the quarter, Anadarko continued to advance its understanding of the Shenandoah discovery, as it encountered more than 1,040 net feet of oil pay in the Shenandoah-5 appraisal well, expanding the eastern extent of the field. Additionally, the company increased its working interest in Shenandoah to 33 percent and added several new exploration opportunities to the portfolio by participating in a preferential-right process.
Internationally, the TEN field offshore Ghana is 97-percent complete with installation, hook-up and commissioning on schedule and first oil expected in the third quarter of 2016. At the adjacent Jubilee field, following maintenance on the floating production, storage and offloading vessel (FPSO) and implementation of new production and offtake procedures, production has ramped back up and is expected to average approximately 85,000 BOPD during the second half of the year. The partnership determined a long-term solution to convert the FPSO to a permanently moored facility, with the work program expected to be completed in the first half of 2017. Until the work program is complete, shuttle tankers will continue to be utilized to deliver offtake. Offshore Côte d'Ivoire, Anadarko continued its successful appraisal program with the drilling of the Paon-3AR horizontal sidetrack, which will be followed by a drillstem and interference testing program in the third quarter. In advancing the Mozambique LNG project, Anadarko achieved a significant milestone by submitting the Resettlement Plan for government review.
OPERATIONS REPORT
For details on Anadarko's operations and exploration program, including detailed tables illustrating divestiture-adjusted(3) information, please refer to the comprehensive report on second-quarter 2016 activity. The report is available at www.anadarko.com.
FINANCIAL SUMMARY
Anadarko ended the second quarter with approximately $1.4 billion of cash on hand. Year to date, Anadarko has generated approximately $2.5 billion in monetizations, including proceeds received during the second quarter from the secondary offering of Western Gas Equity Partners (NYSE: WGP) common units and divestitures of the company's Wamsutter and non-core Permian assets.
CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Wednesday, July 27, 2016, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company's outlook for the remainder of 2016. The dial-in number is 877.883.0383 in the United States or 412.902.6506 internationally. The confirmation number is 0728576. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will be available on the website for approximately 30 days following the conference call.
FINANCIAL DATA
Nine pages of summary financial data follow, including current hedge positions, a reconciliation of "divestiture-adjusted" or "same-store" sales, and updated financial and production guidance.
(1) See the accompanying table for details of certain items affecting comparability.
(2) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.
(3) See the accompanying table for a reconciliation of "divestiture-adjusted" or "same-store" sales volumes, which are intended to present performance of Anadarko's continuing asset base, giving effect to recent divestitures.
Logo - http://photos.prnewswire.com/prnh/20141103/156201LOGO
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2015, the company had approximately 2.06 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and Flash Feed updates, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its 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, including Anadarko's ability to realize its expectations regarding performance in this challenging economic environment and meet financial and operating guidance, identify and complete additional monetization transactions, reduce its debt, timely complete and commercially operate the projects and drilling prospects identified in this news release, and successfully plan, secure necessary government approvals, enter into long-term sales contracts, finance, build and operate the necessary infrastructure and LNG park in Mozambique. See "Risk Factors" in the company's 2015 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
ANADARKO CONTACTS
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912
INVESTORS:
John Colglazier, john.colglazier@anadarko.com, 832.636.2306
Brian Kuck, brian.kuck@anadarko.com, 832.636.7135
Shandell Szabo, shandell.szabo@anadarko.com, 832.636.3977
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP), cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP) and free cash flow (non-GAAP), and total debt (GAAP) to net debt (non-GAAP), each as required under Regulation G of the Securities Exchange Act of 1934. The Company also provides non-GAAP definitions and reconciliations on its website located at www.anadarko.com/investor-kit. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.
Management uses adjusted net income (loss) to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain noncash and/or other items that management does not consider to be indicative of the Company's performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company's operating and financial performance across periods, as well as facilitating comparisons to others in the Company's industry.
Quarter Ended June 30, 2016 | ||||||||||||
Before |
After |
Per Share | ||||||||||
millions except per-share amounts |
Tax |
Tax |
(diluted) | |||||||||
Net income (loss) attributable to common stockholders |
$ |
(692) |
$ |
(1.36) |
||||||||
Adjustments for certain items affecting comparability |
||||||||||||
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* |
$ |
(371) |
(234) |
(0.46) |
||||||||
Gains (losses) on divestitures, net |
(104) |
(66) |
(0.13) |
|||||||||
Impairments |
(18) |
(11) |
(0.02) |
|||||||||
Restructuring charges |
(48) |
(30) |
(0.06) |
|||||||||
Loss on early extinguishment of debt |
(124) |
(78) |
(0.15) |
|||||||||
Third-party well and platform decommissioning obligation |
56 |
35 |
0.07 |
|||||||||
Change in uncertain tax positions (FIN 48) |
— |
(4) |
(0.01) |
|||||||||
Certain items affecting comparability |
$ |
(609) |
(388) |
(0.76) |
||||||||
Adjusted net income (loss) |
$ |
(304) |
$ |
(0.60) |
||||||||
* Includes $(213) million related to interest-rate derivatives, $(154) million related to commodity derivatives, and $(4) million related to gathering, processing, and marketing sales. | ||||||||||||
Quarter Ended June 30, 2015 | ||||||||||||
Before |
After |
Per Share | ||||||||||
millions except per-share amounts |
Tax |
Tax |
(diluted) | |||||||||
Net income (loss) attributable to common stockholders |
$ |
61 |
$ |
0.12 |
||||||||
Adjustments for certain items affecting comparability |
||||||||||||
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* |
$ |
229 |
145 |
0.28 |
||||||||
Gains (losses) on divestitures, net |
(91) |
(77) |
(0.15) |
|||||||||
Impairments |
(30) |
(20) |
(0.04) |
|||||||||
Change in uncertain tax positions (FIN 48) |
— |
9 |
0.02 |
|||||||||
Certain items affecting comparability |
$ |
108 |
57 |
0.11 |
||||||||
Adjusted net income (loss) |
$ |
4 |
$ |
0.01 |
||||||||
* Includes $312 million related to interest-rate derivatives and $(83) million related to commodity derivatives. |
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Management believes that discretionary cash flow from operations and free cash flow are useful to management and investors as a measure of a company's ability to internally fund its capital expenditures and to service or incur additional debt. These measures eliminate the impact of certain items that management does not consider to be indicative of the Company's performance from period to period.
Quarter Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
millions |
2016 |
2015 |
2016 |
2015 | |||||||||||
Net cash provided by (used in) operating activities |
$ |
1,229 |
$ |
1,243 |
$ |
1,092 |
$ |
(3,261) |
|||||||
Add back |
|||||||||||||||
Increase (decrease) in accounts receivable |
(876) |
462 |
(922) |
105 |
|||||||||||
(Increase) decrease in accounts payable and accrued expenses |
314 |
(81) |
717 |
198 |
|||||||||||
Other items, net |
14 |
(339) |
100 |
269 |
|||||||||||
Tronox settlement payment |
— |
— |
— |
5,215 |
|||||||||||
Certain nonoperating and other excluded items |
(12) |
— |
168 |
26 |
|||||||||||
Current taxes related to asset monetizations |
— |
88 |
— |
316 |
|||||||||||
Discretionary cash flow from operations |
$ |
669 |
$ |
1,373 |
$ |
1,155 |
$ |
2,868 |
|||||||
Less capital expenditures* |
728 |
1,401 |
1,624 |
3,223 |
|||||||||||
Free cash flow** |
$ |
(59) |
$ |
(28) |
$ |
(469) |
$ |
(355) |
|||||||
* Includes Western Gas Partners, LP (WES) capital expenditures of $120 million for the quarter ended June 30, 2016, and $122 million for the quarter ended June 30, 2015, $260 million for the six months ended June 30, 2016, and $278 million for the six months ended June 30, 2015. | |||||||||||||||
** Free cash flow for the six months ended June 30, 2015, includes a $595 million current tax benefit associated with the Tronox settlement. |
Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt in the capitalization ratio is useful to investors in determining the Company's leverage since the Company could choose to use its cash and cash equivalents to retire debt. In addition, management believes that presenting Anadarko's net debt excluding WGP is useful because WGP is a separate public company with its own capital structure.
June 30, 2016 | |||||||||||||
Anadarko | |||||||||||||
Anadarko |
WGP* |
excluding | |||||||||||
millions |
Consolidated |
Consolidated |
WGP | ||||||||||
Total debt |
$ |
15,673 |
$ |
2,960 |
$ |
12,713 |
|||||||
Less cash and cash equivalents |
1,394 |
160 |
1,234 |
||||||||||
Net debt |
$ |
14,279 |
$ |
2,800 |
$ |
11,479 |
|||||||
Anadarko | |||||||||||||
Anadarko |
excluding | ||||||||||||
millions |
Consolidated |
WGP | |||||||||||
Net debt |
$ |
14,279 |
$ |
11,479 |
|||||||||
Total equity |
14,600 |
11,281 |
|||||||||||
Adjusted capitalization |
$ |
28,879 |
$ |
22,760 |
|||||||||
Net debt to adjusted capitalization ratio |
49 |
% |
50 |
% | |||||||||
* Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko and WES is a consolidated subsidiary of WGP. |
Anadarko Petroleum Corporation | |||||||||||||||
(Unaudited) | |||||||||||||||
Quarter Ended |
Six Months Ended | ||||||||||||||
Summary Financial Information |
June 30, |
June 30, | |||||||||||||
millions except per-share amounts |
2016 |
2015 |
2016 |
2015 | |||||||||||
Consolidated Statements of Income |
|||||||||||||||
Revenues and Other |
|||||||||||||||
Oil and condensate sales |
$ |
1,125 |
$ |
1,616 |
$ |
1,975 |
$ |
3,035 |
|||||||
Natural-gas sales |
320 |
487 |
$ |
686 |
1,128 |
||||||||||
Natural-gas liquids sales |
235 |
229 |
413 |
461 |
|||||||||||
Gathering, processing, and marketing sales |
305 |
305 |
545 |
598 |
|||||||||||
Gains (losses) on divestitures and other, net |
(70) |
