Western Midstream Operating, LP
Company Summary
Description
Western Gas Partners, L.P. is a publicly traded master limited partnership formed by Anadarko Petroleum Corporation (“Anadarko”) to own, operate, acquire, and develop midstream assets. Western gathers, processes, compresses, treats and transports natural gas, condensate, natural gas liquids and crude oil for Anadarko and third parties. Western has a substantial presence in basins with historically strong producer economics with core positions located across the United States. First Reserve is pleased to be partnering with what we believe is a well-capitalized midstream entity with a growth-oriented mandate.Website
https://www.westerngas.com//Financial Data:
NYSE:WES from Google FinanceTickers:
-
WES - New York Stock Exchange
Related Entities
Firm Transport Commitments
Project: Red Bluff Express Pipeline
Firm Commitment: 0
Recent news
- 3/31/2023 - Western Midstream... (subscriber access)
- 8/10/2021 - Western Midstream... (subscriber access)
- 1/10/2020 - Western Midstream Prices... (subscriber access)
- 2/28/2019 - Western Gas Equity... (subscriber access)
- 2/17/2019 - Western Gas Partners... (subscriber access)
Investor Presentations
- Western Midstream First-Quarter Presentation May 2022
- Fourth Quarter 2017 Earnings Slides (subscriber access)
- 2017 Wells Fargo Pipeline, MLP, and Utility Symposium (subscriber access)
- 3Q17 WES/WGP Earnings Call (subscriber access)
- Barclays CEO Energy-Power Conference 2017 (subscriber access)
- 2Q17 WES/WGP Earnings Conference Call (subscriber access)
- Jun 2017 J.P. Morgan Energy Equity Investor Conference (subscriber access)
- MLPA 2017 Investor Conference (subscriber access)
- 1Q17 WES/WGP Earnings Conference Call (subscriber access)
- Western Gas Fourth Quarter and Full Year 2016 Review (subscriber access)
- Dec 2016 Wells Fargo Pipeline, MLP & Utility Symposium (subscriber access)
- Nov 2016 Jefferies Energy Conference (subscriber access)
- Western Gas Q3 2016 Presentation (subscriber access)
Company Transactions
Date: 3/31/2019
Type: Acquisition
BUYERS:
Western Midstream Operating, LP
SELLERS:
Anadarko Petroleum Corporation
DETAILS:
COST: 4.015 $B
NOTES:
Acquired Permian Basin assets include DBM Oil Services (100% interest), APC Water Holdings (100% interest), the Bone Spring Gas Plant (50% non-operated interest), and the MiVida Gas Plant (50% non-operated interest.) DH Basin assets include the DJ Basin Oil System and the Wattenberg Plant. Additionally, the deal includes a 20% non-op stake in Saddlehorn Pipeline, a 15% non-op stake in Panola Pipeline and a 100% stake in the Wamsutter Pipeline.
Acquired Permian Basin assets include DBM Oil Services (100% interest), APC Water Holdings (100% interest), the Bone Spring Gas Plant (50% non-operated interest), and the MiVida Gas Plant (50% non-operated interest.) DH Basin assets include the DJ Basin Oil System and the Wattenberg Plant. Additionally, the deal includes a 20% non-op stake in Saddlehorn Pipeline, a 15% non-op stake in Panola Pipeline and a 100% stake in the Wamsutter Pipeline.
REGIONS:
Permian Basin
DJ Basin
Lower 48
Date: 3/31/2019
Type: Merger
NOTES:
Western Gas reported that they would be merging with Western Gas Equity Partners, LP in a simplification agreement.
Western Gas reported that they would be merging with Western Gas Equity Partners, LP in a simplification agreement.
REGIONS:
Lower 48
Date: 3/31/2017
Type: Acquisition
BUYERS:
Western Midstream Operating, LP
DETAILS:
NOTES:
Williams Partners is acquiring Western Gas' 33.75% ownership in the Liberty and Rome Natural Gas Gathering Systems in Pennsylvania for a cash payment of $155 million. In exchange, Western Gas is acquiring Williams 50% stake in Delaware Basin JV Gathering, LLC. Upon closing, Williams will have a 67.5% ownership stake in the Rome and Liberty Systems, whose current throughput totals 1.6 Bcf/d.
Williams Partners is acquiring Western Gas' 33.75% ownership in the Liberty and Rome Natural Gas Gathering Systems in Pennsylvania for a cash payment of $155 million. In exchange, Western Gas is acquiring Williams 50% stake in Delaware Basin JV Gathering, LLC. Upon closing, Williams will have a 67.5% ownership stake in the Rome and Liberty Systems, whose current throughput totals 1.6 Bcf/d.
REGIONS:
Delaware Basin
Date: 3/30/2017
Type: Acquisition
BUYERS:
Williams Partners L.P.
DETAILS:
COST: 155 $MM
NOTES:
Williams Partners is acquiring Western Gas' 33.75% ownership in the Liberty and Rome Natural Gas Gathering Systems in Pennsylvania for a cash payment of $155 million. In exchange, Western Gas is acquiring Williams 50% stake in Delaware Basin JV Gathering, LLC. Upon closing, Williams will have a 67.5% ownership stake in the Rome and Liberty Systems, whose current throughput totals 1.6 Bcf/d.
Williams Partners is acquiring Western Gas' 33.75% ownership in the Liberty and Rome Natural Gas Gathering Systems in Pennsylvania for a cash payment of $155 million. In exchange, Western Gas is acquiring Williams 50% stake in Delaware Basin JV Gathering, LLC. Upon closing, Williams will have a 67.5% ownership stake in the Rome and Liberty Systems, whose current throughput totals 1.6 Bcf/d.
REGIONS:
Marcellus Shale
Date: 3/15/2016
Type: Acquisition
BUYERS:
Western Midstream Operating, LP
ASSETS:
Maverick Basin Gathering System
DETAILS:
COST: 750 $MM
NOTES:
Anadarko also announced an agreement with Western Gas Partners, LP (NYSE: WES), whereby WES will acquire a 100-percent interest in Springfield Pipeline LLC, from Anadarko for $750 million. Springfield's sole asset is a 50.1-percent interest in the Maverick Basin gathering system, located in Dimmit, La Salle, Maverick and Webb counties in South Texas. The transaction is expected to close by March 15, 2016, subject to applicable regulatory approvals and other contractual conditions.
Anadarko also announced an agreement with Western Gas Partners, LP (NYSE: WES), whereby WES will acquire a 100-percent interest in Springfield Pipeline LLC, from Anadarko for $750 million. Springfield's sole asset is a 50.1-percent interest in the Maverick Basin gathering system, located in Dimmit, La Salle, Maverick and Webb counties in South Texas. The transaction is expected to close by March 15, 2016, subject to applicable regulatory approvals and other contractual conditions.
REGIONS:
Eagle Ford
News & Press Releases
Criterion News
- 3/31/2023 - Western Midstream... (subscriber access)
- 8/10/2021 - Western Midstream... (subscriber access)
- 1/10/2020 - Western Midstream Prices... (subscriber access)
- 2/28/2019 - Western Gas Equity... (subscriber access)
- 2/17/2019 - Western Gas Partners... (subscriber access)
- 2/17/2019 - Western Gas Partners... (subscriber access)
- 2/17/2019 - Western Gas Partners... (subscriber access)
- 2/17/2019 - Western Gas Partners... (subscriber access)
- 2/17/2019 - Western Gas Partners... (subscriber access)
- 1/29/2019 - Western Gas Equity... (subscriber access)
- 11/8/2018 - Anadarko Sells Remaining... (subscriber access)
- 10/31/2018 - Anadarko Issues 3Q18... (subscriber access)
- 10/31/2018 - Anadarko Added to... (subscriber access)
- 5/8/2018 - DCP Secures 300 Mmcf/d... (subscriber access)
- 5/3/2018 - Enterprise, Western Gas... (subscriber access)
- 5/3/2018 - Enterprise, Enbridge, Western Gas and DCP Midstream Launch Open Season on 90 Mbbl/d Texas Express Expansion; Aiming to Bring DJ Basin NGL's to Mont Belveiu
- 2/23/2018 - Energy Transfer Placing... (subscriber access)
- 2/22/2018 - Western Gas Partners... (subscriber access)
- 2/16/2018 - Western Gas Announces 2018 Capital Spending Program of $1.1 Billion
- 2/16/2018 - Western Gas Partners... (subscriber access)
- 2/16/2018 - Western Gas Partners... (subscriber access)
- 2/16/2018 - Western Gas Partners... (subscriber access)
- 2/7/2018 - Anadarko's Reeves Oil... (subscriber access)
- 2/7/2018 - Anadarko Reports 4Q17... (subscriber access)
- 12/6/2017 - Western Gas Partners... (subscriber access)
- 12/6/2017 - Western Gas Partners... (subscriber access)
- 11/1/2017 - Anadarko Bolstering Value Chain Approach in Delaware Basin
- 11/1/2017 - Western Gas Partners Confirms Mentone and Latham On Schedule
- 11/1/2017 - Western Gas Partners'... (subscriber access)
- 9/13/2017 - Tallgrass Energy Enters Open Season on Proposed 600 Mmcf/d DJ Basin Gas Pipeline
Press Releases
- Commenced operations of Loving ROTF Train IV on the DBM oil system, adding 30 MBbls/d of treating capacity; completed project ahead of schedule for approximately 35% less than our previous North Loving Trains
- Exchanged WES's interest in the $260 million note receivable from Anadarko Petroleum Corporation, a wholly owned subsidiary of Occidental Petroleum Corporation (NYSE: OXY) ("Occidental"), for 27.855 million WES common units owned by Occidental
- Executed open-market repurchases for $29.0 million of Senior Notes due 2022 and 2023 for an aggregate repurchase price of $27.2 million
- In October 2020, WES completed the sale of its 14.81% equity interest in Fort Union Gas Gathering, LLC and entered into an option agreement to sell the Partnership's Bison treating facility during the first quarter of 2021 for upfront consideration of $27.0 million
- Adjusted EBITDA(1) between $1.825 billion and $1.925 billion
- Total capital expenditures(2) between $275 million and $375 million, which represents a $100 million reduction from the midpoint of our previously updated 2020 guidance
- Debt to Trailing Twelve Month ("TTM") Adjusted EBITDA at or below 4.0 times at year-end 2021
- Full-year 2021 distributions of at least $1.24 per unit(3)
- Repay 2021 debt maturity with free cash flow
- Gathered record Delaware Basin produced-water throughput of 773 MBbls/d, representing an 8-percent sequential-quarter increase
- Achieved record Delaware oil throughput of 202 MBbls/d, representing a 5-percent sequential-quarter increase
- Executed open-market repurchases for $64.5 million of Senior Notes due 2021, 2022, and 2023 for an aggregate repurchase price of $63 million
- Adjusted EBITDA(1) between $1.85 billion and $1.90 billion, which represents a $100 million increase to the midpoint of guidance previously issued with WES's first-quarter 2020 earnings results ("prior guidance")
- Total capital expenditures(2) between $400 million and $450 million, which represents a $75 million reduction to the prior-guidance midpoint. Total year capital expenditures include capital expenditures attributable to the second Latham train completed during first-quarter 2020 and the addition of approximately 28,750 horsepower of compression, 65 miles of gathering lines, 90 MBbls/d of Delaware Basin saltwater-disposal capacity, and two 30 MBbls/d oil-stabilization trains, also in the Delaware Basin
- Gathered record Delaware Basin produced-water throughput of 717 MBbls/d for the first quarter, representing an 18-percent sequential-quarter increase
- Achieved record Delaware oil throughput of 192 MBbls/d for the first quarter, representing a 14-percent sequential-quarter increase
- Processed record Delaware and DJ Basin gas throughput of 2.8 Bcf/d for the first quarter, representing a 9-percent sequential-quarter increase
- Commenced operations of Latham Train II at the DJ Basin complex and Loving ROTF Train III at the DBM oil system
- Repurchased $100 million of Senior Notes due 2021 and 2022 for an aggregate price of $90.1 million via open-market repurchases
- Adjusted EBITDA between $1.725 billion and $1.825 billion, which includes previously announced cost reductions of approximately $75 million attributable to estimated operating and maintenance and general and administrative expense cost savings
- Total capital expenditures between $450 million and $550 million, representing a 45-percent reduction to prior guidance, including costs associated with approximately 15,000 horsepower of compression, over 65 miles of gathering, the completion of the second Latham train during first-quarter 2020, and the addition of two 30 MBbls/d oil-stabilization trains and approximately 120 MBbls/d of saltwater disposal capacity in the Delaware Basin by year-end 2020
- 50-percent distribution decrease from fourth-quarter 2019 per-unit distribution of $0.622
- WES expects 2020 capital expenditures between $450-$550 million, representing a 45-percent reduction to prior guidance. This reduction results from deferred producer activity in all basins and the elimination of associated capital expenditures, other than those expenditures that are necessary to support proper maintenance and long-term asset integrity.
- WES expects to achieve other cost reductions of approximately $75 million through operating and maintenance and general and administrative expense cost-saving initiatives. These cost reductions include savings attributable to Mr. Ure's voluntarily election to reduce his 2020 year-over-year cash compensation by at least 45 percent.
- Processed record DJ Basin Complex gas throughput of 1.30 Bcf/d for the fourth quarter, representing a 15-percent sequential-quarter increase as third-quarter downstream constraints were resolved and did not impact fourth-quarter operations
- Gathered record Delaware Basin produced-water throughput of 610 MBbls/d for the fourth quarter, representing a 5-percent sequential-quarter increase
- Achieved record Delaware and DJ Basin oil throughput of 297 MBbls/d for the fourth quarter, representing an 8-percent sequential-quarter increase
- Delivered full-year 2019 Adjusted EBITDA(1) of $1.719 billion, representing a 17-percent increase from 2018
- Realized capital expenditures below low-end 2019 guidance range
- Finalized service and governance agreements with Occidental that will position WES to operate as a stand-alone enterprise
- Priced a $3.5 billion four-tranche senior notes offering that was 6.2x oversubscribed with each tranche pricing at WES's lowest historical coupon for like-tenor notes
- Adjusted EBITDA between $1.875 billion and $1.975 billion
- Total capital expenditures between $875 million and $950 million, including costs associated with over 60,000 horsepower of compression, over 140 miles of gathering, the completion of the second Latham train during first-quarter 2020, and the addition of two 30 MBbl/d oil-stabilization trains and approximately 180 MBbl/d of saltwater disposal capacity in the Delaware Basin by year-end 2020
- Total maintenance capital expenditures between $125 million and $135 million
- Coverage ratio of at least 1.25x with ~1-percent year-over-year distribution increase from full-year 2019 per-unit distributions of $2.47 per unit
- The December 2019 transfer of employment of WES's management team from Occidental to WES, which ensures independent managerial control of WES's strategic initiatives and day-to-day operations.
- The December 2019 secondment of specifically identified WES-dedicated employees of Occidental who will be under the direct supervision of WES management prior to their transfer from Occidental to WES, which will occur during 2020.
- The provision of limited administrative shared services by Occidental to WES for an initial two-year period.
- The meaningful expansion of WES unitholders' rights to replace WES's general partner under an amended limited partnership agreement.
- A $20 million cash contribution by Occidental to WES during the first quarter of 2020 in recognition of WES's historical financial support of existing administrative infrastructure, thereby significantly defraying anticipated transition costs required to establish stand-alone human resources and information technology functions at WES.
- New long-term oil and gas gathering acreage dedications by Occidental, covering approximately 21,000 acres in Weld County, Colorado, supported by minimum volume commitments and complemented by previously executed DJ Basin gas-processing dedications will be put in place.
- Achieved record West Texas Complex gas throughput of 1.27 Bcf/d for third quarter, representing an 8% sequential-quarter increase
- Achieved record Delaware Basin water throughput of 580 MBbls/d for third quarter, representing a 13% sequential-quarter increase
- Achieved record DJ Basin and West Texas oil throughput of 275 MBbls/d for third quarter, representing a 9% sequential-quarter increase
- Estimated 2019 total capital expenditures near the 2019 low-end guidance range of $1.3 billion to $1.4 billion
- Estimated preliminary 2020 outlook to include meaningful year-over-year Adjusted EBITDA growth and a total capital expenditures reduction
- Total capital expenditures are expected to decline 20% – 30%, compared to the midpoint of 2019 guidance
- Adjusted EBITDA is expected to grow approximately 10% year-over-year
- Maintenance capital is expected to remain largely consistent as a percentage of Adjusted EBITDA, compared to 2019
- Achieved record West Texas Complex gas throughput of 1.18 Bcf/d for second quarter
- Achieved record DJ Basin Complex gas throughput of 1.27 Bcf/d for second quarter
- Achieved record DJ Basin oil throughput of 112 MBbls/d for second quarter
- Entered into accretive third-party processing contract for a portion of Latham II capacity fully backed by minimum volume commitments
- Enhanced liquidity and financial flexibility by increasing senior unsecured term loan commitments by $1 billion and extending the facility maturity date to December 2020
- Further improved oil sales-volume product mix to 53 percent, with liquids increasing to 67 percent, contributing to a 67-percent improvement in margins per barrel(2)
- Achieved production exit rates totaling more than 150,000 barrels of oil per day (BOPD) combined from the Delaware and DJ basins
- Closed more than $4.0 billion of asset divestitures
- Announced $2.5 billion share repurchase program and, by year end, repurchased 21.9 million shares for approximately $1.1 billion (average price of $48.33 per share)
- Achieved completion of the Legal and Contractual Framework and commenced resettlement for the Mozambique LNG project
- Adjusted EBITDA(1) between $1.15 billion and $1.25 billion
- Total capital expenditures between $1.0 billion and $1.1 billion
- Maintenance capital expenditures between $80 million and $90 million
- Full year distribution coverage ratio above 1.1 times, driven by a first half coverage ratio above 1.0 times, widening to above 1.2 times for the second half of the year
- Distribution growth of 1.5 cents per quarter through 2019
- Mentone Trains I and II start-up late in the third and fourth quarters of 2018, respectively
- Extension of the DJ Basin and MGR fixed price agreements with Anadarko through 2018
- Allocates approximately 80 percent of capital toward the Delaware and DJ basins, including Anadarko midstream, and the deepwater Gulf of Mexico
- Generates material free cash flow at current strip prices and breaks even in a $50 oil and $3 natural gas commodity-price environment(2)
- Delivers a cash return on invested capital of 20 percent(3)
- Results in approximately 14-percent oil growth year-over-year, which is 19-percent oil growth per debt-adjusted-share(4) (5)
- Announced 2017 initial capital program of $4.5 to $4.7 billion(1)
- Increased Wolfcamp A (Delaware Basin) net resources by 50 percent to more than 3 billion BOE
- Increased DJ Basin development area net resources by 33 percent to more than 2 billion BOE
- Improved margins per barrel significantly as a result of higher oil-production mix
- Completed Eagleford divestiture increasing cash on hand as of March 3 to more than $5 billion
- Expected 25-percent increase in oil sales volumes in 2017 relative to the prior year(2)
- Adjusted EBTIDA(1) between $1.0 billion and $1.1 billion (Please refer to slide 8 of the earnings call presentation available at www.westerngas.com for a reconciliation of items impacting the comparability of our 2017 Adjusted EBITDA(1) outlook to 2016 Adjusted EBITDA(1))
- Total capital expenditures between $900 million and $1.0 billion
- Maintenance capital expenditures between $60 million and $80 million
- 2017 and 2018 distribution growth targets of 7% to 9% for WES and 12% to 18% for WGP
- DBJV / Marcellus asset swap closing in the first quarter of 2017
- Ramsey Train VI start-up in the fourth quarter of 2017
- Mentone Trains I and II in the Delaware Basin beginning construction in 2017, with anticipated start-up dates in the third and fourth quarters of 2018, respectively
- Conversion of 50% of the Series A Preferred units into common units in February 2017 and 50% in May 2017
- Extension of the Class C units conversion date to March 1, 2020
- Reduces year-over-year capital investments by almost 50 percent(1)
- Expects higher-margin oil sales volumes to be flat year over year on a divestiture-adjusted basis(2)
- Doubles Delaware Basin recoverable resource estimate to more than 2 billion barrels of oil equivalent (BOE)
- Announces plans to monetize up to $3 billion of assets in 2016, with $1.3 billion announced or closed year to date
- Adjusted EBITDA(1) between $860 million and $950 million
- Total capital expenditures (including equity investments but excluding acquisitions) between $450 million and $490 million
- Maintenance capital expenditures between 7% and 10% of Adjusted EBITDA(1)
- Distribution Coverage ratio(1) of 1.1 times
- WES distribution growth of 10%
- WGP distribution growth of 20%
- Full-year results from the Springfield acquisition;
- No further acquisitions in 2016;
- Start-ups of Ramsey Trains IV and V at the DBM complex in the second and third quarters of 2016, respectively;
- Ramsey Train III returning to limited service in April and full service in conjunction with the start-up of Train IV; and
- Recovery of all business interruption insurance proceeds related to losses at the DBM complex by the end of the year.
- Reduced year-over-year capital expenditures by almost 40 percent, while delivering 4-percent divestiture-adjusted(3) sales-volume growth over 2014
- Achieved an organic reserve-replacement ratio of more than 130 percent before the effects of price revisions
- Closed $2.0 billion of monetizations
1/18/2021 - Western Midstream Announces Fourth-Quarter 2020 Distribution And Earnings Conference Call
Western Midstream Announces Fourth-Quarter 2020 Distribution And Earnings Conference Call
Source: PR Newswire
Orignial Article: https://contentapi.cision...
HOUSTON, Jan. 18, 2021 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a quarterly cash distribution of $0.311 per unit for the fourth quarter of 2020. WES's fourth-quarter 2020 distribution is payable February 12, 2021, to unitholders of record at the close of business February 1, 2021.
The Partnership plans to report its fourth-quarter and full-year 2020 results after market close Tuesday, February 23, 2021. Management will host a conference call Wednesday, February 24, 2021, at 1 p.m. CST (2 p.m. EST) to discuss WES's quarterly and full-year results. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
Fourth-Quarter and Full-Year 2020 Results
Wednesday, February 24, 2021
1 p.m. CST (2 p.m. EST)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 7882576
To participate in WES's scheduled fourth-quarter earnings call, refer to the above-listed dial-in number and participant access code. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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, NGLs, and crude oil; and gathering and disposing of produced water for its 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 an agent for its customers under certain of its contracts.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.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 Midstream 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 Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@westernmidstream.com
832.636.6000
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-fourth-quarter-2020-distribution-and-earnings-conference-call-301209574.html
SOURCE Western Midstream Partners, LP
Article Date
1/18/2021Western Midstream To Participate In Wells Fargo Midstream And Utilities Symposium And Capital One Securities Energy Conference
Source: PR Newswire
HOUSTON, Dec. 4, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) announced that Michael Ure, President, Chief Executive Officer, and Chief Financial Officer, will participate in a question and answer session at the Wells Fargo Midstream and Utilities Symposium, on Tuesday, December 8, 2020. A replay will be posted on Western Midstream's website at www.westernmidstream.com when available after the event. On December 9, 2020, Michael Ure will take part in one-on-one sessions at the Capital One Securities 15th Annual Energy Conference.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
WESTERN MIDSTREAM CONTACTS
Kristen S. Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@westernmidstream.com
832.636.6000
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-midstream-to-participate-in-wells-fargo-midstream-and-utilities-symposium-and-capital-one-securities-energy-conference-301186336.html
SOURCE Western Midstream Partners, LP
Article Date
12/4/202011/19/2020 - Western Midstream Releases Inaugural ESG Report
Western Midstream Releases Inaugural ESG Report
Source: PR Newswire
HOUSTON, Nov. 19, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or "Western Midstream") announced the release of its inaugural Environmental, Social and Governance (ESG) Report.
"Western Midstream's first ESG Report exemplifies our employees' dedication to cultivating a culture of strong corporate responsibility while safely and responsibly managing our daily operations," said President, Chief Executive Officer, and Chief Financial Officer, Michael Ure. "We're proud of the progress we've made in reducing our environmental footprint and contributing positively to our local communities, workforce, and other stakeholders. Now, as we transition to a stand-alone midstream business, it's imperative that we introduce stakeholders to our approach to ESG issues and our successes to date."
As detailed in the report, Western Midstream's ESG strategy focuses on three pillars: supporting sustainable environments, focusing on people, and operating responsibly. Ure continued, "These pillars are rooted in our operating philosophy as demonstrated by our direct-to-wellhead pipeline infrastructure and design of our facilities, which significantly reduces release risks, eliminates storage equipment at the well-site, and reduces emissions. Additionally, we play an important role in delivering natural gas, a lower-emission bridge fuel that will assist in the global transition to cleaner energy sources. We look forward to strengthening our ESG performance and reporting as we further enhance the achievements accomplished to date."
To read the report and learn more about our ESG efforts, please visit the Sustainability section of our website at www.westernmidstream.com.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts. For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the expectations expressed in this news release. These factors include our ability to strengthen WES's ESG performance and reporting, and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@WesternMidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@WesternMidstream.com
832.636.6000
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-midstream-releases-inaugural-esg-report-301176698.html
SOURCE Western Midstream Partners, LP
Article Date
11/19/2020Western Midstream Announces Third-Quarter 2020 Results
Source: PR Newswire
HOUSTON, Nov. 9, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced third-quarter 2020 financial and operating results. Net income (loss) available to limited partners for the third quarter of 2020 totaled $241.5 million, or $0.55 per common unit (diluted), with third-quarter 2020 Adjusted EBITDA(1) totaling $518.4 million, third-quarter 2020 Cash flows from operating activities totaling $392.9 million, and third-quarter 2020 Free cash flow(1) totaling $339.2 million.
RECENT HIGHLIGHTS
In October 2020, WES announced its third-quarter 2020 per-unit distribution of $0.3110, which is unchanged from WES's second-quarter 2020 per-unit distribution. Third-quarter 2020 Free cash flow after distributions totaled $198.3 million.
(1) | Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures. |
"As evidenced by our outstanding third-quarter and year-to-date financial and operational results, the WES team continues to surpass expectations as we adapt and respond to market challenges," said President, Chief Executive Officer, and Chief Financial Officer, Michael Ure. "Producer outperformance, the pursuit of operational efficiencies and sustainable cost savings, and continued commercial achievements contributed to the highest quarterly Adjusted EBITDA in WES's history. As a result of the incredible outperformance achieved thus far and anticipated continued success, we expect full-year Adjusted EBITDA above the high-end of our originally issued guidance range of $1.875 billion to $1.975 billion and capital expenditures meaningfully below the low-end of our previously updated 2020 guidance range of $400 million to $450 million."
Ure continued, "The establishment of WES as a stand-alone midstream business has generated improved efficiencies between our commercial, engineering, and operations teams, enabling our organization to maximize the operability of our assets and realize operating and capital savings. Notwithstanding the significant challenges faced this year, we expect to realize approximately $175 million in sustainable annual operating cost and G&A savings compared to our originally issued guidance."
As a result of depressed upstream investment, our third-quarter 2020 volumes declined as expected. Third-quarter 2020 total natural-gas throughput(1) averaged 4.3 Bcf/d, representing a 4-percent sequential-quarter decrease and a 1-percent increase from third-quarter 2019. Third-quarter 2020 total throughput for crude-oil and NGLs assets(1) averaged 689 MBbls/d, representing a 4-percent sequential-quarter decrease and an 11-percent increase from third-quarter 2019. Third-quarter 2020 total throughput for produced-water assets(1) averaged 673 MBbls/d, representing an 11-percent sequential-quarter decrease and an 18-percent increase from third-quarter 2019.
Third-quarter 2020 and year-to-date capital expenditures(2) totaled $36.5 million and $264.1 million, respectively.
(1) | Represents total throughput attributable to WES, which excludes the 25% third-party interest in Chipeta and the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. |
(2) | Accrual-based, includes equity investments, and excludes capitalized interest and capital expenditures associated with the 25% third-party interest in Chipeta. |
PRELIMINARY 2021 GUIDANCE
Based on current production-forecast information from our customers, WES is providing preliminary 2021 guidance as follows:
$250 MILLION UNIT BUYBACK PROGRAM
The board of directors of the Partnership's general partner has authorized the Partnership to commence a buyback program of up to $250 million of the Partnership's common units through December 31, 2021 (the "Purchase Program").
The common units may be purchased from time to time in the open market at prevailing market prices or in privately negotiated transactions. The timing and amount of purchases under the program will be determined based on ongoing assessments of capital needs, WES's financial performance, the market price of the common units and other factors, including organic growth and acquisition opportunities and general market conditions. The Purchase Program does not obligate the Partnership to purchase any specific dollar amount or number of units and may be suspended or discontinued at any time.
"Over the last year, we have reexamined each aspect of our operations and discovered ways to operate in a more cost-effective manner to generate incremental free cash flow and increase stakeholder value," said Michael Ure. "This year, following our third-quarter distribution, we will have returned over $1.15 billion, approximately 10% of our enterprise value, to stakeholders through debt repurchases, cash distributions, and units acquired through the Anadarko note exchange. Additionally, by prioritizing leverage reduction with Debt-to-TTM Adjusted EBITDA currently at 4.0 times, we have already exceeded our year-end 2020 target of at or below 4.5 times and met our year-end 2021 target of at or below 4.0 times. We expect to achieve strong 2021 financial results with minimal capital by further refining and enhancing our business model while continuing to operate safely, deliver exceptional customer service, and return cash to stakeholders."
(1) | A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss) is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. |
(2) | Accrual-based, includes equity investments, and excludes capitalized interest and capital expenditures associated with the 25% third-party interest in Chipeta. |
(3) | The Board of Directors will continue to evaluate the distribution on a quarterly basis. |
CONFERENCE CALL TOMORROW AT 1 P.M. CST
WES will host a conference call on Tuesday, November 10, 2020, at 1:00 p.m. Central Standard Time (2:00 p.m. Eastern Standard Time) to discuss third-quarter 2020 results and preliminary 2021 guidance. To participate, individuals should dial 877-883-0383 (Domestic) or 412-902-6506 (International) 15 minutes before the scheduled conference call time and enter participant access code 7476557. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove 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 our ability to meet financial guidance or distribution expectations; the ultimate impact of efforts to fight COVID-19 on the global economy and the timeline for a recovery in commodity demand and prices; our 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; our 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" section of WES's most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@WesternMidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@WesternMidstream.com
832.636.6000
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines "Free cash flow" as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings. Management considers Free cash flow an appropriate metric for assessing capital discipline, cost efficiency, and balance-sheet strength. Although Free cash flow is the metric used to assess WES's ability to make distributions to unitholders, this measure should not be viewed as indicative of the actual amount of cash that is available for distributions or planned for distributions for a given period. Instead, Free cash flow should be considered indicative of the amount of cash that is available for distributions, debt repayments, and other general partnership purposes.
WES defines Adjusted EBITDA as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) interest income, (v) other income, (vi) income tax benefit, and (vii) the noncontrolling interests owners' proportionate share of revenues and expenses.
WES defines Adjusted gross margin attributable to Western Midstream Partners, LP ("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 interests owners' proportionate share of revenues and cost of product.