(1) |
(30) |
(265) |
|||||||||||
Total |
1,915 |
2,636 |
3,589 |
4,957 |
|||||||||||
Costs and Expenses |
|||||||||||||||
Oil and gas operating |
202 |
226 |
410 |
522 |
|||||||||||
Oil and gas transportation |
246 |
283 |
488 |
588 |
|||||||||||
Exploration |
76 |
103 |
202 |
1,186 |
|||||||||||
Gathering, processing, and marketing |
252 |
255 |
467 |
509 |
|||||||||||
General and administrative |
305 |
278 |
754 |
585 |
|||||||||||
Depreciation, depletion, and amortization |
984 |
1,214 |
2,133 |
2,470 |
|||||||||||
Other taxes |
157 |
151 |
274 |
333 |
|||||||||||
Impairments |
18 |
30 |
34 |
2,813 |
|||||||||||
Other operating expense |
7 |
6 |
23 |
69 |
|||||||||||
Total |
2,247 |
2,546 |
4,785 |
9,075 |
|||||||||||
Operating Income (Loss) |
(332) |
90 |
(1,196) |
(4,118) |
|||||||||||
Other (Income) Expense |
|||||||||||||||
Interest expense |
217 |
201 |
437 |
417 |
|||||||||||
Loss on early extinguishment of debt |
124 |
— |
124 |
— |
|||||||||||
(Gains) losses on derivatives, net |
307 |
(311) |
604 |
(159) |
|||||||||||
Other (income) expense, net |
(55) |
15 |
(55) |
62 |
|||||||||||
Tronox-related contingent loss |
— |
— |
— |
5 |
|||||||||||
Total |
593 |
(95) |
1,110 |
325 |
|||||||||||
Income (Loss) Before Income Taxes |
(925) |
185 |
(2,306) |
(4,443) |
|||||||||||
Income tax expense (benefit) |
(314) |
77 |
(697) |
(1,315) |
|||||||||||
Net Income (Loss) |
(611) |
108 |
(1,609) |
(3,128) |
|||||||||||
Net income (loss) attributable to noncontrolling interests |
81 |
47 |
117 |
79 |
|||||||||||
Net Income (Loss) Attributable to Common Stockholders |
$ |
(692) |
$ |
61 |
$ |
(1,726) |
$ |
(3,207) |
|||||||
Per Common Share |
|||||||||||||||
Net income (loss) attributable to common stockholders—basic |
$ |
(1.36) |
$ |
0.12 |
$ |
(3.39) |
$ |
(6.32) |
|||||||
Net income (loss) attributable to common stockholders—diluted |
$ |
(1.36) |
$ |
0.12 |
$ |
(3.39) |
$ |
(6.32) |
|||||||
Average Number of Common Shares Outstanding—Basic |
510 |
508 |
510 |
507 |
|||||||||||
Average Number of Common Shares Outstanding—Diluted |
510 |
509 |
510 |
507 |
|||||||||||
Exploration Expense |
|||||||||||||||
Dry hole expense |
$ |
(5) |
$ |
13 |
$ |
6 |
$ |
42 |
|||||||
Impairments of unproved properties |
15 |
18 |
39 |
998 |
|||||||||||
Geological and geophysical expense |
32 |
16 |
69 |
38 |
|||||||||||
Exploration overhead and other |
34 |
56 |
88 |
108 |
|||||||||||
Total |
$ |
76 |
$ |
103 |
$ |
202 |
$ |
1,186 |
Anadarko Petroleum Corporation | |||||||||||||||
(Unaudited) | |||||||||||||||
Quarter Ended |
Six Months Ended | ||||||||||||||
Summary Financial Information |
June 30, |
June 30, | |||||||||||||
millions |
2016 |
2015 |
2016 |
2015 | |||||||||||
Cash Flows from Operating Activities |
|||||||||||||||
Net income (loss) |
$ |
(611) |
$ |
108 |
$ |
(1,609) |
$ |
(3,128) |
|||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|||||||||||||||
Depreciation, depletion, and amortization |
984 |
1,214 |
2,133 |
2,470 |
|||||||||||
Deferred income taxes |
(407) |
11 |
(820) |
(1,187) |
|||||||||||
Dry hole expense and impairments of unproved properties |
10 |
31 |
45 |
1,040 |
|||||||||||
Impairments |
18 |
30 |
34 |
2,813 |
|||||||||||
(Gains) losses on divestitures, net |
104 |
91 |
102 |
425 |
|||||||||||
Loss on early extinguishment of debt |
124 |
— |
124 |
— |
|||||||||||
Total (gains) losses on derivatives, net |
311 |
(310) |
610 |
(158) |
|||||||||||
Operating portion of net cash received (paid) in settlement of derivative instruments |
60 |
81 |
165 |
172 |
|||||||||||
Other |
88 |
29 |
203 |
74 |
|||||||||||
Changes in assets and liabilities |
|||||||||||||||
Tronox-related contingent liability |
— |
— |
— |
(5,210) |
|||||||||||
(Increase) decrease in accounts receivable |
876 |
(462) |
922 |
(105) |
|||||||||||
Increase (decrease) in accounts payable and accrued expenses |
(314) |
81 |
(717) |
(198) |
|||||||||||
Other items, net |
(14) |
339 |
(100) |
(269) |
|||||||||||
Net Cash Provided by (Used in) Operating Activities |
$ |
1,229 |
$ |
1,243 |
$ |
1,092 |
$ |
(3,261) |
|||||||
Capital Expenditures |
$ |
728 |
$ |
1,401 |
$ |
1,624 |
$ |
3,223 |
June 30, |
December 31, | ||||||||||
millions |
2016 |
2015 | |||||||||
Condensed Balance Sheets |
|||||||||||
Cash and cash equivalents |
$ |
1,394 |
$ |
939 |
|||||||
Accounts receivable, net of allowance |
1,500 |
2,469 |
|||||||||
Other current assets |
318 |
573 |
|||||||||
Net properties and equipment |
32,345 |
33,751 |
|||||||||
Other assets |
2,239 |
2,268 |
|||||||||
Goodwill and other intangible assets |
6,237 |
6,331 |
|||||||||
Total Assets |
$ |
44,033 |
$ |
46,331 |
|||||||
Short-term debt |
32 |
32 |
|||||||||
Other current liabilities |
3,212 |
4,148 |
|||||||||
Long-term debt |
15,641 |
15,636 |
|||||||||
Deferred income taxes |
4,686 |
5,400 |
|||||||||
Other long-term liabilities |
5,862 |
5,658 |
|||||||||
Stockholders' equity |
11,281 |
12,819 |
|||||||||
Noncontrolling interests |
3,319 |
2,638 |
|||||||||
Total Equity |
$ |
14,600 |
$ |
15,457 |
|||||||
Total Liabilities and Equity |
$ |
44,033 |
$ |
46,331 |
|||||||
Capitalization |
|||||||||||
Total debt |
$ |
15,673 |
$ |
15,668 |
|||||||
Total equity |
14,600 |
15,457 |
|||||||||
Total |
$ |
30,273 |
$ |
31,125 |
|||||||
Capitalization Ratios |
|||||||||||
Total debt |
52 |
% |
50 |
% | |||||||
Total equity |
48 |
% |
50 |
% |
Anadarko Petroleum Corporation | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Sales Volumes and Prices |
|||||||||||||||||||||||||||||
Average Daily Sales Volumes |
Sales Volumes |
Average Sales Price | |||||||||||||||||||||||||||
Oil & |
Oil & |
Oil & |
|||||||||||||||||||||||||||
Condensate |
Natural Gas |
NGLs |
Condensate |
Natural Gas |
NGLs |
Condensate |
Natural Gas |
NGLs | |||||||||||||||||||||
MBbls/d |
MMcf/d |
MBbls/d |
MMBbls |
Bcf |
MMBbls |
Per Bbl |
Per Mcf |
Per Bbl | |||||||||||||||||||||
Quarter Ended June 30, 2016 |
|||||||||||||||||||||||||||||
United States |
227 |
2,188 |
126 |
20 |
199 |
12 |
$ |
40.25 |
$ |
1.61 |
$ |
19.42 |
|||||||||||||||||
Algeria |
59 |
— |
5 |
5 |
— |
1 |
46.65 |
— |
24.13 |
||||||||||||||||||||
Other International |
10 |
— |
— |
1 |
— |
— |
47.37 |
— |
— |
||||||||||||||||||||
Total |
296 |
2,188 |
131 |
26 |
199 |
13 |
$ |
41.77 |
$ |
1.61 |
$ |
19.60 |
|||||||||||||||||
Quarter Ended June 30, 2015 |
|||||||||||||||||||||||||||||
United States |
240 |
2,354 |
130 |
21 |
215 |
12 |
$ |
54.14 |
$ |
2.28 |
$ |
17.98 |
|||||||||||||||||
Algeria |
50 |
— |
6 |
5 |
— |
— |
60.24 |
— |
31.11 |
||||||||||||||||||||
Other International |
28 |
— |
— |
3 |
— |
— |
61.82 |
— |
— |
||||||||||||||||||||
Total |
318 |
2,354 |
136 |
29 |
215 |
12 |
$ |
55.78 |
$ |
2.28 |
$ |
18.50 |
|||||||||||||||||
Six Months Ended June 30, 2016 |
|||||||||||||||||||||||||||||
United States |
229 |
2,245 |
125 |
41 |
409 |
23 |
$ |
34.07 |
$ |
1.68 |
$ |
17.24 |
|||||||||||||||||
Algeria |
62 |
— |
5 |
11 |
— |
1 |
40.35 |
— |
23.43 |
||||||||||||||||||||
Other International |
14 |
— |
— |
3 |
— |
— |
37.55 |
— |
— |
||||||||||||||||||||
Total |
305 |
2,245 |
130 |
55 |
409 |
24 |
$ |
35.51 |
$ |
1.68 |
$ |
17.49 |
|||||||||||||||||
Six Months Ended June 30, 2015 |
|||||||||||||||||||||||||||||
United States |
238 |
2,545 |
134 |
43 |
461 |
24 |
$ |
49.23 |
$ |
2.45 |
$ |
17.63 |
|||||||||||||||||
Algeria |
60 |
— |
6 |
11 |
— |
1 |
57.80 |
— |
32.01 |
||||||||||||||||||||
Other International |
28 |
— |
— |
5 |
— |
— |
55.69 |
— |
— |
||||||||||||||||||||
Total |
326 |
2,545 |
140 |
59 |
461 |
25 |
$ |
51.37 |
$ |
2.45 |
$ |
18.24 |
|||||||||||||||||
Average Daily Sales Volumes MBOE/d |
Sales Volumes MMBOE |
||||||||||||||||||||||||||||
Quarter Ended June 30, 2016 |
792 |
72 |
|||||||||||||||||||||||||||
Quarter Ended June 30, 2015 |
846 |
77 |
|||||||||||||||||||||||||||
Six Months Ended June 30, 2016 |
809 |
147 |
|||||||||||||||||||||||||||
Six Months Ended June 30, 2015 |
890 |
161 |
|||||||||||||||||||||||||||
Sales Revenue and Commodity Derivatives |
||||||||||||||||||||||||
Sales |
Net Cash Received (Paid) from Settlement of Commodity Derivatives | |||||||||||||||||||||||
millions |
Oil & Condensate |
Natural Gas |
NGLs |
Oil & Condensate |
Natural Gas |
NGLs | ||||||||||||||||||
Quarter Ended June 30, 2016 |
||||||||||||||||||||||||
United States |
$ |
830 |
$ |
320 |
$ |
223 |
$ |
60 |
$ |
2 |
$ |
(2) |
||||||||||||
Algeria |
252 |
— |
12 |
— |
— |
— |
||||||||||||||||||
Other International |
43 |
— |
— |
— |
— |
— |
||||||||||||||||||
Total |
$ |
1,125 |
$ |
320 |
$ |
235 |
$ |
60 |
$ |
2 |
$ |
(2) |
||||||||||||
Quarter Ended June 30, 2015 |
||||||||||||||||||||||||
United States |
$ |
1,181 |
$ |
487 |
$ |
213 |
$ |
3 |
$ |
77 |
$ |
2 |
||||||||||||
Algeria |
277 |
— |
16 |
— |
— |
— |
||||||||||||||||||
Other International |
158 |
— |
— |
— |
— |
— |
||||||||||||||||||
Total |
$ |
1,616 |
$ |
487 |
$ |
229 |
$ |
3 |
$ |
77 |
$ |
2 |
||||||||||||
Six Months Ended June 30, 2016 |
||||||||||||||||||||||||
United States |
$ |
1,421 |
$ |
686 |
$ |
390 |
$ |
148 |
$ |
15 |
$ |
— |
||||||||||||
Algeria |
458 |
— |
23 |
— |
— |
— |
||||||||||||||||||
Other International |
96 |
— |
— |
— |
— |
— |
||||||||||||||||||
Total |
$ |
1,975 |
$ |
686 |
$ |
413 |
$ |
148 |
$ |
15 |
$ |
— |
||||||||||||
Six Months Ended June 30, 2015 |
||||||||||||||||||||||||
United States |
$ |
2,121 |
$ |
1,128 |
$ |
426 |
$ |
5 |
$ |
150 |
$ |
17 |
||||||||||||
Algeria |
629 |
— |
35 |
— |
— |
— |
||||||||||||||||||
Other International |
285 |
— |
— |
— |
— |
— |
||||||||||||||||||
Total |
$ |
3,035 |
$ |
1,128 |
$ |
461 |
$ |
5 |
$ |
150 |
$ |
17 |
Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of July 26, 2016 | ||||||||||||||
Note: Guidance excludes 2016 sales volumes associated with the East Chalk and Wamsutter divestitures. | ||||||||||||||
3rd-Qtr |
Full-Year | |||||||||||||
Guidance (see Note) |
Guidance (see Note) | |||||||||||||
Units |
Units | |||||||||||||
Total Sales Volumes (MMBOE) |
68 |
— |
70 |
277 |
— |
281 |
||||||||
Total Sales Volumes (MBOE/d) |
739 |
— |
761 |
757 |
— |
768 |
||||||||
Oil (MBbl/d) |
301 |
— |
307 |
303 |
— |
308 |
||||||||
United States |
222 |
— |
225 |
223 |
— |
226 |
||||||||
Algeria |
62 |
— |
64 |
63 |
— |
64 |
||||||||
Ghana |
17 |
— |
18 |
17 |
— |
18 |
||||||||
Natural Gas (MMcf/d) |
||||||||||||||
United States |
1,895 |
— |
1,935 |
2,000 |
— |
2,020 |
||||||||
Natural Gas Liquids (MBbl/d) |
||||||||||||||
United States |
114 |
— |
118 |
114 |
— |
117 |
||||||||
Algeria |
5 |
— |
7 |
5 |
— |
7 |
||||||||
$ / Unit |
$ / Unit | |||||||||||||
Price Differentials vs NYMEX (w/o hedges) |
||||||||||||||
Oil ($/Bbl) |
(6.70) |
— |
(2.20) |
(6.90) |
— |
(2.50) |
||||||||
United States |
(8.00) |
— |
(3.00) |
(8.00) |
— |
(3.00) |
||||||||
Algeria |
(3.00) |
— |
— |
(4.00) |
— |
(1.00) |
||||||||
Ghana |
(3.00) |
— |
— |
(4.00) |
— |
(1.00) |
||||||||
Natural Gas ($/Mcf) |
||||||||||||||
United States |
(0.55) |
— |
(0.40) |
(0.45) |
— |
(0.35) |
||||||||
Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of July 26, 2016 | ||||||||||||||
Note: Guidance excludes items affecting comparability. | ||||||||||||||
3rd-Qtr |
Full-Year | |||||||||||||
Guidance (see Note) |
Guidance (see Note) | |||||||||||||
$ MM |
$ MM | |||||||||||||
Other Revenues |
||||||||||||||
Marketing and Gathering Margin |
20 |
— |
40 |
120 |
— |
140 |
||||||||
Minerals and Other |
35 |
— |
55 |
155 |
— |
175 |
||||||||
$ / BOE |
$ / BOE | |||||||||||||
Costs and Expenses |
||||||||||||||
Oil & Gas Direct Operating |
3.15 |
— |
3.30 |
3.05 |
— |
3.25 |
||||||||
Oil & Gas Transportation |
3.20 |
— |
3.40 |
3.25 |
— |
3.45 |
||||||||
Depreciation, Depletion, and Amortization |
14.90 |
— |
15.35 |
14.80 |
— |
15.00 |
||||||||
Production Taxes (% of Product Revenue) |
8.0 |
% |
— |
9.0 |
% |
8.0 |
% |
— |
9.0 |
% | ||||
$ MM |
$ MM | |||||||||||||
General and Administrative (excludes restructuring charges) |
245 |
— |
265 |
950 |
— |
1,000 |
||||||||
Other Operating Expense |
25 |
— |
35 |
75 |
— |
85 |
||||||||
Exploration Expense |
||||||||||||||
Non-Cash |
40 |
— |
60 |
350 |
— |
450 |
||||||||
Cash |
50 |
— |
70 |
260 |
— |
280 |
||||||||
Interest Expense (net) |
210 |
— |
225 |
865 |
— |
885 |
||||||||
Other (Income) Expense (includes noncontrolling interest) |
70 |
— |
80 |
250 |
— |
275 |
||||||||
Taxes |
||||||||||||||
Algeria (100% current) |
60 |
% |
— |
70 |
% |
65 |
% |
— |
75 |
% | ||||
Rest of Company (10% Current/90% Deferred for Q3 and Total Year) |
35 |
% |
— |
45 |
% |
30 |
% |
— |
40 |
% | ||||
Avg. Shares Outstanding (MM) |
||||||||||||||
Basic |
510 |
— |
511 |
510 |
— |
511 |
||||||||
Diluted |
510 |
— |
511 |
511 |
— |
512 |
||||||||
Capital Investment (Excluding Western Gas Partners, LP) |
$ MM |
$ MM | ||||||||||||
APC Capital Expenditures |
650 |
— |
750 |
2,600 |
— |
2,800 |
||||||||
Anadarko Petroleum Corporation | |||||||||
Commodity Hedge Positions | |||||||||
As of July 26, 2016 | |||||||||
Weighted Average Price per barrel | |||||||||
Volume (MBbls/d) |
Floor Sold |
Floor Purchased |
Ceiling Sold | ||||||
Oil |
|||||||||
Three-Way Collars |
|||||||||
2016 |
|||||||||
WTI |
65 |
$ |
41.54 |
$ |
53.08 |
$ |
62.25 | ||
Brent |
18 |
$ |
47.22 |
$ |
59.44 |
$ |
69.47 | ||
83 |
$ |
42.77 |
$ |
54.46 |
$ |
63.82 | |||
Volume |
Weighted Average Price per MMBtu | ||||||||
(thousand |
|||||||||
MMBtu/d) |
Floor Sold |
Floor Purchased |
Ceiling Sold | ||||||
Natural Gas |
|||||||||
Three-Way Collars |
|||||||||
2017 |
682 |
$ |
2.00 |
$ |
2.75 |
$ |
3.60 | ||
2018 |
250 |
$ |
2.00 |
$ |
2.75 |
$ |
3.54 |
Interest-Rate Derivatives
| |||||
As of July 26, 2016 | |||||
Instrument |
Notional Amt. |
Reference Period |
Mandatory Termination Date |
Rate Paid |
Rate Received |
Swap |
$50 Million |
Sept. 2016 – 2026 |
Sept. 2016 |
5.910% |
3M LIBOR |
Swap |
$50 Million |
Sept. 2016 – 2046 |
Sept. 2016 |
6.290% |
3M LIBOR |
Swap |
$500 Million |
Sept. 2016 – 2046 |
Sept. 2018 |
6.559% |
3M LIBOR |
Swap |
$300 Million |
Sept. 2016 – 2046 |
Sept. 2020 |
6.509% |
3M LIBOR |
Swap |
$450 Million |
Sept. 2017 – 2047 |
Sept. 2018 |
6.445% |
3M LIBOR |
Swap |
$100 Million |
Sept. 2017 – 2047 |
Sept. 2020 |
6.891% |
3M LIBOR |
Swap |
$250 Million |
Sept. 2017 – 2047 |
Sept. 2021 |
6.570% |
3M LIBOR |
Anadarko Petroleum Corporation | |||||||||||||||||||||||
Reconciliation of Same-Store Sales | |||||||||||||||||||||||
Average Daily Sales Volumes | |||||||||||||||||||||||
Quarter Ended March 31, 2016 |
Quarter Ended March 31, 2015 | ||||||||||||||||||||||
Oil & Condensate MBbls/d |
Natural Gas MMcf/d |
NGLs MBbls/d |
Total MBOE/d |
Oil & Condensate MBbls/d |
Natural Gas MMcf/d |
NGLs MBbls/d |
Total MBOE/d | ||||||||||||||||
U.S. Onshore |
162 |
2,125 |
110 |
626 |
166 |
2,138 |
125 |
647 |
|||||||||||||||
Deepwater Gulf of Mexico |
58 |
85 |
7 |
79 |
46 |
221 |
6 |
89 |
|||||||||||||||
International and Alaska |
93 |
— |
6 |
99 |
107 |
— |
7 |
114 |
|||||||||||||||
Same-Store Sales |
313 |
2,210 |
123 |
804 |
319 |
2,359 |
138 |
850 |
|||||||||||||||
Divestitures* |
2 |
93 |
5 |
23 |
16 |
379 |
5 |
84 |
|||||||||||||||
Total |
315 |
2,303 |
128 |
827 |
335 |
2,738 |
143 |
934 |
|||||||||||||||
Quarter Ended June 30, 2016 |
Quarter Ended June 30, 2015 | ||||||||||||||||||||||
Oil & Condensate MBbls/d |
Natural Gas MMcf/d |
NGLs MBbls/d |
Total MBOE/d |
Oil & Condensate MBbls/d |
Natural Gas MMcf/d |
NGLs MBbls/d |
Total MBOE/d | ||||||||||||||||
U.S. Onshore |
157 |
2,033 |
116 |
612 |
172 |
1,889 |
117 |
604 |
|||||||||||||||
Deepwater Gulf of Mexico |
56 |
73 |
6 |
74 |
57 |
113 |
7 |
83 |
|||||||||||||||
International and Alaska |
81 |
— |
5 |
86 |
87 |
— |
6 |
93 |
|||||||||||||||
Same-Store Sales |
294 |
2,106 |
127 |
772 |
316 |
2,002 |
130 |
780 |
|||||||||||||||
Divestitures* |
2 |
82 |
4 |
20 |
2 |
352 |
6 |
66 |
|||||||||||||||
Total |
296 |
2,188 |
131 |
792 |
318 |
2,354 |
136 |
846 |
|||||||||||||||
Six Months Ended June 30, 2016 |
Six Months Ended June 30, 2015 | ||||||||||||||||||||||
Oil & Condensate MBbls/d |
Natural Gas MMcf/d |
NGLs MBbls/d |
Total MBOE/d |
Oil & Condensate MBbls/d |
Natural Gas MMcf/d |
NGLs MBbls/d |
Total MBOE/d | ||||||||||||||||
U.S. Onshore |
159 |
2,079 |
113 |
618 |
169 |
2,013 |
122 |
626 |
|||||||||||||||
Deepwater Gulf of Mexico |
57 |
78 |
7 |
77 |
51 |
167 |
7 |
86 |
|||||||||||||||
International and Alaska |
87 |
— |
5 |
92 |
97 |
— |
6 |
103 |
|||||||||||||||
Same-Store Sales |
303 |
2,157 |
125 |
787 |
317 |
2,180 |
135 |
815 |
|||||||||||||||
Divestitures* |
2 |
88 |
5 |
22 |
9 |
365 |
5 |
75 |
|||||||||||||||
Total |
305 |
2,245 |
130 |
809 |
326 |
2,545 |
140 |
890 |
|||||||||||||||
* Includes Wamsutter, East Chalk, EOR, Bossier, and Powder River Basin CBM. |
Average Daily Sales Volumes | |||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Oil & Condensate MBbls/d |
Natural Gas MMcf/d |
NGLs MBbls/d |
Total MBOE/d | ||||||||||||||||
U.S. Onshore |
163 |
1,909 |
111 |
593 |
|||||||||||||||
Deepwater Gulf of Mexico |
53 |
152 |
7 |
85 |
|||||||||||||||
International and Alaska |
94 |
— |
6 |
100 |
|||||||||||||||
Same-Store Sales |
310 |
2,061 |
124 |
778 |
|||||||||||||||
Divestitures* |
7 |
273 |
6 |
58 |
|||||||||||||||
Total |
317 |
2,334 |
130 |
836 |
|||||||||||||||
* Includes Wamsutter, East Chalk, EOR, Bossier, and Powder River Basin CBM. |
PDF - http://origin-qps.onstreammedia.com/origin/multivu_archive/ENR/APC-2Q16-OpsReport.pdf
SOURCE Anadarko Petroleum Corporation
HOUSTON, July 20, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.830 per unit for the second quarter of 2016. This distribution represents a 2-percent increase over the prior quarter and an 11-percent increase over the second quarter of 2015. WES's second quarter 2016 distribution is payable on August 12, 2016, to unitholders of record at the close of business on August 1, 2016.
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Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.43375 per unit for the second quarter of 2016. This distribution represents a 2-percent increase over the prior quarter and a 19-percent increase over the second quarter of 2015. WGP's second quarter 2016 distribution is payable on August 22, 2016, to unitholders of record at the close of business on August 1, 2016.
The Partnerships plan to report their second-quarter 2016 results after the market closes on Tuesday, July 26, 2016. Management will host a conference call on Wednesday, July 27, 2016, at 11 a.m. CDT (12 p.m. EDT) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Second-Quarter 2016 Results
Wednesday, July 27, 2016
11 a.m. CDT (12 p.m. EDT)
Dial-in number: 844-836-8745
International dial-in number: 412-317-5439
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN GAS PARTNERS, LP and WESTERN GAS EQUITY PARTNERS, LP CONTACT:
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.1007
SOURCE Western Gas Partners, LP
HOUSTON, June 13, 2016 /PRNewswire/ -- Western Gas Equity Partners, LP (NYSE: WGP) (the "Partnership") today announced that Western Gas Resources, Inc. ("Western Gas Resources"), a subsidiary of Anadarko Petroleum Corporation, priced a previously announced underwritten offering of 12,500,000 common units representing limited partner interests. Total gross proceeds to Western Gas Resources from the offering (before the underwriting discount and estimated offering expenses) will be approximately $481 million. Western Gas Resources has granted the underwriters a 30-day option to purchase up to 1,875,000 additional common units. The offering is expected to settle and close on June 17, 2016, subject to customary closing conditions.
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Goldman, Sachs & Co. and Morgan Stanley & Co. LLC are acting as joint book-running managers of the offering and have offered, and may offer, the common units at prevailing market prices or otherwise from time to time through the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise. The offering will be made by Western Gas Resources only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, New York 10282, telephone 1-866-471-2526, facsimile 212-902-9316, e-mail prospectus-ny@ny.email.gs.com; or from Morgan Stanley, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department. An electronic copy of the prospectus and prospectus supplement is available from the U.S. Securities and Exchange Commission's website at http://www.sec.gov.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offer is being made only through the prospectus as supplemented, which is part of a shelf registration statement that became effective on January 15, 2014.
This news release contains forward-looking statements. Western Gas Equity Partners and its general partner 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, including risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed offering. See "Risk Factors" in Western Gas Equity Partners' Annual Report on Form 10-K for the year ended December 31, 2015, Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016 and other public filings and press releases. Western Gas Equity Partners undertakes no obligation to publicly update or revise any forward-looking statements.
Western Gas Equity Partners, LP Contact
Jonathon E. VandenBrand
Director, Investor Relations
832.636.1007
jon.vandenbrand@anadarko.com
SOURCE Western Gas Equity Partners, LP
HOUSTON, June 13, 2016 /PRNewswire/ -- Western Gas Equity Partners, LP (NYSE: WGP) (the "Partnership") today announced that Western Gas Resources, Inc. ("Western Gas Resources"), a subsidiary of Anadarko Petroleum Corporation, has launched an underwritten offering of 12,500,000 common units representing limited partner interests in the Partnership. Western Gas Resources will receive all of the net proceeds from such offering. Western Gas Resources intends to grant the underwriters an option for 30 days to purchase up to 1,875,000 additional common units. The Partnership will not sell any common units in the offering.