Below are reconciliations of (i) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Free cash flow, Adjusted EBITDA, and Adjusted gross margin are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing WES's ability to incur and service debt, fund capital expenditures, and make distributions. Free cash flow, Adjusted EBITDA, and Adjusted gross margin as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Free cash flow, Adjusted EBITDA, and Adjusted gross margin should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Free Cash Flow | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Net cash provided by operating activities to Free | ||||||||||||||||
Net cash provided by operating activities | $ | 392,894 | $ | 340,154 | $ | 1,131,893 | $ | 1,026,685 | ||||||||
Less: | ||||||||||||||||
Capital expenditures | 59,197 | 242,841 | 372,262 | 947,266 | ||||||||||||
Contributions to equity investments | 2,953 | 30,785 | 19,017 | 108,118 | ||||||||||||
Add: | ||||||||||||||||
Distributions from equity investments in excess of cumulative | 8,410 | 4,151 | 21,750 | 21,203 | ||||||||||||
Free cash flow | $ | 339,154 | $ | 70,679 | $ | 762,364 | $ | (7,496) | ||||||||
Cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 1,131,893 | $ | 1,026,685 | ||||||||||||
Net cash used in investing activities | (426,670) | (3,134,643) | ||||||||||||||
Net cash provided by (used in) financing activities | (667,140) | 2,133,246 | ||||||||||||||
Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 254,135 | $ | 125,223 | $ | 246,076 | $ | 512,260 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 72,070 | 71,005 | 209,566 | 203,540 | ||||||||||||
Non-cash equity-based compensation expense | 5,616 | 4,137 | 16,527 | 10,278 | ||||||||||||
Interest expense | 95,571 | 78,524 | 278,811 | 223,872 | ||||||||||||
Income tax expense | 3,028 | 1,309 | 8,072 | 12,679 | ||||||||||||
Depreciation and amortization | 132,564 | 127,914 | 384,688 | 362,977 | ||||||||||||
Impairments (1) | 34,640 | 3,107 | 641,592 | 4,294 | ||||||||||||
Other expense | 3 | 67,961 | 1,953 | 161,813 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (768) | 248 | (3,651) | (1,403) | ||||||||||||
Gain (loss) on early extinguishment of debt | 1,632 | — | 10,372 | — | ||||||||||||
Equity income, net – related parties | 61,026 | 53,893 | 176,788 | 175,483 | ||||||||||||
Interest income – Anadarko note receivable | 3,286 | 4,225 | 11,736 | 12,675 | ||||||||||||
Other income | 721 | — | 2,373 | — | ||||||||||||
Income tax benefit | — | — | 4,280 | — | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | 13,372 | 10,601 | 39,001 | 33,495 | ||||||||||||
Adjusted EBITDA | $ | 518,358 | $ | 410,213 | $ | 1,546,386 | $ | 1,271,463 | ||||||||
Reconciliation of Net cash provided by operating activities to | ||||||||||||||||
Net cash provided by operating activities | $ | 392,894 | $ | 340,154 | $ | 1,131,893 | $ | 1,026,685 | ||||||||
Interest (income) expense, net | 92,285 | 74,299 | 267,075 | 211,197 | ||||||||||||
Uncontributed cash-based compensation awards | — | 141 | — | 789 | ||||||||||||
Accretion and amortization of long-term obligations, net | (2,185) | (3,651) | (6,482) | (6,499) | ||||||||||||
Current income tax expense (benefit) | 1,434 | (407) | 1,399 | 6,078 | ||||||||||||
Other (income) expense, net (3) | (200) | (495) | (612) | (1,397) | ||||||||||||
Cash paid to settle interest-rate swaps | 6,418 | — | 19,181 | — | ||||||||||||
Distributions from equity investments in excess of cumulative earnings | 8,410 | 4,151 | 21,750 | 21,203 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable, net | (7,798) | 12,418 | 192,338 | 9,750 | ||||||||||||
Accounts and imbalance payables and accrued liabilities, net | 34,509 | (11,808) | (37,814) | 69,390 | ||||||||||||
Other items, net | 5,963 | 6,012 | (3,341) | (32,238) | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | (13,372) | (10,601) | (39,001) | (33,495) | ||||||||||||
Adjusted EBITDA | $ | 518,358 | $ | 410,213 | $ | 1,546,386 | $ | 1,271,463 | ||||||||
Cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 1,131,893 | $ | 1,026,685 | ||||||||||||
Net cash used in investing activities | (426,670) | (3,134,643) | ||||||||||||||
Net cash provided by (used in) financing activities | (667,140) | 2,133,246 | ||||||||||||||
(1) Includes goodwill impairment for the nine months ended September 30, 2020. | ||||||||||||||||
(2) For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, | ||||||||||||||||
(3) Excludes non-cash losses on interest-rate swaps of $68.3 million and $162.9 million for the three and nine months ended September 30, 2019, respectively. | ||||||||||||||||
Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted Gross Margin | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin | ||||||||||||||||
Operating income (loss) | $ | 347,096 | $ | 268,725 | $ | 505,959 | $ | 897,713 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 72,070 | 71,005 | 209,566 | 203,540 | ||||||||||||
Operation and maintenance | 132,293 | 176,572 | 436,670 | 467,832 | ||||||||||||
General and administrative | 41,578 | 30,769 | 118,466 | 83,640 | ||||||||||||
Property and other taxes | 19,392 | 15,281 | 57,263 | 45,848 | ||||||||||||
Depreciation and amortization | 132,564 | 127,914 | 384,688 | 362,977 | ||||||||||||
Impairments (1) | 34,640 | 3,107 | 641,592 | 4,294 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (768) | 248 | (3,651) | (1,403) | ||||||||||||
Equity income, net – related parties | 61,026 | 53,893 | 176,788 | 175,483 | ||||||||||||
Reimbursed electricity-related charges recorded as revenues | 20,272 | 23,969 | 61,100 | 60,747 | ||||||||||||
Adjusted gross margin attributable to noncontrolling interests (2) | 17,574 | 15,619 | 50,166 | 47,203 | ||||||||||||
Adjusted gross margin | $ | 681,529 | $ | 599,644 | $ | 2,069,801 | $ | 1,783,814 | ||||||||
Adjusted gross margin for natural-gas assets | $ | 458,790 | $ | 401,380 | $ | 1,384,632 | $ | 1,226,302 | ||||||||
Adjusted gross margin for crude-oil and NGLs assets | 160,886 | 147,818 | 494,481 | 416,904 | ||||||||||||
Adjusted gross margin for produced-water assets | 61,853 | 50,446 | 190,688 | 140,608 | ||||||||||||
(1) Includes goodwill impairment for the nine months ended September 30, 2020. | ||||||||||||||||
(2) For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, | ||||||||||||||||
Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
thousands except per-unit amounts | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues and other | ||||||||||||||||
Service revenues – fee based | $ | 636,522 | $ | 587,965 | $ | 1,980,546 | $ | 1,761,483 | ||||||||
Service revenues – product based | 12,316 | 9,476 | 35,237 | 45,530 | ||||||||||||
Product sales | 30,106 | 68,248 | 108,491 | 214,850 | ||||||||||||
Other | 100 | 338 | 838 | 1,101 | ||||||||||||
Total revenues and other | 679,044 | 666,027 | 2,125,112 | 2,022,964 | ||||||||||||
Equity income, net – related parties | 61,026 | 53,893 | 176,788 | 175,483 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 31,739 | 97,800 | 153,611 | 334,740 | ||||||||||||
Operation and maintenance | 132,293 | 176,572 | 436,670 | 467,832 | ||||||||||||
General and administrative | 41,578 | 30,769 | 118,466 | 83,640 | ||||||||||||
Property and other taxes | 19,392 | 15,281 | 57,263 | 45,848 | ||||||||||||
Depreciation and amortization | 132,564 | 127,914 | 384,688 | 362,977 | ||||||||||||
Long-lived asset and other impairments | 34,640 | 3,107 | 200,575 | 4,294 | ||||||||||||
Goodwill impairment | — | — | 441,017 | — | ||||||||||||
Total operating expenses | 392,206 | 451,443 | 1,792,290 | 1,299,331 | ||||||||||||
Gain (loss) on divestiture and other, net | (768) | 248 | (3,651) | (1,403) | ||||||||||||
Operating income (loss) | 347,096 | 268,725 | 505,959 | 897,713 | ||||||||||||
Interest income – Anadarko note receivable | 3,286 | 4,225 | 11,736 | 12,675 | ||||||||||||
Interest expense | (95,571) | (78,524) | (278,811) | (223,872) | ||||||||||||
Gain (loss) on early extinguishment of debt | 1,632 | — | 10,372 | — | ||||||||||||
Other income (expense), net (1) | 720 | (67,894) | 612 | (161,577) | ||||||||||||
Income (loss) before income taxes | 257,163 | 126,532 | 249,868 | 524,939 | ||||||||||||
Income tax expense (benefit) | 3,028 | 1,309 | 3,792 | 12,679 | ||||||||||||
Net income (loss) | 254,135 | 125,223 | 246,076 | 512,260 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 7,524 | 4,006 | (17,045) | 102,789 | ||||||||||||
Net income (loss) attributable to Western Midstream | $ | 246,611 | $ | 121,217 | $ | 263,121 | $ | 409,471 | ||||||||
Limited partners' interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 246,611 | $ | 121,217 | $ | 263,121 | $ | 409,471 | ||||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | — | — | (29,279) | ||||||||||||
General partner interest in net (income) loss | (5,132) | — | (5,462) | — | ||||||||||||
Limited partners' interest in net income (loss) | $ | 241,479 | $ | 121,217 | $ | 257,659 | $ | 380,192 | ||||||||
Net income (loss) per common unit – basic and diluted | $ | 0.55 | $ | 0.27 | $ | 0.58 | $ | 0.94 | ||||||||
Weighted-average common units outstanding – basic and | 438,857 | 453,021 | 442,255 | 402,421 | ||||||||||||
(1) Includes losses associated with the interest-rate swap agreements for the three and nine months ended September 30, 2019. | ||||||||||||||||
Western Midstream Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
thousands except number of units | September 30, | December 31, | ||||||
Total current assets | $ | 643,933 | $ | 402,412 | ||||
Anadarko note receivable | — | 260,000 | ||||||
Net property, plant, and equipment | 8,825,139 | 9,064,931 | ||||||
Other assets | 2,220,603 | 2,619,110 | ||||||
Total assets | $ | 11,689,675 | $ | 12,346,453 | ||||
Total current liabilities | $ | 837,429 | $ | 485,954 | ||||
Long-term debt | 7,440,394 | 7,951,565 | ||||||
Asset retirement obligations | 327,285 | 336,396 | ||||||
Other liabilities | 294,111 | 227,245 | ||||||
Total liabilities | 8,899,219 | 9,001,160 | ||||||
Equity and partners' capital | ||||||||
Common units (416,196,092 and 443,971,409 units issued and outstanding at September 30, | 2,674,682 | 3,209,947 | ||||||
General partner units (9,060,641 units issued and outstanding at September 30, 2020, and | (20,032) | (14,224) | ||||||
Noncontrolling interests | 135,806 | 149,570 | ||||||
Total liabilities, equity, and partners' capital | $ | 11,689,675 | $ | 12,346,453 | ||||
Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Nine Months Ended | ||||||||
thousands | 2020 | 2019 | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 246,076 | $ | 512,260 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and | ||||||||
Depreciation and amortization | 384,688 | 362,977 | ||||||
Long-lived asset and other impairments | 200,575 | 4,294 | ||||||
Goodwill impairment | 441,017 | — | ||||||
(Gain) loss on divestiture and other, net | 3,651 | 1,403 | ||||||
(Gain) loss on early extinguishment of debt | (10,372) | — | ||||||
(Gain) loss on interest-rate swaps | — | 162,974 | ||||||
Cash paid to settle interest-rate swaps | (19,181) | — | ||||||
Change in other items, net | (114,561) | (17,223) | ||||||
Net cash provided by operating activities | $ | 1,131,893 | $ | 1,026,685 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (372,262) | $ | (947,266) | ||||
Acquisitions from related parties | — | (2,007,501) | ||||||
Acquisitions from third parties | — | (93,303) | ||||||
Contributions to equity investments - related parties | (19,017) | (108,118) | ||||||
Distributions from equity investments in excess of cumulative earnings – related parties | 21,750 | 21,203 | ||||||
Proceeds from the sale of assets to third parties | — | 342 | ||||||
Additions to materials and supplies inventory and other | (57,141) | — | ||||||
Net cash used in investing activities | $ | (426,670) | $ | (3,134,643) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 3,681,173 | $ | 3,950,750 | ||||
Repayments of debt | (3,780,390) | (1,467,595) | ||||||
Increase (decrease) in outstanding checks | 691 | (9,204) | ||||||
Registration expenses related to the issuance of Partnership common units | — | (855) | ||||||
Distributions to Partnership unitholders | (563,579) | (688,193) | ||||||
Distributions to Chipeta noncontrolling interest owner | (3,923) | (5,200) | ||||||
Distributions to noncontrolling interest owners of WES Operating | (11,545) | (112,430) | ||||||
Net contributions from (distributions to) related parties | 22,674 | 458,819 | ||||||
Above-market component of swap agreements with Anadarko | — | 7,407 | ||||||
Finance lease payments | (12,241) | (253) | ||||||
Net cash provided by (used in) financing activities | $ | (667,140) | $ | 2,133,246 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 38,083 | $ | 25,288 | ||||
Cash and cash equivalents at beginning of period | 99,962 | 92,142 | ||||||
Cash and cash equivalents at end of period | $ | 138,045 | $ | 117,430 | ||||
Western Midstream Partners, LP OPERATING STATISTICS (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Throughput for natural-gas assets (MMcf/d) | ||||||||||||||||
Gathering, treating, and transportation | 558 | 523 | 551 | 526 | ||||||||||||
Processing | 3,404 | 3,458 | 3,537 | 3,484 | ||||||||||||
Equity investments (1) | 450 | 390 | 451 | 390 | ||||||||||||
Total throughput | 4,412 | 4,371 | 4,539 | 4,400 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 159 | 172 | 162 | 175 | ||||||||||||
Total throughput attributable to WES for natural-gas assets | 4,253 | 4,199 | 4,377 | 4,225 | ||||||||||||
Throughput for crude-oil and NGLs assets (MBbls/d) | ||||||||||||||||
Gathering, treating, and transportation | 310 | 328 | 343 | 311 | ||||||||||||
Equity investments (3) | 393 | 307 | 395 | 308 | ||||||||||||
Total throughput | 703 | 635 | 738 | 619 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 14 | 12 | 15 | 12 | ||||||||||||
Total throughput attributable to WES for crude-oil and NGLs assets | 689 | 623 | 723 | 607 | ||||||||||||
Throughput for produced-water assets (MBbls/d) | ||||||||||||||||
Gathering and disposal | 687 | 580 | 726 | 538 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 14 | 12 | 15 | 11 | ||||||||||||
Total throughput attributable to WES for produced-water assets | 673 | 568 | 711 | 527 | ||||||||||||
Per-Mcf Adjusted gross margin for natural-gas assets (4) | $ | 1.17 | $ | 1.04 | $ | 1.15 | $ | 1.06 | ||||||||
Per-Bbl Adjusted gross margin for crude-oil and NGLs assets (5) | 2.54 | 2.58 | 2.50 | 2.52 | ||||||||||||
Per-Bbl Adjusted gross margin for produced-water assets (6) | 1.00 | 0.97 | 0.98 | 0.98 | ||||||||||||
(1) Represents the 14.81% share of average Fort Union throughput, 22% share of average Rendezvous throughput, 50% share of average Mi Vida | ||||||||||||||||
(2) For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in | ||||||||||||||||
(3) Represents the 10% share of average White Cliffs throughput; 25% share of average Mont Belvieu JV throughput; 20% share of average TEG, TEP, | ||||||||||||||||
(4) Average for period. Calculated as Adjusted gross margin for natural-gas assets, divided by total throughput (MMcf/d) attributable to WES for | ||||||||||||||||
(5) Average for period. Calculated as Adjusted gross margin for crude-oil and NGLs assets, divided by total throughput (MBbls/d) attributable to WES | ||||||||||||||||
(6) Average for period. Calculated as Adjusted gross margin for produced-water assets, divided by total throughput (MBbls/d) attributable to WES for | ||||||||||||||||
Western Midstream Partners, LP OPERATING STATISTICS (CONTINUED) (Unaudited) | ||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,294 | 1,272 | 183 | 147 | 687 | 580 | ||||||||||||
DJ Basin | 1,290 | 1,124 | 86 | 128 | — | — | ||||||||||||
Equity investments | 450 | 390 | 393 | 307 | — | — | ||||||||||||
Other | 1,378 | 1,585 | 41 | 53 | — | — | ||||||||||||
Total throughput | 4,412 | 4,371 | 703 | 635 | 687 | 580 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,330 | 1,210 | 192 | 144 | 726 | 538 | ||||||||||||
DJ Basin | 1,342 | 1,216 | 109 | 114 | — | — | ||||||||||||
Equity investments | 451 | 390 | 395 | 308 | — | — | ||||||||||||
Other | 1,416 | 1,584 | 42 | 53 | — | — | ||||||||||||
Total throughput | 4,539 | 4,400 | 738 | 619 | 726 | 538 | ||||||||||||
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SOURCE Western Midstream Partners, LP
Article Date
11/9/202010/20/2020 - Western Midstream Announces Third-Quarter 2020 Distribution And Earnings Conference Call
Western Midstream Announces Third-Quarter 2020 Distribution And Earnings Conference Call
Source: PR Newswire
HOUSTON, Oct. 20, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a quarterly cash distribution of $0.311 per unit for the third quarter of 2020. WES's third-quarter 2020 distribution is payable November 13, 2020, to unitholders of record at the close of business October 30, 2020.
The Partnership plans to report its third-quarter 2020 results after market close Monday, November 9, 2020. Management will host a conference call Tuesday, November 10, 2020, at 1 p.m. CST (2 p.m. EST) to discuss WES's quarterly results. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
Third-Quarter 2020 Results
Tuesday, November 10, 2020
1 p.m. CST (2 p.m. EST)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 7476557
To participate in WES's scheduled third-quarter earnings call, refer to the above-listed dial-in number and participant access code. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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, NGLs, and crude oil; and gathering and disposing of produced water for its 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 an agent for its customers under certain of its contracts.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.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 Midstream 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 Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@westernmidstream.com
832.636.6000
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SOURCE Western Midstream Partners, LP
Article Date
10/20/2020Western Midstream Announces Board, Management Transitions
Source: PR Newswire
HOUSTON, Sept. 14, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES") announced a re-composition of the board of directors (the "Board") of Western Midstream Holdings, LLC, its general partner (the "General Partner"). Kenneth F. Owen, David J. Schulte, and Lisa A. Stewart (each a "New Director") were appointed as independent directors. In connection with a reduction in the size of the Board from eleven to eight directors, Steven D. Arnold, Marcia E. Backus, James R. Crane, Thomas R. Hix, Craig W. Stewart, and David J. Tudor will be leaving the Board. The changes to the Board are effective immediately. Each New Director will serve on both the Audit Committee and the Special Committee of the Board, with Mr. Owen serving as the Chairman of the Audit Committee and Mr. Schulte serving as the Chairman of the Special Committee.
"We would like to thank Steven, Jim, Tom, Craig, David, and Marcia for their service on the Board. They have made numerous contributions to WES and its unitholders during their tenure, including helping WES navigate not only its transition to a stand-alone company but also the unprecedented public health and market-driven challenges confronting our industry over the past six months. We are deeply grateful for their years of service and dedication," said Glenn Vangolen, Chairman of the Board.
Vangolen continued, "We are excited to welcome Lisa, Dave, and Kenny to the Board. They each bring a wealth of industry, financial and operational experience that we believe will be invaluable as WES embarks on this next chapter in its transition and works to position itself as the provider of choice for oil and gas producers."
WES also announced that Michael C. Pearl has left his position as Senior Vice President and Chief Financial Officer of the General Partner and that Michael P. Ure, President and Chief Executive Officer of the General Partner, will assume Mr. Pearl's duties and responsibilities until a successor is identified.
"Mike has been a valued member of our executive leadership team since October 2019 and was an integral part of our successful transition to a standalone enterprise since that time. I have a deep appreciation for him, our relationship, and the great leadership and service he has performed for WES," said Mr. Ure.
Kenneth F. Owen, has been a consultant and entrepreneur since March 2018 and previously served as Co-founder, President, and Chief Executive Officer of Moda Midstream, LLC, a liquids terminaling and logistics company. Prior to founding Moda, Mr. Owen was the President and Chief Executive Officer of Oiltanking Partners, L.P. (NYSE: OILT) and Oiltanking North America (OTNA). Mr. Owen originally joined OTNA in 2011 as Vice President and CFO and led the initial public offering of Oiltanking Partners, later moving into an operations role running the Company's largest global terminal assets before taking on the CEO job. Before he joined Oiltanking, Mr. Owen worked in the energy investment banking groups at Citigroup Global Markets Inc. and UBS Investment Bank, where he advised on mergers and acquisitions, joint ventures, IPOs, and equity and debt transactions primarily for the midstream energy sector. Mr. Owen earned an M.B.A. from The Wharton School of Business at the University of Pennsylvania and a B.S. and B.A. from Cornell University.
David J. Schulte, serves as Chairman, Chief Executive Officer and President of CorEnergy Infrastructure, Inc., the first publicly traded energy infrastructure real estate investment trust. Prior to founding CorEnergy, Mr. Schulte was a co-founder and a Managing Director of Tortoise Capital Advisors where, from 2002 to 2015, he served on the investment committee and as a leader of new product development. Tortoise is a pioneer in developing funds focused on listed energy infrastructure debt and equity securities, including the first closed end master limited partnership fund in 2004. Prior to Tortoise, Mr. Schulte had professional experience in private equity and investment banking. Mr. Schulte serves on the Board of Directors of Neighborhood Legal Services, a not-for-profit entity, and on the Advisory Board of Governors of the National Association of Real Estate Investment Trusts. Mr. Schulte earned a J.D. from the University of Iowa and a B.S. from Drake University. He is a member of the AICPA, the CFA Institute, and the Missouri Bar Association.
Lisa A. Stewart, serves as Sheridan Production Partners Executive Chairman, a position she has held since April 2020. From the founding of Sheridan in 2006, she served as Chairman, CEO, and Chief Investment Officer overseeing all aspects of Sheridan acquisitions and the implementation of Sheridan's strategy. Ms. Stewart has more than 35 years of experience in the oil and gas industry in engineering and management positions. Prior to founding Sheridan, Ms. Stewart served as Executive Vice President of El Paso Corporation and President of El Paso E&P and other non-regulated businesses. Prior to her time at El Paso, Ms. Stewart spent 20 years at Apache, leaving in January 2004 as Executive Vice President with responsibility for reservoir engineering, business development, land, environmental, health and safety, and corporate purchasing. Ms. Stewart holds a B.S. in Petroleum Engineering from The University of Tulsa, where she is a member of the College of Engineering and Natural Sciences Hall of Fame. She is a member of the Society of Petroleum Engineers and serves on the Board of Directors of Cimarex Energy, Inc. and Jadestone Energy.
Please visit the WES website at www.westernmidstream.com for further information on the senior management and Board changes.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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, NGLs, and crude oil; and gathering and disposing of produced water for its 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.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.com.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@westernmidstream.com
832.636.6000
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SOURCE Western Midstream Partners, LP
Article Date
9/14/2020Western Midstream Announces Second-Quarter 2020 Results
Source: PR Newswire
HOUSTON, Aug. 10, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced second-quarter 2020 financial and operating results. Net income (loss) available to limited partners for the second quarter of 2020 totaled $267.6 million, or $0.60 per common unit (diluted), with second-quarter 2020 Adjusted EBITDA(1) totaling $514.4 million, second-quarter 2020 Cash flows from operating activities totaling $345.7 million, and second-quarter 2020 Free cash flow(1) totaling $208.6 million.
SECOND-QUARTER HIGHLIGHTS
(1) | Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures. |
In July 2020, WES announced its second-quarter 2020 per-unit distribution of $0.3110, which is unchanged from WES's first-quarter 2020 per-unit distribution. Second-quarter 2020 Free cash flow after distributions totaled $67.7 million.
"Less-than-expected producer curtailments, commercial successes, and realized cost efficiencies underpin our impressive and above-expectation second-quarter results," said Chief Executive Officer, Michael Ure. "Although our sector continues to face significant uncertainty, we are optimistic that activity will increase into 2021 and confident in our ability to generate meaningful free cash flow after distributions while advancing our long-term objectives."
Second-quarter 2020 total natural-gas throughput(1) averaged 4.4 Bcf/d, representing a 1-percent sequential-quarter decrease and a 3-percent increase from second-quarter 2019. Second-quarter 2020 total throughput for crude-oil and NGLs assets(1) averaged 711 MBbls/d, representing a 6-percent sequential-quarter decrease and a 19-percent increase from second-quarter 2019. Second-quarter 2020 total throughput for produced-water assets averaged 773 MBbls/d, representing an 8-percent sequential-quarter increase and a 50-percent increase from second-quarter 2019.
Second-quarter 2020 and year-to-date capital expenditures(2) totaled $69.6 million and $227.6 million, respectively.
(1) | Represents total throughput attributable to WES, which excludes the 25% third-party interest in Chipeta and the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. |
(2) | Accrual-based, includes equity investments, and excludes capitalized interest and capital expenditures associated with the 25% third-party interest in Chipeta. |
REVISED 2020 GUIDANCE
Revised 2020 guidance is based on to-date results and customer-provided production-forecast information obtained by WES. Updated guidance is as follows:
"Second-quarter commodity-price increases lessened the adverse impact of production curtailments and current commodity prices support continued producer activity," said Chief Financial Officer, Mike Pearl. "We expect incremental drilling and completion activity to continue into 2021 and beyond so long as commodity prices remain supportive. Irrespective of market conditions, we will remain committed to exercising capital discipline and realizing cost savings to maximize Free cash flow after distributions, which we will prioritize toward leverage reduction."
(1) | A reconciliation of the Adjusted EBITDA range to net cash provided by operating activities and net income (loss) is not provided because the items necessary to estimate such amounts are not reasonably estimable at this time. |
(2) | Accrual-based, includes equity investments, and excludes capitalized interest and capital expenditures associated with the 25% third-party interest in Chipeta. |
CONFERENCE CALL TOMORROW AT 1 P.M. CDT
WES will host a conference call on Tuesday, August 11, 2020, at 1:00 p.m. Central Daylight Time (2:00 p.m. Eastern Daylight Time) to discuss second-quarter 2020 results. To participate, individuals should dial 877-883-0383 (Domestic) or 412-902-6506 (International) 15 minutes before the scheduled conference call time and enter participant access code 2048166. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove 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 ultimate impact of efforts to fight COVID-19 on the global economy and the timeline for a recovery in commodity demand and prices; our ability to meet financial guidance or distribution expectations; our 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; our 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" section of WES's most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Kristen S. Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@westernmidstream.com
832.636.6000
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines "Free cash flow" as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings. Management considers Free cash flow an appropriate metric for assessing capital discipline, cost efficiency, and balance-sheet strength. Although Free cash flow is the metric used to assess WES's ability to make distributions to unitholders, this measure should not be viewed as indicative of the actual amount of cash that is available for distributions or planned for distributions for a given period. Instead, Free cash flow should be considered indicative of the amount of cash that is available for distributions, debt repayments, and other general partnership purposes.
WES defines Adjusted EBITDA as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) interest income, (v) income tax benefit, (vi) other income, and (vii) the noncontrolling interests owners' proportionate share of revenues and expenses.
WES defines Adjusted gross margin attributable to Western Midstream Partners, LP ("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 interests owners' proportionate share of revenues and cost of product.
Below are reconciliations of (i) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Free cash flow, Adjusted EBITDA, and Adjusted gross margin are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing WES's ability to incur and service debt, fund capital expenditures, and make distributions. Free cash flow, Adjusted EBITDA, and Adjusted gross margin as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Free cash flow, Adjusted EBITDA, and Adjusted gross margin should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Free Cash Flow | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Net cash provided by operating activities to Free cash flow | ||||||||||||||||
Net cash provided by operating activities | $ | 345,688 | $ | 343,458 | $ | 738,999 | $ | 686,531 | ||||||||
Less: | ||||||||||||||||
Capital expenditures | 140,249 | 318,281 | 313,065 | 704,425 | ||||||||||||
Contributions to equity investments | 5,104 | 40,790 | 16,064 | 77,333 | ||||||||||||
Add: | ||||||||||||||||
Distributions from equity investments in excess of cumulative earnings | 8,288 | 9,260 | 13,340 | 17,052 | ||||||||||||
Free cash flow | $ | 208,623 | $ | (6,353) | $ | 423,210 | $ | (78,175) | ||||||||
Cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 738,999 | $ | 686,531 | ||||||||||||
Net cash used in investing activities | (355,001) | (2,865,168) | ||||||||||||||
Net cash provided by (used in) financing activities | (424,222) | 2,182,290 | ||||||||||||||
Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 281,341 | $ | 175,058 | $ | (8,059) | $ | 387,037 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 71,576 | 70,522 | 137,496 | 132,535 | ||||||||||||
Non-cash equity-based compensation expense | 5,677 | 4,343 | 10,911 | 6,141 | ||||||||||||
Interest expense | 94,654 | 79,472 | 183,240 | 145,348 | ||||||||||||
Income tax expense | 5,044 | 1,278 | 5,044 | 11,370 | ||||||||||||
Depreciation and amortization | 119,805 | 121,117 | 252,124 | 235,063 | ||||||||||||
Impairments (1) | 10,150 | 797 | 606,952 | 1,187 | ||||||||||||
Other expense | (2,098) | 58,639 | 1,950 | 93,852 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (2,843) | (1,061) | (2,883) | (1,651) | ||||||||||||
Gain (loss) on early extinguishment of debt | 1,395 | — | 8,740 | — | ||||||||||||
Equity income, net – related parties | 54,415 | 63,598 | 115,762 | 121,590 | ||||||||||||
Interest income – Anadarko note receivable | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Other income | 1,652 | — | 1,652 | — | ||||||||||||
Income tax benefit | — | — | 4,280 | — | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | 12,864 | 11,544 | 25,629 | 22,894 | ||||||||||||
Adjusted EBITDA | $ | 514,441 | $ | 432,920 | $ | 1,028,028 | $ | 861,250 | ||||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA | ||||||||||||||||
Net cash provided by operating activities | $ | 345,688 | $ | 343,458 | $ | 738,999 | $ | 686,531 | ||||||||
Interest (income) expense, net | 90,429 | 75,247 | 174,790 | 136,898 | ||||||||||||
Uncontributed cash-based compensation awards | — | 1,218 | — | 648 | ||||||||||||
Accretion and amortization of long-term obligations, net | (2,197) | (1,337) | (4,297) | (2,848) | ||||||||||||
Current income tax expense (benefit) | 2,077 | 458 | (35) | 6,485 | ||||||||||||
Other (income) expense, net (3) | (2,173) | (470) | (412) | (902) | ||||||||||||
Cash paid to settle interest-rate swaps | 12,763 | — | 12,763 | — | ||||||||||||
Distributions from equity investments in excess of cumulative earnings – related parties | 8,288 | 9,260 | 13,340 | 17,052 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable, net | 207,838 | 6,818 | 200,136 | (2,668) | ||||||||||||
Accounts and imbalance payables and accrued liabilities, net | (101,247) | 25,669 | (72,323) | 81,198 | ||||||||||||
Other items, net | (34,161) | (15,857) | (9,304) | (38,250) | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | (12,864) | (11,544) | (25,629) | (22,894) | ||||||||||||
Adjusted EBITDA | $ | 514,441 | $ | 432,920 | $ | 1,028,028 | $ | 861,250 | ||||||||
Cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 738,999 | $ | 686,531 | ||||||||||||
Net cash used in investing activities | (355,001) | (2,865,168) | ||||||||||||||
Net cash provided by (used in) financing activities | (424,222) | 2,182,290 | ||||||||||||||
(1) | Includes goodwill impairment for the six months ended June 30, 2020. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. |
(3) | Excludes non-cash losses on interest-rate swaps of $59.0 million and $94.6 million for the three and six months ended June 30, 2019, respectively. |
Western Midstream Partners, LP RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted Gross Margin | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
thousands | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin | ||||||||||||||||
Operating income (loss) | $ | 373,766 | $ | 310,060 | $ | 158,863 | $ | 628,988 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 71,576 | 70,522 | 137,496 | 132,535 | ||||||||||||
Operation and maintenance | 145,186 | 148,431 | 304,377 | 291,260 | ||||||||||||
General and administrative | 36,423 | 30,027 | 76,888 | 52,871 | ||||||||||||
Property and other taxes | 19,395 | 14,282 | 37,871 | 30,567 | ||||||||||||
Depreciation and amortization | 119,805 | 121,117 | 252,124 | 235,063 | ||||||||||||
Impairments (1) | 10,150 | 797 | 606,952 | 1,187 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (2,843) | (1,061) | (2,883) | (1,651) | ||||||||||||
Equity income, net – related parties | 54,415 | 63,598 | 115,762 | 121,590 | ||||||||||||
Reimbursed electricity-related charges recorded as revenues | 21,605 | 20,189 | 40,828 | 36,778 | ||||||||||||
Adjusted gross margin attributable to noncontrolling interests (2) | 16,167 | 16,034 | 32,592 | 31,584 | ||||||||||||
Adjusted gross margin | $ | 686,957 | $ | 596,476 | $ | 1,388,272 | $ | 1,184,170 | ||||||||
Adjusted gross margin for natural-gas assets | $ | 454,476 | $ | 412,494 | $ | 925,842 | $ | 824,922 | ||||||||
Adjusted gross margin for crude-oil and NGLs assets | 165,767 | 137,716 | 333,595 | 269,086 | ||||||||||||
Adjusted gross margin for produced-water assets | 66,714 | 46,266 | 128,835 | 90,162 | ||||||||||||
(1) | Includes goodwill impairment for the six months ended June 30, 2020. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. |
Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
thousands except per-unit amounts | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues and other | ||||||||||||||||
Service revenues – fee based | $ | 642,628 | $ | 593,544 | $ | 1,344,024 | $ | 1,173,518 | ||||||||
Service revenues – product based | 7,000 | 16,675 | 22,921 | 36,054 | ||||||||||||
Product sales | 21,736 | 74,469 | 78,385 | 146,602 | ||||||||||||
Other | 391 | 366 | 738 | 763 | ||||||||||||
Total revenues and other | 671,755 | 685,054 | 1,446,068 | 1,356,937 | ||||||||||||
Equity income, net – related parties | 54,415 | 63,598 | 115,762 | 121,590 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 18,602 | 122,877 | 121,872 | 236,940 | ||||||||||||
Operation and maintenance | 145,186 | 148,431 | 304,377 | 291,260 | ||||||||||||
General and administrative | 36,423 | 30,027 | 76,888 | 52,871 | ||||||||||||
Property and other taxes | 19,395 | 14,282 | 37,871 | 30,567 | ||||||||||||
Depreciation and amortization | 119,805 | 121,117 | 252,124 | 235,063 | ||||||||||||
Long-lived asset impairments | 10,150 | 797 | 165,935 | 1,187 | ||||||||||||
Goodwill impairment | — | — | 441,017 | — | ||||||||||||
Total operating expenses | 349,561 | 437,531 | 1,400,084 | 847,888 | ||||||||||||
Gain (loss) on divestiture and other, net | (2,843) | (1,061) | (2,883) | (1,651) | ||||||||||||
Operating income (loss) | 373,766 | 310,060 | 158,863 | 628,988 | ||||||||||||
Interest income – Anadarko note receivable | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Interest expense | (94,654) | (79,472) | (183,240) | (145,348) | ||||||||||||
Gain (loss) on early extinguishment of debt | 1,395 | — | 8,740 | — | ||||||||||||
Other income (expense), net (1) | 1,653 | (58,477) | (108) | (93,683) | ||||||||||||
Income (loss) before income taxes | 286,385 | 176,336 | (7,295) | 398,407 | ||||||||||||
Income tax expense (benefit) | 5,044 | 1,278 | 764 | 11,370 | ||||||||||||
Net income (loss) | 281,341 | 175,058 | (8,059) | 387,037 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 8,304 | 5,464 | (24,569) | 98,783 | ||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 273,037 | $ | 169,594 | $ | 16,510 | $ | 288,254 | ||||||||
Limited partners' interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 273,037 | $ | 169,594 | $ | 16,510 | $ | 288,254 | ||||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (163) | — | (29,279) | ||||||||||||
General partner interest in net (income) loss | (5,461) | — | (330) | — | ||||||||||||
Limited partners' interest in net income (loss) | $ | 267,576 | $ | 169,431 | $ | 16,180 | $ | 258,975 | ||||||||
Net income (loss) per common unit – basic and diluted | $ | 0.60 | $ | 0.37 | $ | 0.04 | $ | 0.69 | ||||||||
Weighted-average common units outstanding – basic and diluted | 443,973 | 453,000 | 443,972 | 376,702 | ||||||||||||
(1) | Includes losses associated with the interest-rate swap agreements for the three and six months ended June 30, 2019. |
Western Midstream Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
thousands except number of units | June 30, | December 31, | ||||||
Total current assets | $ | 559,163 | $ | 402,412 | ||||
Anadarko note receivable | 259,481 | 260,000 | ||||||
Net property, plant, and equipment | 8,914,716 | 9,064,931 | ||||||
Other assets | 2,219,883 | 2,619,110 | ||||||
Total assets | $ | 11,953,243 | $ | 12,346,453 | ||||
Total current liabilities | $ | 891,046 | $ | 485,954 | ||||
Long-term debt | 7,544,396 | 7,951,565 | ||||||
Asset retirement obligations | 327,971 | 336,396 | ||||||
Other liabilities | 254,313 | 227,245 | ||||||
Total liabilities | 9,017,726 | 9,001,160 | ||||||
Equity and partners' capital | ||||||||
Common units (443,992,499 and 443,971,409 units issued and outstanding at June 30, 2020, and December 31, 2019, respectively) | 2,820,327 | 3,209,947 | ||||||
General partner units (9,060,641 units issued and outstanding at June 30, 2020, and December 31, 2019) | (22,347) | (14,224) | ||||||
Noncontrolling interests | 137,537 | 149,570 | ||||||
Total liabilities, equity, and partners' capital | $ | 11,953,243 | $ | 12,346,453 | ||||
Western Midstream Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
Six Months Ended | ||||||||
thousands | 2020 | 2019 | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (8,059) | $ | 387,037 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | ||||||||
Depreciation and amortization | 252,124 | 235,063 | ||||||
Long-lived asset impairments | 165,935 | 1,187 | ||||||
Goodwill impairment | 441,017 | — | ||||||
(Gain) loss on divestiture and other, net | 2,883 | 1,651 | ||||||
(Gain) loss on early extinguishment of debt | (8,740) | — | ||||||
(Gain) loss on interest-rate swaps | — | 94,585 | ||||||
Cash paid to settle interest-rate swaps | (12,763) | — | ||||||
Change in other items, net | (93,398) | (32,992) | ||||||
Net cash provided by operating activities | $ | 738,999 | $ | 686,531 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (313,065) | $ | (704,425) | ||||
Acquisitions from related parties | — | (2,007,501) | ||||||
Acquisitions from third parties | — | (93,303) | ||||||
Contributions to equity investments - related parties | (16,064) | (77,333) | ||||||
Distributions from equity investments in excess of cumulative earnings – related parties | 13,340 | 17,052 | ||||||
Proceeds from the sale of assets to third parties | — | 342 | ||||||
Other | (39,212) | — | ||||||
Net cash used in investing activities | $ | (355,001) | $ | (2,865,168) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 3,586,173 | $ | 2,710,750 | ||||
Repayments of debt | (3,583,149) | (467,595) | ||||||
Increase (decrease) in outstanding checks | (4,686) | (5,662) | ||||||
Registration expenses related to the issuance of Partnership common units | — | (855) | ||||||
Distributions to Partnership unitholders | (422,679) | (408,234) | ||||||
Distributions to Chipeta noncontrolling interest owner | (2,775) | (3,793) | ||||||
Distributions to noncontrolling interest owners of WES Operating | (8,676) | (106,666) | ||||||
Net contributions from (distributions to) related parties | 21,832 | 456,938 | ||||||
Above-market component of swap agreements with Anadarko | — | 7,407 | ||||||
Finance lease payments | (10,262) | — | ||||||
Net cash provided by (used in) financing activities | $ | (424,222) | $ | 2,182,290 | ||||
Net increase (decrease) in cash and cash equivalents | $ | (40,224) | $ | 3,653 | ||||
Cash and cash equivalents at beginning of period | 99,962 | 92,142 | ||||||
Cash and cash equivalents at end of period | $ | 59,738 | $ | 95,795 | ||||
Western Midstream Partners, LP OPERATING STATISTICS (Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Throughput for natural-gas assets (MMcf/d) | ||||||||||||||||
Gathering, treating, and transportation | 554 | 528 | 547 | 527 | ||||||||||||
Processing | 3,563 | 3,524 | 3,605 | 3,498 | ||||||||||||
Equity investments (1) | 458 | 402 | 451 | 390 | ||||||||||||
Total throughput | 4,575 | 4,454 | 4,603 | 4,415 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 162 | 178 | 164 | 177 | ||||||||||||
Total throughput attributable to WES for natural-gas assets | 4,413 | 4,276 | 4,439 | 4,238 | ||||||||||||
Throughput for crude-oil and NGLs assets (MBbls/d) | ||||||||||||||||
Gathering, treating, and transportation | 359 | 302 | 360 | 303 | ||||||||||||
Equity investments (3) | 367 | 311 | 391 | 308 | ||||||||||||
Total throughput | 726 | 613 | 751 | 611 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 15 | 13 | 15 | 13 | ||||||||||||
Total throughput attributable to WES for crude-oil and NGLs assets | 711 | 600 | 736 | 598 | ||||||||||||
Throughput for produced-water assets (MBbls/d) | ||||||||||||||||
Gathering and disposal | 773 | 515 | 745 | 516 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 15 | 10 | 15 | 10 | ||||||||||||
Total throughput attributable to WES for produced-water assets | 758 | 505 | 730 | 506 | ||||||||||||
Per-Mcf Adjusted gross margin for natural-gas assets (4) | $ | 1.13 | $ | 1.06 | $ | 1.15 | $ | 1.08 | ||||||||
Per-Bbl Adjusted gross margin for crude-oil and NGLs assets (5) | 2.56 | 2.52 | 2.49 | 2.49 | ||||||||||||
Per-Bbl Adjusted gross margin for produced-water assets (6) | 0.97 | 1.01 | 0.97 | 0.98 | ||||||||||||
(1) | Represents the 14.81% share of average Fort Union throughput, 22% share of average Rendezvous throughput, 50% share of average Mi Vida and Ranch Westex throughput, and 30% share of average Red Bluff Express throughput. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. |
(3) | Represents the 10% share of average White Cliffs throughput; 25% share of average Mont Belvieu JV throughput; 20% share of average TEG, TEP, Whitethorn, and Saddlehorn throughput; 33.33% share of average FRP throughput; and 15% share of average Panola and Cactus II throughput. |
(4) | Average for period. Calculated as Adjusted gross margin for natural-gas assets, divided by total throughput (MMcf/d) attributable to WES for natural-gas assets. |
(5) | Average for period. Calculated as Adjusted gross margin for crude-oil and NGLs assets, divided by total throughput (MBbls/d) attributable to WES for crude-oil and NGLs assets. |
(6) | Average for period. Calculated as Adjusted gross margin for produced-water assets, divided by total throughput (MBbls/d) attributable to WES for produced-water assets. |
Western Midstream Partners, LP OPERATING STATISTICS (CONTINUED) (Unaudited) | ||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,309 | 1,179 | 202 | 141 | 773 | 515 | ||||||||||||
DJ Basin | 1,329 | 1,266 | 113 | 112 | — | — | ||||||||||||
Equity investments | 458 | 402 | 367 | 311 | — | — | ||||||||||||
Other | 1,479 | 1,607 | 44 | 49 | — | — | ||||||||||||
Total throughput | 4,575 | 4,454 | 726 | 613 | 773 | 515 | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,349 | 1,178 | 197 | 143 | 745 | 516 | ||||||||||||
DJ Basin | 1,368 | 1,262 | 120 | 107 | — | — | ||||||||||||
Equity investments | 451 | 390 | 391 | 308 | — | — | ||||||||||||
Other | 1,435 | 1,585 | 43 | 53 | — | — | ||||||||||||
Total throughput | 4,603 | 4,415 | 751 | 611 | 745 | 516 | ||||||||||||
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SOURCE Western Midstream Partners, LP
Article Date
8/10/20207/16/2020 - Western Midstream Announces Second-Quarter 2020 Distribution And Earnings Conference Call
Western Midstream Announces Second-Quarter 2020 Distribution And Earnings Conference Call
Source: PR Newswire
HOUSTON, July 16, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a quarterly cash distribution of $0.311 per unit for the second quarter of 2020. WES's second-quarter 2020 distribution is payable August 13, 2020, to unitholders of record at the close of business July 31, 2020.