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Goldman, Sachs & Co. and Morgan Stanley & Co. LLC are acting as joint book-running managers of the offering. The offering will be made by Western Gas Resources only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316, e-mail: prospectus-ny@ny.email.gs.com; or from Morgan Stanley, 180 Varick Street, 2nd Floor, New York, New York 10014, Attention: Prospectus Department. An electronic copy of the prospectus and prospectus supplement is available from the U.S. Securities and Exchange Commission's website at http://www.sec.gov.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offer is being made only through the prospectus as supplemented, which is part of a shelf registration statement that became effective on January 15, 2014.
This news release contains forward-looking statements. Western Gas Equity Partners and its general partner 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, including risks and uncertainties associated with market conditions as they relate to the proposed offering. See "Risk Factors" in Western Gas Equity Partners' Annual Report on Form 10-K for the year ended December 31, 2015, Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016 and other public filings and press releases. Western Gas Equity Partners undertakes no obligation to publicly update or revise any forward-looking statements.
Western Gas Equity Partners, LP Contact
Jonathon E. VandenBrand
Director, Investor Relations
832.636.1007
jon.vandenbrand@anadarko.com
SOURCE Western Gas Equity Partners, LP
HOUSTON, May 26, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) and Western Gas Equity Partners, LP (NYSE:WGP) today announced that Don Sinclair, President and CEO, will present at the 2016 MLP Investor Conference, sponsored by the Master Limited Partnership Association, in Orlando, Florida on Wednesday, June 1, 2016, at 3:30 p.m. EDT. The presentation materials and a link to the webcast presentation will be available at www.westerngas.com.
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Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
WESTERN GAS CONTACT
Jonathon E. VandenBrand
Director, Investor Relations
832.636.1007
jon.vandenbrand@anadarko.com
SOURCE Western Gas Partners, LP
HOUSTON, May 3, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced first-quarter 2016 financial and operating results.
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WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the first quarter of 2016 totaled $47.0 million, or $0.31 per common unit (diluted), with first-quarter 2016 Adjusted EBITDA(1) of $231.1 million and first-quarter 2016 Distributable cash flow(1) of $191.9 million. Financial and operational information has been recast to include the financial position and results attributable to the acquisition of Springfield as if it had occurred at the beginning of the period.
WES previously declared a quarterly distribution of $0.815 per unit for the first quarter of 2016. This distribution represented a 2% increase over the prior quarter's distribution and a 12% increase over the first-quarter 2015 distribution of $0.725 per unit. The first-quarter 2016 Coverage ratio(1) of 1.21 times was based on the quarterly distribution of $0.815 per unit and is calculated by dividing the quarter's Distributable cash flow(1) by quarterly distributions paid to the general partner and common unitholders. Inclusion of $13.0 million(2) of the expected recoveries under WES's business interruption insurance in Distributable cash flow(1) would result in a ratio of 1.29 times.
"Our first quarter was driven by solid operating performance in a challenging environment. Furthermore, we were able to resume partial service at Ramsey III at the beginning of the second quarter and we look forward to bringing Ramsey IV online as scheduled," said Chief Executive Officer, Don Sinclair. "We are leaving our previously issued guidance for 2016 unchanged."
Total throughput attributable to WES for natural gas assets for the first quarter of 2016 averaged 3.8 Bcf/d, which was 4% below the prior quarter and 11% below the first quarter of 2015. The sequential decline in throughput was primarily attributable to the December 2015 incident at the Ramsey complex. The throughput decline from the first quarter of 2015 was also impacted by the Ramsey incident, as well as the sale of the Dew and Pinnacle systems in July 2015. Total throughput for crude/NGL assets for the first quarter of 2016 averaged 184 MBbls/d, which was 2% below the prior quarter and 1% above the first quarter of 2015.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $132.3 million on a cash basis and $139.0 million on an accrual basis during the first quarter of 2016, with maintenance capital expenditures on a cash basis of $18.9 million, or 8% 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 the first quarter of 2016 totaled $70.5 million, or $0.32 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.42375 per unit for the first quarter of 2016. This distribution represented a 5% increase over the prior quarter's distribution and a 24% increase over the first-quarter 2015 distribution of $0.34250. WGP received distributions from WES of $93.3 million attributable to the first quarter and will pay $92.8 million in distributions for the same period.
(1) |
Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio. |
(2) |
Represents the midpoint of WES's anticipated range of $11 million to $15 million in reimbursable amounts for the quarter. |
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
WES and WGP will host a joint conference call on Wednesday, May 4, 2016, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss first-quarter 2016 results. Individuals who would like to participate should dial 844-836-8745 (Domestic) or 412-317-5439 (International) approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
This news release contains forward-looking statements. Western Gas Partners and Western Gas Equity Partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K 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
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
832.636.6010
benjamin.fink@westerngas.com
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of (i) WES's Distributable cash flow (non-GAAP) to net income (loss) attributable to Western Gas Partners, LP (GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP) to net income (loss) attributable to Western Gas Partners, LP (GAAP) and to net cash provided by operating activities (GAAP), and (iii) Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-GAAP) to operating income (loss) (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) and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
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 | ||||||||
thousands except Coverage ratio |
2016 |
2015 (1) | ||||||
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 |
$ |
116,060 |
$ |
(156,493) |
||||
Add: |
||||||||
Distributions from equity investees |
24,639 |
21,670 |
||||||
Non-cash equity-based compensation expense |
1,303 |
1,112 |
||||||
Interest expense, net (non-cash settled) (2) |
4,537 |
1,420 |
||||||
Income tax (benefit) expense |
6,633 |
12,270 |
||||||
Depreciation and amortization (3) |
64,439 |
68,327 |
||||||
Impairments |
6,518 |
272,624 |
||||||
Above-market component of swap extensions with Anadarko |
6,813 |
— |
||||||
Less: |
||||||||
Gain (loss) on divestiture and other, net |
(632) |
(6) |
||||||
Equity income, net |
16,814 |
18,220 |
||||||
Cash paid for maintenance capital expenditures (3) |
18,897 |
14,113 |
||||||
Capitalized interest |
1,849 |
3,094 |
||||||
Cash paid for (reimbursement of) income taxes |
67 |
(138) |
||||||
Series A Preferred unit distributions |
1,887 |
— |
||||||
Other income (3) |
122 |
69 |
||||||
Distributable cash flow |
$ |
191,938 |
$ |
185,578 |
||||
Distributions declared (4) |
||||||||
Limited partners - common units |
$ |
106,493 |
||||||
General partner |
52,412 |
|||||||
Total |
$ |
158,905 |
||||||
Coverage ratio |
1.21 |
x |
(1) |
In March 2016, WES acquired Springfield Pipeline LLC ("Springfield") from Anadarko. Springfield owns a 50.1% interest in an oil gathering system and a gas gathering system, such interest being referred to as the "Springfield system." Financial information has been recast to include the financial position and results attributable to the Springfield system. |
(2) |
Includes accretion expense related to the Deferred purchase price obligation - Anadarko associated with the acquisition of DBJV. |
(3) |
Includes WES's 75% share of depreciation and amortization; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. |
(4) |
Reflects cash distributions of $0.815 per unit declared for the three months ended March 31, 2016. |
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted EBITDA Attributable to Western Gas Partners, LP
WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation 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 | ||||||||
thousands |
2016 |
2015 (1) | ||||||
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 |
$ |
116,060 |
$ |
(156,493) |
||||
Add: |
||||||||
Distributions from equity investees |
24,639 |
21,670 |
||||||
Non-cash equity-based compensation expense |
1,303 |
1,112 |
||||||
Interest expense |
32,036 |
22,960 |
||||||
Income tax expense |
6,633 |
12,270 |
||||||
Depreciation and amortization (2) |
64,439 |
68,327 |
||||||
Impairments |
6,518 |
272,624 |
||||||
Less: |
||||||||
Gain (loss) on divestiture and other, net |
(632) |
(6) |
||||||
Equity income, net |
16,814 |
18,220 |
||||||
Interest income – affiliates |
4,225 |
4,225 |
||||||
Other income (2) |
122 |
69 |
||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
231,099 |
$ |
219,962 |
||||
Reconciliation of Adjusted EBITDA attributable to Western Gas Partners, LP to Net cash provided by operating activities |
||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
231,099 |
$ |
219,962 |
||||
Adjusted EBITDA attributable to noncontrolling interest |
3,677 |
3,872 |
||||||
Interest income (expense), net |
(27,811) |
(18,735) |
||||||
Uncontributed cash-based compensation awards |
(72) |
(77) |
||||||
Accretion and amortization of long-term obligations, net |
5,467 |
2,112 |
||||||
Current income tax benefit (expense) |
(4,781) |
(6,461) |
||||||
Other income (expense), net |
124 |
71 |
||||||
Distributions from equity investments in excess of cumulative earnings |
(4,784) |
(2,964) |
||||||
Changes in operating working capital: |
||||||||
Accounts receivable, net |
12,558 |
(14,633) |
||||||
Accounts and imbalance payables and accrued liabilities, net |
17,978 |
12,796 |
||||||
Other |
3,048 |
(1,110) |
||||||
Net cash provided by (used in) operating activities |
$ |
236,503 |
$ |
194,833 |
||||
Cash flow information of Western Gas Partners, LP |
||||||||
Net cash provided by (used in) operating activities |
$ |
236,503 |
$ |
194,833 |
||||
Net cash provided by (used in) investing activities |
$ |
(842,818) |
$ |
(214,224) |
||||
Net cash provided by (used in) financing activities |
$ |
616,761 |
$ |
10,976 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield system. |
(2) |
Includes WES's 75% share of depreciation and amortization 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 investees and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended | ||||||||
thousands |
2016 |
2015 (1) | ||||||
Reconciliation of Adjusted gross margin attributable to Western Gas Partners, LP to Operating income (loss) |
||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets |
$ |
276,529 |
$ |
271,246 |
||||
Adjusted gross margin for crude/NGL assets |
34,695 |
31,404 |
||||||
Adjusted gross margin attributable to Western Gas Partners, LP |
311,224 |
302,650 |
||||||
Adjusted gross margin attributable to noncontrolling interest |
4,421 |
4,808 |
||||||
Gain (loss) on divestiture and other, net |
(632) |
(6) |
||||||
Equity income, net |
16,814 |
18,220 |
||||||
Reimbursed electricity-related charges recorded as revenues |
15,668 |
11,810 |
||||||
Less: |
||||||||
Distributions from equity investees |
24,639 |
21,670 |
||||||
Operation and maintenance |
76,213 |
76,185 |
||||||
General and administrative |
11,277 |
11,081 |
||||||
Property and other taxes |
10,350 |
9,280 |
||||||
Depreciation and amortization |
65,095 |
68,975 |
||||||
Impairments |
6,518 |
272,624 |
||||||
Operating income (loss) |
$ |
153,403 |
$ |
(122,333) |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield system. |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands except per-unit amounts |
2016 |
2015 (1) | ||||||
Revenues and other |
||||||||
Gathering, processing and transportation |
$ |
294,004 |
$ |
270,268 |
||||
Natural gas and natural gas liquids sales |
88,556 |
165,672 |
||||||
Other |
581 |
1,066 |
||||||
Total revenues and other |
383,141 |
437,006 |
||||||
Equity income, net |
16,814 |
18,220 |
||||||
Operating expenses |
||||||||
Cost of product |
76,467 |
139,408 |
||||||
Operation and maintenance |
76,213 |
76,185 |
||||||
General and administrative |
11,277 |
11,081 |
||||||
Property and other taxes |
10,350 |
9,280 |
||||||
Depreciation and amortization |
65,095 |
68,975 |
||||||
Impairments |
6,518 |
272,624 |
||||||
Total operating expenses |
245,920 |
577,553 |
||||||
Gain (loss) on divestiture and other, net |
(632) |
(6) |
||||||
Operating income (loss) |
153,403 |
(122,333) |
||||||
Interest income – affiliates |
4,225 |
4,225 |
||||||
Interest expense |
(32,036) |
(22,960) |
||||||
Other income (expense), net |
124 |
71 |
||||||
Income (loss) before income taxes |
125,716 |
(140,997) |
||||||
Income tax (benefit) expense |
6,633 |
12,270 |
||||||
Net income (loss) |
119,083 |
(153,267) |
||||||
Net income (loss) attributable to noncontrolling interest |
3,023 |
3,226 |
||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
116,060 |
$ |
(156,493) |
||||
Limited partners' interest in net income (loss): |
||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
116,060 |
$ |
(156,493) |
||||
Pre-acquisition net (income) loss allocated to Anadarko |
(11,326) |
(25,039) |
||||||
Series A Preferred units interest in net (income) loss |
(2,329) |
— |
||||||
General partner interest in net (income) loss |
(55,400) |
(37,177) |
||||||
Common and Class C limited partners' interest in net income (loss) |
47,005 |
(218,709) |
||||||
Net income (loss) per common unit – basic and diluted |
$ |
0.31 |
$ |
(1.61) |
||||
Weighted-average common units outstanding – basic |
128,990 |
127,736 |
||||||
Weighted-average common units outstanding – diluted |
143,355 |
138,674 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield system. |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units |
March 31, |
December 31, | ||||||
Current assets |
$ |
291,807 |
$ |
299,217 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
4,940,219 |
4,858,779 |
||||||
Other assets |
1,868,534 |
1,883,201 |
||||||
Total assets |
$ |
7,360,560 |
$ |
7,301,197 |
||||
Current liabilities |
$ |
259,467 |
$ |
235,488 |
||||
Long-term debt |
3,021,325 |
2,690,651 |
||||||
Asset retirement obligations and other |
138,032 |
268,356 |
||||||
Deferred purchase price obligation – Anadarko |
193,211 |
188,674 |
||||||
Total liabilities |
$ |
3,612,035 |
$ |
3,383,169 |
||||
Equity and partners' capital |
||||||||
Series A Preferred units (14,030,611 and zero units issued and outstanding at March 31, 2016, and December 31, 2015, respectively) |
$ |
420,582 |
$ |
— |
||||
Common units (130,666,567 and 128,576,965 units issued and outstanding at March 31, 2016, and December 31, 2015, respectively) |
2,417,194 |
2,588,991 |
||||||
Class C units (11,735,446 and 11,411,862 units issued and outstanding at March 31, 2016, and December 31, 2015, respectively) |
718,334 |
710,891 |
||||||
General partner units (2,583,068 units issued and outstanding at March 31, 2016, and December 31, 2015) |
125,846 |
120,164 |
||||||
Net investment by Anadarko |
— |
430,598 |
||||||
Noncontrolling interest |
66,569 |
67,384 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,360,560 |
$ |
7,301,197 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield system. |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands |
2016 |
2015 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
119,083 |
$ |
(153,267) |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
65,095 |
68,975 |
||||||
Impairments |
6,518 |
272,624 |
||||||
Gain (loss) on divestiture and other, net |
632 |
6 |
||||||
Change in other items, net |
45,175 |
6,495 |
||||||
Net cash provided by (used in) operating activities |
236,503 |
194,833 |
||||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(136,987) |
$ |
(211,567) |
||||
Contributions in aid of construction costs from affiliates |
2,369 |
— |
||||||
Acquisitions from affiliates |
(713,596) |
(765) |
||||||
Investments in equity affiliates |
474 |
(4,878) |
||||||
Distributions from equity investments in excess of cumulative earnings |
4,784 |
2,964 |
||||||
Proceeds from the sale of assets to third parties |
138 |
22 |
||||||
Net cash provided by (used in) investing activities |
(842,818) |
(214,224) |
||||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
330,000 |
$ |
140,000 |
||||
Repayments of debt |
— |
(30,000) |
||||||
Increase (decrease) in outstanding checks |
(994) |
(2,198) |
||||||
Proceeds from the issuance of common and general partner units, net of offering expenses |
25,000 |
31,075 |
||||||
Proceeds from the issuance of Series A Preferred units, net of offering expenses |
440,000 |
— |
||||||
Distributions to unitholders |
(152,588) |
(126,044) |
||||||
Distributions to noncontrolling interest owner |
(3,838) |
(3,150) |
||||||
Net contributions from (distributions to) Anadarko |
(27,632) |
1,293 |
||||||
Above-market component of swap extensions with Anadarko |
6,813 |
— |
||||||
Net cash provided by (used in) financing activities |
616,761 |
10,976 |
||||||
Net increase (decrease) in cash and cash equivalents |
10,446 |
(8,415) |
||||||
Cash and cash equivalents at beginning of period |
98,033 |
67,054 |
||||||
Cash and cash equivalents at end of period |
$ |
108,479 |
$ |
58,639 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield system. |
Western Gas Partners, LP | ||||||||
OPERATING STATISTICS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
MMcf/d except throughput measured in barrels and per-unit amounts |
2016 |
2015 (1) | ||||||
Throughput for natural gas assets (MMcf/d) |
||||||||
Gathering, treating and transportation |
1,597 |
1,964 |
||||||
Processing |
2,134 |
2,260 |
||||||
Equity investment (2) |
185 |
165 |
||||||
Total throughput for natural gas assets |
3,916 |
4,389 |
||||||
Throughput attributable to noncontrolling interest for natural gas assets |
135 |
162 |
||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets |
3,781 |
4,227 |
||||||
Throughput for crude/NGL assets (MBbls/d) |
||||||||
Gathering, treating and transportation |
60 |
75 |
||||||
Equity investment (3) |
124 |
107 |
||||||
Total throughput for crude/NGL assets |
184 |
182 | ||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (4) |
$ |
0.80 |
$ |
0.71 |
||||
Adjusted gross margin per Bbl for crude/NGL assets (5) |
$ |
2.07 |
$ |
1.91 |
(1) |
Throughput and adjusted gross margin have been recast to include results attributable to the Springfield system. |
(2) |
Represents WES's 14.81% share of average Fort Union throughput and 22% share of average Rendezvous throughput. |
(3) |
Represents equity investment throughput measured in barrels, which consists of WES's 10% share of average of White Cliffs throughput, WES's 25% share of Mont Belvieu JV throughput, WES's 20% share of average TEG and TEP throughput and WES's 33.33% share of average FRP throughput. |
(4) |
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. |
(5) |
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) | |||
Three Months Ended | |||
thousands except per-unit amount and Coverage ratio |
March 31, 2016 | ||
Distributions declared by Western Gas Partners, LP: |
|||
General partner interest |
$ |
3,080 |
|
Incentive distribution rights |
49,331 |
||
Common units held by WGP |
40,858 |
||
Less: |
|||
Public company general and administrative expense |
1,238 |
||
Interest expense |
$ |
103 |
|
Cash available for distribution |
$ |
91,928 |
|
Declared distribution per common unit |
$ |
0.42375 |
|
Distributions declared by Western Gas Equity Partners, LP |
$ |
92,767 |
|
Coverage ratio |
0.99 |
x |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands except per-unit amounts |
2016 |
2015 (1) | ||||||
Revenues and other |
||||||||
Gathering, processing and transportation |
$ |
294,004 |
$ |
270,268 |
||||
Natural gas and natural gas liquids sales |
88,556 |
165,672 |
||||||
Other |
581 |
1,066 |
||||||
Total revenues and other |
383,141 |
437,006 |
||||||
Equity income, net |
16,814 |
18,220 |
||||||
Operating expenses |
||||||||
Cost of product |
76,467 |
139,408 |
||||||
Operation and maintenance |
76,213 |
76,185 |
||||||
General and administrative |
12,515 |
11,916 |
||||||
Property and other taxes |
10,350 |
9,280 |
||||||
Depreciation and amortization |
65,095 |
68,975 |
||||||
Impairments |
6,518 |
272,624 |
||||||
Total operating expenses |
247,158 |
578,388 |
||||||
Gain (loss) on divestiture and other, net |
(632) |
(6) |
||||||
Operating income (loss) |
152,165 |
(123,168) |
||||||
Interest income – affiliates |
4,225 |
4,225 |
||||||
Interest expense |
(32,139) |
(22,962) |
||||||
Other income (expense), net |
141 |
80 |
||||||
Income (loss) before income taxes |
124,392 |
(141,825) |
||||||
Income tax (benefit) expense |
6,633 |
12,270 |
||||||
Net income (loss) |
117,759 |
(154,095) |
||||||
Net income (loss) attributable to noncontrolling interests |
35,943 |
(137,723) |
||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
81,816 |
$ |
(16,372) |
||||
Limited partners' interest in net income (loss): |
||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
81,816 |
$ |
(16,372) |
||||
Pre-acquisition net (income) loss allocated to Anadarko |
(11,326) |
(25,039) |
||||||
Limited partners' interest in net income (loss) |
$ |
70,490 |
$ |
(41,411) |
||||
Net income (loss) per common unit – basic and diluted |
$ |
0.32 |
$ |
(0.19) |
||||
Weighted-average number of common units outstanding – basic and diluted |
218,919 |
218,910 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield system. |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units |
March 31, |
December 31, | ||||||
Current assets |
$ |
295,121 |
$ |
301,364 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
4,940,219 |
4,858,779 |
||||||
Other assets |
1,870,343 |
1,883,201 |
||||||
Total assets |
$ |
7,365,683 |
$ |
7,303,344 |
||||
Current liabilities |
$ |
260,010 |
$ |
235,565 |
||||
Long-term debt |
3,049,325 |
2,690,651 |
||||||
Asset retirement obligations and other |
138,032 |
268,356 |
||||||
Deferred purchase price obligation – Anadarko |
193,211 |
188,674 |
||||||
Total liabilities |
$ |
3,640,578 |
$ |
3,383,246 |
||||
Equity and partners' capital |
||||||||
Common units (218,919,380 units issued and outstanding at March 31, 2016, and December 31, 2015, respectively) |
$ |
876,876 |
$ |
1,060,842 |
||||
Net investment by Anadarko |
— |
430,598 |
||||||
Noncontrolling interests |
2,848,229 |
2,428,658 |
||||||
Total liabilities, equity and partners' capital |
$ |
7,365,683 |
$ |
7,303,344 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield system. |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands |
2016 |
2015 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
117,759 |
$ |
(154,095) |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
65,095 |
68,975 |
||||||
Impairments |
6,518 |
272,624 |
||||||
Gain (loss) on divestiture and other, net |
632 |
6 |
||||||
Change in other items, net |
45,879 |
6,742 |
||||||
Net cash provided by (used in) operating activities |
235,883 |
194,252 |
||||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(136,987) |
$ |
(211,567) |
||||
Contributions in aid of construction costs from affiliates |
2,369 |
— |
||||||
Acquisitions from affiliates |
(713,596) |
(765) |
||||||
Investments in equity affiliates |
474 |
(4,878) |
||||||
Distributions from equity investments in excess of cumulative earnings |
4,784 |
2,964 |
||||||
Proceeds from the sale of assets to third parties |
138 |
22 |
||||||
Net cash provided by (used in) investing activities |
(842,818) |
(214,224) |
||||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
356,162 |
$ |
140,000 |
||||
Repayments of debt |
— |
(31,150) |
||||||
Increase (decrease) in outstanding checks |
(994) |
(2,198) |
||||||
Proceeds from the issuance of WES common units, net of offering expenses |
— |
31,075 |
||||||
Proceeds from the issuance of WES Series A Preferred units, net of offering expenses |
440,000 |
— |
||||||
Distributions to WGP unitholders |
(88,389) |
(68,409) |
||||||
Distributions to Chipeta noncontrolling interest owner |
(3,838) |
(3,150) |
||||||
Distributions to noncontrolling interest owners of WES |
(63,425) |
(54,879) |
||||||
Net contributions from (distributions to) Anadarko |
(27,632) |
1,293 |
||||||
Above-market component of swap extensions with Anadarko |
6,813 |
— |
||||||
Net cash provided by (used in) financing activities |
618,697 |
12,582 |
||||||
Net increase (decrease) in cash and cash equivalents |
11,762 |
(7,390) |
||||||
Cash and cash equivalents at beginning of period |
99,694 |
67,213 |
||||||
Cash and cash equivalents at end of period |
$ |
111,456 |
$ |
59,823 |
(1) |
Financial information has been recast to include the financial position and results attributable to the Springfield system. |
Logo - http://photos.prnewswire.com/prnh/20150505/213920LOGO
SOURCE Western Gas
HOUSTON, April 22, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.815 per unit for the first quarter of 2016. This distribution represents a 2-percent increase over the prior quarter and a 12-percent increase over the first quarter of 2015. WES's first quarter 2016 distribution is payable on May 13, 2016, to unitholders of record at the close of business on May 2, 2016.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.42375 per unit for the first quarter of 2016. This distribution represents a 5-percent increase over the prior quarter and a 24-percent increase over the first quarter of 2015. WGP's first quarter 2016 distribution is payable on May 22, 2016, to unitholders of record at the close of business on May 2, 2016.
The Partnerships plan to report their first-quarter 2016 results after the market closes on Tuesday, May 3, 2016. Management will host a conference call on Wednesday, May 4, 2016, at 11 a.m. CDT (12 p.m. EDT) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
First-Quarter 2016 Results
Wednesday, May 4, 2016
11 a.m. CDT (12 p.m. EDT)
Dial-in number: 844-836-8745
International dial-in number: 412-317-5439
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, please visit www.westerngas.com.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN GAS PARTNERS, LP and WESTERN GAS EQUITY PARTNERS, LP CONTACT:
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
benjamin.fink@westerngas.com
832.636.6010
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SOURCE Western Gas Partners, LP
HOUSTON, March 14, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) ("WES") announced today that it has closed its previously announced acquisition of Springfield Pipeline LLC from Anadarko Petroleum Corporation. The $750.0 million purchase price and certain purchase price adjustments were funded through net proceeds from the issuance of $449 million in aggregate amount of 8.5% perpetual convertible preferred units to First Reserve Advisors, L.L.C. and Kayne Anderson Capital Advisors, L.P., the issuance of 1,253,761 and 835,841 WES common units to Anadarko and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP"), respectively, and $247.5 million of borrowings on its revolving credit facility. WGP funded its WES unit purchase by drawing on a secured revolving credit facility which also closed today.