The Partnership plans to report its second-quarter 2020 results after market close Monday, August 10, 2020. Management will host a conference call Tuesday, August 11, 2020, at 1 p.m. CDT (2 p.m. EDT) to discuss WES's quarterly results. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
Second-Quarter 2020 Results
Tuesday, August 11, 2020
1 p.m. CDT (2 p.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 2048166
To participate in WES's scheduled second-quarter earnings call, refer to the above-listed dial-in number and participant access code. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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, NGLs, and crude oil; and gathering and disposing of produced water for its 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.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.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 Midstream 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 Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations Supervisor
Abby.Dempsey@westernmidstream.com
832.636.6000
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-second-quarter-2020-distribution-and-earnings-conference-call-301095110.html
SOURCE Western Midstream Partners, LP
Article Date
7/16/2020Western Midstream Announces First-Quarter 2020 Results
Source: PR Newswire
HOUSTON, May 5, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced first-quarter 2020 financial and operating results. Net income (loss) available to limited partners for the first quarter of 2020 totaled $(251.4) million, or a loss of $0.57 per common unit (diluted), with first-quarter 2020 Adjusted EBITDA(1) totaling $513.6 million, first-quarter Cash flows from operating activities totaling $393.3 million, and first-quarter 2020 Free cash flow(1) totaling $214.6 million. The net loss includes $596.8 million of non-cash impairments of goodwill and long-lived assets primarily resulting from lower sustained commodity prices and forecasted in-basin producer activity reductions following the worldwide outbreak of the coronavirus ("COVID-19"). In total, non-cash impairments reduced first-quarter 2020 net income by $1.34 per common unit (diluted).
RECENT HIGHLIGHTS
(1) | Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures. | ||
"WES's first-quarter results attest to the high-quality of our asset portfolio," said Chief Executive Officer, Michael Ure. "COVID-19 and the resulting precipitous decline in commodity prices have created significant near-to-medium-term uncertainty, but we remain steadfast in our belief that our high-quality assets and the contracts underpinning the financial stability of our portfolio position WES to manage through this unprecedented cycle. Our first-quarter results demonstrate the strength of our assets in a normalized environment, and our employees' ability to operate efficiently as a dedicated midstream workforce capable of producing improved results."
First-quarter 2020 total natural-gas throughput(1) averaged 4.5 Bcf/d, representing a 3-percent sequential-quarter increase and a 6-percent increase from first-quarter 2019. First-quarter 2020 total throughput for crude-oil and NGLs assets(1) averaged 760 MBbls/d, representing a 3-percent sequential-quarter decrease and a 28-percent increase from first-quarter 2019. First-quarter 2020 total throughput for produced-water assets averaged 717 MBbls/d, representing an 18-percent sequential-quarter increase and a 38-percent increase from first-quarter 2019.
First-quarter 2020 Free cash flow(2), which is calculated as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings, totaled $214.6 million, representing nearly a fourfold increase to fourth-quarter 2019 Free cash flow. For the first quarter of 2020, WES declared a per-unit quarterly distribution of $0.3110, which represents a 50-percent decrease from the fourth-quarter 2019 per-unit distribution and an aggregate quarterly distribution of $140.9 million.
(1) | Represents total throughput attributable to WES, which excludes the 25% third-party interest in Chipeta and the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. | ||
(2) | Please see the definitions of the Partnership's non-GAAP measures at the end of this release and reconciliation of GAAP to non-GAAP measures. | ||
REVISED 2020 GUIDANCE
Our revised guidance is based on information obtained through direct discussions with a large majority of our customers. We will continue monitoring producer activity levels and may adjust our 2020 guidance and future distribution levels based on additional curtailments and other changes to producer-planned activities that may be communicated to us throughout the balance of 2020. Notwithstanding and based on known changes to producer activity, our updated guidance is as follows:
"Our revised 2020 guidance demonstrates our continued focus on exercising capital discipline to create long-term value for stakeholders by generating positive free cash flow after distributions, while continuing to deliver exceptional customer service in a safe and responsible manner," said Chief Financial Officer, Mike Pearl. "Our timely and highly successful bond offering earlier this year coupled with our recent 50-percent distribution reduction results in no near-term need to access the capital markets. Although our largely undrawn $2.0 billion revolver provides us ample liquidity to manage through the current economic downturn, we expect that our full-year 2020 operational and financial performance and distribution reduction will result in the generation of meaningful 2020 Free cash flow after distributions. Our ability to generate near-term Free cash flow after distributions allows us to strengthen our balance sheet through leverage reduction so that we are positioned to be financially flexible and opportunistic as current market conditions abate."
CONFERENCE CALL TOMORROW AT 1 P.M. CDT
WES will host a conference call on Wednesday, May 6, 2020, at 1:00 p.m. Central Daylight Time (2:00 p.m. Eastern Daylight Time) to discuss first-quarter 2020 results. To participate, individuals should dial 877-883-0383 (Domestic) or 412-902-6506 (International) 15 minutes before the scheduled conference call time and enter participant access code 2731323. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove 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 ultimate impact of efforts to fight COVID-19 on the global economy and the timeline for a recovery in commodity demand and prices; our ability to meet financial guidance or distribution expectations; our 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; our 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" section of WES's most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Kristen S. Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations
Abby.Dempsey@westernmidstream.com
832.636.6000
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
WES defines "Free cash flow" as net cash provided by operating activities less total capital expenditures and contributions to equity investments, plus distributions from equity investments in excess of cumulative earnings. In prior periods, management considered "Distributable cash flow," defined as Adjusted EBITDA attributable to Western Midstream Partners, LP ("Adjusted EBITDA"), plus (i) interest income and (ii) the net settlement amounts from the sale and/or purchase of natural gas, condensate, and NGLs under WES Operating's commodity-price swap agreements to the extent such amounts were not recognized as Adjusted EBITDA, less (i) Service revenues – fee based recognized in Adjusted EBITDA in excess of (less than) customer billings, (ii) net cash paid (or to be paid) for interest expense (including amortization of deferred debt issuance costs originally paid in cash and offset by non-cash capitalized interest), (iii) maintenance capital expenditures, (iv) income taxes, and (v) Distributable cash flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA, as a viable performance-measurement and distribution-assessment tool. Although management continues to recognize Distributable cash flow as a useful metric for purposes of comparing our operating and financial performance against that of its peers, management considers Free cash flow as a superior and improved performance-measurement tool in light of an ongoing transition within the midstream industry that has shifted investor focus from distribution-growth to capital discipline, cost efficiency, and balance-sheet strength. Henceforth, Free cash flow will be the metric that we use to assess our ability to make distributions to our unitholders; however, this measure should not be viewed as indicative of the actual amount of cash that is available for distributions or planned for distributions for a given period. Instead, Free cash flow should be considered indicative of the amount of cash that is available for distributions, debt repayments, and other general partnership purposes.
WES defines Adjusted EBITDA as net income (loss), plus (i) distributions from equity investments, (ii) non-cash equity-based compensation expense, (iii) interest expense, (iv) income tax expense, (v) depreciation and amortization, (vi) impairments, and (vii) other expense (including lower of cost or market inventory adjustments recorded in cost of product), less (i) gain (loss) on divestiture and other, net, (ii) gain (loss) on early extinguishment of debt, (iii) income from equity investments, (iv) interest income, (v) income tax benefit, (vi) other income, and (vii) the noncontrolling interests owners' proportionate share of revenues and expenses.
WES defines Adjusted gross margin attributable to Western Midstream Partners, LP ("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 interests owners' proportionate share of revenues and cost of product.
Below are reconciliations of (i) net cash provided by operating activities (GAAP) to Free cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Free cash flow, Adjusted EBITDA, and Adjusted gross margin are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing WES's ability to incur and service debt, fund capital expenditures, and make distributions. Free cash flow, Adjusted EBITDA, and Adjusted gross margin as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Free cash flow, Adjusted EBITDA, and Adjusted gross margin should be considered in conjunction with net income (loss) attributable to Western Midstream Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
Western Midstream Partners, LP | |||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | |||||||||||||
Free Cash Flow | |||||||||||||
Three Months Ended | |||||||||||||
thousands | 2020 | 2019 | |||||||||||
Reconciliation of Net cash provided by operating activities to Free cash flow | |||||||||||||
Net cash provided by operating activities | $ | 393,311 | $ | 343,073 | |||||||||
Less: | |||||||||||||
Capital expenditures | 172,816 | 386,144 | |||||||||||
Contributions to equity investments | 10,960 | 36,543 | |||||||||||
Add: | |||||||||||||
Distributions from equity investments in excess of cumulative earnings | 5,052 | 7,792 | |||||||||||
Free cash flow | $ | 214,587 | $ | (71,822) | |||||||||
Cash flow information | |||||||||||||
Net cash provided by operating activities | $ | 393,311 | $ | 343,073 | |||||||||
Net cash used in investing activities | (178,724) | (2,515,732) | |||||||||||
Net cash provided by (used in) financing activities | (162,267) | 2,180,564 | |||||||||||
Three Months Ended | |||||||||||||
thousands | June 30, | September 30, | December 31, | ||||||||||
Reconciliation of Net cash provided by operating activities to Free cash flow | |||||||||||||
Net cash provided by operating activities | $ | 343,458 | $ | 340,154 | $ | 297,415 | |||||||
Less: | |||||||||||||
Capital expenditures | 318,281 | 242,841 | 241,563 | ||||||||||
Contributions to equity investments | 40,790 | 30,785 | 20,275 | ||||||||||
Add: | |||||||||||||
Distributions from equity investments in excess of cumulative earnings | 9,260 | 4,151 | 9,053 | ||||||||||
Free cash flow | $ | (6,353) | $ | 70,679 | $ | 44,630 | |||||||
Cash flow information | |||||||||||||
Net cash provided by operating activities | $ | 343,458 | $ | 340,154 | $ | 297,415 | |||||||
Net cash used in investing activities | (349,436) | (269,475) | (253,210) | ||||||||||
Net cash provided by (used in) financing activities | 1,726 | (49,044) | (61,673) | ||||||||||
Western Midstream Partners, LP | ||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||
Adjusted EBITDA | ||||||||
Three Months Ended | ||||||||
thousands | 2020 | 2019 | ||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||
Net income (loss) | $ | (289,400) | $ | 211,979 | ||||
Add: | ||||||||
Distributions from equity investments | 65,920 | 62,013 | ||||||
Non-cash equity-based compensation expense | 5,234 | 1,798 | ||||||
Interest expense | 88,586 | 65,876 | ||||||
Income tax expense | — | 10,092 | ||||||
Depreciation and amortization | 132,319 | 113,946 | ||||||
Impairments (1) | 596,802 | 390 | ||||||
Other expense | 4,048 | 35,213 | ||||||
Less: | ||||||||
Gain (loss) on divestiture and other, net | (40) | (590) | ||||||
Gain (loss) on early extinguishment of debt | 7,345 | — | ||||||
Equity income, net – related parties | 61,347 | 57,992 | ||||||
Interest income – related parties | 4,225 | 4,225 | ||||||
Income tax benefit | 4,280 | — | ||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | 12,765 | 11,350 | ||||||
Adjusted EBITDA | $ | 513,587 | $ | 428,330 | ||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA | ||||||||
Net cash provided by operating activities | $ | 393,311 | $ | 343,073 | ||||
Interest (income) expense, net | 84,361 | 61,651 | ||||||
Uncontributed cash-based compensation awards | — | (570) | ||||||
Accretion and amortization of long-term obligations, net | (2,100) | (1,511) | ||||||
Current income tax (benefit) expense | (2,112) | 6,027 | ||||||
Other (income) expense, net (3) | 1,761 | (432) | ||||||
Distributions from equity investments in excess of cumulative earnings – related parties | 5,052 | 7,792 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | (7,702) | (9,486) | ||||||
Accounts and imbalance payables and accrued liabilities, net | 28,924 | 55,529 | ||||||
Other items, net | 24,857 | (22,393) | ||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | (12,765) | (11,350) | ||||||
Adjusted EBITDA | $ | 513,587 | $ | 428,330 | ||||
Cash flow information | ||||||||
Net cash provided by operating activities | $ | 393,311 | $ | 343,073 | ||||
Net cash used in investing activities | (178,724) | (2,515,732) | ||||||
Net cash provided by (used in) financing activities | (162,267) | 2,180,564 | ||||||
(1) | Includes goodwill impairment for the three months ended March 31, 2020. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. |
(3) | Excludes the non-cash loss on interest-rate swaps of $35.6 million for the three months ended March 31, 2019. |
Western Midstream Partners, LP | ||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||
Adjusted Gross Margin | ||||||||
Three Months Ended | ||||||||
thousands | 2020 | 2019 | ||||||
Reconciliation of Operating income (loss) to Adjusted gross margin | ||||||||
Operating income (loss) | $ | (214,903) | $ | 318,928 | ||||
Add: | ||||||||
Distributions from equity investments | 65,920 | 62,013 | ||||||
Operation and maintenance | 159,191 | 142,829 | ||||||
General and administrative | 40,465 | 22,844 | ||||||
Property and other taxes | 18,476 | 16,285 | ||||||
Depreciation and amortization | 132,319 | 113,946 | ||||||
Impairments (1) | 596,802 | 390 | ||||||
Less: | ||||||||
Gain (loss) on divestiture and other, net | (40) | (590) | ||||||
Equity income, net – related parties | 61,347 | 57,992 | ||||||
Reimbursed electricity-related charges recorded as revenues | 19,223 | 16,589 | ||||||
Adjusted gross margin attributable to noncontrolling interests (2) | 16,425 | 15,550 | ||||||
Adjusted gross margin | $ | 701,315 | $ | 587,694 | ||||
Adjusted gross margin for natural-gas assets | $ | 471,366 | $ | 412,428 | ||||
Adjusted gross margin for crude-oil and NGLs assets | 167,828 | 131,370 | ||||||
Adjusted gross margin for produced-water assets | 62,121 | 43,896 | ||||||
(1) | Includes goodwill impairment for the three months ended March 31, 2020. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. |
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands except per-unit amounts | 2020 | 2019 | ||||||
Revenues and other | ||||||||
Service revenues – fee based | $ | 701,396 | $ | 579,974 | ||||
Service revenues – product based | 15,921 | 19,379 | ||||||
Product sales | 56,649 | 72,133 | ||||||
Other | 347 | 397 | ||||||
Total revenues and other | 774,313 | 671,883 | ||||||
Equity income, net – related parties | 61,347 | 57,992 | ||||||
Operating expenses | ||||||||
Cost of product | 103,270 | 114,063 | ||||||
Operation and maintenance | 159,191 | 142,829 | ||||||
General and administrative | 40,465 | 22,844 | ||||||
Property and other taxes | 18,476 | 16,285 | ||||||
Depreciation and amortization | 132,319 | 113,946 | ||||||
Long-lived asset impairments | 155,785 | 390 | ||||||
Goodwill impairment | 441,017 | — | ||||||
Total operating expenses | 1,050,523 | 410,357 | ||||||
Gain (loss) on divestiture and other, net | (40) | (590) | ||||||
Operating income (loss) | (214,903) | 318,928 | ||||||
Interest income – related parties | 4,225 | 4,225 | ||||||
Interest expense | (88,586) | (65,876) | ||||||
Gain (loss) on early extinguishment of debt | 7,345 | — | ||||||
Other income (expense), net (1) | (1,761) | (35,206) | ||||||
Income (loss) before income taxes | (293,680) | 222,071 | ||||||
Income tax expense (benefit) | (4,280) | 10,092 | ||||||
Net income (loss) | (289,400) | 211,979 | ||||||
Net income (loss) attributable to noncontrolling interests | (32,873) | 93,319 | ||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | (256,527) | $ | 118,660 | ||||
Limited partners' interest in net income (loss): | ||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | (256,527) | $ | 118,660 | ||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (29,116) | ||||||
General partner interest in net income (loss) | 5,131 | — | ||||||
Limited partners' interest in net income (loss) | $ | (251,396) | $ | 89,544 | ||||
Net income (loss) per common unit – basic and diluted | $ | (0.57) | $ | 0.30 | ||||
Weighted-average common units outstanding – basic and diluted | 443,971 | 299,556 | ||||||
(1) | Includes losses associated with the interest-rate swap agreements for the three months ended March 31, 2019. |
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units | March 31, | December 31, | ||||||
Total current assets | $ | 490,548 | $ | 402,412 | ||||
Note receivable – Anadarko | 257,885 | 260,000 | ||||||
Net property, plant, and equipment | 8,986,731 | 9,064,931 | ||||||
Other assets | 2,173,834 | 2,619,110 | ||||||
Total assets | $ | 11,908,998 | $ | 12,346,453 | ||||
Total current liabilities | $ | 449,725 | $ | 485,954 | ||||
Long-term debt | 8,088,761 | 7,951,565 | ||||||
Asset retirement obligations | 339,454 | 336,396 | ||||||
Other liabilities | 238,773 | 227,245 | ||||||
Total liabilities | 9,116,713 | 9,001,160 | ||||||
Equity and partners' capital | ||||||||
Common units (443,971,409 units issued and outstanding at March 31, 2020, and December 31, 2019) | 2,684,136 | 3,209,947 | ||||||
General partner units (9,060,641 units issued and outstanding at March 31, 2020, and December 31, 2019) | (24,990) | (14,224) | ||||||
Noncontrolling interests | 133,139 | 149,570 | ||||||
Total liabilities, equity, and partners' capital | $ | 11,908,998 | $ | 12,346,453 | ||||
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
thousands | 2020 | 2019 | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (289,400) | $ | 211,979 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | ||||||||
Depreciation and amortization | 132,319 | 113,946 | ||||||
Long-lived asset impairments | 155,785 | 390 | ||||||
Goodwill impairment | 441,017 | — | ||||||
(Gain) loss on divestiture and other, net | 40 | 590 | ||||||
(Gain) loss on early extinguishment of debt | (7,345) | — | ||||||
(Gain) loss on interest-rate swaps | — | 35,638 | ||||||
Change in other items, net | (39,105) | (19,470) | ||||||
Net cash provided by operating activities | $ | 393,311 | $ | 343,073 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (172,816) | $ | (386,144) | ||||
Acquisitions from related parties | — | (2,007,501) | ||||||
Acquisitions from third parties | — | (93,303) | ||||||
Contributions to equity investments - related parties | (10,960) | (36,543) | ||||||
Distributions from equity investments in excess of cumulative earnings – related parties | 5,052 | 7,792 | ||||||
Proceeds from the sale of assets to third parties | — | (33) | ||||||
Net cash used in investing activities | $ | (178,724) | $ | (2,515,732) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 3,586,173 | $ | 2,430,750 | ||||
Repayments of debt | (3,470,139) | (467,595) | ||||||
Increase (decrease) in outstanding checks | (7,308) | (5,890) | ||||||
Registration expenses related to the issuance of Partnership common units | — | (855) | ||||||
Distributions to Partnership unitholders | (281,786) | (131,910) | ||||||
Distributions to Chipeta noncontrolling interest owner | (1,738) | (1,935) | ||||||
Distributions to noncontrolling interest owners of WES Operating | (5,807) | (100,999) | ||||||
Net contributions from (distributions to) related parties | 20,489 | 451,591 | ||||||
Above-market component of swap agreements with Anadarko | — | 7,407 | ||||||
Finance lease payments | (2,151) | — | ||||||
Net cash provided by (used in) financing activities | $ | (162,267) | $ | 2,180,564 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 52,320 | $ | 7,905 | ||||
Cash and cash equivalents at beginning of period | 99,962 | 92,142 | ||||||
Cash and cash equivalents at end of period | $ | 152,282 | $ | 100,047 | ||||
Western Midstream Partners, LP | ||||||||
OPERATING STATISTICS | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Throughput for natural-gas assets (MMcf/d) | ||||||||
Gathering, treating, and transportation | 539 | 527 | ||||||
Processing | 3,649 | 3,471 | ||||||
Equity investment (1) | 444 | 377 | ||||||
Total throughput | 4,632 | 4,375 | ||||||
Throughput attributable to noncontrolling interests (2) | 166 | 176 | ||||||
Total throughput attributable to WES for natural-gas assets | 4,466 | 4,199 | ||||||
Throughput for crude-oil and NGLs assets (MBbls/d) | ||||||||
Gathering, treating, and transportation | 361 | 302 | ||||||
Equity investment (3) | 414 | 304 | ||||||
Total throughput | 775 | 606 | ||||||
Throughput attributable to noncontrolling interests (2) | 15 | 12 | ||||||
Total throughput attributable to WES for crude-oil and NGLs assets | 760 | 594 | ||||||
Throughput for produced-water assets (MBbls/d) | ||||||||
Gathering and disposal | 717 | 518 | ||||||
Throughput attributable to noncontrolling interests (2) | 14 | 10 | ||||||
Total throughput attributable to WES for produced-water assets | 703 | 508 | ||||||
Per-Mcf Adjusted gross margin for natural-gas assets (4) | $ | 1.16 | $ | 1.09 | ||||
Per-Bbl Adjusted gross margin for crude-oil and NGLs assets (5) | 2.43 | 2.46 | ||||||
Per-Bbl Adjusted gross margin for produced-water assets (6) | 0.97 | 0.96 | ||||||
(1) | Represents the 14.81% share of average Fort Union throughput, 22% share of average Rendezvous throughput, 50% share of average Mi Vida and Ranch Westex throughput, and 30% share of average Red Bluff Express throughput. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests. |
(3) | Represents the 10% share of average White Cliffs throughput; 25% share of average Mont Belvieu JV throughput; 20% share of average TEG, TEP, Whitethorn, and Saddlehorn throughput; 33.33% share of average FRP throughput; and 15% share of average Panola and Cactus II throughput. |
(4) | Average for period. Calculated as Adjusted gross margin for natural-gas assets, divided by total throughput (MMcf/d) attributable to WES for natural-gas assets. |
(5) | Average for period. Calculated as Adjusted gross margin for crude-oil and NGLs assets, divided by total throughput (MBbls/d) attributable to WES for crude-oil and NGLs assets. |
(6) | Average for period. Calculated as Adjusted gross margin for produced-water assets, divided by total throughput (MBbls/d) attributable to WES for produced-water assets. |
Western Midstream Partners, LP | ||||||||||||||||||
OPERATING STATISTICS (CONTINUED) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Natural gas | Crude oil & NGLs | Produced water | ||||||||||||||||
Delaware Basin | 1,389 | 1,178 | 192 | 145 | 717 | 518 | ||||||||||||
DJ Basin | 1,407 | 1,258 | 128 | 102 | — | — | ||||||||||||
Equity investments | 444 | 377 | 414 | 304 | — | — | ||||||||||||
Other | 1,392 | 1,562 | 41 | 55 | — | — | ||||||||||||
Total throughput | 4,632 | 4,375 | 775 | 606 | 717 | 518 | ||||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-first-quarter-2020-results-301053093.html
SOURCE Western Midstream Partners, LP
Article Date
5/5/2020Western Midstream Announces First-Quarter 2020 Distribution, Revised Capital Guidance, Cost Reductions, And Earnings Conference Call
Source: PR Newswire
HOUSTON, April 20, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a quarterly cash distribution of $0.311 per unit for the first quarter of 2020, which represents a 50-percent decrease from the fourth-quarter 2019 per-unit distribution. This distribution decrease was undertaken to protect, restore, and strengthen WES's balance sheet as the COVID-19 worldwide pandemic, declining economic activity and energy demand, and depressed commodity prices continue to underpin broad-based market uncertainty. WES's first-quarter 2020 distribution is payable May 14, 2020, to unitholders of record at the close of business May 1, 2020.
"In recent weeks, WES implemented a number of initiatives to protect the health and safety of our employees, their families, our customers, and the communities in which we live and operate during this worldwide pandemic," said Chief Executive Officer, Michael Ure. "General economic uncertainty and sharp declines in commodity prices and producer activity mandated a meaningful reduction to our quarterly distribution. Cutting our quarterly distribution and significantly reducing our 2020 cash capital, operating, and other costs will allow WES to generate free cash flow after distributions in this most-challenging environment. Our enhanced financial profile is supported by a best-in-class asset portfolio which we expect will continue generating attractive and durable asset-based returns, which in turn enables us to maintain focus on prioritizing leverage reduction to increase our balance sheet strength. Management will monitor 2020 and 2021 producer activity continually and reassess future distribution levels with WES's board, should producer activity deviate significantly from current expectations."
2020 GUIDANCE UPDATE
WES's previously announced guidance is withdrawn, except as follows:
"The announced distribution cut and anticipated cash-cost reductions decrease our 2020 aggregate cash outflows by approximately $1.0 billion, which positions us to generate meaningful free cash flow after distributions in 2020. Pivoting in this manner underscores our continued focus on capital efficiency, our commitment to transition rapidly to a free-cash-flow-generating enterprise, and our ability to moderate spending during cyclical downturns," said Chief Financial Officer, Mike Pearl. "Creating and sustaining long-term value for all of our stakeholders requires that free-cash-flow generation and debt reduction remain priorities so that we are positioned to manage through the cycle from a financial-flexibility standpoint while safely and responsibly operating as a premier midstream provider. Additional 2020 guidance details will be disclosed with our first-quarter 2020 results, which we expect will be consistent with our pre-COVID-19 expectations. Our current-quarter distribution cut takes into account our expectations regarding the limited impact of COVID-19 on our first-quarter 2020 results and our expectations for producer activity throughout the balance of 2020 and into 2021."
WES's enhanced liquidity profile, including its largely undrawn $2.0 billion revolving credit facility maturing in 2025, coupled with the successful execution of a $3.5 billion bond offering in January 2020 results in no near-term need for WES to access the capital markets. "As WES's largest unitholder, Occidental commends the WES board for its decisive action during such a challenging time for the entire industry," said Vicki Hollub, President and CEO of Occidental. "We continue to see long-term value from our ownership interest in WES and will continue to collaborate with WES to drive value-enhancing opportunities for both companies."
The Partnership plans to report its first-quarter 2020 results after market close Tuesday, May 5, 2020. Management will host a conference call Wednesday, May 6, 2020, at 1 p.m. CDT (2 p.m. EDT) to discuss WES's quarterly results and to provide additional 2020-guidance updates. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
First-Quarter 2020 Results
Wednesday, May 6, 2020
1 p.m. CDT (2 p.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 2731323
To participate in WES's scheduled first-quarter earnings call, refer to the above-listed dial-in number and participant access code. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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, NGLs, and crude oil; and gathering and disposing of produced water for its 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.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove 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 ultimate impact of efforts to fight COVID-19 on the global economy and the timeline for a recovery in commodity demand and prices; our ability to meet financial guidance or distribution-growth expectations; our ability to safely and efficiently operate WES's assets; our 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" section of WES's most-recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
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 Midstream 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 Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations
Abby.Dempsey@westernmidstream.com
832.636.6000
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-first-quarter-2020-distribution-revised-capital-guidance-cost-reductions-and-earnings-conference-call-301043768.html
SOURCE Western Midstream Partners, LP
Article Date
4/20/2020Western Midstream Announces Fourth-Quarter And Full-Year 2019 Results
Source: PR Newswire
HOUSTON, Feb. 27, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced fourth-quarter and full-year 2019 financial and operating results. Net income (loss) available to limited partners for the fourth quarter of 2019 totaled $282.1 million, or $0.62 per common unit (diluted), with fourth-quarter 2019 Adjusted EBITDA(1) totaling $447.6 million and fourth-quarter 2019 Distributable cash flow(1) totaling $345.4 million. Net income (loss) available to limited partners for 2019 totaled $662.3 million, or $1.59 per common unit (diluted), with full-year 2019 Adjusted EBITDA(1) of $1.719 billion and full-year 2019 Distributable cash flow(1) of $1.325 billion. Financial and operational results are presented as if WES owned the assets acquired in February 2019 for all periods reported.
RECENT HIGHLIGHTS
For the fourth quarter of 2019, WES paid a per-unit quarterly distribution of $0.6220. The full-year 2019 per-unit distribution of $2.47 represents a more than 5-percent increase over the full-year 2018 per-unit distribution of $2.35. This marks WES's 28th consecutive quarterly distribution increase and achieves WES's 2019 annual distribution-growth guidance range of 5 percent to 6 percent. The fourth-quarter 2019 Coverage ratio(1) was 1.23 times. The full-year 2019 Coverage ratio(1) was 1.18 times.
"I'm pleased with our fourth-quarter results," said Chief Executive Officer, Michael Ure. "In 2019, we placed the first Latham train and the second Mentone train into service; grew Adjusted EBITDA 17-percent year-over-year as a result of increased throughput across all products; and entered into new service, operating, and governing agreements at year end that enable us to operate more fully as an independent midstream company. This was a productive and successful year for WES, and we are ideally positioned to deliver strong results in 2020."
Fourth-quarter 2019 total natural-gas throughput(2) averaged 4.3 Bcf/d, representing a 3-percent sequential-quarter increase and an 8-percent increase from fourth-quarter 2018. Fourth-quarter 2019 total throughput for crude-oil, NGLs, and produced-water assets(2) averaged 1,378 MBbls/d, representing a 16-percent sequential-quarter increase and a 38-percent increase from fourth-quarter 2018. Full-year 2019 total natural-gas throughput(2) averaged 4.2 Bcf/d, representing a 9-percent increase from full-year 2018. Full-year 2019 total throughput for crude-oil, NGLs, and produced-water assets(2) averaged 1,195 MBbls/d, representing a 57-percent increase from full-year 2018.
(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) Represents total throughput attributable to WES, which excludes the 25% third-party interest in Chipeta and the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019. | ||
Fourth-quarter 2019 capital expenditures(1), including equity investments and excluding capitalized interest, totaled $242.6 million, with cash maintenance capital expenditures totaling $29.6 million. For full-year 2019, capital expenditures(1), including equity investments(2) and excluding capitalized interest, totaled $1.249 billion, which is approximately $100 million below the 2019 guidance midpoint of $1.35 billion. For full-year 2019, cash maintenance capital expenditures totaled $124.4 million, which is approximately $11 million below the 2019 guidance midpoint of $135 million.
2020 GUIDANCE
"Our 2020 guidance demonstrates our continued focus on capital-efficient organic growth and the strength of our balance sheet," said Chief Financial Officer, Mike Pearl. "We are focused on generating long-term value for all our stakeholders by maintaining our investment-grade credit profile, delivering exceptional customer service, and driving operational efficiencies throughout the organization."
(1) Accrual-based and excludes capital expenditures associated with the 25% third-party interest in Chipeta. | ||
(2) Acquisitions and contributions. | ||
CONFERENCE CALL TOMORROW AT 1 P.M. CST
WES will host a conference call on Friday, February 28, 2020, at 1:00 p.m. Central Standard Time (2:00 p.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2019 results. To participate, individuals should dial 877-883-0383 (Domestic) or 412-902-6506 (International) 15 minutes before the scheduled conference call time and enter participant access code 0032829. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its customers. In its capacity as a natural-gas processor, WES also buys and sells natural gas, natural-gas liquids, and condensate on behalf of itself and as an agent for its customers under certain contracts.
WESTERN MIDSTREAM ANNUAL REPORT AVAILABLE
WES has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, with the Securities and Exchange Commission. A copy of the report is available for viewing and downloading on the Western Midstream web site at www.westernmidstream.com. Unitholders may request hard copies of the report, which contains WES's audit financial statements, free of charge, by emailing investors@westernmidstream.com or by submitting a written request to Western Midstream Partners, LP at the following address: P.O. Box 1330, Houston, TX 77251-1330, Attention: Investor Relations.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove 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 our ability to meet financial guidance or distribution-growth expectations; our 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; our 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" section of WES's most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. Western Midstream Partners, LP undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Kristen S. Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations
Abby.Dempsey@westernmidstream.com
832.636.6000
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Below are reconciliations of (i) net income (loss) (GAAP) to WES's Distributable cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Midstream Partners, LP ("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Midstream 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 WES's 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 Midstream Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
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 Operating'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 in excess of (less than) customer billings, net cash paid (or to be paid) for interest expense (including amortization of deferred debt issuance costs originally paid in cash and offset by non-cash capitalized interest), maintenance capital expenditures, WES Operating Series A Preferred unit distributions, income taxes, and Distributable cash flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA.
WES defines Adjusted EBITDA as net income (loss), 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, other income, and the noncontrolling interests owners' proportionate share of revenues and expenses.
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 interests owners' proportionate share of revenues and cost of product.