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2015 ANNUAL REPORTS
WES and WGP have filed their Annual Reports on Form 10-K for the fiscal year ended December 31, 2015, with the Securities and Exchange Commission. Copies of the reports are available for viewing and downloading on the Western Gas Web site at www.westerngas.com. Unitholders may request hard copies of the reports, which contain the applicable partnership's audited financial statements, free of charge by emailing investors@westerngas.com or by submitting a written request to Western Gas Partners, LP or Western Gas Equity Partners, LP at the following address: P.O. Box 1330, Houston, TX 77251-1330, Attention: Investor Relations.
For more information about Western Gas Partners, LP or Western Gas Equity Partners, LP, please visit www.westerngas.com.
WESTERN GAS PARTNERS, LP AND WESTERN GAS EQUITY PARTNERS, LP CONTACT:
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
benjamin.fink@westerngas.com
832.636.6010
SOURCE Western Gas
HOUSTON, Feb. 24, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") today announced that it has agreed to acquire a 100% interest in Springfield Pipeline LLC ("Springfield") from Anadarko Petroleum Corporation for $750.0 million. Springfield's sole asset is a 50.1% interest in the Springfield oil and gas gathering system (the "Springfield system"), which gathers Anadarko's and its partners' Eagleford shale production in South Texas. The Springfield system consists of 548 miles of gas gathering lines with a capacity of 795 MMcf/d and 241 miles of oil gathering lines with a capacity of 130 MBbls/d, located in Dimmit, La Salle, Maverick and Webb Counties in South Texas. The assets to be acquired also include 24 compressor stations with centralized delivery points, 260,000 barrels of oil storage capacity and 75,000 Bbls/d of stabilization capacity.
The Springfield system generates 100% fee-based revenues through gathering agreements with four shippers having primary terms through December 31, 2034. Furthermore, approximately 75% of the annual volume forecast for the system is covered under minimum volume commitments from the four shippers throughout the term of the agreements. The transaction is expected to close by March 15, 2016, and will be immediately accretive to the Partnership, with the acquisition price representing an approximate 5.8 times multiple of the assets' forecasted 2016 earnings before interest, taxes, depreciation and amortization. "This acquisition is a natural complement to our existing portfolio," said Chief Executive Officer, Don Sinclair. "It is highly accretive to our distributable cash flow with limited volumetric risk, and marks our entry into the crude oil gathering and stabilization business, which offers us further business diversification."
The Partnership intends to finance the acquisition through the issuance of $449 million in aggregate amount of 8.5% perpetual convertible preferred units (the "Preferred Units") to First Reserve Advisors, L.L.C. and Kayne Anderson Capital Advisors, L.P., at a price of $32.00 per unit, the issuance of 1,253,761 and 835,841 WES common units at a price of $29.91 per common unit to Anadarko and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP"), respectively, and the borrowing of $247.5 million on its revolving credit facility. The Preferred Units issuance includes an overallotment feature that may result in the issuance of up to an additional $252.6 million in aggregate amount of such units over the next 30 days, the net proceeds of which would be used to pay down the revolving credit facility borrowings. The Preferred Units will pay a distribution of $2.72 per year. After two years, the Preferred Units are convertible at the purchasers' option into WES common units on a one for one basis (subject to customary anti-dilution adjustments), and are convertible at WES's option in certain circumstances after three years. WGP will fund its WES unit purchase by drawing on a secured revolving credit facility that will close on or before the transaction closing date.
The terms of the acquisition were unanimously approved by the board of directors of the Partnership's general partner, and by the board's special committee, which is comprised entirely of independent directors. The Partnership's special committee engaged Evercore Partners to act as its financial advisor and Bracewell LLP to act as its legal advisor. The WGP special committee engaged Robert W. Baird & Co. Incorporated to act as its financial advisor and Baker Botts L.L.P. to act as its legal advisor with respect to its purchase of WES common units.
FOURTH-QUARTER AND FULL-YEAR 2015 RESULTS
The Partnership and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today also announced fourth-quarter and full-year 2015 financial and operating results. "2015 was another year in which WES generated strong results," said Sinclair. "We delivered 15% distribution growth with a solid coverage ratio of 1.1 times, while maintaining investment grade credit metrics. We also exceeded the midpoint of our Adjusted EBITDA guidance despite losing a month of operations at our DBM complex due to the incident at the Ramsey plant and the divestment of our Dew and Pinnacle systems in July."
Net income (loss) available to limited partners for both the Partnership and WGP includes the following: (i) impairment expense of $236.7 million and $501.1 million for the fourth quarter and year ended December 31, 2015, respectively, related to impairments at the Red Desert complex and the Hilight system, (ii) a net gain of $77.3 million associated with the divestiture of the Dew and Pinnacle systems in July 2015 and (iii) $20.3 million of net property losses associated with the incident at the DBM complex in December 2015. These items are excluded from the Partnership's non-GAAP(1) measures.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for 2015 totaled $(256.3) million, or $(1.95) per common unit (diluted), with full-year 2015 Adjusted EBITDA(1) of $758.0 million and full-year 2015 Distributable cash flow(1) of $636.4 million.
Net income (loss) available to limited partners for the fourth quarter of 2015 totaled $(219.2) million, or $(1.60) per common unit (diluted), with fourth-quarter 2015 Adjusted EBITDA(1) of $188.7 million and fourth-quarter 2015 Distributable cash flow(1) of $162.2 million.
WES paid a quarterly distribution of $0.800 per unit for the fourth quarter of 2015. This distribution represented a 3% increase over the prior quarter's distribution and a 14% increase over the fourth-quarter 2014 distribution of $0.700 per unit. The full-year 2015 distribution of $3.050 per unit represented a 15% increase over the full-year 2014 distribution of $2.650 per unit. The fourth-quarter 2015 Coverage ratio(1) of 1.06 times was based on the quarterly distribution of $0.800 per unit. The Partnership's Coverage ratio(1) for full-year 2015 was 1.11 times.
Total throughput attributable to WES for natural gas assets for the fourth quarter of 2015 averaged 3.6 Bcf/d, which was 4% below the prior quarter and 1% above the fourth quarter of 2014. Total fourth quarter throughput was flat with the prior quarter when adjusted for the divestiture of the Dew and Pinnacle systems in July 2015 and the loss of volumes at the DBM complex in December 2015. For the full-year 2015, total throughput attributable to WES for natural gas assets averaged 3.9 Bcf/d, which was 8% above the prior-year average. Total throughput for crude/NGL assets for the fourth quarter of 2015 averaged 142 MBbls/d, which was 2% below the prior quarter and 8% above the fourth quarter of 2014. For full-year 2015, total throughput for crude/NGL assets averaged 138 MBbls/d, which was 19% above the prior-year average.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $129.3 million on a cash basis and $119.9 million on an accrual basis during the fourth quarter of 2015, with maintenance capital expenditures on a cash basis of $12.7 million, or 7% of Adjusted EBITDA(1). For the full-year 2015, capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $604.3 million on a cash basis and $536.4 million on an accrual basis, with maintenance capital expenditures on a cash basis of $49.3 million, or 7% 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 49,296,205 WES common units. Net income (loss) available to limited partners for 2015 totaled $86.1 million, or $0.39 per common unit (diluted). Net income (loss) available to limited partners for the fourth quarter of 2015 totaled $(30.8) million, or $(0.14) per common unit (diluted).
WGP paid a quarterly distribution of $0.40375 per unit for the fourth quarter of 2015. This distribution represented a 6% increase over the prior quarter's distribution and a 29% increase over the fourth-quarter 2014 distribution of $0.31250. The full-year 2015 distribution of $1.49125 per unit represented a 33% increase over the full-year 2014 distribution. WGP received distributions from WES of $89.2 million attributable to the fourth quarter and will pay $88.4 million in distributions for the same period.
2016 WES OUTLOOK
WES and WGP also announced their 2016 outlook:
"2016 will be even more challenging for our industry than 2015. However, with the support of Anadarko and the strength of our portfolio, we believe we can continue to deliver meaningful distribution growth even in this commodity price environment," said Sinclair. "As you would expect, the estimated size of our capital program will be lower than 2015, but even with this decline, we feel very fortunate to have ongoing projects in the prolific Delaware Basin. As commodity prices improve, we expect to see additional projects materialize in our key areas of operation."
The 2016 outlook includes:
(1) Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio. |
CONFERENCE CALL TOMORROW AT 11 A.M. CST
WES and WGP will host a joint conference call on Thursday, February 25, 2016, at 11:00 a.m. Central Standard Time (12:00 p.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2015 results and the outlook for 2016. Individuals who would like to participate should dial 844-836-8745 (Domestic) or 412-317-5439 (International) approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.
This news release contains forward-looking statements. Western Gas Partners and Western Gas Equity Partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to close the acquisition and financing announced in this release; ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K 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
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
832.636.6010
benjamin.fink@westerngas.com
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Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of (i) WES's Distributable cash flow (non-GAAP) to net income (loss) attributable to Western Gas Partners, LP (GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP) to net income (loss) attributable to Western Gas Partners, LP (GAAP) and to net cash provided by operating activities (GAAP), and (iii) Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-GAAP) to operating income (loss) (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) and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
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, drip condensate and NGLs under our commodity price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less net cash paid for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, and income taxes.