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Distributable Cash Flow | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
thousands except Coverage ratio | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Net income (loss) to Distributable cash flow and calculation of the Coverage ratio | ||||||||||||||||
Net income (loss) | $ | 295,440 | $ | 183,917 | $ | 807,700 | $ | 630,654 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 61,288 | 71,327 | 264,828 | 216,977 | ||||||||||||
Non-cash equity-based compensation expense | 4,114 | 1,544 | 14,392 | 7,310 | ||||||||||||
Non-cash settled interest expense, net | 19 | — | 39 | — | ||||||||||||
Income tax (benefit) expense | 793 | 22,741 | 13,472 | 58,934 | ||||||||||||
Depreciation and amortization | 120,278 | 118,407 | 483,255 | 389,164 | ||||||||||||
Impairments | 1,985 | 75,298 | 6,279 | 230,584 | ||||||||||||
Above-market component of swap agreements with Anadarko | — | 10,896 | 7,407 | 51,618 | ||||||||||||
Other expense | — | 8,080 | 161,813 | 8,264 | ||||||||||||
Less: | ||||||||||||||||
Recognized Service revenues – fee based in excess of (less than) customer billings | (6,534) | 53,527 | (28,764) | 62,498 | ||||||||||||
Gain (loss) on divestiture and other, net | (3) | 961 | (1,406) | 1,312 | ||||||||||||
Equity income, net – affiliates | 62,035 | 61,595 | 237,518 | 195,469 | ||||||||||||
Cash paid for maintenance capital expenditures | 29,660 | 39,328 | 124,548 | 120,865 | ||||||||||||
Capitalized interest | 6,047 | 7,196 | 26,980 | 32,479 | ||||||||||||
Cash paid for (reimbursement of) income taxes | — | 2,495 | 96 | 2,408 | ||||||||||||
Other income | 37,792 | — | 37,792 | 2,749 | ||||||||||||
Distributable cash flow attributable to noncontrolling interests (1) | 9,512 | 9,000 | 36,976 | 36,138 | ||||||||||||
Distributable cash flow (2) | $ | 345,408 | $ | 318,108 | $ | 1,325,445 | $ | 1,139,587 | ||||||||
Distributions declared | ||||||||||||||||
Distributions from WES Operating | $ | 284,505 | $ | 1,128,309 | ||||||||||||
Less: Cash reserve for the proper conduct of WES's business | 2,719 | 9,360 | ||||||||||||||
Distributions to WES unitholders (3) | $ | 281,786 | $ | 1,118,949 | ||||||||||||
Coverage ratio | 1.23 | x | 1.18 | x | ||||||||||||
(1) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019. |
(2) | For the three months and year ended December 31, 2019, excludes cash payments of $107.7 million related to the settlement of interest-rate swap agreements. |
(3) | Reflects cash distributions of $0.62200 and $2.47000 per unit declared for the three months and year ended December 31, 2019, respectively. |
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
thousands | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 295,440 | $ | 183,917 | $ | 807,700 | $ | 630,654 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 61,288 | 71,327 | 264,828 | 216,977 | ||||||||||||
Non-cash equity-based compensation expense | 4,114 | 1,544 | 14,392 | 7,310 | ||||||||||||
Interest expense | 79,414 | 54,702 | 303,286 | 183,831 | ||||||||||||
Income tax expense | 793 | 22,741 | 13,472 | 58,934 | ||||||||||||
Depreciation and amortization | 120,278 | 118,407 | 483,255 | 389,164 | ||||||||||||
Impairments | 1,985 | 75,298 | 6,279 | 230,584 | ||||||||||||
Other expense | — | 8,080 | 161,813 | 8,264 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (3) | 961 | (1,406) | 1,312 | ||||||||||||
Equity income, net – affiliates | 62,035 | 61,595 | 237,518 | 195,469 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | ||||||||||||
Other income | 37,792 | — | 37,792 | 2,749 | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (1) | 11,636 | 11,893 | 45,131 | 42,843 | ||||||||||||
Adjusted EBITDA | $ | 447,627 | $ | 457,342 | $ | 1,719,090 | $ | 1,466,445 | ||||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA | ||||||||||||||||
Net cash provided by operating activities | $ | 297,415 | $ | 382,980 | $ | 1,324,100 | $ | 1,348,175 | ||||||||
Interest (income) expense, net | 75,189 | 50,477 | 286,386 | 166,931 | ||||||||||||
Uncontributed cash-based compensation awards | (1,891) | (53) | (1,102) | 879 | ||||||||||||
Accretion and amortization of long-term obligations, net | (1,942) | (1,284) | (8,441) | (5,943) | ||||||||||||
Current income tax (benefit) expense | (215) | (33,012) | 5,863 | (80,114) | ||||||||||||
Other (income) expense, net (2) | 107,533 | (460) | 106,136 | (3,209) | ||||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 9,053 | 9,769 | 30,256 | 29,585 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable, net | 35,283 | (4,351) | 45,033 | 60,502 | ||||||||||||
Accounts and imbalance payables and accrued liabilities, net | (38,524) | 15,476 | 30,866 | (45,605) | ||||||||||||
Other items, net | (22,638) | 49,693 | (54,876) | 38,087 | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (1) | (11,636) | (11,893) | (45,131) | (42,843) | ||||||||||||
Adjusted EBITDA | $ | 447,627 | $ | 457,342 | $ | 1,719,090 | $ | 1,466,445 | ||||||||
Cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 1,324,100 | $ | 1,348,175 | ||||||||||||
Net cash used in investing activities | (3,387,853) | (2,210,813) | ||||||||||||||
Net cash provided by (used in) financing activities | 2,071,573 | 875,192 | ||||||||||||||
(1) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019. |
(2) | Excludes interest-rate swap losses of $25.6 million that will be paid in 2020 for the three months and year ended December 31, 2019, and $8.0 million for the three months and year ended December 31, 2018. |
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted Gross Margin | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
thousands | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin | ||||||||||||||||
Operating income (loss) | $ | 333,630 | $ | 264,647 | $ | 1,231,343 | $ | 861,282 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 61,288 | 71,327 | 264,828 | 216,977 | ||||||||||||
Operation and maintenance | 173,387 | 142,235 | 641,219 | 480,861 | ||||||||||||
General and administrative | 30,951 | 19,747 | 114,591 | 67,195 | ||||||||||||
Property and other taxes | 15,504 | 10,352 | 61,352 | 51,848 | ||||||||||||
Depreciation and amortization | 120,278 | 118,407 | 483,255 | 389,164 | ||||||||||||
Impairments | 1,985 | 75,298 | 6,279 | 230,584 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (3) | 961 | (1,406) | 1,312 | ||||||||||||
Equity income, net – affiliates | 62,035 | 61,595 | 237,518 | 195,469 | ||||||||||||
Reimbursed electricity-related charges recorded as revenues | 13,882 | 16,474 | 74,629 | 66,678 | ||||||||||||
Adjusted gross margin attributable to noncontrolling interests (1) | 16,846 | 15,913 | 64,049 | 56,247 | ||||||||||||
Adjusted gross margin | $ | 644,263 | $ | 607,070 | $ | 2,428,077 | $ | 1,978,205 | ||||||||
Adjusted gross margin for natural-gas assets | $ | 429,739 | $ | 395,281 | $ | 1,656,041 | $ | 1,443,466 | ||||||||
Adjusted gross margin for crude-oil, NGLs, and produced-water assets | 214,524 | 211,789 | 772,036 | 534,739 | ||||||||||||
(1) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019. |
Western Midstream Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
thousands except per-unit amounts | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues and other | ||||||||||||||||
Service revenues – fee based | $ | 626,708 | $ | 593,765 | $ | 2,388,191 | $ | 1,905,728 | ||||||||
Service revenues – product based | 24,597 | 19,364 | 70,127 | 88,785 | ||||||||||||
Product sales | 71,538 | 79,081 | 286,388 | 303,020 | ||||||||||||
Other | 367 | 416 | 1,468 | 2,125 | ||||||||||||
Total revenues and other | 723,210 | 692,626 | 2,746,174 | 2,299,658 | ||||||||||||
Equity income, net – affiliates | 62,035 | 61,595 | 237,518 | 195,469 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 109,507 | 124,496 | 444,247 | 415,505 | ||||||||||||
Operation and maintenance | 173,387 | 142,235 | 641,219 | 480,861 | ||||||||||||
General and administrative | 30,951 | 19,747 | 114,591 | 67,195 | ||||||||||||
Property and other taxes | 15,504 | 10,352 | 61,352 | 51,848 | ||||||||||||
Depreciation and amortization | 120,278 | 118,407 | 483,255 | 389,164 | ||||||||||||
Impairments | 1,985 | 75,298 | 6,279 | 230,584 | ||||||||||||
Total operating expenses | 451,612 | 490,535 | 1,750,943 | 1,635,157 | ||||||||||||
Gain (loss) on divestiture and other, net | (3) | 961 | (1,406) | 1,312 | ||||||||||||
Operating income (loss) | 333,630 | 264,647 | 1,231,343 | 861,282 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | ||||||||||||
Interest expense | (79,414) | (54,702) | (303,286) | (183,831) | ||||||||||||
Other income (expense), net (1) | 37,792 | (7,512) | (123,785) | (4,763) | ||||||||||||
Income (loss) before income taxes | 296,233 | 206,658 | 821,172 | 689,588 | ||||||||||||
Income tax expense (benefit) | 793 | 22,741 | 13,472 | 58,934 | ||||||||||||
Net income (loss) | 295,440 | 183,917 | 807,700 | 630,654 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 7,670 | 15,414 | 110,459 | 79,083 | ||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 287,770 | $ | 168,503 | $ | 697,241 | $ | 551,571 | ||||||||
Limited partners' interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 287,770 | $ | 168,503 | $ | 697,241 | $ | 551,571 | ||||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (75,133) | (29,279) | (182,142) | ||||||||||||
General partner interest in net income (loss) | (5,637) | — | (5,637) | — | ||||||||||||
Limited partners' interest in net income (loss) | $ | 282,133 | $ | 93,370 | $ | 662,325 | $ | 369,429 | ||||||||
Net income (loss) per common unit – basic and diluted | $ | 0.62 | $ | 0.43 | $ | 1.59 | $ | 1.69 | ||||||||
Weighted-average common units outstanding – basic and diluted | 452,934 | 218,938 | 415,794 | 218,936 | ||||||||||||
(1) | Includes net gains (losses) on interest-rate swaps of $37.6 million and ($125.3) million for the three months and year ended December 31, 2019, respectively, and ($8.0) million for the three months and year ended December 31, 2018. |
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
December 31, | ||||||||
thousands except number of units | 2019 | 2018 | ||||||
Total current assets | $ | 402,412 | $ | 344,764 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant, and equipment | 9,064,931 | 8,410,353 | ||||||
Other assets | 2,619,110 | 2,442,088 | ||||||
Total assets | $ | 12,346,453 | $ | 11,457,205 | ||||
Total current liabilities | $ | 485,954 | $ | 637,477 | ||||
Long-term debt | 7,951,565 | 4,787,381 | ||||||
APCWH Note Payable | — | 427,493 | ||||||
Asset retirement obligations | 336,396 | 300,024 | ||||||
Other liabilities | 227,245 | 412,147 | ||||||
Total liabilities | 9,001,160 | 6,564,522 | ||||||
Equity and partners' capital | ||||||||
Common units (443,971,409 and 218,937,797 units issued and outstanding at December 31, 2019 and 2018, respectively) | 3,209,947 | 951,888 | ||||||
General partner units (9,060,641 and zero units issued and outstanding at December 31, 2019 and 2018, respectively) | (14,224) | — | ||||||
Net investment by Anadarko | — | 1,388,018 | ||||||
Noncontrolling interests | 149,570 | 2,552,777 | ||||||
Total liabilities, equity and partners' capital | $ | 12,346,453 | $ | 11,457,205 | ||||
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Year Ended | ||||||||
thousands | 2019 | 2018 | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 807,700 | $ | 630,654 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | ||||||||
Depreciation and amortization | 483,255 | 389,164 | ||||||
Impairments | 6,279 | 230,584 | ||||||
(Gain) loss on divestiture and other, net | 1,406 | (1,312) | ||||||
(Gain) loss on interest-rate swaps | 125,334 | 7,972 | ||||||
Cash paid to settle interest-rate swaps | (107,685) | — | ||||||
Change in other items, net | 7,811 | 91,113 | ||||||
Net cash provided by operating activities | $ | 1,324,100 | $ | 1,348,175 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (1,188,829) | $ | (1,948,595) | ||||
Acquisitions from affiliates | (2,007,926) | (254) | ||||||
Acquisitions from third parties | (93,303) | (161,858) | ||||||
Investments in equity affiliates | (128,393) | (133,629) | ||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 30,256 | 29,585 | ||||||
Proceeds from the sale of assets to third parties | 342 | 3,938 | ||||||
Net cash used in investing activities | $ | (3,387,853) | $ | (2,210,813) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 4,169,695 | $ | 2,671,337 | ||||
Repayments of debt | (1,467,595) | (1,040,000) | ||||||
Increase (decrease) in outstanding checks | 1,571 | (3,206) | ||||||
Registration expenses related to the issuance of Partnership common units | (855) | — | ||||||
Distributions to Partnership unitholders | (969,073) | (502,457) | ||||||
Distributions to Chipeta noncontrolling interest owner | (9,663) | (13,529) | ||||||
Distributions to noncontrolling interest owners of WES Operating | (118,225) | (386,326) | ||||||
Net contributions from (distributions to) Anadarko | 458,819 | 97,755 | ||||||
Above-market component of swap agreements with Anadarko | 7,407 | 51,618 | ||||||
Finance lease payments – affiliates | (508) | — | ||||||
Net cash provided by (used in) financing activities | $ | 2,071,573 | $ | 875,192 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 7,820 | $ | 12,554 | ||||
Cash and cash equivalents at beginning of period | 92,142 | 79,588 | ||||||
Cash and cash equivalents at end of period | $ | 99,962 | $ | 92,142 | ||||
Western Midstream Partners, LP | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Throughput for natural-gas assets (MMcf/d) | ||||||||||||||||
Gathering, treating, and transportation | 534 | 589 | 528 | 546 | ||||||||||||
Processing | 3,532 | 3,307 | 3,497 | 3,231 | ||||||||||||
Equity investment (1) | 423 | 272 | 398 | 291 | ||||||||||||
Total throughput | 4,489 | 4,168 | 4,423 | 4,068 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 174 | 166 | 175 | 170 | ||||||||||||
Total throughput attributable to WES for natural-gas assets | 4,315 | 4,002 | 4,248 | 3,898 | ||||||||||||
Throughput for crude-oil, NGLs, and produced-water assets (MBbls/d) | ||||||||||||||||
Gathering, treating, transportation, and disposal | 957 | 723 | 876 | 534 | ||||||||||||
Equity investment (3) | 449 | 298 | 343 | 241 | ||||||||||||
Total throughput | 1,406 | 1,021 | 1,219 | 775 | ||||||||||||
Throughput attributable to noncontrolling interests (2) | 28 | 20 | 24 | 15 | ||||||||||||
Total throughput attributable to WES for crude-oil, NGLs, and produced-water assets | 1,378 | 1,001 | 1,195 | 760 | ||||||||||||
Per-Mcf Adjusted gross margin for natural-gas assets (4) | $ | 1.08 | $ | 1.07 | $ | 1.07 | $ | 1.01 | ||||||||
Per-Bbl Adjusted gross margin for crude-oil, NGLs, and produced-water assets (5) | 1.69 | 2.30 | 1.77 | 1.93 | ||||||||||||
(1) | Represents the 14.81% share of average Fort Union throughput, 22% share of average Rendezvous throughput, 50% share of average Mi Vida and Ranch Westex throughput, and 30% share of average Red Bluff Express throughput. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of December 31, 2019. |
(3) | Represents the 10% share of average White Cliffs throughput; 25% share of average Mont Belvieu JV throughput; 20% share of average TEG, TEP, Whitethorn, and Saddlehorn throughput; 33.33% share of average FRP throughput; and 15% share of average Panola and Cactus II throughput. |
(4) | Average for period. Calculated as Adjusted gross margin for natural-gas assets, divided by total throughput (MMcf/d) attributable to WES for natural-gas assets. |
(5) | Average for period. Calculated as Adjusted gross margin for crude-oil, NGLs, and produced-water assets, divided by total throughput (MBbls/d) attributable to WES for crude-oil, NGLs, and produced-water assets. |
Western Midstream Partners, LP | ||||||||||||||||||
OPERATING STATISTICS (CONTINUED) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,274 | 1,101 | 168 | 148 | 610 | 413 | ||||||||||||
DJ Basin | 1,295 | 1,185 | 129 | 107 | — | — | ||||||||||||
Equity investments | 423 | 272 | 449 | 298 | — | — | ||||||||||||
Other | 1,497 | 1,610 | 50 | 55 | — | — | ||||||||||||
Total throughput | 4,489 | 4,168 | 796 | 608 | 610 | 413 | ||||||||||||
Year Ended December 31, | ||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,226 | 1,041 | 150 | 132 | 556 | 239 | ||||||||||||
DJ Basin | 1,236 | 1,133 | 118 | 105 | — | — | ||||||||||||
Equity investments | 398 | 291 | 343 | 241 | — | — | ||||||||||||
Other | 1,563 | 1,603 | 52 | 58 | — | — | ||||||||||||
Total throughput | 4,423 | 4,068 | 663 | 536 | 556 | 239 | ||||||||||||
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SOURCE Western Midstream Partners, LP
Article Date
2/27/2020Saddlehorn Pipeline Welcomes Additional Owner
Source: PR Newswire
TULSA, Okla., Feb. 4, 2020 /PRNewswire/ -- Saddlehorn Pipeline Company, LLC ("Saddlehorn") announced today that Black Diamond Gathering LLC ("Black Diamond"), through its majority owner Noble Midstream Partners LP (NASDAQ: NBLX) ("NBLX"), has purchased a 20% membership interest in Saddlehorn for $155 million effective Feb. 1, 2020. As previously announced, an option had been granted to Black Diamond in conjunction with recent volume commitments to the pipeline.
The Saddlehorn pipeline is currently capable of transporting 190,000 barrels per day ("bpd") of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma. Supported by increased volume commitments from shippers, the pipeline's capacity is being increased by 100,000 bpd to a new total capacity of approximately 290,000 bpd, providing shippers enhanced access to market. The higher capacity is expected to be available in late 2020 following the capital-efficient addition of incremental pumping and storage capabilities.
The Saddlehorn pipeline was previously owned jointly by affiliates of Magellan Midstream Partners, L.P. (NYSE: MMP) ("Magellan"), Plains All American Pipeline, L.P. (NYSE: PAA) ("Plains") and Western Midstream Partners, LP (NYSE: WES) ("WES"). After Black Diamond's purchase, with Magellan and Plains each selling a 10% interest, Magellan and Plains each own a 30% membership interest and Black Diamond and WES each own a 20% membership interest in Saddlehorn. Magellan continues to serve as operator of the Saddlehorn pipeline.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. Magellan owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.
About Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids ("NGL") and natural gas. Plains owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, Plains handles more than 6 million bpd of crude oil and NGL in its Transportation segment. Plains is headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.
About Western Midstream Partners, LP
Western Midstream Partners, LP (NYSE: WES) is a Delaware master limited partnership formed 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, NGLs and crude oil; and gathering and disposing of produced water for its 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. More information is available at www.westernmidstream.com.
About Black Diamond Gathering LLC
Black Diamond is a joint venture between Noble Midstream Partners LP (NASDAQ: NBLX) and Greenfield Midstream. NBLX owns 54.4% of Black Diamond and Greenfield Midstream owns the remaining 45.6%. NBLX operates Black Diamond, which includes a large-scale integrated crude oil gathering system in the DJ Basin, consisting of approximately 240 miles of pipeline in operation, 300,000 bpd delivery capacity and 390,000 bpd crude oil storage capacity. The system is connected to every major takeaway pipeline in the DJ Basin, including the White Cliffs Pipeline, the Saddlehorn Pipeline, the Grand Mesa Pipeline and the Pony Express Pipeline. NBLX and Greenfield Midstream jointly provide commercial efforts to bring additional producer dedications to Black Diamond Gathering and pursue expansion opportunities.
Except for statements of historical fact, the information in this news release constitutes forward-looking statements as defined by federal law. Although the statements are based on reasonable assumptions, such forward-looking statements necessarily involve known and unknown risks and uncertainties that may cause actual outcomes to be materially different. Important factors that could lead to material changes in performance include the risk and uncertainties discussed in filings with the Securities and Exchange Commission by Magellan, NBLX, Plains and WES. This news release speaks only as of the date issued, and the companies undertake no obligation to update any forward-looking statements because of new information, future events or any other factors.
Contact Information:
Magellan: | Paula Farrell, Investor Relations Bruce Heine, Media Relations | (918) 574-7650 (918) 574-7010 | |
Plains: | Brett Magill, Investor Relations Brad Leone, Media Relations | (866) 809-1291 (866) 809-1290 | |
WES: | Kristen Shults, Investor Relations Abby Dempsey, Investor Relations | (832) 636-6000 (832) 636-6000 | |
Black Diamond: | Park Carrere, Investor Relations Casey Nikoloric, Investor Relations | (281) 872-3208 (303) 433-4397 | |
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SOURCE Magellan Midstream Partners, L.P.
Article Date
2/4/20201/20/2020 - Western Midstream Announces Fourth-Quarter 2019 Distribution And Earnings Conference Call
Western Midstream Announces Fourth-Quarter 2019 Distribution And Earnings Conference Call
Source: PR Newswire
HOUSTON, Jan. 20, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that the board of directors of its general partner declared a quarterly cash distribution of $0.622 per unit for the fourth-quarter of 2019, resulting in a full-year 2019 distribution increase of 5-percent over the full-year 2018. This distribution represents WES's 28th consecutive quarterly distribution increase. WES's fourth-quarter 2019 distribution is payable February 13, 2020, to unitholders of record at the close of business January 31, 2020.
The Partnership plans to report its fourth-quarter and full-year 2019 results after market close Thursday, February 27, 2020. Management will host a conference call Friday, February 28, 2020, at 1 p.m. CST (2 p.m. EST) to discuss WES's quarterly and annual results. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
Fourth-Quarter and Full-Year 2019 Results
Friday, February 28, 2020
1 p.m. CST (2 p.m. EST)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 0032829
Individuals that would like to participate in WES's scheduled fourth-quarter earnings call should dial the applicable dial-in number listed above approximately 15 minutes prior to 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 Partnership's website at www.westernmidstream.com. A replay of the conference call will also be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its 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.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.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 Midstream 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 Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations
Abby.Dempsey@westernmidstream.com
832.636.6000
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SOURCE Western Midstream Partners, LP
Article Date
1/20/2020Western Midstream Announces Pricing Of $3.5 Billion Of Senior Notes
Source: PR Newswire
HOUSTON, Jan. 9, 2020 /PRNewswire/ -- January 9, 2020 – Today Western Midstream Partners, LP (NYSE: WES) announced that its wholly owned subsidiary, Western Midstream Operating, LP ("WES Operating"), has priced an offering of $300 million in aggregate principal amount of floating rate senior notes due 2023, $1 billion in aggregate principal amount of 3.10% senior notes due 2025 at a price to the public of 99.962% of their face value, $1.2 billion in aggregate principal amount of 4.05% senior notes due 2030 at a price to the public of 99.90% of their face value, and $1 billion in aggregate principal amount of 5.25% senior notes due 2050 at a price to the public of 99.442% of their face value. The offering of the senior notes is expected to close on Monday, January 13, 2020, subject to the satisfaction of customary closing conditions. Net proceeds from the offering are expected to be used to repay and terminate WES Operating's $3.0 billion term loan credit facility. WES Operating will use the remaining net proceeds for general partnership purposes, including repayment of borrowings under its revolving credit facility.
Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and PNC Capital Markets LLC are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Barclays Capital Inc., 745 Seventh Avenue, New York, New York 10019, Attn: Syndicate Registration, phone no. (888) 603-5847; (ii) Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, phone no. (800) 831-9146; (iii) Deutsche Bank Securities Inc., 60 Wall Street, New York, New York 10005, Attn.: Debt Capital Markets, phone no. (800) 503-4611 with a copy to 60 Wall Street, 36th Floor, New York, New York 10005, Attn.: General Counsel, fax no. (646) 374-1071; and (iv) PNC Capital Markets LLC, 300 Fifth Avenue, 10th Floor, Pittsburgh, Pennsylvania 15222, Attention: Debt Capital Markets, Transaction Execution, phone no. (855) 881-0697. An electronic copy of the prospectus and prospectus supplement is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any 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 May 17, 2019.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, natural gas liquids, and condensate on behalf of itself and as agent for its customers under certain of its contracts.
This news release contains forward-looking statements. WES, WES Operating and their 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, including WES Operating's ability to close successfully on the senior notes offering and to use the net proceeds as described herein. See "Risk Factors" in WES's and WES Operating's Annual Reports on Form 10-K for the year ended December 31, 2018 and other public filings and press releases. Except as required by law, neither WES nor WES Operating undertakes the obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACT
Kristen S. Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Abby Dempsey
Investor Relations
Abby_Dempsey@oxy.com
832.636.6000
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SOURCE Western Midstream Partners, LP
Article Date
1/10/2020Western Midstream Announces Entry Into New Service, Operating, And Governance Agreements
Source: PR Newswire
HOUSTON, Jan. 6, 2020 /PRNewswire/ -- Today Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Occidental Petroleum Corporation (NYSE: OXY) ("Occidental") announced the execution of several agreements that will enable WES to fully operate as a stand-alone business, consistent with WES's and Occidental's joint effort to establish WES as an independent midstream company. WES fully expects to continue its long-term and meaningful relationship with Occidental. These new agreements support WES's ongoing and focused pursuit of third-party growth opportunities and underscore the importance of WES's commitment to leverage its existing midstream infrastructure to attract additional Occidental and third-party volumes.
"Over the last few months, WES and Occidental have worked together to execute agreements that are supportive of both companies' intent to operate and report as two separate and distinct entities," said Chief Executive Officer, Michael Ure. "We are excited about the operational changes that are enabled by these agreements and the governance changes that will inure to the benefit of WES and its stakeholders. Taking into account the anticipated economic impact of these recently executed agreements, we have refined our 2020 outlook that was announced with our Q3 2019 results and currently expect 2020 Adjusted EBITDA between $1.875 billion and $1.975 billion and 2020 total capital expenditures between $875 million and $950 million."
Key terms of the newly executed agreements include:
Ure continued, "We strongly believe that the formal identification of a WES-dedicated workforce enhances employee focus, which in turn empowers employees to deliver operational efficiencies and improved customer service, establishes heightened accountability, and positions WES, beginning in 2020, to directly align compensation incentives for all WES-dedicated employees with WES's internally developed midstream performance targets."
"The execution of these new agreements was the result of diligent work between and among WES and Occidental legal, finance, and operations groups," said Chief Financial Officer, Mike Pearl. "We firmly believe that the resulting governance and employment changes establish an appropriate realignment of incentives that now will be based solely on WES's performance as an independent midstream company, which we view as critical to sustaining long-term value creation for all of our stakeholders."
The above-described related-party agreements with Occidental were reviewed and approved by the Special Committee, which includes only independent members of the board of directors of WES's general partner. The Special Committee was advised by Bracewell LLP, as legal counsel, and by Lazard, as financial advisor. Concurrent with the execution of these new agreements, WES's general partner adopted an amended and restated agreement of limited partnership providing unaffiliated public unitholders significantly expanded rights to remove the WES general partner.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 Occidental and 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.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management 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. These factors include the ability to establish WES as an independent midstream company; realize the expected benefits from the new and amended agreements with Occidental and the concomitant workforce separation; 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" section of WES's most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and in its other public filings and press releases. Western Midstream Partners, LP undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen.Shults@westernmidstream.com
832.636.6000
Jack Spinks
Manager, Investor Relations
Jack.Spinks@westernmidstream.com
832.636.6000
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SOURCE Western Midstream Partners, LP
Article Date
1/6/2020Western Midstream Announces Third-Quarter 2019 Results
Source: PR Newswire
HOUSTON, Nov. 4, 2019 /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced third-quarter 2019 financial and operating results. Net income (loss) available to limited partners for the third quarter of 2019 totaled $121.2 million, or $0.27 per common unit (diluted), with third-quarter 2019 Adjusted EBITDA(1) totaling $410.2 million and third-quarter 2019 Distributable cash flow(1) totaling $304.4 million.
RECENT HIGHLIGHTS
For the third quarter of 2019, WES declared a per-unit quarterly distribution of $0.6200. This represents WES's 27th consecutive quarterly distribution increase and is consistent with WES's 2019 annual distribution growth-guidance range of 5% to 6%. The third-quarter 2019 Coverage ratio(1) was 1.08 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. | ||
"We continue to experience strong throughput growth in the DJ and Delaware Basins, where we are well-positioned to support Oxy's future development plans and service our highly valued third-party customers," said Chief Executive Officer, Michael Ure. "Our extensive and highly leverageable assets and dedicated workforce throughout these two basins enable us to pace our growth with that of Oxy and to adopt a renewed focus on attracting meaningful and sustainable third-party business."
Third-quarter 2019 total natural gas throughput(1) averaged 4.2 Bcf/d, representing a 2% sequential-quarter decline and a 6% increase from third-quarter 2018. Excluding the effects of since-resolved downstream constraints impacting our Rockies assets, third-quarter natural gas throughput would have been approximately 110 MMcf/d higher than reported and would have represented a 1% sequential-quarter increase and a 9% increase from third-quarter 2018. Third-quarter 2019 total throughput of crude oil, NGLs, and produced-water assets(1) averaged 1,191 MBbls/d, representing an 8% sequential-quarter increase and a 28% increase from third-quarter 2018. Third-quarter 2019 capital expenditures(2), including equity investments and excluding acquisitions and capitalized interest, totaled $265.2 million on a cash basis and $278.2 million on an accrual basis, with cash maintenance capital expenditures totaling $29.2 million.
PRELIMINARY 2020 OUTLOOK
"Our 2020 goals will encompass delivering capital-efficient, organic growth from our DJ and Delaware Basin assets," said Michael Ure. "With our backbone infrastructure in place, we remain committed to driving operational efficiencies alongside additional growth that should enable sustained distribution increases."
(1) Represents total throughput attributable to WES, which excludes the 25% third-party interest in Chipeta and the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of September 30, 2019. | ||
(2) Excludes capital expenditures associated with the 25% third-party interest in Chipeta. | ||
CONFERENCE CALL TOMORROW AT 1 P.M. CST
WES will host a conference call on Tuesday, November 5, 2019, at 1:00 p.m. Central Standard Time (2:00 p.m. Eastern Standard Time) to discuss third-quarter 2019 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 1868618. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call also will be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 Occidental and 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.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management 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. 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" section of WES's most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and in its other public filings and press releases. Western Midstream Partners, LP undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen_Shults@Oxy.com
832.636.6000
Jack Spinks
Manager, Investor Relations
Jack_Spinks@Oxy.com
832.636.6000
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Below are reconciliations of (i) net income (loss) (GAAP) to WES's Distributable cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Midstream Partners, LP ("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Midstream 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 WES's 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 Midstream Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
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 Operating'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 in excess of (less than) 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, income taxes, and Distributable cash flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA.
WES defines Adjusted EBITDA as net income (loss), 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, other income, and the noncontrolling interests owners' proportionate share of revenues and expenses.
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 interests owners' proportionate share of revenues and cost of product.
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Distributable Cash Flow | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
thousands except Coverage ratio | 2019 | 2018 (1) | 2019 | 2018 (1) | ||||||||||||
Reconciliation of Net income (loss) to Distributable cash flow and calculation of the Coverage ratio | ||||||||||||||||
Net income (loss) | $ | 125,223 | $ | 198,560 | $ | 512,260 | $ | 446,737 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 71,005 | 66,493 | 203,540 | 145,650 | ||||||||||||
Non-cash equity-based compensation expense | 4,137 | 1,614 | 10,278 | 5,766 | ||||||||||||
Non-cash settled interest expense, net | 20 | — | 20 | — | ||||||||||||
Income tax (benefit) expense | 1,309 | 15,005 | 12,679 | 36,193 | ||||||||||||
Depreciation and amortization | 127,914 | 97,479 | 362,977 | 270,757 | ||||||||||||
Impairments | 3,107 | 27,902 | 4,294 | 155,286 | ||||||||||||
Above-market component of swap agreements with Anadarko | — | 12,601 | 7,407 | 40,722 | ||||||||||||
Other expense | 67,961 | 33 | 161,813 | 184 | ||||||||||||
Less: | ||||||||||||||||
Recognized Service revenues – fee based in excess of (less than) customer billings | (3,934) | 6,014 | (22,230) | 8,971 | ||||||||||||
Gain (loss) on divestiture and other, net | 248 | 65 | (1,403) | 351 | ||||||||||||
Equity income, net – affiliates | 53,893 | 54,215 | 175,483 | 133,874 | ||||||||||||
Cash paid for maintenance capital expenditures | 29,298 | 32,620 | 94,888 | 81,537 | ||||||||||||
Capitalized interest | 8,386 | 8,449 | 20,933 | 25,283 | ||||||||||||
Cash paid for (reimbursement of) income taxes | — | — | 96 | (87) | ||||||||||||
Other income | — | 655 | — | 2,749 | ||||||||||||
Distributable cash flow attributable to noncontrolling interests (2) | 8,401 | 9,399 | 27,464 | 27,138 | ||||||||||||
Distributable cash flow | $ | 304,384 | $ | 308,270 | $ | 980,037 | $ | 821,479 | ||||||||
Distributions declared | ||||||||||||||||
Distributions from WES Operating | $ | 283,881 | $ | 843,804 | ||||||||||||
Less: Cash reserve for the proper conduct of WES's business | 3,001 | 6,641 | ||||||||||||||
Distributions to WES unitholders (3) | $ | 280,880 | $ | 837,163 | ||||||||||||
Coverage ratio | 1.08 | x | 1.17 | x | ||||||||||||
(1) | Financial information has been recast to include the financial position and results attributable to the assets acquired from Anadarko Petroleum Corporation in February 2019 (the "Anadarko Midstream Assets" or "AMA"). |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of September 30, 2019. |
(3) | Reflects cash distributions of $0.62000 and $1.84800 per unit declared for the three and nine months ended September 30, 2019, respectively. |
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
thousands | 2019 | 2018 (1) | 2019 | 2018 (1) | ||||||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 125,223 | $ | 198,560 | $ | 512,260 | $ | 446,737 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 71,005 | 66,493 | 203,540 | 145,650 | ||||||||||||
Non-cash equity-based compensation expense | 4,137 | 1,614 | 10,278 | 5,766 | ||||||||||||
Interest expense | 78,524 | 48,869 | 223,872 | 129,129 | ||||||||||||
Income tax expense | 1,309 | 15,005 | 12,679 | 36,193 | ||||||||||||
Depreciation and amortization | 127,914 | 97,479 | 362,977 | 270,757 | ||||||||||||
Impairments | 3,107 | 27,902 | 4,294 | 155,286 | ||||||||||||
Other expense | 67,961 | 33 | 161,813 | 184 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | 248 | 65 | (1,403) | 351 | ||||||||||||
Equity income, net – affiliates | 53,893 | 54,215 | 175,483 | 133,874 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 12,675 | 12,675 | ||||||||||||
Other income | — | 655 | — | 2,749 | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | 10,601 | 10,976 | 33,495 | 30,950 | ||||||||||||
Adjusted EBITDA | $ | 410,213 | $ | 385,819 | $ | 1,271,463 | $ | 1,009,103 | ||||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA | ||||||||||||||||
Net cash provided by operating activities | $ | 340,154 | $ | 335,869 | $ | 1,026,685 | $ | 965,195 | ||||||||
Interest (income) expense, net | 74,299 | 44,644 | 211,197 | 116,454 | ||||||||||||
Uncontributed cash-based compensation awards | 141 | (55) | 789 | 932 | ||||||||||||
Accretion and amortization of long-term obligations, net | (3,651) | (1,283) | (6,499) | (4,659) | ||||||||||||
Current income tax (benefit) expense | (407) | (19,432) | 6,078 | (47,102) | ||||||||||||
Other (income) expense, net (3) | (495) | (655) | (1,397) | (2,749) | ||||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 4,151 | 6,184 | 21,203 | 19,816 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable, net | 12,418 | 56,281 | 9,750 | 64,853 | ||||||||||||
Accounts and imbalance payables and accrued liabilities, net | (11,808) | (19,041) | 69,390 | (61,081) | ||||||||||||
Other items, net | 6,012 | (5,717) | (32,238) | (11,606) | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | (10,601) | (10,976) | (33,495) | (30,950) | ||||||||||||
Adjusted EBITDA | $ | 410,213 | $ | 385,819 | $ | 1,271,463 | $ | 1,009,103 | ||||||||
Cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 1,026,685 | $ | 965,195 | ||||||||||||
Net cash used in investing activities | (3,134,643) | (1,798,702) | ||||||||||||||
Net cash provided by (used in) financing activities | 2,133,246 | 886,796 | ||||||||||||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of September 30, 2019. |
(3) | Excludes non-cash losses on interest-rate swaps of $68.3 million and $162.9 million for the three and nine months ended September 30, 2019, respectively. |
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted Gross Margin | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
thousands | 2019 | 2018 (1) | 2019 | 2018 (1) | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin | ||||||||||||||||
Operating income (loss) | $ | 268,725 | $ | 257,554 | $ | 897,713 | $ | 596,635 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 71,005 | 66,493 | 203,540 | 145,650 | ||||||||||||
Operation and maintenance | 176,572 | 129,042 | 467,832 | 338,626 | ||||||||||||
General and administrative | 30,769 | 16,022 | 83,640 | 47,448 | ||||||||||||
Property and other taxes | 15,281 | 13,146 | 45,848 | 41,496 | ||||||||||||
Depreciation and amortization | 127,914 | 97,479 | 362,977 | 270,757 | ||||||||||||
Impairments | 3,107 | 27,902 | 4,294 | 155,286 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | 248 | 65 | (1,403) | 351 | ||||||||||||
Equity income, net – affiliates | 53,893 | 54,215 | 175,483 | 133,874 | ||||||||||||
Reimbursed electricity-related charges recorded as revenues | 23,969 | 17,485 | 60,747 | 50,204 | ||||||||||||
Adjusted gross margin attributable to noncontrolling interests (2) | 15,619 | 14,445 | 47,203 | 40,334 | ||||||||||||
Adjusted gross margin | $ | 599,644 | $ | 521,428 | $ | 1,783,814 | $ | 1,371,135 | ||||||||
Adjusted gross margin for natural gas assets | $ | 401,380 | $ | 376,131 | $ | 1,226,302 | $ | 1,048,185 | ||||||||
Adjusted gross margin for crude oil, NGLs, and produced-water assets | 198,264 | 145,297 | 557,512 | 322,950 | ||||||||||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. |
(2) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of September 30, 2019. |
Western Midstream Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
thousands except per-unit amounts | 2019 | 2018 (1) | 2019 | 2018 (1) | ||||||||||||
Revenues and other | ||||||||||||||||
Service revenues – fee based | $ | 587,965 | $ | 486,329 | $ | 1,761,483 | $ | 1,311,963 | ||||||||
Service revenues – product based | 9,476 | 23,336 | 45,530 | 69,421 | ||||||||||||
Product sales | 68,248 | 76,999 | 214,850 | 223,939 | ||||||||||||
Other | 338 | 1,236 | 1,101 | 1,709 | ||||||||||||
Total revenues and other | 666,027 | 587,900 | 2,022,964 | 1,607,032 | ||||||||||||
Equity income, net – affiliates | 53,893 | 54,215 | 175,483 | 133,874 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 97,800 | 101,035 | 334,740 | 291,009 | ||||||||||||
Operation and maintenance | 176,572 | 129,042 | 467,832 | 338,626 | ||||||||||||
General and administrative | 30,769 | 16,022 | 83,640 | 47,448 | ||||||||||||
Property and other taxes | 15,281 | 13,146 | 45,848 | 41,496 | ||||||||||||
Depreciation and amortization | 127,914 | 97,479 | 362,977 | 270,757 | ||||||||||||
Impairments | 3,107 | 27,902 | 4,294 | 155,286 | ||||||||||||
Total operating expenses | 451,443 | 384,626 | 1,299,331 | 1,144,622 | ||||||||||||
Gain (loss) on divestiture and other, net | 248 | 65 | (1,403) | 351 | ||||||||||||
Operating income (loss) | 268,725 | 257,554 | 897,713 | 596,635 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 12,675 | 12,675 | ||||||||||||
Interest expense | (78,524) | (48,869) | (223,872) | (129,129) | ||||||||||||
Other income (expense), net (2) | (67,894) | 655 | (161,577) | 2,749 | ||||||||||||
Income (loss) before income taxes | 126,532 | 213,565 | 524,939 | 482,930 | ||||||||||||
Income tax expense (benefit) | 1,309 | 15,005 | 12,679 | 36,193 | ||||||||||||
Net income (loss) | 125,223 | 198,560 | 512,260 | 446,737 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 4,006 | 47,203 | 102,789 | 63,669 | ||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 121,217 | $ | 151,357 | $ | 409,471 | $ | 383,068 | ||||||||
Limited partners' interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 121,217 | $ | 151,357 | $ | 409,471 | $ | 383,068 | ||||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (43,883) | (29,279) | (107,009) | ||||||||||||
Limited partners' interest in net income (loss) | $ | 121,217 | $ | 107,474 | $ | 380,192 | $ | 276,059 | ||||||||
Net income (loss) per common unit – basic and diluted | $ | 0.27 | $ | 0.49 | $ | 0.94 | $ | 1.26 | ||||||||
Weighted-average common units outstanding – basic and diluted | 453,021 | 218,938 | 402,421 | 218,935 | ||||||||||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. |
(2) | Includes non-cash losses on interest-rate swaps of $68.3 million and $162.9 million for the three and nine months ended September 30, 2019, respectively. |
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units | September 30, 2019 | December 31, 2018 (1) | ||||||
Total current assets | $ | 393,238 | $ | 344,764 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant, and equipment | 8,933,834 | 8,410,353 | ||||||
Other assets | 2,591,153 | 2,442,088 | ||||||
Total assets | $ | 12,178,225 | $ | 11,457,205 | ||||
Total current liabilities | $ | 596,872 | $ | 637,477 | ||||
Long-term debt | 7,730,502 | 4,787,381 | ||||||
APCWH Note Payable | — | 427,493 | ||||||
Asset retirement obligations | 319,178 | 300,024 | ||||||
Other liabilities | 196,598 | 412,147 | ||||||
Total liabilities | 8,843,150 | 6,564,522 | ||||||
Equity and partners' capital | ||||||||
Common units (453,032,050 and 218,937,797 units issued and outstanding at September 30, 2019, and December 31, 2018, respectively) | 3,182,917 | 951,888 | ||||||
Net investment by Anadarko | — | 1,388,018 | ||||||
Noncontrolling interests | 152,158 | 2,552,777 | ||||||
Total liabilities, equity and partners' capital | $ | 12,178,225 | $ | 11,457,205 | ||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. |
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
thousands | 2019 | 2018 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 512,260 | $ | 446,737 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | ||||||||
Depreciation and amortization | 362,977 | 270,757 | ||||||
Impairments | 4,294 | 155,286 | ||||||
(Gain) loss on divestiture and other, net | 1,403 | (351) | ||||||
(Gain) loss on interest-rate swaps | 162,974 | — | ||||||
Change in other items, net | (17,223) | 92,766 | ||||||
Net cash provided by operating activities | $ | 1,026,685 | $ | 965,195 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (947,266) | $ | (1,589,653) | ||||
Acquisitions from affiliates | (2,007,501) | (254) | ||||||
Acquisitions from third parties | (93,303) | (161,858) | ||||||
Investments in equity affiliates | (108,118) | (67,085) | ||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 21,203 | 19,816 | ||||||
Proceeds from the sale of assets to third parties | 342 | 332 | ||||||
Net cash used in investing activities | $ | (3,134,643) | $ | (1,798,702) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 3,950,750 | $ | 2,401,097 | ||||
Repayments of debt | (1,467,595) | (1,040,000) | ||||||
Increase (decrease) in outstanding checks | (9,204) | (2,687) | ||||||
Registration expenses related to the issuance of Partnership common units | (855) | — | ||||||
Distributions to Partnership unitholders | (688,193) | (372,189) | ||||||
Distributions to Chipeta noncontrolling interest owner | (5,200) | (9,446) | ||||||
Distributions to noncontrolling interest owners of WES Operating | (112,430) | (287,435) | ||||||
Net contributions from (distributions to) Anadarko | 458,819 | 156,734 | ||||||
Above-market component of swap agreements with Anadarko | 7,407 | 40,722 | ||||||
Finance lease payments – affiliates | (253) | — | ||||||
Net cash provided by (used in) financing activities | $ | 2,133,246 | $ | 886,796 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 25,288 | $ | 53,289 | ||||
Cash and cash equivalents at beginning of period | 92,142 | 79,588 | ||||||
Cash and cash equivalents at end of period | $ | 117,430 | $ | 132,877 | ||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. |
Western Midstream Partners, LP | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 (1) | 2019 | 2018 (1) | |||||||||||||
Throughput for natural gas assets (MMcf/d) | ||||||||||||||||
Gathering, treating, and transportation | 523 | 545 | 526 | 531 | ||||||||||||
Processing | 3,458 | 3,273 | 3,484 | 3,206 | ||||||||||||
Equity investment (2) | 390 | 301 | 390 | 297 | ||||||||||||
Total throughput for natural gas assets | 4,371 | 4,119 | 4,400 | 4,034 | ||||||||||||
Throughput attributable to noncontrolling interests for natural gas assets (3) | 172 | 168 | 175 | 171 | ||||||||||||
Total throughput attributable to Western Midstream Partners, LP for natural gas assets | 4,199 | 3,951 | 4,225 | 3,863 | ||||||||||||
Throughput for crude oil, NGLs, and produced-water assets (MBbls/d) | ||||||||||||||||
Gathering, treating, transportation, and disposal | 908 | 663 | 849 | 470 | ||||||||||||
Equity investment (4) | 307 | 290 | 308 | 222 | ||||||||||||
Total throughput for crude oil, NGLs, and produced-water assets | 1,215 | 953 | 1,157 | 692 | ||||||||||||
Throughput attributable to noncontrolling interests for crude oil, NGLs, and produced-water assets (3) | 24 | 19 | 23 | 14 | ||||||||||||
Total throughput attributable to Western Midstream Partners, LP for crude oil, NGLs, and produced-water assets | 1,191 | 934 | 1,134 | 678 | ||||||||||||
Adjusted gross margin per Mcf for natural gas assets (5) | $ | 1.04 | $ | 1.03 | $ | 1.06 | $ | 0.99 | ||||||||
Adjusted gross margin per Bbl for crude oil, NGLs, and produced-water assets (6) | 1.81 | 1.69 | 1.80 | 1.75 | ||||||||||||
(1) | Throughput and Adjusted gross margin have been recast to include the results attributable to AMA. |
(2) | Represents the 14.81% share of average Fort Union throughput, 22% share of average Rendezvous throughput, 50% share of average Mi Vida and Ranch Westex throughput, and 30% share of average Red Bluff Express throughput. |
(3) | For all periods presented, includes (i) the 25% third-party interest in Chipeta and (ii) the 2.0% Occidental subsidiary-owned limited partner interest in WES Operating, which collectively represent WES's noncontrolling interests as of September 30, 2019. |
(4) | Represents the 10% share of average White Cliffs throughput, 25% share of average Mont Belvieu JV throughput, 20% share of average TEG, TEP, Whitethorn and Saddlehorn throughput, 33.33% share of average FRP throughput, and 15% share of average Panola throughput. |
(5) | Average for period. Calculated as Adjusted gross margin for natural gas assets, divided by total throughput (MMcf/d) attributable to Western Midstream Partners, LP for natural gas assets. |
(6) | Average for period. Calculated as Adjusted gross margin for crude oil, NGLs, and produced-water assets, divided by total throughput (MBbls/d) attributable to Western Midstream Partners, LP for crude oil, NGLs, and produced-water assets. |
Western Midstream Partners, LP | ||||||||||||||||||
OPERATING STATISTICS (CONTINUED) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
2019 | 2018 (1) | 2019 | 2018 (1) | 2019 | 2018 (1) | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,272 | 1,096 | 147 | 138 | 580 | 361 | ||||||||||||
DJ Basin | 1,124 | 1,119 | 128 | 103 | — | — | ||||||||||||
Equity investments | 391 | 301 | 307 | 290 | — | — | ||||||||||||
Other | 1,584 | 1,603 | 53 | 61 | — | — | ||||||||||||
Total throughput | 4,371 | 4,119 | 635 | 592 | 580 | 361 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||
2019 | 2018 (1) | 2019 | 2018 (1) | 2019 | 2018 (1) | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,210 | 1,020 | 144 | 126 | 538 | 180 | ||||||||||||
DJ Basin | 1,216 | 1,115 | 114 | 104 | — | — | ||||||||||||
Equity investments | 390 | 297 | 308 | 222 | — | — | ||||||||||||
Other | 1,584 | 1,602 | 53 | 60 | — | — | ||||||||||||
Total throughput | 4,400 | 4,034 | 619 | 512 | 538 | 180 | ||||||||||||
(1) | Throughput has been recast to include the results attributable to AMA. |
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SOURCE Western Midstream Partners, LP
Article Date
11/4/201910/17/2019 - Western Midstream Announces New Officers
Western Midstream Announces New Officers
Source: PR Newswire
HOUSTON, Oct. 17, 2019 /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE:WES) ("WES" or the "Partnership") announced senior management changes. Effective today, Michael C. ("Mike") Pearl has been named Senior Vice President and Chief Financial Officer, Charles G. ("Chuck") Griffie has been named Senior Vice President, Operations and Engineering, Robert W. ("Bob") Bourne has been named Senior Vice President and Chief Commercial Officer, and Catherine A. Green has been named Vice President and Chief Accounting Officer of the general partner of WES.
Pearl succeeds Jaime R. Casas who has transitioned to Vice President and Treasurer of Occidental Petroleum Corporation (NYSE:OXY) ("Occidental"). Pearl joined Anadarko Petroleum Corporation ("Anadarko") in 2004 and has served in various leadership positions within Anadarko's accounting and finance organization including Director, Corporate Tax, Corporate Controller, Vice President, Finance and Treasurer, Senior Vice President and Chief Financial Officer of the general partner of Western Gas Partners, LP, and most recently as Anadarko's Senior Vice President, Investor Relations.
Griffie joined Anadarko in connection with its 2006 acquisition of Western Gas Resources, Inc. At Anadarko, Griffie held various operational leadership positions including U.S. Onshore Business Advisor, Eagleford Operations Manager, Appalachian Basin Midstream Manager, Director, Midstream Engineering, and most recently as Senior Vice President, U.S. Onshore Field Operations upon returning to Anadarko from Huntley & Huntley Energy Exploration where he served as Senior Vice President, Midstream and Marketing from June 2016 to December 2018.
Bourne joined Occidental in August 2019 and brings more than 30 years of experience in midstream corporate business development to WES. Bourne led midstream corporate development efforts at Shell Trading (formerly Coral Energy), American Midstream Partners, Gas Solutions, Energy Transfer Partners, and Crosstex Energy (now EnLink Midstream). Most recently, Bourne served as Vice President, Business Development, Midstream and Marketing at Apache Corporation and as a director of Altus Midstream Company.
Green has more than 20 years of accounting and audit experience and joined Anadarko in 2001. During her 18 years at Anadarko, Green has served in a variety of diverse roles within Anadarko's accounting and finance organization including internal audit, technical U.S. GAAP accounting, internal controls, and most recently as Director, Expenditure Accounting.
"The board is very pleased with these officer appointments and believes this management team is well-positioned to maximize the value of WES's asset base, which benefits all unitholders, including Occidental," said Glenn Vangolen, Chairman of the Board of WES's general partner.
"I am excited to add the remaining members of the Western Midstream management team as we transition into our next stage of growth," said Michael P. Ure, CEO. "I have the utmost confidence the assembled management team will focus on enhancing the value of WES's premier asset footprint, which is well positioned to support Occidental's U.S. onshore development plans in the Delaware and DJ basins and to attract sustainable third-party volumes by leveraging our existing midstream infrastructure to establish WES as a preferred midstream service provider for all producers."
THIRD-QUARTER 2019 DISTRIBUTION AND EARNINGS CONFERENCE CALL
WES announced today the board of directors of its general partner declared a quarterly cash distribution of $0.620 per unit for the third-quarter of 2019. This distribution represents WES's 27th consecutive quarterly distribution increase and is consistent with WES's 2019 annual distribution-growth guidance range of 5 percent to 6 percent. WES's third-quarter 2019 distribution is payable Nov. 13, 2019, to unitholders of record at the close of business Nov. 1, 2019.
The Partnership plans to report its third-quarter 2019 results after market close Monday, Nov. 4, 2019. Management will host a conference call Tuesday, Nov. 5, 2019, at 1 p.m. CST (2 p.m. EST) to discuss WES's quarterly results. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
Third-Quarter 2019 Results
Tuesday, Nov. 5, 2019
1 p.m. CST (2 p.m. EST)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 1868618
Individuals that would like to participate in WES's scheduled third-quarter earnings call should dial the applicable dial-in number listed above approximately 15 minutes prior to 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 Partnership's website at www.westernmidstream.com. A replay of the conference call will also be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its 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.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.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 Midstream 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 Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
WESTERN MIDSTREAM CONTACTS
Kristen Shults
Vice President, Investor Relations and Communications
Kristen_Shults@oxy.com
832.636.6000
Jack Spinks
Manager, Investor Relations
Jack_Spinks@oxy.com
832.636.6000
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SOURCE Western Midstream Partners, LP
Article Date
10/17/2019Saddlehorn Pipeline to Further Expand Following Increased Volume Commitments
Source: PR Newswire
TULSA, Okla., Aug. 29, 2019 /PRNewswire/ -- Saddlehorn Pipeline Company, LLC ("Saddlehorn") announced today a further expansion of the Saddlehorn pipeline. Following a successful open season during July and subsequent increased volume commitments from shippers, the pipeline's capacity will be increased by a total of 100,000 barrels per day ("bpd") to a new total capacity of approximately 290,000 bpd. The higher capacity is expected to be available in late 2020 following the addition of incremental pumping and storage capabilities.
The Saddlehorn pipeline, which is jointly owned by affiliates of Magellan Midstream Partners, L.P. (NYSE: MMP) ("Magellan"), Plains All American Pipeline, L.P. (NYSE: PAA) ("Plains") and Western Midstream Partners, LP (NYSE: WES) ("WES"), is currently capable of transporting 190,000 bpd of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma owned by Magellan and Plains. Magellan serves as operator of the Saddlehorn pipeline.
In conjunction with the increased volume commitments, Noble Midstream Partners LP (NYSE: NBLX) ("NBLX"), through its affiliate Black Diamond Gathering LLC, has an option to buy up to a 20% ownership interest in Saddlehorn, with Magellan and Plains each selling up to a 10% interest to NBLX if the option were exercised.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. Magellan owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.
About Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids ("NGL") and natural gas. Plains owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, Plains handles more than 6 million barrels per day of crude oil and NGL in its Transportation segment. Plains is headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.
About Western Midstream Partners, LP
Western Midstream Partners, LP (NYSE: WES) is a Delaware master limited partnership formed 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, NGLs and crude oil; and gathering and disposing of produced water for its 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. More information is available at www.westernmidstream.com.
This press release includes certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. Important risks, uncertainties and other factors that could affect future results or outcomes are discussed in filings with the Securities and Exchange Commission by Magellan, Plains and WES. The companies undertake no obligation to update or revise any forward-looking statement to reflect new information or events occurring after today's date.
Contact Information:
Magellan: | Paula Farrell, Investor Relations Bruce Heine, Media Relations | (918) 574-7650 (918) 574-7010 | |
Plains: | Roy Lamoreaux, Investor Relations Brad Leone, Media Relations | (866) 809-1291 (866) 809-1290 | |
WES: | Jack Spinks, Investor Relations | (832) 636-6000 |
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SOURCE Magellan Midstream Partners, L.P.
Article Date
8/29/2019Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Supply Chain Index [CORRECTED]
Source: PR Newswire
DALLAS, Aug. 23, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Energy Supply Chain Index (the "Index") as part of normal index operations. After the markets close on August 30, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on September 3, 2019:
Constituents added:
NGL Energy Partners LP (NYSE: NGL)
Western Midstream Partners, LP (NYSE: WES)
Noble Midstream Partners LP (NYSE: NBLX)
MPLX LP (NYSE: MPLX)
BP Midstream Partners LP (NYSE: BPMP)
Amcor plc (NYSE: AMCR)
Corteva, Inc. (NYSE: CTVA)
Constituents removed:
Antero Midstream Corporation (NYSE: AM)
EQM Midstream Partners, LP (NYSE: EQM)
Energy Transfer LP (NYSE: ET)
NuStar Energy L.P. (NYSE: NS)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Sealed Air Corporation (NYSE: SEE)
Newmont Goldcorp Corporation (NYSE: NEM)
ABOUT THE CUSHING® ENERGY SUPPLY CHAIN INDEX
The Cushing® Energy Supply Chain Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, or storage and transportation of oil, natural gas, coal and consumable fuels; oil and natural gas equipment and services companies; and companies that extract and/or manufacture materials. 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 "CSCI".
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, providing active management in markets where inefficiencies exist.
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® 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® Energy Supply Chain 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-CSCI
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SOURCE Cushing Asset Management, LP, and Swank Capital, LLC
Article Date
8/23/20198/23/2019 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Source: PR Newswire
DALLAS, Aug. 23, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Energy Index (the "Index") as part of normal index operations. After the markets close on August 30, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on September 3, 2019:
Constituents added:
NGL Energy Partners LP (NYSE: NGL)
Western Midstream Partners, LP (NYSE: WES)
Noble Midstream Partners LP (NYSE: NBLX)
MPLX LP (NYSE: MPLX)
BP Midstream Partners LP (NYSE: BPMP)
Pioneer Natural Resources Company (NYSE: PXD)
Constituents removed:
Antero Midstream Corporation (NYSE: AM)
EQM Midstream Partners, LP (NYSE: EQM)
Energy Transfer LP (NYSE: ET)
NuStar Energy L.P. (NYSE: NS)
Shell Midstream Partners, L.P. (NYSE: SHLX)
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, providing active management in markets where inefficiencies exist.
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:
Brian Atwood
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 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
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
8/23/2019Alerian Reports June 30, 2019 Index Linked Product Positions
Source: PR Newswire
DALLAS, Aug. 9, 2019 /PRNewswire/ -- Alerian reported, as of June 28, 2019, total products directly tied to and tracking the Alerian indices was $13.7 billion.
Exchange traded funds, exchange traded notes, return of capital notes, and variable insurance portfolios represent $12.7 billion of the total $13.7 billion. Below is a list of energy master limited partnership (MLP) positions, as of June 28, 2019, in the $12.7 billion of such assets tracking Alerian's indices.
Ticker | Exposure in Alerian Linked-Products ($) | Exposure in Alerian Linked-Products (Units) | Ticker | Exposure in Alerian Linked-Products ($) | Exposure in Alerian Linked-Products (Units) | |
AM | 2,402,831 | 209,671 | HESM | 7,694,422 | 394,586 | |
AMID | 4,919,211 | 951,492 | MMLP | 5,598,671 | 784,128 | |
ANDX | 403,075,523 | 11,094,840 | MMP | 1,276,581,260 | 19,946,582 | |
BPL | 782,332,474 | 19,058,038 | MPLX | 1,273,711,451 | 39,568,545 | |
BPMP | 18,205,543 | 1,176,069 | NBLX | 89,522,800 | 2,691,606 | |
CEQP | 220,495,699 | 6,164,263 | NGL | 214,053,630 | 14,492,460 | |
CNXM | 14,513,491 | 1,032,989 | NS | 331,580,260 | 12,217,401 | |
CQP | 214,074,794 | 5,075,268 | OMP | 5,663,726 | 263,429 | |
DCP | 329,731,673 | 11,253,641 | PAA | 1,305,749,277 | 53,624,200 | |
DKL | 6,791,101 | 212,222 | PAGP | 7,638,294 | 305,899 | |
ENBL | 153,164,680 | 11,171,749 | PBFX | 16,284,545 | 770,319 | |
ENLC | 327,210,823 | 32,429,219 | PSXP | 342,743,828 | 6,945,164 | |
EPD | 1,277,755,891 | 44,258,950 | SHLX | 319,209,192 | 15,405,849 | |
EQM | 462,044,829 | 10,341,200 | SMLP | 7,589,588 | 1,020,106 | |
ET | 1,262,122,882 | 89,639,409 | TCP | 253,540,259 | 6,739,507 | |
GEL | 298,090,775 | 13,611,451 | TGE | 419,509,147 | 19,872,532 | |
GPP | 3,882,098 | 277,293 | USDP | 3,861,679 | 342,044 | |
HEP | 156,422,759 | 5,688,100 | WES | 773,416,245 | 25,135,400 |
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 28, 2019, nearly $14 billion of products, including exchange traded funds and notes, are directly tied to and tracking the Alerian Index Series. Visit alerian.com to learn more.
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SOURCE Alerian
Article Date
8/9/2019Western Midstream Names New Chief Executive And Chief Operating Officers
Source: PR Newswire
HOUSTON, Aug. 8, 2019 /PRNewswire/ -- Today, Western Midstream Partners, LP (NYSE:WES) ("WES") announced senior management changes. Effective today, Michael P. Ure has been named President & Chief Executive Officer and Craig W. Collins has been named Senior Vice President & Chief Operating Officer of WES. Mr. Ure previously served as Senior Vice President of Business Development for Occidental (NYSE: OXY) and Mr. Collins is returning to WES having previously served as Senior Vice President & Chief Operating Officer of its predecessor, Western Gas Partners, LP from 2017 to 2018. Mr. Ure and Mr. Collins are succeeding Robin H. Fielder and Gennifer F. Kelly, respectively, in connection with the recently completed acquisition (the "Acquisition") of Anadarko Petroleum Corporation ("Anadarko") by Occidental. Jaime R. Casas, Senior Vice President, Chief Financial Officer & Treasurer, and John D. Montanti, Vice President, General Counsel & Corporate Secretary, will remain in their current positions.
"Occidental sees great value and opportunity in the excellent WES asset base and is committed to value-enhancing opportunities for both companies," said Vicki Hollub, President and CEO of Occidental.
"I am excited to lead Western Midstream through its next stage of growth," said Mr. Ure. "Occidental's acquisition of Anadarko creates a world-class portfolio of onshore U.S. assets, which includes the largest and most prolific acreage positions in the Delaware and DJ Basins. WES is uniquely positioned to benefit from this transaction through the significant opportunities to grow alongside Occidental. Additionally, we are committed to positioning ourselves as the preferred midstream provider for all producers in high-quality onshore U.S. basins."
WES also announced changes to the board of directors (the "Board") and has appointed Glenn M. Vangolen, currently Senior Vice President of Occidental, Chairman of the Board, replacing Benjamin M. Fink effective immediately. Furthermore, Marcia E. Backus, Peter J. Bennett, Oscar K. Brown, Jennifer Kirk and Michael P. Ure have all been appointed to the Board and will replace Daniel E. Brown, Robin H. Fielder, Robert G. Gwin, Mitchell W. Ingram, and Amanda M. McMillian. Milton Carroll, Chairman of the special committee has elected to resign from the Board. A replacement to serve as Chairman of the special committee will be named in due course. WES would like to thank Mr. Carroll for his leadership on the Board and wish him the best in his future endeavors.
"We appreciate the expertise and institutional knowledge of the current independent directors and we value their ongoing contributions and leadership," said Mr. Vangolen. "Additionally, I am confident that the new board members' collective insight and expertise will help to ensure that WES remains aligned with Occidental and that the underlying strength of WES's business model is preserved."
Please visit the Western Midstream Partners website at www.westernmidstream.com for further information on the senior management and Board changes.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a Delaware master limited partnership formed 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 its 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.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management 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. 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" section of WES's most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and in its other public filings and press releases. Western Midstream Partners, LP undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACT
Jack Spinks
Manager, Investor Relations
jack_spinks@oxy.com
832.636.6000
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SOURCE Western Midstream Partners, LP
Article Date
8/8/2019Western Midstream Announces Second-Quarter 2019 Results
Source: PR Newswire
HOUSTON, July 30, 2019 /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") today announced second-quarter 2019 financial and operating results. Net income (loss) available to limited partners for the second quarter of 2019 totaled $169.6 million, or $0.37 per common unit (diluted), with second-quarter 2019 Adjusted EBITDA(1) of $432.9 million and second-quarter 2019 Distributable cash flow(1) of $335.5 million. Net income (loss) and Adjusted EBITDA(1) do not include $12.0 million of cash received during the quarter associated with revenue recognition accounting standard ASC 606. Financial and operational information has been recast to include the financial position and results attributable to the assets acquired from Anadarko Petroleum Corporation in February 2019 (the "Anadarko Midstream Assets" or "AMA") as if WES had owned them for all periods presented.
RECENT HIGHLIGHTS
WES previously declared a quarterly distribution of $0.6180 per unit for the second quarter of 2019. This distribution represented a 1.3% increase relative to the prior quarter's distribution and a 6.1% increase relative to the second-quarter 2018 distribution. The second-quarter 2019 Coverage ratio(1) was 1.20 times.
"After another strong quarter, we continue to be pleased with the complementary assets and robust contract portfolio we have assembled in the Delaware and DJ basins," said Chief Executive Officer, Robin Fielder. "We remain focused on safe and efficient operations as we near construction completion of our Latham plant and further expand our gathering systems in the DJ and Delaware basins."
(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(1) for the second quarter of 2019 averaged 4.3 Bcf/d, which was a 2% sequential increase and a 10% increase from the second quarter of 2018. Total throughput attributable to WES for crude oil, NGLs and produced water assets(1) for the second quarter of 2019 averaged 1,105 MBbls/d, which was flat sequentially and an 84% increase from the second quarter of 2018. Capital expenditures attributable to WES, including equity investments but excluding acquisitions and capitalized interest, totaled $352.7 million on a cash basis during the second quarter of 2019, with maintenance capital expenditures on a cash basis of $29.9 million.
NEW DJ BASIN GAS PROCESSING CONTRACT
Subsequent to quarter end, and in conjunction with the partial release of contracted affiliate volumes backing the Latham II gas processing plant, the Partnership entered into a seven-year commercial agreement with a third party for the remaining Latham II processing capacity. This contract maintains minimum volume commitments ("MVCs") for 100% of the plant's nameplate processing capacity while increasing the expected value and returns of the Latham investment.
"This accretive third-party commercial contract provides the Partnership valuable MVCs and an increase in contract term with a quality third party," said Chief Operating Officer, Gennifer Kelly. "The completion of Latham trains I and II in the second half of 2019 will add to our premier gathering and processing position within the DJ basin."
REVISED 2019 FULL-YEAR OUTLOOK
The Partnership is revising its 2019 outlook primarily related to the impacts of (i) lower Delaware Basin throughput forecasts due to higher customer field downtime and changing well delivery timing to our systems, (ii) lower natural gas and NGL prices, and (iii) lower estimated revenues from revised revenue recognition forecasts related to cost of service contracts.
"While recognizing the updates to our guidance, we remain confident in the long-term potential of our highly integrated asset base, including our diverse set of equity investments, and the core basins in which we operate," said Fielder.
millions except percentages and Coverage ratio | Previously Announced | Current | |||||||||
Adjusted EBITDA (2) | $1,800 | - | $1,900 | $1,675 | - | $1,725 | |||||
Total Capital Expenditures | $1,300 | - | $1,400 | Unchanged | |||||||
Maintenance Capital Expenditures | $110 | - | $120 | $130 | - | $140 | |||||
Annual Distribution Growth | 6% to 8% | 5% to 6% | |||||||||
Annual Distribution Coverage | Minimum 1.20x | 1.15x | |||||||||
(1) | Excludes the 25% interest in Chipeta held by a third-party member and the 2.0% limited partner interest in WES Operating held by a subsidiary of Anadarko, which collectively represent WES's noncontrolling interests as of June 30, 2019. | ||||
(2) | 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 will host a conference call on Wednesday, July 31, 2019, at 8:00 a.m. Central Daylight Time (9:00 a.m. Eastern Daylight Time) to discuss second-quarter 2019 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 3434811. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westernmidstream.com. A replay of the conference call will also be available on the website for two weeks following the call.
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a 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.
For more information about Western Midstream Partners, LP, please visit www.westernmidstream.com.
This news release contains forward-looking statements. WES's management 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. 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" section of WES's most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and in its other public filings and press releases. Western Midstream Partners, LP undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACT
Jack Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
Western Midstream Partners, LP
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Below are reconciliations of (i) net income (loss) (GAAP) to WES's Distributable cash flow (non-GAAP), (ii) net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Midstream Partners, LP ("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Midstream 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 Midstream Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
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 Operating'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, and income taxes and excluding Distributable cash flow attributable to noncontrolling interests to the extent such amounts are not excluded from Adjusted EBITDA.
WES defines Adjusted EBITDA as net income (loss), 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 and excluding the noncontrolling interests owners' proportionate share of revenues and expenses.
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 interests owners' proportionate share of revenues and cost of product.