Three Months Ended |
Year Ended | |||||||||||||||
thousands except Coverage ratio |
2015 |
2014 (1) |
2015 |
2014 (1) | ||||||||||||
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 |
$ |
(171,661) |
$ |
94,460 |
$ |
(73,538) |
$ |
393,842 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
25,244 |
23,574 |
98,298 |
81,022 |
||||||||||||
Non-cash equity-based compensation expense |
979 |
907 |
4,402 |
4,095 |
||||||||||||
Interest expense, net (non-cash settled) (2) |
4,480 |
— |
14,400 |
— |
||||||||||||
Income tax (benefit) expense |
(195) |
3,460 |
3,380 |
11,659 |
||||||||||||
Depreciation and amortization (3) |
59,792 |
53,635 |
241,556 |
183,945 |
||||||||||||
Impairments |
237,867 |
653 |
514,096 |
3,084 |
||||||||||||
Above-market component of swap extensions with Anadarko |
10,533 |
— |
18,449 |
— |
||||||||||||
Other expense (3) |
1,290 |
— |
1,290 |
— |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
(20,224) |
— |
57,020 |
— |
||||||||||||
Equity income, net |
12,114 |
16,514 |
71,251 |
57,836 |
||||||||||||
Cash paid for maintenance capital expenditures (3) |
12,711 |
13,009 |
49,300 |
48,563 |
||||||||||||
Capitalized interest |
1,492 |
2,485 |
8,318 |
9,832 |
||||||||||||
Cash paid for (reimbursement of) income taxes |
— |
250 |
(138) |
(90) |
||||||||||||
Other income (3) (4) |
— |
74 |
219 |
325 |
||||||||||||
Distributable cash flow |
$ |
162,236 |
$ |
144,357 |
$ |
636,363 |
$ |
561,181 |
||||||||
Distributions declared (5) |
||||||||||||||||
Limited partners |
$ |
102,862 |
$ |
392,077 |
||||||||||||
General partner |
49,726 |
179,610 |
||||||||||||||
Total |
$ |
152,588 |
$ |
571,687 |
||||||||||||
Coverage ratio |
1.06 |
x |
1.11 |
x |
(1) |
In March 2015, WES acquired Anadarko's interest in Delaware Basin JV Gathering LLC, which owns a 50% interest in a gathering system and related facilities (the "DBJV system"). WES will make a cash payment on March 1, 2020, to Anadarko as consideration for the acquisition. The net present value of this future obligation has been recorded on the consolidated balance sheet under Deferred purchase price obligation - Anadarko. Financial information has been recast to include the financial position and results attributable to the DBJV system |
(2) |
Includes accretion expense related to the Deferred purchase price obligation - Anadarko associated with the acquisition of DBJV |
(3) |
Includes WES's 75% share of depreciation and amortization; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. For the three months and year ended December 31, 2015, other expense also includes $0.4 million of lower of cost or market inventory adjustments at our DBM complex |
(4) |
Excludes income of zero for each of the three months ended December 31, 2015 and 2014, and zero and $0.5 million for the years ended December 31, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease |
(5) |
Reflects cash distributions of $0.800 and $3.050 per unit declared for the three months and year ended December 31, 2015, respectively |
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted EBITDA Attributable to Western Gas Partners, LP
WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation 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 |
Year Ended | |||||||||||||||
thousands |
2015 |
2014 (1) |
2015 |
2014 (1) | ||||||||||||
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 |
$ |
(171,661) |
$ |
94,460 |
$ |
(73,538) |
$ |
393,842 |
||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
25,244 |
23,574 |
98,298 |
81,022 |
||||||||||||
Non-cash equity-based compensation expense |
979 |
907 |
4,402 |
4,095 |
||||||||||||
Interest expense |
31,535 |
21,063 |
113,872 |
76,766 |
||||||||||||
Income tax expense |
— |
3,460 |
5,285 |
11,659 |
||||||||||||
Depreciation and amortization (2) |
59,792 |
53,635 |
241,556 |
183,945 |
||||||||||||
Impairments |
237,867 |
653 |
514,096 |
3,084 |
||||||||||||
Other expense (2) |
1,290 |
— |
1,290 |
— |
||||||||||||
Less: |
||||||||||||||||
Gain (loss) on divestiture and other, net |
(20,224) |
— |
57,020 |
— |
||||||||||||
Equity income, net |
12,114 |
16,514 |
71,251 |
57,836 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
16,900 |
16,900 |
||||||||||||
Other income (2) (3) |
— |
74 |
219 |
325 |
||||||||||||
Income tax benefit |
195 |
— |
1,905 |
— |
||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
188,736 |
$ |
176,939 |
$ |
757,966 |
$ |
679,352 |
||||||||
Reconciliation of Adjusted EBITDA attributable to Western Gas Partners, LP to Net cash provided by operating activities |
||||||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP |
$ |
188,736 |
$ |
176,939 |
$ |
757,966 |
$ |
679,352 |
||||||||
Adjusted EBITDA attributable to noncontrolling interest |
2,526 |
3,661 |
12,699 |
16,583 |
||||||||||||
Interest income (expense), net |
(27,310) |
(16,838) |
(96,972) |
(59,866) |
||||||||||||
Uncontributed cash-based compensation awards |
(48) |
(197) |
(214) |
(175) |
||||||||||||
Accretion and amortization of long-term obligations, net |
5,402 |
691 |
17,698 |
2,736 |
||||||||||||
Current income tax benefit (expense) |
(369) |
5,841 |
(1,448) |
1,666 |
||||||||||||
Other income (expense), net (3) |
(846) |
76 |
(619) |
336 |
||||||||||||
Distributions from equity investments in excess of cumulative earnings |
(3,835) |
(3,668) |
(16,244) |
(18,055) |
||||||||||||
Changes in operating working capital: |
||||||||||||||||
Accounts receivable, net |
18,490 |
45,968 |
(5,614) |
(6,691) |
||||||||||||
Accounts and imbalance payables and accrued liabilities, net |
(12,565) |
(74,969) |
3,154 |
(39,162) |
||||||||||||
Other |
1,020 |
1,840 |
(797) |
3,485 |
||||||||||||
Net cash provided by operating activities |
$ |
171,201 |
$ |
139,344 |
$ |
669,609 |
$ |
580,209 |
||||||||
Cash flow information of Western Gas Partners, LP |
||||||||||||||||
Net cash provided by operating activities |
$ |
669,609 |
$ |
580,209 |
||||||||||||
Net cash used in investing activities |
$ |
(466,424) |
$ |
(2,670,998) |
||||||||||||
Net cash provided by (used in) financing activities |
$ |
(172,206) |
$ |
2,057,115 |
(1) |
Financial information has been recast to include the financial position and results attributable to the DBJV system |
(2) |
Includes WES's 75% share of depreciation and amortization; other expense; and other income attributable to Chipeta. For the three months and year ended December 31, 2015, other expense also includes $0.4 million of lower of cost or market inventory adjustments at our DBM complex |
(3) |
Excludes income of zero for each of the three months ended December 31, 2015 and 2014, and zero and $0.5 million for the years ended December 31, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease |
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted gross margin attributable to Western Gas Partners, LP
WES defines Adjusted gross margin as total revenues and other less reimbursements for electricity-related expenses recorded as revenue, and cost of product, plus distributions from equity investees and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended |
Year Ended | |||||||||||||||
thousands |
2015 |
2014 (1) |
2015 |
2014 (1) | ||||||||||||
Reconciliation of Adjusted gross margin attributable to Western Gas Partners, LP to Operating income (loss) |
||||||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets |
$ |
242,235 |
$ |
229,414 |
$ |
971,639 |
$ |
876,210 |
||||||||
Adjusted gross margin for crude/NGL assets |
22,933 |
22,022 |
88,642 |
73,714 |
||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP |
$ |
265,168 |
$ |
251,436 |
$ |
1,060,281 |
$ |
949,924 |
||||||||
Adjusted gross margin attributable to noncontrolling interest |
$ |
3,557 |
$ |
4,572 |
$ |
16,779 |
$ |
20,183 |
||||||||
Gain (loss) on divestiture and other, net |
(20,224) |
— |
57,020 |
— |
||||||||||||
Equity income, net |
12,114 |
16,514 |
71,251 |
57,836 |
||||||||||||
Reimbursed electricity-related charges recorded as revenues |
13,752 |
10,764 |
54,175 |
39,338 |
||||||||||||
Less: |
||||||||||||||||
Distributions from equity investees |
25,244 |
23,574 |
98,298 |
81,022 |
||||||||||||
Operation and maintenance |
78,134 |
71,821 |
296,774 |
255,844 |
||||||||||||
General and administrative |
9,611 |
10,535 |
38,108 |
36,223 |
||||||||||||
Property and other taxes |
4,892 |
4,723 |
30,533 |
26,066 |
||||||||||||
Depreciation and amortization |
60,448 |
54,278 |
244,163 |
186,514 |
||||||||||||
Impairments |
237,867 |
653 |
514,096 |
3,084 |
||||||||||||
Operating income (loss) |
$ |
(141,829) |
$ |
117,702 |
$ |
37,534 |
$ |
478,528 |
(1) |
Financial information has been recast to include the financial position and results attributable to the DBJV system |
Western Gas Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Year Ended | |||||||||||||||
thousands except per-unit amounts |
2015 |
2014 (1) |
2015 |
2014 (1) | ||||||||||||
Revenues and other |
||||||||||||||||
Gathering, processing and transportation of natural gas and natural gas liquids |
$ |
239,373 |
$ |
202,385 |
$ |
938,121 |
$ |
745,145 |
||||||||
Natural gas, natural gas liquids and drip condensate sales |
131,075 |
162,493 |
617,949 |
624,233 |
||||||||||||
Other |
842 |
1,839 |
5,302 |
13,490 |
||||||||||||
Total revenues and other |
371,290 |
366,717 |
1,561,372 |
1,382,868 |
||||||||||||
Equity income, net |
12,114 |
16,514 |
71,251 |
57,836 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
114,057 |
123,519 |
528,435 |
454,445 |
||||||||||||
Operation and maintenance |
78,134 |
71,821 |
296,774 |
255,844 |
||||||||||||
General and administrative |
9,611 |
10,535 |
38,108 |
36,223 |
||||||||||||
Property and other taxes |
4,892 |
4,723 |
30,533 |
26,066 |
||||||||||||
Depreciation and amortization |
60,448 |
54,278 |
244,163 |
186,514 |
||||||||||||
Impairments |
237,867 |
653 |
514,096 |
3,084 |
||||||||||||
Total operating expenses |
505,009 |
265,529 |
1,652,109 |
962,176 |
||||||||||||
Gain (loss) on divestiture and other, net (2) |
(20,224) |
— |
57,020 |
— |
||||||||||||
Operating income (loss) |
(141,829) |
117,702 |
37,534 |
478,528 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
16,900 |
16,900 |
||||||||||||
Interest expense |
(31,535) |
(21,063) |
(113,872) |
(76,766) |
||||||||||||
Other income (expense), net |
(846) |
76 |
(619) |
864 |
||||||||||||
Income (loss) before income taxes |
(169,985) |
100,940 |
(60,057) |
419,526 |
||||||||||||
Income tax (benefit) expense |
(195) |
3,460 |
3,380 |
11,659 |
||||||||||||
Net income (loss) |
(169,790) |
97,480 |
(63,437) |
407,867 |
||||||||||||
Net income (loss) attributable to noncontrolling interest |
1,871 |
3,020 |
10,101 |
14,025 |
||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
(171,661) |
$ |
94,460 |
$ |
(73,538) |
$ |
393,842 |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP |
$ |
(171,661) |
$ |
94,460 |
$ |
(73,538) |
$ |
393,842 |
||||||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
(3,071) |
(1,742) |
(16,353) |
||||||||||||
General partner interest in net (income) loss |
(47,581) |
(37,041) |
(180,996) |
(120,980) |
||||||||||||
Limited partners' interest in net income (loss) |
$ |
(219,242) |
$ |
54,348 |
$ |
(256,276) |
$ |
256,509 |
||||||||
Net income (loss) per common unit – basic |
$ |
(1.60) |
$ |
0.42 |
$ |
(1.95) |
$ |
2.13 |
||||||||
Net income (loss) per common unit – diluted |
(1.60) |
0.42 |
(1.95) |
2.12 |
||||||||||||
Weighted-average common units outstanding – basic |
128,576 |
124,263 |
128,345 |
119,822 |
||||||||||||
Weighted-average common units outstanding – diluted |
139,905 |
128,652 |
139,459 |
120,928 |
(1) |
Financial information has been recast to include the financial position and results attributable to the DBJV system |
(2) |
For the three months and year ended December 31, 2015, includes a net loss of $20.3 million (inclusive of estimated property insurance recoveries) related to an incident at the DBM complex on December 3, 2015 |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
December 31, | ||||||||
thousands except number of units |
2015 |
2014 (1) | ||||||
Current assets |
$ |
286,881 |
$ |
186,350 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
4,289,974 |
4,571,443 |
||||||
Other assets |
1,870,407 |
1,936,725 |
||||||
Total assets |
$ |
6,707,262 |
$ |
6,954,518 |
||||
Current liabilities |
$ |
199,232 |
$ |
239,833 |
||||
Long-term debt |
2,707,357 |
2,422,954 |
||||||
Asset retirement obligations and other |
124,569 |
157,356 |
||||||
Deferred purchase price obligation – Anadarko |
188,674 |
— |
||||||
Total liabilities |
$ |
3,219,832 |
$ |
2,820,143 |
||||
Equity and partners' capital |
||||||||
Common units (128,576,965 and 127,695,130 units issued and outstanding at December 31, 2015 and 2014, respectively) |
$ |
2,588,991 |
$ |
3,119,714 |
||||
Class C units (11,411,862 and 10,913,853 units issued and outstanding at December 31, 2015 and 2014, respectively) |
710,891 |
716,957 |
||||||
General partner units (2,583,068 units issued and outstanding at December 31, 2015 and 2014) |
120,164 |
105,725 |
||||||
Net investment by Anadarko |
— |
122,509 |
||||||
Noncontrolling interest |
67,384 |
69,470 |
||||||
Total liabilities, equity and partners' capital |
$ |
6,707,262 |
$ |
6,954,518 |
(1) |
Financial information has been recast to include the financial position and results attributable to the DBJV system |
Western Gas Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Year Ended | ||||||||
thousands |
2015 |
2014 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
(63,437) |
$ |
407,867 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
244,163 |
186,514 |
||||||
Impairments |
514,096 |
3,084 |
||||||
Gain (loss) on divestiture and other, net (2) |
(57,020) |
— |
||||||
Change in other items, net |
31,807 |
(17,256) |
||||||
Net cash provided by operating activities |
669,609 |
580,209 |
||||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(602,289) |
$ |
(722,443) |
||||
Contributions in aid of construction costs from affiliates |
461 |
183 |
||||||
Acquisitions from affiliates |
(12,664) |
(379,193) |
||||||
Acquisitions from third parties |
(3,514) |
(1,523,327) |
||||||
Investments in equity affiliates |