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Distributable Cash Flow | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
thousands except Coverage ratio | 2019 | 2018 (1) | 2019 | 2018 (1) | ||||||||||||
Reconciliation of Net income (loss) to Distributable cash flow and calculation of the Coverage ratio | ||||||||||||||||
Net income (loss) | $ | 175,058 | $ | 67,167 | $ | 387,037 | $ | 248,177 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 70,522 | 38,731 | 132,535 | 79,157 | ||||||||||||
Non-cash equity-based compensation expense | 4,343 | 2,000 | 6,141 | 4,152 | ||||||||||||
Income tax (benefit) expense | 1,278 | 10,304 | 11,370 | 21,188 | ||||||||||||
Depreciation and amortization | 121,117 | 88,488 | 235,063 | 173,278 | ||||||||||||
Impairments | 797 | 127,184 | 1,187 | 127,384 | ||||||||||||
Above-market component of swap agreements with Anadarko | — | 13,839 | 7,407 | 28,121 | ||||||||||||
Other expense | 58,639 | 8 | 93,852 | 151 | ||||||||||||
Less: | ||||||||||||||||
Recognized Service revenues – fee based (less than) in excess of customer billings | (12,038) | 1,557 | (18,296) | 2,957 | ||||||||||||
Gain (loss) on divestiture and other, net | (1,061) | 170 | (1,651) | 286 | ||||||||||||
Equity income, net – affiliates | 63,598 | 49,430 | 121,590 | 79,659 | ||||||||||||
Cash paid for maintenance capital expenditures | 29,899 | 27,689 | 65,590 | 48,917 | ||||||||||||
Capitalized interest | 6,342 | 9,872 | 12,547 | 16,834 | ||||||||||||
Cash paid for (reimbursement of) income taxes | — | — | 96 | (87) | ||||||||||||
Other income | — | 1,277 | — | 2,094 | ||||||||||||
Distributable cash flow attributable to noncontrolling interests (2) | 9,529 | 8,605 | 19,063 | 17,739 | ||||||||||||
Distributable cash flow | $ | 335,485 | $ | 249,121 | $ | 675,653 | $ | 513,209 | ||||||||
Distributions declared | ||||||||||||||||
Distributions from WES Operating | $ | 282,319 | $ | 559,923 | ||||||||||||
Less: Cash reserve for the proper conduct of WES's business | 2,360 | 3,640 | ||||||||||||||
Distributions to WES unitholders (3) | $ | 279,959 | $ | 556,283 | ||||||||||||
Coverage ratio | 1.20 | x | 1.21 | x | ||||||||||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. | |||||||||||||||
(2) | For all periods presented, includes (i) the 25% interest in Chipeta held by a third-party member and (ii) the 2.0% limited partner interest in WES Operating held by a subsidiary of Anadarko, which collectively represent WES's noncontrolling interests as of June 30, 2019. | |||||||||||||||
(3) | Reflects cash distributions of $0.61800 and $1.22800 per unit declared for the three and six months ended June 30, 2019, respectively. | |||||||||||||||
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
thousands | 2019 | 2018 (1) | 2019 | 2018 (1) | ||||||||||||
Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 175,058 | $ | 67,167 | $ | 387,037 | $ | 248,177 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 70,522 | 38,731 | 132,535 | 79,157 | ||||||||||||
Non-cash equity-based compensation expense | 4,343 | 2,000 | 6,141 | 4,152 | ||||||||||||
Interest expense | 79,472 | 42,245 | 145,348 | 80,260 | ||||||||||||
Income tax expense | 1,278 | 10,304 | 11,370 | 21,188 | ||||||||||||
Depreciation and amortization | 121,117 | 88,488 | 235,063 | 173,278 | ||||||||||||
Impairments | 797 | 127,184 | 1,187 | 127,384 | ||||||||||||
Other expense | 58,639 | 8 | 93,852 | 151 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (1,061) | 170 | (1,651) | 286 | ||||||||||||
Equity income, net – affiliates | 63,598 | 49,430 | 121,590 | 79,659 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Other income | — | 1,277 | — | 2,094 | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | 11,544 | 9,881 | 22,894 | 19,974 | ||||||||||||
Adjusted EBITDA | $ | 432,920 | $ | 311,144 | $ | 861,250 | $ | 623,284 | ||||||||
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA | ||||||||||||||||
Net cash provided by operating activities | $ | 343,458 | $ | 329,175 | $ | 686,531 | $ | 629,326 | ||||||||
Interest (income) expense, net | 75,247 | 38,020 | 136,898 | 71,810 | ||||||||||||
Uncontributed cash-based compensation awards | 1,218 | 465 | 648 | 987 | ||||||||||||
Accretion and amortization of long-term obligations, net | (1,337) | (1,273) | (2,848) | (3,376) | ||||||||||||
Current income tax (benefit) expense | 458 | (14,335) | 6,485 | (27,670) | ||||||||||||
Other (income) expense, net (3) | (470) | (1,277) | (902) | (2,094) | ||||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 9,260 | 4,782 | 17,052 | 13,632 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable, net | 6,818 | (21,060) | (2,668) | 8,572 | ||||||||||||
Accounts and imbalance payables and accrued liabilities, net | 25,669 | (13,136) | 81,198 | (42,040) | ||||||||||||
Other items, net | (15,857) | (336) | (38,250) | (5,889) | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests (2) | (11,544) | (9,881) | (22,894) | (19,974) | ||||||||||||
Adjusted EBITDA | $ | 432,920 | $ | 311,144 | $ | 861,250 | $ | 623,284 | ||||||||
Cash flow information | ||||||||||||||||
Net cash provided by operating activities | $ | 686,531 | $ | 629,326 | ||||||||||||
Net cash used in investing activities | (2,865,168) | (1,287,904) | ||||||||||||||
Net cash provided by (used in) financing activities | 2,182,290 | 634,307 | ||||||||||||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. | |||||||||||||||
(2) | For all periods presented, includes (i) the 25% interest in Chipeta held by a third-party member and (ii) the 2.0% limited partner interest in WES Operating held by a subsidiary of Anadarko, which collectively represent WES's noncontrolling interests as of June 30, 2019. | |||||||||||||||
(3) | Excludes non-cash losses on interest-rate swaps of $59.0 million and $94.6 million for the three and six months ended June 30, 2019. | |||||||||||||||
Western Midstream Partners, LP | ||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED) | ||||||||||||||||
Adjusted Gross Margin | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
thousands | 2019 | 2018 (1) | 2019 | 2018 (1) | ||||||||||||
Reconciliation of Operating income (loss) to Adjusted gross margin | ||||||||||||||||
Operating income (loss) | $ | 310,060 | $ | 114,214 | $ | 628,988 | $ | 339,081 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investments | 70,522 | 38,731 | 132,535 | 79,157 | ||||||||||||
Operation and maintenance | 148,431 | 112,789 | 291,260 | 209,584 | ||||||||||||
General and administrative | 30,027 | 15,597 | 52,871 | 31,426 | ||||||||||||
Property and other taxes | 14,282 | 13,750 | 30,567 | 28,350 | ||||||||||||
Depreciation and amortization | 121,117 | 88,488 | 235,063 | 173,278 | ||||||||||||
Impairments | 797 | 127,184 | 1,187 | 127,384 | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (1,061) | 170 | (1,651) | 286 | ||||||||||||
Equity income, net – affiliates | 63,598 | 49,430 | 121,590 | 79,659 | ||||||||||||
Reimbursed electricity-related charges recorded as revenues | 20,189 | 17,262 | 36,778 | 32,719 | ||||||||||||
Adjusted gross margin attributable to noncontrolling interests (2) | 16,034 | 13,018 | 31,584 | 25,889 | ||||||||||||
Adjusted gross margin | $ | 596,476 | $ | 430,873 | $ | 1,184,170 | $ | 849,707 | ||||||||
Adjusted gross margin for natural gas assets | $ | 412,494 | $ | 336,440 | $ | 824,922 | $ | 672,054 | ||||||||
Adjusted gross margin for crude oil, NGLs and produced water assets | 183,982 | 94,433 | 359,248 | 177,653 | ||||||||||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. | |||||||||||||||
(2) | For all periods presented, includes (i) the 25% interest in Chipeta held by a third-party member and (ii) the 2.0% limited partner interest in WES Operating held by a subsidiary of Anadarko, which collectively represent WES's noncontrolling interests as of June 30, 2019. | |||||||||||||||
Western Midstream Partners, LP | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
thousands except per-unit amounts | 2019 | 2018 (1) | 2019 | 2018 (1) | ||||||||||||
Revenues and other | ||||||||||||||||
Service revenues – fee based | $ | 593,544 | $ | 431,861 | $ | 1,173,518 | $ | 825,634 | ||||||||
Service revenues – product based | 16,675 | 22,662 | 36,054 | 46,085 | ||||||||||||
Product sales | 74,469 | 63,315 | 146,602 | 146,940 | ||||||||||||
Other | 366 | 240 | 763 | 473 | ||||||||||||
Total revenues and other | 685,054 | 518,078 | 1,356,937 | 1,019,132 | ||||||||||||
Equity income, net – affiliates | 63,598 | 49,430 | 121,590 | 79,659 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 122,877 | 95,656 | 236,940 | 189,974 | ||||||||||||
Operation and maintenance | 148,431 | 112,789 | 291,260 | 209,584 | ||||||||||||
General and administrative | 30,027 | 15,597 | 52,871 | 31,426 | ||||||||||||
Property and other taxes | 14,282 | 13,750 | 30,567 | 28,350 | ||||||||||||
Depreciation and amortization | 121,117 | 88,488 | 235,063 | 173,278 | ||||||||||||
Impairments | 797 | 127,184 | 1,187 | 127,384 | ||||||||||||
Total operating expenses | 437,531 | 453,464 | 847,888 | 759,996 | ||||||||||||
Gain (loss) on divestiture and other, net | (1,061) | 170 | (1,651) | 286 | ||||||||||||
Operating income (loss) | 310,060 | 114,214 | 628,988 | 339,081 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Interest expense | (79,472) | (42,245) | (145,348) | (80,260) | ||||||||||||
Other income (expense), net (2) | (58,477) | 1,277 | (93,683) | 2,094 | ||||||||||||
Income (loss) before income taxes | 176,336 | 77,471 | 398,407 | 269,365 | ||||||||||||
Income tax expense (benefit) | 1,278 | 10,304 | 11,370 | 21,188 | ||||||||||||
Net income (loss) | 175,058 | 67,167 | 387,037 | 248,177 | ||||||||||||
Net income (loss) attributable to noncontrolling interests | 5,464 | (33,017) | 98,783 | 16,466 | ||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 169,594 | $ | 100,184 | $ | 288,254 | $ | 231,711 | ||||||||
Limited partners' interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Midstream Partners, LP | $ | 169,594 | $ | 100,184 | $ | 288,254 | $ | 231,711 | ||||||||
Pre-acquisition net (income) loss allocated to Anadarko | (163) | (32,604) | (29,279) | (63,126) | ||||||||||||
Limited partners' interest in net income (loss) | $ | 169,431 | $ | 67,580 | $ | 258,975 | $ | 168,585 | ||||||||
Net income (loss) per common unit – basic and diluted | $ | 0.37 | $ | 0.31 | $ | 0.69 | $ | 0.77 | ||||||||
Weighted-average common units outstanding – basic and diluted | 453,000 | 218,934 | 376,702 | 218,934 | ||||||||||||
(1) | Financial information has been recast to include the financial position and results attributable to AMA. | |||||||||||||||
(2) | Includes non-cash losses on interest-rate swaps of $59.0 million and $94.6 million for the three and six months ended June 30, 2019, respectively. | |||||||||||||||
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
thousands except number of units | June 30, | December 31, | ||||||
Total current assets | $ | 336,185 | $ | 340,362 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant and equipment | 8,793,646 | 8,410,353 | ||||||
Other assets | 2,590,700 | 2,446,490 | ||||||
Total assets | $ | 11,980,531 | $ | 11,457,205 | ||||
Total current liabilities | $ | 499,316 | $ | 637,477 | ||||
Long-term debt | 7,489,448 | 4,787,381 | ||||||
APCWH Note Payable | — | 427,493 | ||||||
Asset retirement obligations | 320,073 | 300,024 | ||||||
Other liabilities | 180,484 | 412,147 | ||||||
Total liabilities | 8,489,321 | 6,564,522 | ||||||
Equity and partners' capital | ||||||||
Common units (453,008,854 and 218,937,797 units issued and outstanding at June 30, 2019, and December 31, 2018, respectively) | 3,338,646 | 951,888 | ||||||
Net investment by Anadarko | — | 1,388,018 | ||||||
Noncontrolling interests | 152,564 | 2,552,777 | ||||||
Total liabilities, equity and partners' capital | $ | 11,980,531 | $ | 11,457,205 | ||||
(1) Financial information has been recast to include the financial position and results attributable to AMA. | ||||||||
Western Midstream Partners, LP | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Six Months Ended | ||||||||
thousands | 2019 | 2018 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 387,037 | $ | 248,177 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities: | ||||||||
Depreciation and amortization | 235,063 | 173,278 | ||||||
Impairments | 1,187 | 127,384 | ||||||
(Gain) loss on divestiture and other, net | 1,651 | (286) | ||||||
(Gain) loss on interest-rate swaps | 94,585 | — | ||||||
Change in other items, net | (32,992) | 80,773 | ||||||
Net cash provided by operating activities | $ | 686,531 | $ | 629,326 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (704,425) | $ | (1,112,474) | ||||
Acquisitions from affiliates | (2,007,501) | — | ||||||
Acquisitions from third parties | (93,303) | (161,858) | ||||||
Investments in equity affiliates | (77,333) | (27,490) | ||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 17,052 | 13,632 | ||||||
Proceeds from the sale of assets to third parties | 342 | 286 | ||||||
Net cash used in investing activities | $ | (2,865,168) | $ | (1,287,904) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 2,710,750 | $ | 1,525,439 | ||||
Repayments of debt (3) | (467,595) | (630,000) | ||||||
Increase (decrease) in outstanding checks | (5,662) | (5,357) | ||||||
Registration expenses related to the issuance of Partnership common units | (855) | — | ||||||
Distributions to Partnership unitholders (4) | (408,234) | (244,658) | ||||||
Distributions to Chipeta noncontrolling interest owner | (3,793) | (6,421) | ||||||
Distributions to noncontrolling interest owners of WES Operating | (106,666) | (190,081) | ||||||
Net contributions from (distributions to) Anadarko | 456,938 | 157,264 | ||||||
Above-market component of swap agreements with Anadarko | 7,407 | 28,121 | ||||||
Net cash provided by (used in) financing activities | $ | 2,182,290 | $ | 634,307 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 3,653 | $ | (24,271) | ||||
Cash and cash equivalents at beginning of period | 92,142 | 79,588 | ||||||
Cash and cash equivalents at end of period | $ | 95,795 | $ | 55,317 | ||||
(1) Financial information has been recast to include the financial position and results attributable to AMA. | ||||||||
Western Midstream Partners, LP | ||||||||||||||||
OPERATING STATISTICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2019 | 2018 (1) | 2019 | 2018 (1) | |||||||||||||
Throughput for natural gas assets (MMcf/d) | ||||||||||||||||
Gathering, treating and transportation | 528 | 540 | 527 | 524 | ||||||||||||
Processing | 3,524 | 3,243 | 3,498 | 3,173 | ||||||||||||
Equity investment (2) | 402 | 296 | 390 | 295 | ||||||||||||
Total throughput for natural gas assets | 4,454 | 4,079 | 4,415 | 3,992 | ||||||||||||
Throughput attributable to noncontrolling interests for natural gas assets (3) | 178 | 174 | 177 | 173 | ||||||||||||
Total throughput attributable to Western Midstream Partners, LP for natural gas assets | 4,276 | 3,905 | 4,238 | 3,819 | ||||||||||||
Throughput for crude oil, NGLs and produced water assets (MBbls/d) | ||||||||||||||||
Gathering, treating, transportation and disposal | 817 | 392 | 819 | 371 | ||||||||||||
Equity investment (4) | 311 | 219 | 308 | 187 | ||||||||||||
Total throughput for crude oil, NGLs and produced water assets | 1,128 | 611 | 1,127 | 558 | ||||||||||||
Throughput attributable to noncontrolling interests for crude oil, NGLs and produced water assets (3) | 23 | 12 | 23 | 11 | ||||||||||||
Total throughput attributable to Western Midstream Partners, LP for crude oil, NGLs and produced water assets | 1,105 | 599 | 1,104 | 547 | ||||||||||||
Adjusted gross margin per Mcf for natural gas assets (5) | $ | 1.06 | $ | 0.95 | $ | 1.08 | $ | 0.97 | ||||||||
Adjusted gross margin per Bbl for crude oil, NGLs and produced water assets (6) | 1.85 | 1.75 | 1.80 | 1.79 | ||||||||||||
(1) | Throughput and Adjusted gross margin have been recast to include the results attributable to AMA. | |||||||||||||||
(2) | Represents the 14.81% share of average Fort Union throughput, 22% share of average Rendezvous throughput, 50% share of average Mi Vida and Ranch Westex throughput, and 30% share of average Red Bluff Express throughput. | |||||||||||||||
(3) | For all periods presented, includes (i) the 25% interest in Chipeta held by a third-party member and (ii) the 2.0% limited partner interest in WES Operating held by a subsidiary of Anadarko, which collectively represent WES's noncontrolling interests as of June 30, 2019. | |||||||||||||||
(4) | Represents the 10% share of average White Cliffs throughput, 25% share of average Mont Belvieu JV throughput, 20% share of average TEG, TEP, Whitethorn and Saddlehorn throughput, 33.33% share of average FRP throughput and 15% share of average Panola throughput. | |||||||||||||||
(5) | Average for period. Calculated as Adjusted gross margin for natural gas assets, divided by total throughput (MMcf/d) attributable to Western Midstream Partners, LP for natural gas assets. | |||||||||||||||
(6) | Average for period. Calculated as Adjusted gross margin for crude oil, NGLs and produced water assets, divided by total throughput (MBbls/d) attributable to Western Midstream Partners, LP for crude oil, NGLs and produced water assets. | |||||||||||||||
Western Midstream Partners, LP | ||||||||||||||||||
OPERATING STATISTICS (CONTINUED) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||
2019 | 2018 (1) | 2019 | 2018 (1) | 2019 | 2018 (1) | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,179 | 1,044 | 141 | 128 | 515 | 99 | ||||||||||||
DJ Basin | 1,266 | 1,119 | 112 | 108 | — | — | ||||||||||||
Equity investments | 402 | 296 | 310 | 219 | — | — | ||||||||||||
Other | 1,607 | 1,620 | 50 | 57 | — | — | ||||||||||||
Total throughput | 4,454 | 4,079 | 613 | 512 | 515 | 99 | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||
2019 | 2018 (1) | 2019 | 2018 (1) | 2019 | 2018 (1) | |||||||||||||
Natural gas (MMcf/d) | Crude oil & NGLs (MBbls/d) | Produced water (MBbls/d) | ||||||||||||||||
Delaware Basin | 1,178 | 982 | 143 | 120 | 516 | 89 | ||||||||||||
DJ Basin | 1,262 | 1,113 | 107 | 105 | — | — | ||||||||||||
Equity investments | 390 | 295 | 308 | 187 | — | — | ||||||||||||
Other | 1,585 | 1,602 | 53 | 57 | — | — | ||||||||||||
Total throughput | 4,415 | 3,992 | 611 | 469 | 516 | 89 | ||||||||||||
(1) Throughput has been recast to include the results attributable to AMA. | ||||||||||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-second-quarter-2019-results-300893529.html
SOURCE Western Midstream Partners, LP
Article Date
7/30/20197/18/2019 - Western Midstream Announces Second Quarter 2019 Distribution And Schedules Earnings Conference Call
Western Midstream Announces Second Quarter 2019 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
HOUSTON, July 18, 2019 /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.6180 per unit for the second quarter of 2019. This distribution represents a 1.3-percent increase over the prior quarter's distribution and a 6.1-percent increase over the distribution for the second quarter of 2018. WES's second quarter 2019 distribution is payable on August 13, 2019, to unitholders of record at the close of business on July 31, 2019.
The Partnership plans to report its second-quarter 2019 results after the market closes on Tuesday, July 30, 2019. Management will host a conference call on Wednesday, July 31, 2019, at 8 a.m. CDT (9 a.m. EDT) to discuss the quarterly results. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
Second-Quarter 2019 Results
Wednesday, July 31, 2019
8 a.m. CDT (9 a.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 3434811
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 Partnership's website at www.westernmidstream.com. A replay of the conference call will also be available on the website for two weeks following the call.
About Western Midstream
Western Midstream 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 ("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.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.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 Midstream 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 Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Western Midstream Contact
Jack W. Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-midstream-announces-second-quarter-2019-distribution-and-schedules-earnings-conference-call-300887695.html
SOURCE Western Midstream Partners, LP
Article Date
7/18/2019Saddlehorn Pipeline to Expand and Add New Ft. Laramie Origin, Launches Open Season
Source: PR Newswire
TULSA, Okla., July 1, 2019 /PRNewswire/ -- Saddlehorn Pipeline Company, LLC ("Saddlehorn") announced today a capital-efficient expansion of the Saddlehorn pipeline and a new Ft. Laramie, Wyoming origin. In connection with these enhancements, Saddlehorn has launched an open season to solicit long-term commitments for capacity on the pipeline system. Interested customers must submit binding commitments by 12:00 p.m. Central Time on July 31, 2019.
The Saddlehorn pipeline, which is jointly owned by affiliates of Magellan Midstream Partners, L.P. (NYSE: MMP) ("Magellan"), Plains All American Pipeline, L.P. (NYSE: PAA) ("Plains") and Western Midstream Partners, LP (NYSE: WES) ("WES"), is currently capable of transporting approximately 190,000 barrels per day ("bpd") of crude oil and condensate from the DJ and Powder River Basins to storage facilities in Cushing, Oklahoma owned by Magellan and Plains. Magellan serves as operator of the Saddlehorn pipeline.
The expansion will increase the pipeline's capacity by up to 100,000 bpd, to a new total capacity of 290,000 bpd. The higher capacity is expected to be available in late 2020 following the addition of incremental pumping and storage capabilities. Saddlehorn will add the new Ft. Laramie origin by leasing capacity on third-party pipelines.
For customer inquiries or additional information about the Saddlehorn open season, please contact Matt Gooding of Magellan at (918) 574-7838 or matt.gooding@magellanlp.com. More information about the open season is available at https://www.magellanlp.com/WhatWeDo/LiquidPipelineTariffs.aspx.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. Magellan owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.
About Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids ("NGL") and natural gas. Plains owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, Plains handles more than 6 million barrels per day of crude oil and NGL in its Transportation segment. Plains is headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.
About Western Midstream Partners, LP
Western Midstream Partners, LP (NYSE: 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, 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. More information is available at www.westernmidstream.com.
This press release includes certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. Important risks, uncertainties and other factors that could affect future results or outcomes are discussed in filings with the Securities and Exchange Commission by Magellan, Plains and WES. The companies undertake no obligation to update or revise any forward-looking statement to reflect new information or events occurring after today's date.
Contact Information:
Magellan: | Paula Farrell, Investor Relations | (918) 574-7650 | |
Bruce Heine, Media Relations | (918) 574-7010 | ||
Plains: | Brett Magill, Investor Relations | (866) 809-1291 | |
Brad Leone, Media Relations | (866) 809-1290 | ||
WES: | Jack Spinks, Investor Relations | (832) 636-6000 |
View original content:http://www.prnewswire.com/news-releases/saddlehorn-pipeline-to-expand-and-add-new-ft-laramie-origin-launches-open-season-300878367.html
SOURCE Magellan Midstream Partners, L.P.; Plains All American Pipeline, L.P.; Western Midstream Partners, LP
Article Date
7/1/20194/19/2019 - Western Midstream Announces First Quarter 2019 Distribution And Schedules Earnings Conference Call
Western Midstream Announces First Quarter 2019 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
HOUSTON, April 19, 2019 /PRNewswire/ -- Western Midstream Partners, LP (NYSE: WES) announced today that the board of directors of its general partner declared a quarterly cash distribution of $0.610 per unit for the first quarter of 2019. This distribution represents a 1.2-percent increase over the prior quarter's distribution and a 7.3-percent increase over the distribution for the first quarter of 2018. WES's first quarter 2019 distribution is payable on May 14, 2019, to unitholders of record at the close of business on May 1, 2019.
The Partnership plans to report its first-quarter 2019 results after the market closes on Tuesday, April 30, 2019. Management will host a conference call on Wednesday, May 1, 2019, at 8 a.m. CDT (9 a.m. EDT) to discuss the quarterly results. The full text of the release announcing the results will be available on the Partnership's website at www.westernmidstream.com.
First-Quarter 2019 Results
Wednesday, May 1, 2019
8 a.m. CDT (9 a.m. EDT)
Dial-in number: 877-883-0383
International dial-in number: 412-902-6506
Participant access code: 2497674
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 Partnership's website at www.westernmidstream.com. A replay of the conference call will also be available on the website for two weeks following the call.
About Western Midstream
Western Midstream 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 ("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.
For more information about Western Midstream Partners, LP and Western Midstream Flash Feed updates, please visit www.westernmidstream.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 Midstream 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 Midstream Partners, LP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
Western Midstream Contact
Jack W. Spinks
Manager, Investor Relations
jack.spinks@anadarko.com
832.636.6000
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SOURCE Western Midstream Partners, LP
Article Date
4/19/2019Western Gas Completes Simplification and Acquisition Transactions
Source: PR Newswire
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
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-gas-completes-simplification-and-acquisition-transactions-300804162.html
SOURCE Western Midstream Partners, LP
Article Date
2/28/20192/27/2019 - Western Gas Partners, LP Unitholders Approve Merger with Western Gas Equity Partners, LP
Western Gas Partners, LP Unitholders Approve Merger with Western Gas Equity Partners, LP
Source: PR Newswire
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
Article Date
2/27/2019Western Gas Partners Expected to Be Removed from the Alerian Index Series
Source: PR Newswire
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
Article Date
2/26/20192/20/2019 - Western Gas Annual Reports Available
Western Gas Annual Reports Available
Source: PR Newswire
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
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-gas-annual-reports-available-300799261.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
Article Date
2/20/2019Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® Energy Supply Chain Index
Source: PR Newswire
DALLAS, Feb. 20, 2019 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to the constituents of The Cushing® Energy Supply Chain Index (the "Index"). The Cushing® 30 MLP Index (the "Sub-Index") announced today that after the market closes on February 27, 2019, and effective on February 28, 2019, Index constituent Western Gas Partners, LP (NYSE: WES) will be removed from the Sub-Index and replaced with Suburban Propane Partners, L.P. (NYSE: SPH). Consequently, per the Index's Methodology Guide, after the market closes on February 27, 2019, and effective on February 28, 2019, SPH will replace WES in 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® ENERGY SUPPLY CHAIN INDEX
The Cushing® Energy Supply Chain Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, or storage and transportation of oil, natural gas, coal and consumable fuels; oil and natural gas equipment and services companies; and companies that extract and/or manufacture materials. 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 "CSCI".
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® 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® Energy Supply Chain 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-CSCI
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/20/2019Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® MLP High Income Index
Source: PR Newswire
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
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-a-constituent-change-to-the-cushing-mlp-high-income-index-300798461.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/20/20192/20/2019 - Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® 30 MLP Index
Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® 30 MLP Index
Source: PR Newswire
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
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-a-constituent-change-to-the-cushing-30-mlp-index-300798459.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/20/20192/20/2019 - Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® Energy Index
Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® Energy Index
Source: PR Newswire
DALLAS, Feb. 20, 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 February 27, 2019, and effective on February 28, 2019, Index constituent Western Gas Partners, LP (NYSE: WES) will be removed from the Sub-Index and replaced with Suburban Propane Partners, L.P. (NYSE: SPH). Consequently, per the Index's Methodology Guide, after the market closes on February 27, 2019, and effective on February 28, 2019, SPH will replace WES in 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® 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:
Brian Atwood
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
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/20/2019Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® MLP Market Cap Index
Source: PR Newswire
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
Article Date
2/20/20192/20/2019 - Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® Utility Index
Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® Utility Index
Source: PR Newswire
DALLAS, Feb. 20, 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 February 27, 2019, and effective on February 28, 2019, Index constituent Western Gas Partners, LP (NYSE: WES) will be removed from the Sub-Index and replaced with Suburban Propane Partners, L.P. (NYSE: SPH). Consequently, per the Index's Methodology Guide, after the market closes on February 27, 2019, and effective on February 28, 2019, SPH will replace WES in 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® 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:
Brian Atwood
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
Article Date
2/20/2019Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® Transportation Index
Source: PR Newswire
DALLAS, Feb. 20, 2019 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP announce an upcoming interim change to the constituents of The Cushing® Transportation Index (the "Index"). The Cushing® 30 MLP Index (the "Sub-Index") announced today that after the market closes on February 27, 2019, and effective on February 28, 2019, Index constituent Western Gas Partners, LP (NYSE: WES) will be removed from the Sub-Index and replaced with Suburban Propane Partners, L.P. (NYSE: SPH). Consequently, per the Index's Methodology Guide, after the market closes on February 27, 2019, and effective on February 28, 2019, SPH will replace WES in 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® TRANSPORTATION INDEX
The Cushing® Transportation Index tracks the performance of widely held companies engaged in road, rail, marine and air transportation of cargoes and passengers, 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 "CTRI".
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® 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® Transportation 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-CTRI
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SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/20/2019Western Gas Announces Fourth-Quarter And Full-Year 2018 Results
Source: PR Newswire
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 | |||
View original content to download multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-fourth-quarter-and-full-year-2018-results-300796208.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
Article Date
2/14/2019Western Gas Equity Partners, LP Announces Effectiveness of Registration Statement on Form S-4 and Western Gas Partners, LP Announces Date of Special Meeting
Source: PR Newswire
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
Article Date
1/28/20191/22/2019 - Western Gas Announces Fourth Quarter 2018 Distribution And Schedules Earnings Conference Call
Western Gas Announces Fourth Quarter 2018 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
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
Article Date
1/22/2019Western Gas Announces Management Changes And Promotions
Source: PR Newswire
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
Article Date
11/15/201810/17/2018 - Western Gas Announces Third Quarter 2018 Distribution And Schedules Earnings Conference Call
Western Gas Announces Third Quarter 2018 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
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
Article Date
10/17/2018Anadarko Names Amanda M. McMillian Executive Vice President And General Counsel
Source: PR Newswire
HOUSTON, Aug. 15, 2018 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its board of directors has named Amanda M. McMillian Executive Vice President and General Counsel, effective immediately. Robert K. Reeves, the Company's Executive Vice President, Law and Chief Administrative Officer, will remain Executive Vice President and Chief Administrative Officer until his retirement at the end of 2018.
McMillian joins Danny Brown, Executive Vice President, U.S. Onshore Operations; Bob Gwin, Executive Vice President, Finance and Chief Financial Officer; Mitch Ingram, Executive Vice President, International, Deepwater & Exploration; and Bobby Reeves, Executive Vice President and Chief Administrative Officer, on Anadarko's Executive Committee, reporting to Anadarko Chairman, President and CEO Al Walker.
"Amanda is an exceptional leader whose experience and perspectives will be welcome additions to Anadarko's Executive Committee, as we continue to pursue safe, responsible and capital-efficient growth with improved returns for shareholders," said Walker. "During his 14 years with Anadarko, Bobby has been a significant contributor and trusted strategic advisor across multiple areas of the company. We are excited for Amanda's promotion and fortunate to have Bobby with us for the next several months to ensure a smooth transition. We wish him continued success upon his retirement."
McMillian has served in positions of increasing responsibility since joining Anadarko in December 2004, including most recently as Senior Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer. During her tenure at Anadarko, she also served as Vice President, General Counsel and Corporate Secretary of Western Gas Holdings, LLC, a subsidiary of Anadarko and general partner of Western Gas Partners, LP (NYSE: WES), a publicly traded midstream master limited partnership, from January 2008 to August 2012. Prior to joining Anadarko, she practiced corporate and securities law at the law firm of Akin Gump Strauss Hauer & Feld LLP, where she represented a variety of clients in a wide range of transactional, corporate governance and securities matters. McMillian holds a Bachelor of Arts from Southwestern University and received both a Master of Arts and a Juris Doctor from Duke University, and serves on the Board of Trustees of Southwestern University.
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 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. 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; and to meet financial and operating guidance. 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
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
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SOURCE Anadarko Petroleum Corporation
Article Date
8/15/2018Western Gas Partners Announces Pricing Of $750 Million Of Senior Notes
Source: PR Newswire
HOUSTON, Aug. 7, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) today announced that it has priced an offering of $400 million in aggregate principal amount of 4.75% senior notes due 2028 at a price to the public of 99.818% of their face value and $350 million in aggregate principal amount of 5.50% senior notes due 2048 at a price to the public of 98.912% of their face value. The offering of the senior notes is expected to close on August 9, 2018, subject to the satisfaction of customary closing conditions. Net proceeds from the offering are expected to be used to repay the partnership's maturing 2.600% Senior Notes due 2018, repay amounts outstanding under the partnership's revolving credit facility, and for general partnership purposes, including the funding of capital expenditures.
Wells Fargo Securities, LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, Email: wfscustomerservice@wellsfargo.com, Telephone: (800) 645-3751; PNC Capital Markets LLC, The Tower at PNC Plaza, 300 Fifth Ave, Floor 10, Pittsburgh, Pennsylvania 15222, Telephone: (855) 881-0697; RBC Capital Markets, LLC, Brookfield Place, 200 Vesey Street, New York, New York 10281, Attn: DCM Transaction Management, Telephone: (866) 375-6829; or U.S. Bancorp Investments, Inc., 214 N. Tryon St., 26th Floor, Charlotte, North Carolina 28202, Attention: High Grade Syndicate, Phone: 1-877-558-2607. An electronic copy of the prospectus and prospectus supplement is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any 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 November 4, 2016.
This news release contains forward-looking statements. Western Gas 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 Western Gas Partners' ability to close successfully on the senior notes offering and to use the net proceeds as indicated in this news release. See "Risk Factors" in Western Gas Partners' Annual Report on Form 10-K for the year ended December 31, 2017 and other public filings and press releases. Except as required by law, Western Gas Partners undertakes no obligation to publicly update or revise any forward-looking statements.
Western Gas Partners, LP Contact
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
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SOURCE Western Gas Partners, LP
Article Date
8/7/2018Alerian Reports June 30, 2018 Index Linked Product Positions
Source: PR Newswire
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.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-june-30-2018-index-linked-product-positions-300690263.html
SOURCE Alerian
Article Date
8/1/2018Western Gas Announces Second-Quarter 2018 Results
Source: PR Newswire
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
Article Date
7/31/20187/18/2018 - Western Gas Announces Second Quarter 2018 Distribution And Schedules Earnings Conference Call
Western Gas Announces Second Quarter 2018 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
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
Article Date
7/18/2018Western Gas To Present At Upcoming Bank Of America Merrill Lynch Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
6/1/2018Western Gas To Present At Upcoming Bernstein Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
5/23/20185/14/2018 - Western Gas Names New Chief Operating Officer
Western Gas Names New Chief Operating Officer
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
5/14/2018Western Gas Announces First-Quarter 2018 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
5/1/20184/18/2018 - Western Gas Announces First Quarter 2018 Distribution And Schedules Earnings Conference Call
Western Gas Announces First Quarter 2018 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, April 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 $0.9350 per unit for the first quarter of 2018. This distribution represents a 2-percent increase over the prior quarter and a 7-percent increase over the first quarter of 2017. WES's first quarter 2018 distribution is payable on May 14, 2018, to unitholders of record at the close of business on May 2, 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 $0.56875 per unit for the first quarter of 2018. This distribution represents a 4-percent increase over the prior quarter and a 16-percent increase over the first quarter of 2017. WGP's first quarter 2018 distribution is payable on May 24, 2018, to unitholders of record at the close of business on May 2, 2018.
The Partnerships plan to report their first-quarter 2018 results after the market closes on Tuesday, May 1, 2018. Management will host a conference call on Wednesday, May 2, 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.
First-Quarter 2018 Results
Wednesday, May 2, 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: 8107313
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 or condensate on behalf of itself and as agent for its producers 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-first-quarter-2018-distribution-and-schedules-earnings-conference-call-300631891.html
SOURCE Western Gas Partners, LP
Article Date
4/18/2018Western Gas Partners, LP Announces Pricing Of $1.1 Billion Of Senior Notes
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Feb. 21, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) today announced that it has priced an offering of $400 million in aggregate principal amount of 4.50% senior notes due 2028 at a price to the public of 99.435% of their face value and $700 million in aggregate principal amount of 5.30% senior notes due 2048 at a price to the public of 99.169% of their face value. The offering of the senior notes is expected to close on March 2, 2018, subject to customary closing conditions. Net proceeds from the offering are expected to be used to repay amounts outstanding under the partnership's revolving credit facility and the remaining net proceeds for general partnership purposes, including to fund capital expenditures.
Mizuho Securities USA Inc., Credit Suisse Securities (USA) LLC, MUFG Securities Americas Inc., and TD Securities (USA) LLC are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Mizuho Securities USA LLC at 1-866-271-7403 or by mail to Mizuho Securities USA LLC, Attention: Debt Capital Markets, 320 Park Avenue, 12th Floor, New York, New York 10022, Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, Telephone: (800) 221-1037, Email: newyork.prospectus@creditsuisse.com, MUFG Securities Americas Inc., Attention: Capital Markets Group, 1221 Avenue of the Americas, 6th Floor, New York, New York 10020 (Fax: 646-434-3455, Toll-free Prospectus Request Hotline: 877-649-6848) or TD Securities (USA) LLC, Attention: Debt Capital Markets Syndicate, 31 West 52nd Street, 2nd Floor, New York, New York, 10019, Telephone: (855) 495-9846. An electronic copy of the prospectus and prospectus supplement is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any 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 November 4, 2016.
This news release contains forward-looking statements. Western Gas 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 Western Gas Partners' ability to close successfully on the senior notes offering and to use the net proceeds as indicated in this news release. See "Risk Factors" in Western Gas Partners' Annual Report on Form 10-K for the year ended December 31, 2017 and other public filings and press releases. Except as required by law, Western Gas Partners undertakes no obligation to publicly update or revise any forward-looking statements.
Western Gas Partners, LP Contact
Jonathon E. VandenBrand
Director, Investor Relations
832.636.6000
jon.vandenbrand@anadarko.com
View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-partners-lp-announces-pricing-of-11-billion-of-senior-notes-300602398.html
SOURCE Western Gas Partners, LP
Article Date
2/21/2018Alerian Reports December 31, 2017 Index Linked Product Positions
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
2/21/2018Western Gas Announces Fourth-Quarter And Full-Year 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
2/15/2018Anadarko Announces 2017 Fourth-Quarter And Full-Year Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Feb. 6, 2018 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2017 fourth‑quarter results, reporting net income attributable to common stockholders of $976 million, or $1.80 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by $870 million, or $1.62 per share (diluted), on an after-tax basis.(1) Net cash provided by operating activities in the fourth quarter of 2017 was $1.4 billion.
For the year ended Dec. 31, 2017, Anadarko reported a net loss attributable to common stockholders of $456 million, or $0.85 per share (diluted). Full-year 2017 net cash provided by operating activities totaled $4.0 billion.
2017 HIGHLIGHTS
"Given the significant volatility the energy sector faced in 2017, we continued to focus on capital efficiency throughout the year by investing upstream capital within discretionary cash flow, while materially improving margins per barrel – an approach that produced very encouraging results as we concluded the year," said Al Walker, Anadarko Chairman, President and CEO. "These operational efficiencies, an improving market environment, and strong momentum provide an exciting backdrop to 2018. Our capital-investment program this year is well positioned to deliver attractive cash returns that produce healthy production growth. As we have stated previously, we will complement this capital-efficient investment plan with additional share buybacks, increases to our dividend yield, and improvements to our credit metrics, as market conditions permit, rather than materially increasing our capital expenditures to pursue greater production volume."
SALES VOLUMES AND PROVED RESERVES
Anadarko's full-year sales volumes of oil, natural gas and natural gas liquids (NGLs) totaled 245 million barrels of oil equivalent (BOE), or an average of 672,000 BOE per day. Fourth-quarter 2017 sales volumes of oil, natural gas and NGLs averaged approximately 637,000 BOE per day.
In 2017, Anadarko organically added 244 million BOE of proved reserves before the effects of price revisions. Anadarko's costs incurred were $4.1 billion. The company's oil and natural gas exploration and development costs were $4.2 billion.(2) The company estimates its proved reserves at year-end 2017 totaled 1.44 billion BOE, with 78 percent of its reserves categorized as proved developed. At year-end 2017, Anadarko's proved reserves were comprised of 63 percent liquids and 37 percent natural gas.
OPERATING HIGHLIGHTS
By year-end 2017, oil sales volumes in the Delaware Basin of West Texas surpassed 50,000 BOPD, representing a 69-percent increase over the fourth quarter of 2016. The company also made significant progress toward full development mode as it successfully concluded its drilling program to capture 70‑percent operatorship across its 240,000-net-acre position.
In the DJ Basin of northeast Colorado, Anadarko achieved record sales volumes of more than 254,000 BOE per day. Oil sales volumes surpassed 100,000 BOPD in December, driving an increase of almost 20 percent over the previous quarter. In addition, the company's new completion design implemented in 2017 increased its estimated ultimate recovery (EUR) to 690,000 BOE per well in the contiguous core, representing an increase of more than 20-percent over the previous type curve.
Gulf of Mexico sales volumes averaged 143,000 BOE per day in the fourth quarter, representing a 35-percent increase over the fourth quarter of 2016. Oil sales volumes for the quarter averaged 120,000 BOPD, a 48-percent increase over the fourth quarter of 2016, while also reflecting the impact of Hurricane Nate and the prolonged shutdown at the third-party-operated Enchilada platform.
Anadarko's international and frontier operations averaged 94,000 barrels per day during the fourth quarter of 2017, representing an 18-percent decrease relative to the fourth quarter of 2016, which was largely driven by statutory maintenance on the El Merk facility in Algeria and the timing and size of tanker liftings. Additionally, during the fourth quarter, the company made meaningful progress with its Mozambique LNG project by beginning the resettlement process to prepare the onshore location for the future LNG park.
OPERATIONS REPORT
For additional details on Anadarko's fourth-quarter 2017 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL HIGHLIGHTS
During the year, Anadarko generated $4.0 billion of net cash provided by operating activities while investing $3.8 billion on upstream exploration and development activities.(3) The company ended 2017 with $4.6 billion of cash on hand and closed asset divestitures totaling more than $4.0 billion during the year. Subsequent to year end, Anadarko divested its non-operated interest in its Alaska assets for approximately $400 million. The transaction is subject to regulatory approval.
During the fourth quarter, approximately $1.1 billion of the company's previously announced $2.5 billion share-repurchase program was executed under an accelerated share repurchase (ASR) agreement and through open-market purchases. In February 2018, Anadarko completed a repurchase of 8.5 million shares for $500 million (average price of $58.82 per share) under an additional ASR agreement. To date, the company has completed $1.6 billion of repurchases under the program, totaling 30.4 million shares at an average price of $51.27 per share.
Subsequent to year end, the company amended both its $3.0 billion, five-year credit facility to extend the maturity date to January 2022 and its $2.0 billion, 364-day credit facility to extend the maturity date to January 2019.
2018 CAPITAL PROGRAM AND SALES-VOLUME GUIDANCE
Anadarko's 2018 guidance has been adjusted from its November 2017 news release for the divestiture of its Alaska assets and anticipated production impacts related to non-operated downtime in the Gulf of Mexico. The company expects full-year capital investments in the range of $4.1 to $4.5 billion, not including capital investments made by Western Gas Partners, LP (NYSE: WES).
|
2018 Capital(a) |
2018 Total |
2018 Oil | ||||
|
November 2017 Guidance |
$4,200 - $4,600 |
245 - 255 |
385 - 405 | |||
|
Adjustment |
(100) |
(7)(c) |
(16)(d) | |||
|
New Guidance |
$4,100 - $4,500 |
238 - 248 |
370 - 390 | |||
|
Note: All amounts are approximate. | ||||||
|
(a) Does not include WES capital investments. | ||||||
|
(b) See the accompanying table for a reconciliation of divestiture-adjusted sales volume. | ||||||
|
(c) Includes Alaska divestiture (4 million BOE) and GOM, primarily driven by non-operated downtime. | ||||||
|
(d) Includes Alaska divestiture (11 thousand BOPD) and GOM, primarily driven by non-operated downtime. |
CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host an investor conference call on Wednesday, Feb. 7, 2018, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2017 results as well as details of the company's 2018 capital program and expectations. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 4262361. 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
Twelve pages of summary financial data follow, including costs incurred, proved reserves, 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) |
Does not include Anadarko midstream capital investments or capital investments made by Western Gas Partners, LP (NYSE: WES). |
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 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. 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 realize its expectations regarding performance; to finalize year-end reserves; to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to meet financial and operating guidance; to timely complete and commercially operate the projects and drilling prospects identified in this news release; to consummate the transaction described in this news release; to finalize the necessary steps to secure operatorship; to successfully complete the share repurchase program and to enter into additional programs; to increase the dividend; to reduce debt; and to successfully plan, secure additional 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 2016 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:
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
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.
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 December 31, 2017 | ||||||||||||
|
Before |
After |
Per Share | ||||||||||
|
millions except per-share amounts |
Tax |
Tax |
(diluted) | |||||||||
|
Net income (loss) attributable to common stockholders (GAAP) |
$ |
976 |
$ |
1.80 |
||||||||
|
Adjustments for certain items affecting comparability |
||||||||||||
|
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* |
$ |
(168) |
(105) |
(0.20) |
||||||||
|
Gains (losses) on divestitures, net |
(141) |
(83) |
(0.15) |
|||||||||
|
Impairments |
||||||||||||
|
Producing properties |
(25) |
(16) |
(0.03) |
|||||||||
|
Exploration assets |
(24) |
(15) |
(0.03) |
|||||||||
|
Early termination of rig |
(39) |
(25) |
(0.05) |
|||||||||
|
Change in uncertain tax positions |
(56) |
(0.10) |
||||||||||
|
Impact of tax reform legislation |
1,170 |
2.18 |
||||||||||
|
Certain items affecting comparability |
$ |
(397) |
870 |
1.62 |
||||||||
|
Adjusted net income (loss) (Non-GAAP) |
$ |
106 |
$ |
0.18 |
||||||||
|
* |
Includes $(171) million related to commodity derivatives, $(1) million related to interest-rate derivatives, and $4 million related to gathering, processing, and marketing sales. |
|
Quarter Ended December 31, 2016 | ||||||||||||
|
Before |
After |
Per Share | ||||||||||
|
millions except per-share amounts |
Tax |
Tax |
(diluted) | |||||||||
|
Net income (loss) attributable to common stockholders (GAAP) |
$ |
(515) |
$ |
(0.94) |
||||||||
|
Adjustments for certain items affecting comparability |
||||||||||||
|
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* |
$ |
304 |
193 |
0.35 |
||||||||
|
Gains (losses) on divestitures, net |
(241) |
(155) |
(0.28) |
|||||||||
|
Impairments |
||||||||||||
|
Producing and general properties |
(166) |
(101) |
(0.18) |
|||||||||
|
Exploration assets |
(149) |
(115) |
(0.21) |
|||||||||
|
Restructuring charges |
(26) |
(16) |
(0.03) |
|||||||||
|
Early termination of rig |
(49) |
(32) |
(0.06) |
|||||||||
|
Loss on early extinguishment of debt |
(31) |
(20) |
(0.04) |
|||||||||
|
Environmental reserves |
21 |
13 |
0.03 |
|||||||||
|
Change in uncertain tax positions |
(10) |
(0.02) |
||||||||||
|
Certain items affecting comparability |
$ |
(337) |
(243) |
(0.44) |
||||||||
|
Adjusted net income (loss) (Non-GAAP) |
$ |
(272) |
$ |
(0.50) |
||||||||
|
* |
Includes $(179) million related to commodity derivatives and $483 million related to interest-rate derivatives. |
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Management believes that the presentation of Adjusted EBITDAX (Margin) provides information useful in assessing the Company's operating and financial performance across periods.
|
Years Ended | |||||||
|
millions |
2017 |
2016 | |||||
|
Net income (loss) attributable to common stockholders (GAAP) |
$ |
(456) |
$ |
(3,071) |
|||
|
Interest expense |
932 |
890 |
|||||
|
Income tax expense (benefit) |
(1,477) |
(1,021) |
|||||
|
DD&A |
4,279 |
4,301 |
|||||
|
Exploration expense |
2,541 |
946 |
|||||
|
(Gains) losses on divestitures, net |
(674) |
757 |
|||||
|
Impairments |
408 |
227 |
|||||
|
Total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives |
156 |
559 |
|||||
|
Restructuring charges |
21 |
389 |
|||||
|
Other operating expense |
— |
1 |
|||||
|
Loss on early extinguishment of debt |
2 |
155 |
|||||
|
Certain other nonoperating items |
— |
(58) |
|||||
|
Consolidated Adjusted EBITDAX (Margin) (Non-GAAP) |
$ |
5,732 |
$ |
4,075 |
|||
|
Total barrels of oil equivalent (BOE) |
245 |
290 |
|||||
|
Consolidated Adjusted EBITDAX (Margin) per BOE |
$ |
23.40 |
$ |
14.05 |
|||
Management believes oil and natural gas exploration and development costs is a more accurate reflection of the expenditures incurred during the current year excluding certain obligations to be paid in future periods.
|
millions |
Year Ended | ||||
|
Costs incurred (GAAP)* |
$ |
4,093 |
|||
|
Asset retirement obligation liabilities incurred |
(5) |
||||
|
Cash expenditures for asset retirement obligations |
131 |
||||
|
Oil and natural gas exploration and development costs (Non-GAAP) |
$ |
4,219 |
|||
|
* |
Includes $499 million of unproved property acquisitions. |
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.
|
December 31, 2017 | |||||||||||
|
Anadarko | |||||||||||
|
Anadarko |
WGP* |
excluding | |||||||||
|
millions |
Consolidated |
Consolidated |
WGP | ||||||||
|
Total debt (GAAP) |
$ |
15,689 |
$ |
3,493 |
$ |
12,196 |
|||||
|
Less cash and cash equivalents |
4,553 |
80 |
4,473 |
||||||||
|
Net debt (Non-GAAP) |
$ |
11,136 |
$ |
3,413 |
$ |
7,723 |
|||||
|
Anadarko | |||||||||||
|
Anadarko |
excluding | ||||||||||
|
millions |
Consolidated |
WGP | |||||||||
|
Net debt |
$ |
11,136 |
$ |
7,723 |
|||||||
|
Total equity |
13,790 |
10,696 |
|||||||||
|
Adjusted capitalization |
$ |
24,926 |
$ |
18,419 |
|||||||
|
Net debt to adjusted capitalization ratio |
45 |
% |
42 |
% | |||||||
|
* |
Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko, and Western Gas Partners, LP (WES) is a consolidated subsidiary of WGP. |
|
Anadarko Petroleum Corporation | |||||||||||||||
|
Cash Flow Information | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Quarter Ended |
Year Ended | ||||||||||||||
|
December 31, |
December 31, | ||||||||||||||
|
millions |
2017 |
2016 |
2017 |
2016 | |||||||||||
|
Cash Flows from Operating Activities |
|||||||||||||||
|
Net income (loss) |
$ |
1,039 |
$ |
(452) |
$ |
(211) |
$ |
(2,808) |
|||||||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|||||||||||||||
|
Depreciation, depletion, and amortization |
1,044 |
1,099 |
4,279 |
4,301 |
|||||||||||
|
Deferred income taxes |
(1,143) |
(117) |
(2,169) |
(1,238) |
|||||||||||
|
Dry hole expense and impairments of unproved properties |
77 |
313 |
2,221 |
613 |
|||||||||||
|
Impairments |
25 |
166 |
408 |
227 |
|||||||||||
|
(Gains) losses on divestitures, net |
141 |
241 |
(674) |
757 |
|||||||||||
|
Loss on early extinguishment of debt |
— |
31 |
2 |
155 |
|||||||||||
|
Total (gains) losses on derivatives, net |
164 |
(342) |
131 |
292 |
|||||||||||
|
Operating portion of net cash received (paid) in settlement of derivative instruments |
4 |
38 |
25 |
267 |
|||||||||||
|
Other |
78 |
86 |
303 |
342 |
|||||||||||
|
Changes in assets and liabilities |
(39) |
60 |
(306) |
92 |
|||||||||||
|
Net Cash Provided by (Used in) Operating Activities* |
$ |
1,390 |
$ |
1,123 |
$ |
4,009 |
$ |
3,000 |
|||||||
|
Net Cash Provided by (Used in) Investing Activities |
$ |
(1,002) |
$ |
(1,506) |
$ |
(1,028) |
$ |
(2,762) |
|||||||
|
Net Cash Provided by (Used in) Financing Activities |
$ |
(1,086) |
$ |
(413) |
$ |
(1,613) |
$ |
2,008 |
|||||||
|
Capital Expenditures |
|||||||||||||||
|
Exploration and Production and other |
$ |
1,009 |
$ |
843 |
$ |
3,886 |
$ |
2,764 |
|||||||
|
Midstream - Anadarko** |
200 |
15 |
458 |
59 |
|||||||||||
|
Midstream - WES |
295 |
135 |
956 |
491 |
|||||||||||
|
Total |
$ |
1,504 |
$ |
993 |
$ |
5,300 |
$ |
3,314 |
|||||||
|
* |
Restructuring charges (excluding noncash share-based compensation) were $1 million for the quarter ended December 31, 2017, $23 million for the quarter ended December 31, 2016, $21 million for the year ended December 31, 2017, and $357 million for the year ended December 31, 2016. Cash payments for restructuring charges were $1 million for the quarter ended December 31, 2017, $30 million for the quarter ended December 31, 2016, $53 million for the year ended December 31, 2017, and $247 million for the year ended December 31, 2016. |
|
** |
Excludes WES. |
|
Anadarko Petroleum Corporation | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Quarter Ended |
Year ended | ||||||||||||||
|
Summary Financial Information |
December 31, |
December 31, | |||||||||||||
|
millions except per-share amounts |
2017 |
2016 |
2017 |
2016 | |||||||||||
|
Consolidated Statements of Income |
|||||||||||||||
|
Revenues and Other |
|||||||||||||||
|
Oil sales |
$ |
1,900 |
$ |
1,454 |
$ |
6,552 |
$ |
4,668 |
|||||||
|
Natural-gas sales |
258 |
443 |
1,348 |
1,564 |
|||||||||||
|
Natural-gas liquids sales |
301 |
281 |
1,069 |
921 |
|||||||||||
|
Gathering, processing, and marketing sales |
583 |
399 |
2,000 |
1,294 |
|||||||||||
|
Gains (losses) on divestitures and other, net |
(113) |
(190) |
939 |
(578) |
|||||||||||
|
Total |
2,929 |
2,387 |
11,908 |
7,869 |
|||||||||||
|
Costs and Expenses |
|||||||||||||||
|
Oil and gas operating |
252 |
203 |
1,000 |
811 |
|||||||||||
|
Oil and gas transportation |
216 |
258 |
914 |
1,002 |
|||||||||||
|
Exploration |
170 |
440 |
2,541 |
946 |
|||||||||||
|
Gathering, processing, and marketing |
452 |
329 |
1,560 |
1,087 |
|||||||||||
|
General and administrative |
235 |
324 |
1,075 |
1,440 |
|||||||||||
|
Depreciation, depletion, and amortization |
1,044 |
1,099 |
4,279 |
4,301 |
|||||||||||
|
Production, property, and other taxes |
133 |
114 |
582 |
536 |
|||||||||||
|
Impairments |
25 |
166 |
408 |
227 |
|||||||||||
|
Other operating expense |
64 |
64 |
221 |
118 |
|||||||||||
|
Total |
2,591 |
2,997 |
12,580 |
10,468 |
|||||||||||
|
Operating Income (Loss) |
338 |
(610) |
(672) |
(2,599) |
|||||||||||
|
Other (Income) Expense |
|||||||||||||||
|
Interest expense |
252 |
233 |
932 |
890 |
|||||||||||
|
Loss on early extinguishment of debt |
— |
31 |
2 |
155 |
|||||||||||
|
(Gains) losses on derivatives, net |
168 |
(343) |
135 |
286 |
|||||||||||
|
Other (income) expense, net |
(10) |
(15) |
(53) |
(101) |
|||||||||||
|
Total |
410 |
(94) |
1,016 |
1,230 |
|||||||||||
|
Income (Loss) Before Income Taxes |
(72) |
(516) |
(1,688) |
(3,829) |
|||||||||||
|
Income tax expense (benefit) |
(1,111) |
(64) |
(1,477) |
(1,021) |
|||||||||||
|
Net Income (Loss) |
1,039 |
(452) |
(211) |
(2,808) |
|||||||||||
|
Net income (loss) attributable to noncontrolling interests |
63 |
63 |
245 |
263 |
|||||||||||
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
976 |
$ |
(515) |
$ |
(456) |
$ |
(3,071) |
|||||||
|
Per Common Share |
|||||||||||||||
|
Net income (loss) attributable to common stockholders—basic |
$ |
1.80 |
$ |
(0.94) |
$ |
(0.85) |
$ |
(5.90) |
|||||||
|
Net income (loss) attributable to common stockholders—diluted |
$ |
1.80 |
$ |
(0.94) |
$ |
(0.85) |
$ |
(5.90) |
|||||||
|
Average Number of Common Shares Outstanding—Basic |
537 |
551 |
548 |
522 |
|||||||||||
|
Average Number of Common Shares Outstanding—Diluted |
537 |
551 |
548 |
522 |
|||||||||||
|
Exploration Expense |
|||||||||||||||
|
Dry hole expense |
$ |
25 |
$ |
188 |
$ |
1,433 |
$ |
397 |
|||||||
|
Impairments of unproved properties |
52 |
125 |
788 |
216 |
|||||||||||
|
Geological and geophysical, exploration overhead, and other expense |
93 |
127 |
320 |
333 |
|||||||||||
|
Total |
$ |
170 |
$ |
440 |
$ |
2,541 |
$ |
946 |
|||||||
|
Anadarko Petroleum Corporation | |||||||
|
(Unaudited) | |||||||
|
December 31, |
December 31, | ||||||
|
millions |
2017 |
2016 | |||||
|
Condensed Balance Sheets |
|||||||
|
Cash and cash equivalents |
$ |
4,553 |
$ |
3,184 |
|||
|
Accounts receivable, net of allowance |
1,829 |
1,728 |
|||||
|
Other current assets |
380 |
354 |
|||||
|
Net properties and equipment |
27,451 |
32,168 |
|||||
|
Other assets |
2,211 |
2,226 |
|||||
|
Goodwill and other intangible assets |
5,662 |
5,904 |
|||||
|
Total Assets |
$ |
42,086 |
$ |
45,564 |
|||
|
Short-term debt - Anadarko* |
142 |
42 |
|||||
|
Other current liabilities |
3,764 |
3,286 |
|||||
|
Long-term debt - Anadarko* |
12,054 |
12,162 |
|||||
|
Long-term debt - WES and WGP |
3,493 |
3,119 |
|||||
|
Deferred income taxes |
2,234 |
4,324 |
|||||
|
Asset retirement obligations |
2,500 |
2,802 |
|||||
|
Other long-term liabilities |
4,109 |
4,332 |
|||||
|
Common stock |
57 |
57 |
|||||
|
Paid-in capital |
12,000 |
11,875 |
|||||
|
Retained earnings |
1,109 |
1,704 |
|||||
|
Treasury stock |
(2,132) |
(1,033) |
|||||
|
Accumulated other comprehensive income (loss) |
(338) |
(391) |
|||||
|
Total stockholders' equity |
10,696 |
12,212 |
|||||
|
Noncontrolling interests |
3,094 |
3,285 |
|||||
|
Total Equity |
13,790 |
15,497 |
|||||
|
Total Liabilities and Equity |
$ |
42,086 |
$ |
45,564 |
|||
|
Capitalization |
|||||||
|
Total debt |
$ |
15,689 |
$ |
15,323 |
|||
|
Total equity |
13,790 |
15,497 |
|||||
|
Total |
$ |
29,479 |
$ |
30,820 |
|||
|
Capitalization Ratios |
|||||||
|
Total debt |
53 |
% |
50 |
% | |||
|
Total equity |
47 |
% |
50 |
% | |||
|
* |
Excludes WES and WGP |
|
Anadarko Petroleum Corporation | |||||||||||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||||||||||
|
Sales Volumes and Prices |
|||||||||||||||||||||||||||||
|
Average Daily Sales Volumes |
Sales Volumes |
Average Sales Price | |||||||||||||||||||||||||||
|
Oil |
Natural Gas |
NGLs |
Oil |
Natural Gas |
NGLs |
Oil |
Natural Gas |
NGLs | |||||||||||||||||||||
|
MBbls/d |
MMcf/d |
MBbls/d |
MMBbls |
Bcf |
MMBbls |
Per Bbl |
Per Mcf |
Per Bbl | |||||||||||||||||||||
|
Quarter Ended December 31, 2017 |
|||||||||||||||||||||||||||||
|
United States |
287 |
1,064 |
90 |
26 |
98 |
7 |
$ |
54.97 |
$ |
2.63 |
$ |
34.99 |
|||||||||||||||||
|
Algeria |
54 |
— |
3 |
4 |
— |
1 |
61.35 |
— |
45.29 |
||||||||||||||||||||
|
Other International |
26 |
— |
— |
3 |
— |
— |
60.75 |
— |
— |
||||||||||||||||||||
|
Total |
367 |
1,064 |
93 |
33 |
98 |
8 |
$ |
56.32 |
$ |
2.63 |
$ |
35.28 |
|||||||||||||||||
|
Quarter Ended December 31, 2016 |
|||||||||||||||||||||||||||||
|
United States |
240 |
1,881 |
116 |
22 |
173 |
10 |
$ |
46.31 |
$ |
2.56 |
$ |
24.24 |
|||||||||||||||||
|
Algeria |
68 |
— |
8 |
6 |
— |
1 |
49.39 |
— |
30.10 |
||||||||||||||||||||
|
Other International |
28 |
— |
— |
3 |
— |
— |
47.18 |
— |
— |
||||||||||||||||||||
|
Total |
336 |
1,881 |
124 |
31 |
173 |
11 |
$ |
47.01 |
$ |
2.56 |
$ |
24.62 |
|||||||||||||||||
|
Year Ended December 31, 2017 |
|||||||||||||||||||||||||||||
|
United States |
266 |
1,309 |
95 |
97 |
478 |
34 |
$ |
49.62 |
$ |
2.82 |
$ |
29.24 |
|||||||||||||||||
|
Algeria |
61 |
— |
4 |
22 |
— |
2 |
53.74 |
— |
35.64 |
||||||||||||||||||||
|
Other International |
28 |
— |
— |
10 |
— |
— |
53.84 |
— |
— |
||||||||||||||||||||
|
Total |
355 |
1,309 |
99 |
129 |
478 |
36 |
$ |
50.66 |
$ |
2.82 |
$ |
29.54 |
|||||||||||||||||
|
Year Ended December 31, 2016 |
|||||||||||||||||||||||||||||
|
United States |
233 |
2,093 |
122 |
85 |
766 |
44 |
$ |
39.06 |
$ |
2.04 |
$ |
19.32 |
|||||||||||||||||
|
Algeria |
64 |
— |
6 |
24 |
— |
2 |
44.15 |
— |
25.63 |
||||||||||||||||||||
|
Other International |
19 |
— |
— |
7 |
— |
— |
43.18 |
— |
— |
||||||||||||||||||||
|
Total |
316 |
2,093 |
128 |
116 |
766 |
46 |
$ |
40.34 |
$ |
2.04 |
$ |
19.64 |
|||||||||||||||||
|
Average Daily Sales |
Sales Volumes |
||||||||||||||||||||||||||||
|
Quarter Ended December 31, 2017 |
637 |
58 |
|||||||||||||||||||||||||||
|
Quarter Ended December 31, 2016 |
774 |
71 |
|||||||||||||||||||||||||||
|
Year Ended December 31, 2017 |
672 |
245 |
|||||||||||||||||||||||||||
|
Year Ended December 31, 2016 |
793 |
290 |
|||||||||||||||||||||||||||
|
Sales Revenue and Commodity Derivatives |
||||||||||||||||||||||||
|
Sales |
Net Cash Received (Paid) from Settlement of Commodity | |||||||||||||||||||||||
|
millions |
Oil |
Natural Gas |
NGLs |
Oil |
Natural Gas |
NGLs | ||||||||||||||||||
|
Quarter Ended December 31, 2017 |
||||||||||||||||||||||||
|
United States |
$ |
1,450 |
$ |
258 |
$ |
290 |
$ |
(1) |
$ |
5 |
$ |
— |
||||||||||||
|
Algeria |
305 |
— |
11 |
— |
— |
— |
||||||||||||||||||
|
Other International |
145 |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
1,900 |
$ |
258 |
$ |
301 |
$ |
(1) |
$ |
5 |
$ |
— |
||||||||||||
|
Quarter Ended December 31, 2016 |
||||||||||||||||||||||||
|
United States |
$ |
1,025 |
$ |
443 |
$ |
259 |
$ |
39 |
$ |
— |
$ |
— |
||||||||||||
|
Algeria |
309 |
— |
22 |
— |
— |
— |
||||||||||||||||||
|
Other International |
120 |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
1,454 |
$ |
443 |
$ |
281 |
$ |
39 |
$ |
— |
$ |
— |
||||||||||||
|
Year Ended December 31, 2017 |
||||||||||||||||||||||||
|
United States |
$ |
4,818 |
$ |
1,348 |
$ |
1,010 |
$ |
26 |
$ |
4 |
$ |
(3) |
||||||||||||
|
Algeria |
1,190 |
— |
59 |
— |
— |
— |
||||||||||||||||||
|
Other International |
544 |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
6,552 |
$ |
1,348 |
$ |
1,069 |
$ |
26 |
$ |
4 |
$ |
(3) |
||||||||||||
|
Year Ended December 31, 2016 |
||||||||||||||||||||||||
|
United States |
$ |
3,330 |
$ |
1,564 |
$ |
861 |
$ |
253 |
$ |
13 |
$ |
(1) |
||||||||||||
|
Algeria |
1,043 |
— |
60 |
— |
— |
— |
||||||||||||||||||
|
Other International |
295 |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
4,668 |
$ |
1,564 |
$ |
921 |
$ |
253 |
$ |
13 |
$ |
(1) |
||||||||||||
|
Anadarko Petroleum Corporation | |||||||||
|
Estimated Year-End Proved Reserves 2015 - 2017 | |||||||||
|
MMBOE |
2017 |
2016 |
2015 | ||||||
|
Proved Reserves |
|||||||||
|
Beginning of year |
1,722 |
2,057 |
2,858 |
||||||
|
Reserves additions and revisions |
|||||||||
|
Discoveries and extensions |
114 |
40 |
29 |
||||||
|
Infill-drilling additions |
71 |
69 |
89 |
||||||
|
Drilling-related reserves additions and revisions |
185 |
109 |
118 |
||||||
|
Other non-price-related revisions |
59 |
191 |
289 |
||||||
|
Net organic reserves additions |
244 |
300 |
407 |
||||||
|
Acquisition of proved reserves in place |
3 |
97 |
1 |
||||||
|
Price-related revisions |
92 |
(147) |
(624) |
||||||
|
Total reserves additions and revisions |
339 |
250 |
(216) |
||||||
|
Sales in place |
(379) |
(294) |
(279) |
||||||
|
Production |
(243) |
(291) |
(306) |
||||||
|
End of year |
1,439 |
1,722 |
2,057 |
||||||
|
Proved Developed Reserves |
|||||||||
|
Beginning of year |
1,325 |
1,632 |
1,969 |
||||||
|
End of year |
1,127 |
1,325 |
1,632 |
||||||
|
Anadarko Petroleum Corporation | ||||||||||||||
|
Financial and Operating External Guidance | ||||||||||||||
|
As of February 6, 2018 | ||||||||||||||
|
Note: Guidance excludes sales volumes for Alaska due to divestiture. | ||||||||||||||
|
1st-Qtr |
Full-Year | |||||||||||||
|
Guidance (see Note) |
Guidance (see Note) | |||||||||||||
|
Units |
Units | |||||||||||||
|
Total Sales Volumes (MMBOE) |
55 |
— |
58 |
238 |
— |
248 |
||||||||
|
Total Sales Volumes (MBOE/d) |
611 |
— |
644 |
652 |
— |
679 |
||||||||
|
Oil (MBbl/d) |
352 |
— |
365 |
370 |
— |
390 |
||||||||
|
United States |
270 |
— |
280 |
286 |
— |
303 |
||||||||
|
Algeria |
55 |
— |
56 |
57 |
— |
58 |
||||||||
|
Ghana |
27 |
— |
29 |
27 |
— |
29 |
||||||||
|
Natural Gas (MMcf/d) |
||||||||||||||
|
United States |
1,025 |
— |
1,075 |
1,085 |
— |
1,125 |
||||||||
|
Natural Gas Liquids (MBbl/d) |
||||||||||||||
|
United States |
87 |
— |
92 |
93 |
— |
96 |
||||||||
|
Algeria |
4 |
— |
6 |
5 |
— |
6 |
||||||||
|
$ / Unit |
$ / Unit | |||||||||||||
|
Price Differentials vs NYMEX (w/o hedges) |
||||||||||||||
|
Oil ($/Bbl) |
(0.80) |
— |
3.20 |
(1.90) |
— |
2.30 |
||||||||
|
United States |
(2.00) |
— |
2.00 |
(3.00) |
— |
1.00 |
||||||||
|
Algeria |
3.00 |
— |
7.00 |
2.00 |
— |
7.00 |
||||||||
|
Ghana |
3.00 |
— |
7.00 |
2.00 |
— |
7.00 |
||||||||
|
Natural Gas ($/Mcf) |
||||||||||||||
|
United States |
(0.35) |
— |
(0.15) |
(0.45) |
— |
(0.20) |
||||||||
|
Anadarko Petroleum Corporation | ||||||||||||||
|
Financial and Operating External Guidance | ||||||||||||||
|
As of February 6, 2018 | ||||||||||||||
|
Note: Guidance excludes items affecting comparability. | ||||||||||||||
|
1st-Qtr |
Full-Year | |||||||||||||
|
Guidance (see Note) |
Guidance (see Note) | |||||||||||||
|
$ MM |
$ MM | |||||||||||||
|
Other Revenues |
||||||||||||||
|
Marketing and Gathering Margin |
145 |
— |
165 |
700 |
— |
780 |
||||||||
|
Minerals and Other |
30 |
— |
50 |
190 |
— |
230 |
||||||||
|
$ / BOE |
$ / BOE | |||||||||||||
|
Costs and Expenses |
||||||||||||||
|
Oil & Gas Direct Operating |
4.70 |
— |
4.90 |
4.25 |
— |
4.75 |
||||||||
|
Oil & Gas Transportation and Other |
3.40 |
— |
3.60 |
3.50 |
— |
3.75 |
||||||||
|
Depreciation, Depletion, and Amortization |
18.50 |
— |
19.00 |
18.25 |
— |
18.75 |
||||||||
|
Production Taxes (% of Product Revenue) |
6.0 |
% |
— |
7.0 |
% |
6.0 |
% |
— |
7.0 |
% | ||||
|
$ MM |
$ MM | |||||||||||||
|
General and Administrative |
240 |
— |
260 |
945 |
— |
995 |
||||||||
|
Other Operating Expense |
5 |
— |
15 |
40 |
— |
50 |
||||||||
|
Exploration Expense |
||||||||||||||
|
Non-Cash |
40 |
— |
70 |
150 |
— |
200 |
||||||||
|
Cash |
50 |
— |
60 |
200 |
— |
220 |
||||||||
|
Interest Expense (net) |
230 |
— |
240 |
925 |
— |
975 |
||||||||
|
Other (Income) Expense |
(5) |
— |
5 |
(20) |
— |
20 |
||||||||
|
Taxes |
||||||||||||||
|
Algeria (100% Current) |
60 |
% |
— |
70 |
% |
60 |
% |
— |
70 |
% | ||||
|
Rest of Company (25% Current/75% Deferred for Q1 and 35% Current/65% Deferred for Total Year) |
15 |
% |
— |
25 |
% |
15 |
% |
— |
25 |
% | ||||
|
Noncontrolling Interest |
50 |
— |
70 |
300 |
— |
350 |
||||||||
|
Avg. Shares Outstanding (MM) |
||||||||||||||
|
Basic |
520 |
— |
530 |
520 |
— |
530 |
||||||||
|
Diluted |
520 |
— |
530 |
520 |
— |
530 |
||||||||
|
Capital Investment (Excluding Western Gas Partners, LP) |
$ MM |
$ MM | ||||||||||||
|
APC Capital Expenditures |
1,200 |
— |
1,400 |
4,100 |
— |
4,500 |
||||||||
|
Anadarko Petroleum Corporation | |||||||||
|
Commodity Hedge Positions | |||||||||
|
As of February 6, 2018 | |||||||||
|
Weighted Average Price per barrel | |||||||||
|
Volume (MBbls/d) |
Floor Sold |
Floor Purchased |
Ceiling Sold | ||||||
|
Oil |
|||||||||
|
Two-Way Collars |
|||||||||
|
2018 |
|||||||||
|
WTI |
108 |
$ |
50.00 |
$ |
60.48 | ||||
|
Fixed Price - Financial |
|||||||||
|
2018 |
|||||||||
|
Brent |
84 |
$ |
61.45 |
||||||
|
Volume |
Weighted Average Price per MMBtu | ||||||||
|
(thousand |
|||||||||
|
MMBtu/d) |
Floor Sold |
Floor Purchased |
Ceiling Sold | ||||||
|
Natural Gas |
|||||||||
|
Three-Way Collars |
|||||||||
|
2018 |
250 |
$ |
2.00 |
$ |
2.75 |
$ |
3.54 | ||
|
Fixed Price - Financial |
|||||||||
|
2018 |
280 |
$ |
3.02 |
||||||
|
Interest-Rate Derivatives | |||||
|
As of February 6, 2018 | |||||
|
Instrument |
Notional Amt. |
Reference Period |
Mandatory |
Rate Paid |
Rate Received |
|
Swap |
$550 Million |
Sept. 2016 – 2046 |
Sept. 2020 |
6.418% |
3M LIBOR |
|
Swap |
$250 Million |
Sept. 2016 – 2046 |
Sept. 2022 |
6.809% |
3M LIBOR |
|
Swap |
$200 Million |
Sept. 2017 – 2047 |
Sept. 2018 |
6.049% |
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 |
|
Swap |
$250 Million |
Sept. 2017 – 2047 |
Sept. 2023 |
6.761% |
3M LIBOR |
|
Anadarko Petroleum Corporation | |||||||||||||||||||||||
|
Reconciliation of Same-Store Sales | |||||||||||||||||||||||
|
Average Daily Sales Volumes | |||||||||||||||||||||||
|
Quarter Ended December 31, 2017 |
Quarter Ended December 31, 2016 | ||||||||||||||||||||||
|
Oil |
Natural Gas |
NGLs |
Total |
Oil |
Natural Gas |
NGLs |
Total | ||||||||||||||||
|
U.S. Onshore |
156 |
934 |
79 |
390 |
120 |
986 |
76 |
360 |
|||||||||||||||
|
Gulf of Mexico |
120 |
85 |
9 |
143 |
81 |
93 |
9 |
106 |
|||||||||||||||
|
International |
80 |
— |
3 |
83 |
96 |
— |
8 |
104 |
|||||||||||||||
|
Same-Store Sales |
356 |
1,019 |
91 |
616 |
297 |
1,079 |
93 |
570 |
|||||||||||||||
|
Divestitures* |
11 |
45 |
2 |
21 |
39 |
802 |
31 |
204 |
|||||||||||||||
|
Total |
367 |
1,064 |
93 |
637 |
336 |
1,881 |
124 |
774 |
|||||||||||||||
|
Year Ended December 31, 2017 |
Year Ended December 31, 2016 | ||||||||||||||||||||||
|
Oil |
Natural Gas |
NGLs |
Total |
Oil |
Natural Gas |
NGLs |
Total | ||||||||||||||||
|
U.S. Onshore |
128 |
966 |
79 |
368 |
123 |
991 |
73 |
361 |
|||||||||||||||
|
Gulf of Mexico |
121 |
107 |
10 |
149 |
65 |
82 |
7 |
86 |
|||||||||||||||
|
International |
89 |
— |
4 |
93 |
83 |
— |
6 |
89 |
|||||||||||||||
|
Same-Store Sales |
338 |
1,073 |
93 |
610 |
271 |
1,073 |
86 |
536 |
|||||||||||||||
|
Divestitures* |
17 |
236 |
6 |
62 |
45 |
1,020 |
42 |
257 |
|||||||||||||||
|
Total |
355 |
1,309 |
99 |
672 |
316 |
2,093 |
128 |
793 |
|||||||||||||||
|
* |
Includes Eagleford, Marcellus, Eaglebine, Utah CBM, Moxa, Alaska, East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, and Carthage. |
|
Note: Data for the quarter ended March 31, 2017, is presented for comparability to the company's First-Quarter 2018 Guidance. | |||||||||||
|
Average Daily Sales Volumes | |||||||||||
|
Quarter Ended March 31, 2017 | |||||||||||
|
Oil |
Natural Gas |
NGLs |
Total | ||||||||
|
U.S. Onshore |
115 |
1,058 |
85 |
376 |
|||||||
|
Gulf of Mexico |
125 |
129 |
12 |
159 |
|||||||
|
International |
98 |
— |
6 |
104 |
|||||||
|
Same-Store Sales |
338 |
1,187 |
103 |
639 |
|||||||
|
Divestitures* |
29 |
672 |
15 |
156 |
|||||||
|
Total |
367 |
1,859 |
118 |
795 |
|||||||
|
* |
Includes Eagleford, Marcellus, Eaglebine, Utah CBM, Moxa, Alaska, East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, and Carthage. |
View original content with multimedia:http://www.prnewswire.com/news-releases/anadarko-announces-2017-fourth-quarter-and-full-year-results-300594493.html
SOURCE Anadarko Petroleum Corporation
Article Date
2/6/20181/19/2018 - Western Gas Announces Fourth Quarter 2017 Distribution And Schedules Earnings Conference Call
Western Gas Announces Fourth Quarter 2017 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
1/19/201812/5/2017 - Western Gas Announces 2018 Outlook
Western Gas Announces 2018 Outlook
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
12/5/2017Western Gas To Present At Upcoming Wells Fargo Conference
Source: PR Newswire
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
Article Date
12/1/2017Western Gas To Present At Upcoming Jefferies Energy Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
11/22/2017Anadarko Announces 2018 Capital Program And Sales-Volume Guidance
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, Nov. 16, 2017 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its 2018 capital expectations and guidance. In 2018, the company expects to make capital investments in the range of $4.2 to $4.6 billion.(1) The capital program is designed to enhance shareholder value by delivering attractive margins and returns, while advancing the development of the company's core assets within discretionary cash flow.
2018 ANADARKO CAPITAL PROGRAM HIGHLIGHTS
"Our 2018 investment plan will again be driven by capital efficiency and financial discipline," said Anadarko Chairman, President and CEO Al Walker. "These key tenets have served us well for the last decade, as growth within cash flow is fundamental to delivering capital-efficient returns. Our repositioned asset footprint is built to succeed in a market where oil prices exhibit volatility in a $45-$60 environment, with gas averaging $3 per Mcf (thousand cubic feet). We expect next year's capital expenditures to be inside of discretionary cash flow at $50 and $3, while generating free cash flow of more than $700 million at the current strip.(2) Further, we plan to return substantial cash to shareholders by executing the remaining $1.5 billion of our $2.5 billion share-repurchase program during the coming year."
"We are also modifying the metrics in our 2018 compensation program to increase the profile for the role of capital efficiency and financial discipline and refine the focus on our safety performance," added Walker. "Performance objectives will now include cash return on invested capital,(3) volume growth per debt-adjusted share, and reserve additions per debt-adjusted share.(5) As I have highlighted recently, moving to debt-adjusted performance metrics in particular will align our compensation programs to the capital-allocation philosophy we have employed over the last ten years."
|
2018 Capital Expectations ($4.2 - $4.6 Billion)(1) | ||||||||||||||||
|
By Area |
Billions |
By Type |
||||||||||||||
|
U.S. Onshore Upstream |
$ |
2.10 |
U.S.* |
85% | ||||||||||||
|
Deepwater Gulf of Mexico |
1.10 |
International Cash Generation** |
3% | |||||||||||||
|
International Operations |
0.15 |
Future Upside (Exploration and LNG) |
9% | |||||||||||||
|
Exploration and LNG |
0.35 |
Corporate |
3% | |||||||||||||
|
Midstream |
0.55 |
|||||||||||||||
|
Note: All amounts are approximates. | ||||||||||||||||
|
* All Anadarko U.S. onshore upstream and midstream, and deepwater Gulf of Mexico | ||||||||||||||||
|
** Algeria and Ghana operations | ||||||||||||||||
|
Sales-Volume Expectations(4) | |||
|
2017 Outlook |
2018 Expectations | ||
|
Total (MMBOE) |
224 - 228 |
245 - 255 | |
|
Oil (MBOPD) |
343 - 348 |
385 - 405 | |
U.S. FOCUS AREAS
In 2018, Anadarko plans to allocate approximately $900 million toward upstream activities in the Delaware Basin of West Texas, with an additional $500 million directed toward Anadarko midstream investments.(1) This program supports the continuation of the company's efforts to build out one of the most expansive and integrated infrastructure positions in the region. Anadarko has successfully delineated the majority of its Wolfcamp-A oil-weighted opportunity, which the company estimates to hold more than 3 billion barrels of oil equivalent (BOE) of net resources. The company also advanced its efforts to capture operatorship on 70 percent of its acreage position primarily in Reeves and Loving counties. Additionally, Anadarko continues to progress the construction of three Regional Oil Treating Facilities to support its more cost-effective and environmentally beneficial tankless battery design field-wide, while also securing necessary gathering, processing, and takeaway capacity. This comprehensive buildout plan and phased development approach in the basin is expected to deliver incremental oil sales volume during the second half of 2018, with total oil sales volume expected to increase more than 50 percent relative to 2017. During 2018, the company plans to average seven operated rigs and six completion crews.
In the DJ Basin of northeast Colorado, where the company has more than 2 billion BOE of net resources within its development area, Anadarko expects to invest approximately $950 million on upstream activities in 2018. It plans to average five operated rigs and three completions crews in the basin. The company expects to increase year-over-year oil sales volume from the DJ Basin by about 30 percent.