(11,442) |
(64,278) |
||||||
Distributions from equity investments in excess of cumulative earnings |
16,244 |
18,055 |
||||||
Proceeds from the sale of assets to affiliates |
925 |
— |
||||||
Proceeds from the sale of assets to third parties |
145,855 |
5 |
||||||
Net cash used in investing activities |
(466,424) |
(2,670,998) |
||||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
889,606 |
$ |
1,646,878 |
||||
Repayments of debt |
(610,000) |
(650,000) |
||||||
Increase (decrease) in outstanding checks |
(1,751) |
1,693 |
||||||
Proceeds from the issuance of common and general partner units, net of offering expenses |
57,353 |
704,489 |
||||||
Proceeds from the issuance of Class C units |
— |
750,000 |
||||||
Distributions to unitholders |
(545,143) |
(408,621) |
||||||
Distributions to noncontrolling interest owner |
(12,187) |
(15,149) |
||||||
Net contributions from Anadarko |
31,467 |
27,825 |
||||||
Above-market component of swap extensions with Anadarko |
18,449 |
— |
||||||
Net cash provided by (used in) financing activities |
(172,206) |
2,057,115 |
||||||
Net increase (decrease) in cash and cash equivalents |
30,979 |
(33,674) |
||||||
Cash and cash equivalents at beginning of period |
67,054 |
100,728 |
||||||
Cash and cash equivalents at end of period |
$ |
98,033 |
$ |
67,054 |
(1) |
Financial information has been recast to include the financial position and results attributable to the DBJV system |
(2) |
For the year ended December 31, 2015, includes a net loss of $20.3 million (inclusive of estimated property insurance recoveries) related to an incident at the DBM complex on December 3, 2015 |
Western Gas Partners, LP | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Year Ended | |||||||||||||||
MMcf/d except throughput measured in barrels and per-unit amounts |
2015 |
2014 (1) |
2015 |
2014 (1) | ||||||||||||
Throughput for natural gas assets |
||||||||||||||||
Gathering, treating and transportation |
1,294 |
1,607 |
1,487 |
1,627 |
||||||||||||
Processing |
2,272 |
1,991 |
2,331 |
1,925 |
||||||||||||
Equity investment (2) |
196 |
170 |
178 |
171 |
||||||||||||
Total throughput for natural gas assets |
3,762 |
3,768 |
3,996 |
3,723 |
||||||||||||
Throughput attributable to noncontrolling interest for natural gas assets |
122 |
153 |
142 |
165 |
||||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets (3) |
3,640 |
3,615 |
3,854 |
3,558 |
||||||||||||
Total throughput (MBbls/d) for crude/NGL assets (4) |
142 |
131 |
138 |
116 |
||||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (5) |
$ |
0.72 |
$ |
0.69 |
$ |
0.69 |
$ |
0.67 |
||||||||
Adjusted gross margin per Bbl for crude/NGL assets (6) |
$ |
1.76 |
$ |
1.83 |
$ |
1.76 |
$ |
1.75 |
(1) |
Throughput has been recast to include throughput attributable to the DBJV system |
(2) |
Represents WES's 14.81% share of average Fort Union and 22% share of average Rendezvous throughput. Excludes equity investment throughput measured in barrels (captured in "Total throughput (MBbls/d) for crude/NGL assets" as noted below) |
(3) |
Includes affiliate, third-party and equity investment throughput (as equity investment throughput is defined in the above footnote), excluding the noncontrolling interest owner's proportionate share of throughput |
(4) |
Represents total throughput measured in barrels, consisting of throughput from WES's Chipeta NGL pipeline, WES's 10% share of average White Cliffs throughput, WES's 25% share of average Mont Belvieu JV throughput, WES's 20% share of average TEG and TEP throughput and WES's 33.33% share of average FRP throughput |
(5) |
Average for period. Calculated as Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets (total revenues 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 owners' proportionate share of revenue and cost of product) divided by total throughput (MMcf/d) attributable to Western Gas Partners, LP for natural gas assets |
(6) |
Average for period. Calculated as Adjusted gross margin for crude/NGL assets (total revenues 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) | |||
Three Months Ended | |||
thousands except per-unit amount and Coverage ratio |
December 31, 2015 | ||
Distributions declared by Western Gas Partners, LP: |
|||
General partner interest |
$ |
3,005 |
|
Incentive distribution rights |
46,721 |
||
Common units held by WGP |
39,437 |
||
Less: |
|||
Public company general and administrative expense |
757 |
||
Cash available for distribution |
$ |
88,406 |
|
Declared distribution per common unit |
$ |
0.40375 |
|
Distributions declared by Western Gas Equity Partners, LP |
$ |
88,389 |
|
Coverage ratio |
1.00 |
x |
Western Gas Equity Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Year Ended | |||||||||||||||
thousands except per-unit amounts |
2015 |
2014 (1) |
2015 |
2014 (1) | ||||||||||||
Revenues and other |
||||||||||||||||
Gathering, processing and transportation of natural gas and natural gas liquids |
$ |
239,373 |
$ |
202,385 |
$ |
938,121 |
$ |
745,145 |
||||||||
Natural gas, natural gas liquids and drip condensate sales |
131,075 |
162,493 |
617,949 |
624,233 |
||||||||||||
Other |
842 |
1,839 |
5,302 |
13,490 |
||||||||||||
Total revenues and other |
371,290 |
366,717 |
1,561,372 |
1,382,868 |
||||||||||||
Equity income, net |
12,114 |
16,514 |
71,251 |
57,836 |
||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
114,057 |
123,519 |
528,435 |
454,445 |
||||||||||||
Operation and maintenance |
78,134 |
71,821 |
296,774 |
255,844 |
||||||||||||
General and administrative |
10,369 |
11,246 |
41,217 |
39,439 |
||||||||||||
Property and other taxes |
4,893 |
4,757 |
30,572 |
26,100 |
||||||||||||
Depreciation and amortization |
60,448 |
54,278 |
244,163 |
186,514 |
||||||||||||
Impairments |
237,867 |
653 |
514,096 |
3,084 |
||||||||||||
Total operating expenses |
505,768 |
266,274 |
1,655,257 |
965,426 |
||||||||||||
Gain (loss) on divestiture and other, net (2) |
(20,224) |
— |
57,020 |
— |
||||||||||||
Operating income (loss) |
(142,588) |
116,957 |
34,386 |
475,278 |
||||||||||||
Interest income – affiliates |
4,225 |
4,225 |
16,900 |
16,900 |
||||||||||||
Interest expense |
(31,535) |
(21,066) |
(113,874) |
(76,769) |
||||||||||||
Other income (expense), net |
(834) |
89 |
(578) |
938 |
||||||||||||
Income (loss) before income taxes |
(170,732) |
100,205 |
(63,166) |
416,347 |
||||||||||||
Income tax (benefit) expense |
(195) |
3,460 |
3,380 |
11,659 |
||||||||||||
Net income (loss) |
(170,537) |
96,745 |
(66,546) |
404,688 |
||||||||||||
Net income (loss) attributable to noncontrolling interests |
(139,766) |
36,510 |
(154,409) |
165,468 |
||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
(30,771) |
$ |
60,235 |
$ |
87,863 |
$ |
239,220 |
||||||||
Limited partners' interest in net income (loss): |
||||||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP |
$ |
(30,771) |
$ |
60,235 |
$ |
87,863 |
$ |
239,220 |
||||||||
Pre-acquisition net (income) loss allocated to Anadarko |
— |
(3,071) |
(1,742) |
(16,353) |
||||||||||||
Limited partners' interest in net income (loss) |
$ |
(30,771) |
$ |
57,164 |
$ |
86,121 |
$ |
222,867 |
||||||||
Net income (loss) per common unit – basic and diluted |
$ |
(0.14) |
$ |
0.26 |
$ |
0.39 |
$ |
1.02 |
||||||||
Weighted-average number of common units outstanding – basic and diluted |
218,916 |
218,910 |
218,913 |
218,910 |
(1) |
Financial information has been recast to include the financial position and results attributable to the DBJV system |
(2) |
For the three months and year ended December 31, 2015, includes a net loss of $20.3 million (inclusive of estimated property insurance recoveries) related to an incident at the DBM complex on December 3, 2015 |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
December 31, | ||||||||
thousands except number of units |
2015 |
2014 | ||||||
Current assets |
$ |
289,028 |
$ |
187,059 |
||||
Note receivable – Anadarko |
260,000 |
260,000 |
||||||
Net property, plant and equipment |
4,289,974 |
4,571,443 |
||||||
Other assets |
1,870,407 |
1,936,725 |
||||||
Total assets |
$ |
6,709,409 |
$ |
6,955,227 |
||||
Current liabilities |
$ |
199,309 |
$ |
241,058 |
||||
Long-term debt |
2,707,357 |
2,422,954 |
||||||
Asset retirement obligations and other |
124,569 |
157,356 |
||||||
Deferred purchase price obligation – Anadarko |
188,674 |
— |
||||||
Total liabilities |
$ |
3,219,909 |
$ |
2,821,368 |
||||
Equity and partners' capital |
||||||||
Common units (218,919,380 and 218,909,977 units issued and outstanding at December 31, 2015 and 2014, respectively) |
$ |
1,060,842 |
$ |
1,260,195 |
||||
Net investment by Anadarko |
— |
122,509 |
||||||
Noncontrolling interests |
2,428,658 |
2,751,155 |
||||||
Total liabilities, equity and partners' capital |
$ |
6,709,409 |
$ |
6,955,227 |
(1) |
Financial information has been recast to include the financial position and results attributable to the DBJV system |
Western Gas Equity Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Year Ended | ||||||||
thousands |
2015 |
2014 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income (loss) |
$ |
(66,546) |
$ |
404,688 |
||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: |
||||||||
Depreciation and amortization |
244,163 |
186,514 |
||||||
Impairments |
514,096 |
3,084 |
||||||
Gain (loss) on divestiture and other, net (2) |
(57,020) |
— |
||||||
Change in other items, net |
32,080 |
(17,910) |
||||||
Net cash provided by operating activities |
666,773 |
576,376 |
||||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ |
(602,289) |
$ |
(722,443) |
||||
Contributions in aid of construction costs from affiliates |
461 |
183 |
||||||
Acquisitions from affiliates |
(12,664) |
(379,193) |
||||||
Acquisitions from third parties |
(3,514) |
(1,523,327) |
||||||
Investments in equity affiliates |
(11,442) |
(64,278) |
||||||
Distributions from equity investments in excess of cumulative earnings |
16,244 |
18,055 |
||||||
Proceeds from the sale of assets to affiliates |
925 |
— |
||||||
Proceeds from the sale of assets to third parties |
145,855 |
5 |
||||||
Net cash used in investing activities |
(466,424) |
(2,670,998) |
||||||
Cash flows from financing activities |
||||||||
Borrowings, net of debt issuance costs |
$ |
889,606 |
$ |
1,648,028 |
||||
Repayments of debt |
(611,150) |
(650,000) |
||||||
Increase (decrease) in outstanding checks |
(1,751) |
1,693 |
||||||
Proceeds from the issuance of WES common units, net of offering expenses |
57,353 |
691,178 |
||||||
Proceeds from the issuance of WES Class C units |
— |
750,000 |
||||||
Distributions to WGP unitholders |
(306,477) |
(228,481) |
||||||
Distributions to Chipeta noncontrolling interest owner |
(12,187) |
(15,149) |
||||||
Distributions to noncontrolling interest owners of WES |
(233,178) |
(176,344) |
||||||
Net contributions from Anadarko |
31,467 |
27,825 |
||||||
Above-market component of swap extensions with Anadarko |
18,449 |
— |
||||||
Net cash provided by (used in) financing activities |
(167,868) |
2,048,750 |
||||||
Net increase (decrease) in cash and cash equivalents |
32,481 |
(45,872) |
||||||
Cash and cash equivalents at beginning of period |
67,213 |
113,085 |
||||||
Cash and cash equivalents at end of period |
$ |
99,694 |
$ |
67,213 |
(1) |
Financial information has been recast to include the financial position and results attributable to the DBJV system |
(2) |
For the year ended December 31, 2015, includes a net loss of $20.3 million (inclusive of estimated property insurance recoveries) related to an incident at the DBM complex on December 3, 2015 |
SOURCE Western Gas Partners, LP
HOUSTON, Jan. 21, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.80 per unit for the fourth quarter of 2015, marking a full-year 2015 distribution increase of 15-percent over the full-year 2014. This distribution also represents a 3-percent increase over the prior quarter and a 14-percent increase over the fourth quarter of 2014. WES's fourth quarter 2015 distribution is payable on February 11, 2016, to unitholders of record at the close of business on February 1, 2016.
Western Gas Equity Partners, LP (NYSE: WGP) also announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.40375 per unit for the fourth quarter of 2015, marking a full-year 2015 distribution increase of 33-percent over the full-year 2014. This distribution also represents a 6-percent increase over the prior quarter and a 29-percent increase over the fourth quarter of 2014. WGP's fourth quarter 2015 distribution is payable on February 22, 2016, to unitholders of record at the close of business on February 1, 2016.
The Partnerships plan to report their fourth-quarter and full-year 2015 results after the market closes on Wednesday, February 24, 2016. Management will host a conference call on Thursday, February 25, 2016, at 11 a.m. CST (12 p.m. EST) to discuss quarterly results. The full text of the release announcing the results will be available on the Partnerships' website at www.westerngas.com.
Fourth-Quarter and Full-Year 2015 Results
Thursday, February 25, 2016
11 a.m. CST (12 p.m. EST)
Dial-in number: 844-836-8745
International dial-in number: 412-317-5439
Individuals who would like to participate should dial the applicable dial-in number listed above approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call.
To access the live audio webcast of the conference call, please visit the investor relations section of the Partnerships' 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, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating, and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.
Note regarding Non-United States Investors: This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Western Gas Partners, LP's and Western Gas Equity Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN GAS PARTNERS, LP and WESTERN GAS EQUITY PARTNERS, LP CONTACT:
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
benjamin.fink@westerngas.com
832.636.6010
Logo - http://photos.prnewswire.com/prnh/20150505/213920LOGO
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SOURCE Western Gas Partners, LP
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