In 2018, Anadarko expects to allocate approximately $1.1 billion toward its deepwater Gulf of Mexico operations. The majority of these investments are expected to be directed toward high-return oil development opportunities near operated infrastructure at Lucius, Horn Mountain, Marlin, Holstein and Marco Polo. The company plans to operate two floating drillships and spud approximately five development wells in the Gulf during the year.
INTERNATIONAL OPERATIONS
Anadarko plans to allocate more than $150 million toward its international cash-generating operations in Algeria and Ghana in 2018. These investments will support further drilling in the TEN development area, which is expected to commence in early 2018, as well as additional drilling operations in the Jubilee field following the Ghanaian Government's recent approval of the full-field plan of development.
EXPLORATION AND LNG
The company's exploration investments in 2018 are expected to total about $200 million. Exploration spending will primarily be focused on the Gulf of Mexico, where the company plans to drill identified prospects near existing operated infrastructure. Additional exploration investment will be allocated to the U.S. onshore, as the company continues to identify future areas that can make a material and scalable addition to its portfolio.
Approximately $150 million is expected to be invested during 2018 as the company advances the Mozambique LNG project. This investment will primarily be used to fund Anadarko's portion of the costs associated with preparing the site of the future LNG park.
PRESENTATION AND WEBCAST
Anadarko's Executive Vice President, Finance and Chief Financial Officer, Bob Gwin, will provide additional details and information regarding the 2018 capital program during his presentation at the Bank of America Merrill Lynch 2017 Global Energy Conference today at 10:30 a.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 made by Western Gas Partners, LP (NYSE: WES).
(2) See the accompanying Adjusted Free Cash Flow 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) Cash Return on Invested Capital (CROIC) is computed as follows:
|
(APC Consolidated Cash Flows from Operations (CFFO) - WGP CFFO + WGP distributions to APC) | |
|
(Stockholders' Equity + Anadarko Debt) |
(4) Amounts are divestiture adjusted.
(5) Debt-Adjusted Share(s) is computed as follows:
|
Anadarko Debt |
+ Shares Outstanding |
||
|
Share Price |
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 2016, the company had approximately 1.72 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 realize its expectations regarding performance; to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to meet financial and operating guidance and achieve the production levels identified in this news release; to meet the long-term goals identified in this news release; to successfully complete the share-repurchase program; to finalize the necessary steps to ensure operatorship; to successfully drill, complete, test and produce the wells identified in this news release; to timely complete and commercially operate the projects, infrastructure, and drilling prospects identified in this news release; and to successfully plan, secure additional 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 2016 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.
Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko uses certain terms in this news release, such as "net resources" and similar terms that the SEC's guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2016, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.
Anadarko Contacts
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
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.
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 adjusted by capital expenditures excluding WES and cash received from monetizations.
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 annual period.
|
millions |
Year Ended | ||
|
Net cash provided by (used in) operating activities (GAAP) |
$ |
3,000 |
|
|
Adjusted by: |
|||
|
Increase (decrease) in accounts receivable |
(677) |
||
|
(Increase) decrease in accounts payable and other current liabilities |
443 |
||
|
Other items, net |
142 |
||
|
Certain nonoperating and other excluded items |
299 |
||
|
WES/WGP distributions to third parties |
(362) |
||
|
Adjusted discretionary cash flow from operations (Non-GAAP) * |
$ |
2,845 |
|
|
Adjusted by: |
|||
|
Capital expenditures excluding WES* |
(2,823) |
||
|
Monetizations excluding WES |
3,537 |
||
|
Adjusted free cash flow (Non-GAAP) |
$ |
3,559 |
|
|
*WES capital expenditures |
491 |
||
View original content:http://www.prnewswire.com/news-releases/anadarko-announces-2018-capital-program-and-sales-volume-guidance-300557428.html
SOURCE Anadarko Petroleum Corporation
Article Date
11/16/201710/31/2017 - Western Gas Announces Third-Quarter 2017 Results
Western Gas Announces Third-Quarter 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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
Article Date
10/31/201710/12/2017 - Western Gas Announces Third Quarter 2017 Distribution And Schedules Earnings Conference Call
Western Gas Announces Third Quarter 2017 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
10/12/2017Western Gas To Present At Upcoming Barclays CEO Energy-Power Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
9/1/2017Western Gas Partners, LP Announces Record Date of September 5, 2017 for Special Meeting of Unitholders to Be Held on October 17, 2017
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Aug. 24, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) (the "Partnership") announced today that it has established a record date for a special meeting of its unitholders to consider and vote on a proposal to approve the Partnership's 2017 Long-Term Incentive Plan (the "2017 Plan"), which, among other things, permits common units to be reserved and made available for issuance as awards to directors and officers of the Partnership's general partner and employees of its affiliates who provide services to the Partnership. The 2017 Plan is intended to replace the long-term incentive plan expiring in 2018 that was adopted in connection with the Partnership's initial public offering in 2008.
Partnership unitholders of record as of the close of business on September 5, 2017 are entitled to notice of the special meeting and to vote at the special meeting. The special meeting will be held on Tuesday, October 17, 2017, at 9:00 a.m. Central Time, at the Partnership's headquarters at 1201 Lake Robbins Drive, The Woodlands, Texas 77380. The Partnership will file a proxy statement on Schedule 14A with the Securities and Exchange Commission and deliver a notice of the special meeting and proxy materials to unitholders as of the close of business on the record date, which notice will contain instructions on how to access the proxy statement and vote.
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.
For more information about Western Gas Partners, LP, and for 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-partners-lp-announces-record-date-of-september-5-2017-for-special-meeting-of-unitholders-to-be-held-on-october-17-2017-300509485.html
SOURCE Western Gas Partners, LP
Article Date
8/24/2017Western Gas Announces Second-Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
7/25/20177/18/2017 - Western Gas Announces Second Quarter 2017 Distribution And Schedules Earnings Conference Call
Western Gas Announces Second Quarter 2017 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
7/18/2017Western Gas To Present At Upcoming J.P. Morgan Energy Equity Investor Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
Article Date
6/22/20175/25/2017 - Western Gas To Present At Upcoming Master Limited Partnership Association Investor Conference
Western Gas To Present At Upcoming Master Limited Partnership Association Investor Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, May 25, 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 MLP Investor Conference, sponsored by the Master Limited Partnership Association, in Orlando, Florida on Thursday, June 1, 2017 at 3:15 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, 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
Article Date
5/25/2017Tax Withholding Notice To Brokers And Nominees Of Non-U.S. Unitholders
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
5/10/2017Western Gas Announces First-Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
5/2/20174/13/2017 - Western Gas Announces First Quarter 2017 Distribution And Schedules Earnings Conference Call
Western Gas Announces First Quarter 2017 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
4/13/2017Anadarko Announces 2017 Initial Capital Program And Guidance
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, March 7, 2017 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its 2017 initial capital expectations and guidance. The company will also host an investor conference call tomorrow to discuss recent updates and expectations, including:
HIGHLIGHTS
"Our 2017 initial capital program is designed to leverage our streamlined portfolio and sharpened focus on higher-margin oil production, which is expected to generate stronger returns and substantial cash flow to fund material growth over the next five years," said Al Walker, Anadarko Chairman, President and CEO. "With a growing lower-risk resource base of more than 6.5 billion BOE (barrels of oil equivalent) in our premier U.S. focus areas of the Delaware and DJ basins, and the deepwater Gulf of Mexico, I believe Anadarko is poised to deliver exceptional value in 2017 and well beyond.
"In 2017, we plan to allocate approximately 80 percent of our total capital program toward our U.S. onshore upstream and midstream activities, and our expanded position in the deepwater Gulf of Mexico," added Walker. "These investments provide the foundation for our increased five-year oil growth expectations of more than 15 percent on a compounded annual basis at current prices, and we are prepared to be flexible throughout the year if we see the opportunity in the Delaware and DJ basins to accelerate activity to capture additional value. Furthermore, sustained oil production from our deepwater Gulf of Mexico, Algeria and Ghana assets is expected to generate significant free cash flow to support growth and fund future value creation through exploration success and our LNG business."
|
2017 Initial Capital Expectations ($4.5 - $4.7 Billion)(1) | |||||||
|
By Area |
Billions |
By Type |
|||||
|
U.S. Onshore |
$ |
1.9 |
U.S. Focus Areas* |
80 |
% | ||
|
Deepwater & Int'l. Operations |
1.1 |
Int'l. Cash Generation** |
2 |
% | |||
|
Deepwater & Int'l. Exploration/LNG |
0.8 |
Future Upside (Exploration & LNG) |
15 |
% | |||
|
Midstream |
0.6 |
Corporate |
3 |
% | |||
|
Note: All amounts are approximates. | |||||||
|
* U.S. onshore upstream and midstream, and deepwater Gulf of Mexico | |||||||
|
** Algeria and Ghana operations |
|
Initial Sales-Volume Expectations(2) | |||
|
2017 Initial Expectations |
2016 | ||
|
Total (MMBOE) |
235 – 239 |
210 | |
|
Oil (MBOPD) |
357 – 362 |
287 | |
U.S. ONSHORE
During 2016, Anadarko high-graded its U.S. onshore portfolio by divesting a number of natural-gas-weighted assets and concentrating its top-tier positions in the Delaware and DJ basins, which resulted in an expected 25-percent increase in liquids composition from the U.S. onshore relative to 2015 on a same-store-sales basis.(2)
In the Delaware Basin in West Texas, Anadarko increased its estimated net resources in the Wolfcamp A formation by about 50 percent to more than 3 billion BOE of net resources. In addition, the company estimates it has more than 1 billion BOE of incremental potential upside on its acreage in the Wolfcamp B, C and D formations, the Bone Spring, and Avalon Shale opportunities. In 2017, the company plans to invest approximately $820 million in Delaware Basin upstream activities, with an additional $560 million of Anadarko capital allocated toward the expansion of its midstream backbone to enable future growth. Anadarko plans to average 10 to 14 operated drilling rigs during the year and drill more than 150 operated mid-lateral-equivalent wells.
In the DJ Basin of northeast Colorado, Anadarko increased its estimated net resources by about 33 percent as a result of improved recoveries and additional down-spacing opportunities. The company now estimates it has more than 2 billion BOE of net resources within its development area, with additional upside on its acreage in the greater DJ Basin. In 2017, Anadarko plans to invest approximately $840 million in DJ Basin upstream activities, average five to six operated rigs and drill approximately 290 mid-lateral-equivalent wells.
"We expect our current 2017 U.S. onshore capital allocation to deliver significant oil growth toward the end of the year as we overcome the effects of last year's reduced activity levels on our shorter-cycle onshore opportunities," added Walker. "We anticipate achieving an exit rate of approximately 50,000 barrels of oil per day in the Delaware Basin, which is more than 80-percent higher than 2016, and in the DJ Basin, we expect our oil-production exit rate to be about 100,000 barrels per day, a 30-percent increase over the prior year."
DEEPWATER & INTERNATIONAL OPERATIONS
In 2017, Anadarko expects to invest approximately $1.1 billion in its deepwater Gulf of Mexico, Algeria and Ghana assets.
In the Gulf of Mexico, the company plans to continue leveraging its premier infrastructure position and drill approximately seven development tiebacks during the year. In addition, Anadarko expects to benefit from a full year of production from the recently acquired Freeport-McMoRan properties, which doubled Anadarko's sales volumes to more than 160,000 BOE per day at the end of last year. Minimal capital investments are expected to be required in 2017 to maintain the steady, long-lived, high-margin oil production provided by the company's strong cash-generating assets in Algeria and offshore Ghana.
DEEPWATER & INTERNATIONAL EXPLORATION AND LNG
Exploration and LNG development continue to be differentiating components of Anadarko's business. In 2017, the company expects to invest approximately $770 million in its deepwater and international exploration program and LNG project in Mozambique.
During the year, Anadarko plans to drill up to 10 exploration/appraisal wells in the deepwater Gulf of Mexico, Côte d'Ivoire, and Colombia, where Anadarko recently added to its previous exploration success with another discovery at the Purple Angel prospect.
The company expects to continue advancing the Mozambique LNG project where it has made good progress on the legal and contractual framework, and recently submitted a Development Plan to the Government of Mozambique for the Golfinho/Atum discoveries.
CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host a conference call on Wednesday, March 8, 2017, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss its initial 2017 capital program and guidance. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 4377341. To access the live audio webcast and related presentation materials, please visit the investor relations section of the company's website at www.anadarko.com. A replay of the conference call will also be available on the website for approximately 30 days following the call.
INVESTOR BOOK
Anadarko's updated Investor Book is available on the company's website at http://investors.anadarko.com/investor-kit.
Four pages of supplemental materials including the company's initial 2017 guidance, updated hedging positions and a reconciliation of same-store-sales volumes are provided in the tables attached to this release.
(1) Does not include capital investments made by Western Gas Partners, LP (NYSE: WES).
(2) See the accompanying table for a reconciliation of same-store-sales volumes, which reflects both divestitures and acquisitions.
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 2016, the company had 1.72 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 meet financial and operating guidance contained in this news release; to meet the long-term goals identified in this news release; to successfully drill, complete, test and produce the wells identified in this news release; and to 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 2016 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.
Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko uses certain terms in this news release, such as "net resources," "resource base," "potential upside," and similar terms that the SEC's guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2016, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.
Anadarko Contacts
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Jim Grant, james.grant@anadarko.com, 832.636.8320
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
|
Anadarko Petroleum Corporation | ||||||||||||||
|
Financial and Operating External Guidance | ||||||||||||||
|
2017 Q1 Guidance | ||||||||||||||
|
Note: Guidance excludes 2017 sales volumes associated with the Eagleford and Marcellus* divestitures. | ||||||||||||||
|
1st-Qtr. |
Full-Year | |||||||||||||
|
Guidance (see Note) |
Guidance (see Note) | |||||||||||||
|
Units |
Units | |||||||||||||
|
Total Sales Volumes (MMBOE) |
59 |
— |
61 |
235 |
— |
239 |
||||||||
|
Total Sales Volumes (MBOE/d) |
656 |
— |
678 |
644 |
— |
655 |
||||||||
|
Oil (MBbl/d) |
351 |
— |
356 |
357 |
— |
362 |
||||||||
|
United States |
253 |
— |
256 |
273 |
— |
276 |
||||||||
|
Algeria |
70 |
— |
71 |
59 |
— |
60 |
||||||||
|
Ghana |
28 |
— |
29 |
25 |
— |
26 |
||||||||
|
Natural Gas (MMcf/d) |
||||||||||||||
|
United States |
1,260 |
— |
1,300 |
1,165 |
— |
1,195 |
||||||||
|
Natural Gas Liquids (MBbl/d) |
||||||||||||||
|
United States |
96 |
— |
100 |
90 |
— |
93 |
||||||||
|
Algeria |
5 |
— |
7 |
5 |
— |
6 |
||||||||
|
$ / Unit |
$ / Unit | |||||||||||||
|
Price Differentials vs. NYMEX (w/o hedges) |
||||||||||||||
|
Oil ($/Bbl) |
(4.90) |
— |
(0.90) |
(5.10) |
— |
(1.00) |
||||||||
|
United States |
(6.00) |
— |
(2.00) |
(6.00) |
— |
(2.00) |
||||||||
|
Algeria |
(2.00) |
— |
2.00 |
(2.00) |
— |
2.00 |
||||||||
|
Ghana |
(2.00) |
— |
2.00 |
(2.00) |
— |
2.00 |
||||||||
|
Natural Gas ($/Mcf) |
||||||||||||||
|
United States |
(0.35) |
— |
(0.15) |
(0.35) |
— |
(0.15) |
||||||||
|
* Pending |
|
Anadarko Petroleum Corporation | ||||||||||||||
|
Financial and Operating External Guidance | ||||||||||||||
|
2017 Q1 Guidance | ||||||||||||||
|
Note: Guidance excludes 2017 sales volumes associated with the Eagleford and Marcellus* divestitures. | ||||||||||||||
|
1st-Qtr. |
Full-Year | |||||||||||||
|
Guidance (see Note) |
Guidance (see Note) | |||||||||||||
|
$ MM |
$ MM | |||||||||||||
|
Other Revenues |
||||||||||||||
|
Marketing and Gathering Margin |
75 |
— |
85 |
380 |
— |
400 |
||||||||
|
Minerals and Other |
55 |
— |
75 |
180 |
— |
200 |
||||||||
|
Costs and Expenses |
||||||||||||||
|
$ / BOE |
$ / BOE | |||||||||||||
|
Oil & Gas Direct Operating |
3.90 |
— |
4.10 |
4.00 |
— |
4.50 |
||||||||
|
Oil & Gas Transportation |
3.40 |
— |
3.60 |
3.50 |
— |
3.65 |
||||||||
|
Depreciation, Depletion, and Amortization |
15.75 |
— |
16.10 |
17.80 |
— |
17.90 |
||||||||
|
Production Taxes (% of Product Revenue) |
6.5 |
% |
— |
7.5 |
% |
6.5 |
% |
— |
7.5 |
% | ||||
|
$ MM |
$ MM | |||||||||||||
|
General and Administrative |
260 |
— |
280 |
1,000 |
— |
1,050 |
||||||||
|
Other Operating Expense |
20 |
— |
30 |
30 |
— |
40 |
||||||||
|
Exploration Expense |
||||||||||||||
|
Non-Cash |
210 |
— |
240 |
450 |
— |
550 |
||||||||
|
Cash |
55 |
— |
75 |
235 |
— |
255 |
||||||||
|
Interest Expense (net) |
215 |
— |
230 |
845 |
— |
865 |
||||||||
|
Other (Income) Expense |
(5) |
— |
5 |
(15) |
— |
— |
||||||||
|
Taxes |
||||||||||||||
|
Algeria (100% current) |
60 |
% |
— |
70 |
% |
60 |
% |
— |
70 |
% | ||||
|
Rest of Company (100% deferred) |
5 |
% |
— |
15 |
% |
30 |
% |
— |
40 |
% | ||||
|
Noncontrolling Interest |
70 |
— |
75 |
255 |
— |
275 |
||||||||
|
Avg. Shares Outstanding (MM) |
||||||||||||||
|
Basic |
551 |
— |
553 |
552 |
— |
554 |
||||||||
|
Diluted |
552 |
— |
554 |
553 |
— |
555 |
||||||||
|
Capital Investment (Excluding Western Gas Partners, LP) |
$ MM |
$ MM | ||||||||||||
|
APC Capital Expectations |
950 |
— |
1,150 |
4,500 |
— |
4,700 |
||||||||
|
____________________ |
|
* Pending |
|
Anadarko Petroleum Corporation | |||||||||
|
Commodity Hedge Positions | |||||||||
|
As of March 7, 2017 | |||||||||
|
Weighted Average Price per barrel | |||||||||
|
Volume |
Floor Sold |
Floor Purchased |
Ceiling Sold | ||||||
|
Oil |
|||||||||
|
Three-Way Collars |
|||||||||
|
2017 |
|||||||||
|
WTI |
68 |
$ |
40.00 |
$ |
50.00 |
$ |
58.84 | ||
|
Brent |
23 |
$ |
40.00 |
$ |
50.00 |
$ |
62.64 | ||
|
91 |
$ |
40.00 |
$ |
50.00 |
$ |
59.80 | |||
|
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 | ||
|
Anadarko Petroleum Corporation | |||||||||||
|
Reconciliation of Same-Store Sales | |||||||||||
|
Average Daily Sales Volumes | |||||||||||
|
Oil |
Natural Gas |
NGLs |
Total | ||||||||
|
MBbls/d |
MMcf/d |
MBbls/d |
MBOE/d | ||||||||
|
Quarter Ended March 31, 2016 |
|||||||||||
|
U.S. Onshore |
130 |
1,128 |
71 |
389 |
|||||||
|
Deepwater Gulf of Mexico |
58 |
85 |
7 |
79 |
|||||||
|
International and Alaska |
93 |
— |
6 |
99 |
|||||||
|
Same-Store Sales |
281 |
1,213 |
84 |
567 |
|||||||
|
Divestitures** |
34 |
1,090 |
44 |
260 |
|||||||
|
Total |
315 |
2,303 |
128 |
827 |
|||||||
|
Quarter Ended June 30, 2016 |
|||||||||||
|
U.S. Onshore |
127 |
1,127 |
77 |
392 |
|||||||
|
Deepwater Gulf of Mexico |
56 |
73 |
6 |
74 |
|||||||
|
International and Alaska |
81 |
— |
5 |
86 |
|||||||
|
Same-Store Sales |
264 |
1,200 |
88 |
552 |
|||||||
|
Divestitures** |
32 |
988 |
43 |
240 |
|||||||
|
Total |
296 |
2,188 |
131 |
792 |
|||||||
|
Quarter Ended September 30, 2016 |
|||||||||||
|
U.S. Onshore |
131 |
1,067 |
79 |
388 |
|||||||
|
Deepwater Gulf of Mexico |
65 |
77 |
6 |
84 |
|||||||
|
International and Alaska |
93 |
— |
7 |
100 |
|||||||
|
Same-Store Sales |
289 |
1,144 |
92 |
572 |
|||||||
|
Divestitures** |
28 |
859 |
37 |
208 |
|||||||
|
Total |
317 |
2,003 |
129 |
780 |
|||||||
|
Quarter Ended December 31, 2016 |
|||||||||||
|
U.S. Onshore |
125 |
1,099 |
80 |
388 |
|||||||
|
Deepwater Gulf of Mexico |
69 |
82 |
8 |
91 |
|||||||
|
International and Alaska |
107 |
— |
8 |
115 |
|||||||
|
Acquisitions* |
12 |
11 |
1 |
15 |
|||||||
|
Same-Store Sales |
313 |
1,192 |
97 |
609 |
|||||||
|
Divestitures** |
23 |
689 |
27 |
165 |
|||||||
|
Total |
336 |
1,881 |
124 |
774 |
|||||||
|
Year Ended December 31, 2016 |
|||||||||||
|
U.S. Onshore |
129 |
1,105 |
77 |
390 |
|||||||
|
Deepwater Gulf of Mexico |
62 |
79 |
7 |
82 |
|||||||
|
International and Alaska |
93 |
— |
6 |
99 |
|||||||
|
Acquisitions* |
3 |
3 |
— |
4 |
|||||||
|
Same-Store Sales |
287 |
1,187 |
90 |
575 |
|||||||
|
Divestitures** |
29 |
906 |
38 |
218 |
|||||||
|
Total |
316 |
2,093 |
128 |
793 |
|||||||
|
* |
Includes volumes related to the acquisition of Gulf of Mexico assets on December 15, 2016. |
|
** |
Includes East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, Carthage, Eagleford, and Marcellus (pending). |
SOURCE Anadarko Petroleum Corporation
Article Date
3/7/20172/23/2017 - Western Gas Annual Reports Availble
Western Gas Annual Reports Availble
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
2/23/2017Western Gas Announces Fourth-Quarter And Full-Year 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
2/22/20172/13/2017 - Western Gas Announces Management Promotions
Western Gas Announces Management Promotions
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
2/13/20172/9/2017 - Western Gas Partners Announces Acquisition Of Interest In Delaware Basin Gathering System
Western Gas Partners Announces Acquisition Of Interest In Delaware Basin Gathering System
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Feb. 9, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) today announced it has entered into an agreement (the "PSA") with Williams Partners L.P. ("WPZ") whereby WES will acquire WPZ's 50% non-operated interest (the "DBJV Interest") in the assets of Delaware Basin JV Gathering LLC ("DBJV") in exchange for WES's 33.75% non-operated interest in two natural gas gathering systems (the "Non-Operated Marcellus Systems") located in northern Pennsylvania and $155 million in cash.
"This highly strategic transaction increases our exposure to the Delaware Basin, enables us to aggressively support our customers' accelerating drilling plans, and advances our objective of providing sustainable distribution growth over time," said Chief Executive Officer, Don Sinclair. "With this consolidation of ownership in DBJV, we are taking another important step in the development of our fully integrated gas gathering and processing footprint in the Permian Basin. Our ability to develop these types of asset positions has proven to be successful in generating incremental returns for our unitholders, with the DJ Basin being our most notable example."
WES currently holds a 50% interest in, and operates, DBJV's assets, which consist of a 577-mile natural gas gathering system serving Anadarko and third party producers in Loving, Ward, Winkler and Reeves Counties, Texas. For the nine months ended September 30, 2016, the DBJV Interest generated $16.6 million in net income and $26.3 million in Adjusted EBITDA1. The Non-Operated Marcellus Systems consists of a 531-mile natural gas gathering system. For the nine months ended September 30, 2016, the Non-Operated Marcellus Systems generated $48.6 million in net income and $61.8 million in Adjusted EBITDA1.
|
1 Please see the table at the end of this release for a reconciliation of GAAP to non-GAAP measures. |
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
Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of net income (GAAP) to Adjusted EBITDA (non-GAAP) for the particular assets referenced in this press release, as required under Regulation G of the Securities Exchange Act of 1934. Management believes that Adjusted EBITDA is a widely accepted indicator of financial performance and is useful in assessing WES's ability to incur and service debt, fund capital expenditures and make distributions. Adjusted EBITDA, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, Adjusted EBITDA should be considered in conjunction with net income (loss) and other applicable performance measures.
Adjusted EBITDA
WES defines Adjusted EBITDA as net income, 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.
|
Nine Months Ended | ||||||||
|
millions |
DBJV Interest |
Non-Operated | ||||||
|
Reconciliation of Net income to Adjusted EBITDA |
||||||||
|
Net income |
$ |
16.6 |
$ |
48.6 |
||||
|
Depreciation |
8.8 |
13.1 |
||||||
|
Non-cash impairment expense |
0.9 |
0.1 |
||||||
|
Adjusted EBITDA |
$ |
26.3 |
$ |
61.8 |
||||
SOURCE Western Gas Partners, LP
Article Date
2/9/20171/17/2017 - Western Gas Announces Fourth Quarter 2016 Distribution And Schedules Earnings Conference Call
Western Gas Announces Fourth Quarter 2016 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
1/17/2017Anadarko Announces Sale Of Eagleford Shale Assets
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Jan. 12, 2017 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) announced today it has agreed to sell its Eagleford Shale assets in South Texas for approximately $2.3 billion to Sanchez Energy Corporation and Blackstone Group LP. Anadarko's sponsored master limited partnership, Western Gas Partners, LP (NYSE: WES), will continue to own and operate its midstream assets in South Texas and is expected to benefit from drilling commitments made by the buyers in conjunction with this transaction.
"The ongoing success of our portfolio-management activities provides us with the flexibility to further accelerate capital investments in our higher-return oil opportunities in the Delaware Basin, the DJ Basin, and the deepwater Gulf of Mexico, which drive our ability to deliver a 12- to 14-percent five-year compounded annual oil growth rate," said Al Walker, Anadarko Chairman, President and CEO. "We are deeply grateful to the team at Anadarko, which has built the Eagleford Shale into a coveted asset that will continue to be an important domestic source of energy for our nation."
The divestiture includes approximately 155,000 net acres primarily located in Dimmit and Webb counties. At the end of the fourth quarter of 2016, sales volumes from these properties totaled approximately 45,000 barrels of liquids per day and approximately 131 million cubic feet of natural gas per day.
The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions and adjustments.
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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.
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 consummate the transactions described in this release, realize its expectations regarding performance and drill, develop and commercially operate the projects identified in this release. 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
INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Jim Grant, james.grant@anadarko.com, 832.636.8320
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
SOURCE Anadarko Petroleum Corporation
Article Date
1/12/2017Anadarko Announces Sale Of Marcellus Shale Natural Gas Assets
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Dec. 21, 2016 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) announced today it has agreed to sell its operated and non-operated upstream assets and operated midstream assets in the Marcellus Shale of north-central Pennsylvania to Alta Marcellus Development, LLC, a wholly owned subsidiary of Alta Resources Development, LLC, for approximately $1.24 billion. The midstream assets in the Marcellus owned by Western Gas Partners, LP (NYSE: WES), Anadarko's sponsored master limited partnership, are excluded from the agreement.
"With this transaction, we have announced or closed monetizations totaling well in excess of $5 billion in 2016, while principally focusing Anadarko's U.S. onshore activities on our world-class oil-levered assets in the Delaware and DJ basins," said Al Walker, Anadarko Chairman, President and CEO. "Our Marcellus team has done a superb job of maximizing the value of our position in this natural gas play, and we are grateful for their efforts and dedication."
The Marcellus Shale divestiture includes approximately 195,000 net acres and, at the end of the third quarter of 2016, sales volumes from these properties totaled approximately 470 million cubic feet per day.
The transaction is expected to close during the first quarter of 2017, subject to customary closing conditions and adjustments. Jefferies LLC marketed the assets, and Sidley Austin LLP served as Anadarko's legal counsel.
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 consummate the transactions described in this release. 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:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Jim Grant, james.grant@anadarko.com, 832.636.8320
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727
SOURCE Anadarko Petroleum Corporation
Article Date
12/21/2016Western Gas To Present At Upcoming Wells Fargo Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
12/1/2016Western Gas To Present At Upcoming Jefferies Energy Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
11/23/201611/1/2016 - Western Gas Announces Third-Quarter 2016 Results
Western Gas Announces Third-Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
11/1/201610/18/2016 - Western Gas Announces Third Quarter 2016 Distribution And Schedules Earnings Conference Call
Western Gas Announces Third Quarter 2016 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
10/18/2016Western Gas Partners Announces Pricing Of $200 Million Of Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Oct. 6, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE:WES) today announced that it has priced an offering of an additional $200,000,000 in aggregate principal amount of 5.45% senior notes due 2044 at a price to the public of 102.776% of their face value, equating to a yield of 5.256%. The senior notes are being offered as additional senior notes under an indenture pursuant to which Western Gas Partners issued $400 million aggregate principal amount of 5.45% senior notes due 2044 on March 20, 2014. These new senior notes are identical to, and will be treated as a single class of debt securities with, the previously issued senior notes under the indenture governing the senior notes. The offering of the senior notes is expected to close on October 18, 2016, subject to customary closing conditions. Net proceeds from the offering are expected to be used to repay borrowings outstanding under Western Gas Partners' revolving credit facility and then any remaining proceeds for general partnership purposes, including to fund capital expenditures.
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Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from (i) Morgan Stanley & Co. LLC, 1585 Broadway, New York, New York 10036, Attention: Investment Grade Debt Syndicate Desk, and (ii) RBC Capital Markets, LLC, Attn: DCM Transaction Management, 200 Vesey Street, New York, New York 10281, Telephone: (866) 375-6829. An electronic copy of the prospectus and prospectus supplement is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any 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 February 7, 2014.
This news release contains forward-looking statements. Western Gas 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 Western Gas Partners' ability to close successfully on the senior notes offering and to use the net proceeds as indicated in this news release. See "Risk Factors" in Western Gas Partners' Annual Report on Form 10-K for the year ended December 31, 2015, Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016 and other public filings and press releases. Except as required by law, Western Gas Partners undertakes no obligation to publicly update or revise any forward-looking statements.
Western Gas Partners, LP Contact
Jonathon E. VandenBrand
Director, Investor Relations
832.636.1007
jon.vandenbrand@anadarko.com
SOURCE Western Gas Partners, LP
Article Date
10/6/2016Western Gas Partners Announces New Long-Term Agreements In Delaware Basin
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Sep. 27, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) today announced it has entered into a new commercial arrangement with SWEPI LP, a subsidiary of Royal Dutch Shell plc ("Shell") to gather and process natural gas through its owned and operated midstream assets in the Delaware Basin. Under the terms of the new fixed-fee agreements, WES will provide gathering, processing and related services to Shell for a minimum period of 20 years. In addition, Shell has dedicated gas from certain wells and acreage in the basin to WES's assets for the term of the agreements.
"I am very pleased to announce that we have entered into a new long-term relationship with Shell, a significant producer and acreage holder in the prolific Delaware Basin," said Donald R. Sinclair, Chief Executive Officer of WES. "This agreement enables us to provide midstream services to another top-quality producer in the region as we continue to expand our best-in-class gathering and processing footprint in West 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, 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.
This news release contains forward-looking statements. Western Gas Partners 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. These factors include the ability to perform under, or profit from, the new SWEPI LP contract; 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 most recent Forms 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in its other public filings and press releases. Western Gas Partners undertakes no obligation to publicly update or revise any forward-looking statements.
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 Partners, LP
Article Date
9/27/2016Western Gas To Present At Upcoming Barclays CEO Energy-Power Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
9/1/2016Western Gas Announces Second-Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
7/26/20167/20/2016 - Western Gas Announces Second Quarter 2016 Distribution And Schedules Earnings Conference Call
Western Gas Announces Second Quarter 2016 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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.
Logo - http://photos.prnewswire.com/prnh/20150505/213920LOGO
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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
Article Date
7/20/2016Western Gas Partners Announces Pricing Of $500 Million Of Senior Notes
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, June 30, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) today announced that it has priced an offering of $500,000,000 in aggregate principal amount of 4.650% senior notes due 2026 at a price to the public of 99.796% of their face value. The offering of the senior notes is expected to close on July 12, 2016, subject to customary closing conditions. Net proceeds from the offering are expected to be used to repay amounts outstanding under the partnership's revolving credit facility.
Logo - http://photos.prnewswire.com/prnh/20150505/213920LOGO
Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Barclays Capital Inc., Citigroup Global Markets Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. The offering will be made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Deutsche Bank Securities Inc., Attn.: Prospectus Group, 60 Wall Street, New York, NY 10005-2836, email: prospectus.CPDG@db.com, tel: (800) 503-4611, or Mizuho Securities USA Inc. at 1-866-271-7403 or by mail to Mizuho Securities USA Inc., Attention: Debt Capital Markets, 320 Park Avenue, New York, New York 10022. An electronic copy of the prospectus and prospectus supplement is available from the U.S. Securities and Exchange Commission's website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any 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 February 7, 2014.
This news release contains forward-looking statements. Western Gas 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 Western Gas Partners' ability to close successfully on the senior notes offering and to use the net proceeds as indicated in this news release. See "Risk Factors" in Western Gas 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. Except as required by law, Western Gas Partners undertakes no obligation to publicly update or revise any forward-looking statements.
Western Gas Partners, LP Contact
Jonathon E. VandenBrand
Director, Investor Relations
832.636.1007
jon.vandenbrand@anadarko.com
SOURCE Western Gas Partners, LP
Article Date
6/30/2016Western Gas To Present At Master Limited Partnership Association Investor Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
5/26/2016Western Gas Announces First-Quarter 2016 Results
Source: PR Newswire
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. |
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SOURCE Western Gas
Article Date
5/3/20164/22/2016 - Western Gas Announces First Quarter 2016 Distribution And Schedules Earnings Conference Call
Western Gas Announces First Quarter 2016 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
4/22/20164/18/2016 - Western Gas Partners Announces Issuance of Series A Preferred Units Under Exercise of Over-Allotment Option
Western Gas Partners Announces Issuance of Series A Preferred Units Under Exercise of Over-Allotment Option
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, April 18, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) today announced that it has closed the issuance of 7,892,220 Series A preferred units representing limited partner interests pursuant to the exercise in full of the option to purchase additional units granted to the purchasers in connection with its recent private placement of 14,030,611 Series A preferred units. Aggregate net proceeds of approximately $247.5 million from the sale of these Series A preferred units will be used to repay amounts outstanding under the partnership's revolving credit facility.
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This news release contains forward-looking statements. Western Gas 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 Western Gas Partners' ability to use the net proceeds as indicated in this news release. See "Risk Factors" in Western Gas Partners' Annual Report on Form 10-K for the year ended December 31, 2015 and other public filings and press releases. Western Gas Partners undertakes no obligation to publicly update or revise any forward-looking statements.
For more information about Western Gas Partners, LP, please visit www.westerngas.com.
WESTERN GAS PARTNERS, LP CONTACT:
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
benjamin.fink@westerngas.com
832.636.6010
SOURCE Western Gas Partners, LP
Article Date
4/18/2016Western Gas Closes Springfield Acquisition And Related Financing Transactions
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
3/14/2016Anadarko Announces 2016 Capital Program And Guidance
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, March 1, 2016 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its 2016 initial capital expectations and guidance, concurrent with its 2016 Investor Conference Call.
2016 INVESTOR CONFERENCE CALL HIGHLIGHTS
"In 2016, we will continue our disciplined and focused approach, preserving and building value by leveraging our best-in-class capital allocation, enhancing operational efficiencies and continuing an active monetization program," said Al Walker, Anadarko Chairman, President and CEO. "We are committed to again investing well within cash inflows from a combination of anticipated discretionary cash flow and our ongoing monetizations, with the expectation of also reducing net debt during the year. As we announced last week, we have already closed or announced monetizations totaling approximately $1.3 billion, and we expect our cash position to be further strengthened during the year through substantial cost reductions and additional identified monetization opportunities. We will also benefit from the recent action by our Board to reduce our dividend, which will provide approximately $450 million of additional cash this year."
2016 INITIAL SALES-VOLUME AND CAPITAL EXPECTATIONS
|
Initial 2016 Capital Expectations ($2.6 - $2.8 Billion)(1) | ||||||||
|
Billions |
Billions |
|||||||
|
By Area |
By Cash Cycle (E&P only) | |||||||
|
U.S. Onshore |
$ |
1.1 |
Short Cash Cycle |
$ |
1.5 |
|||
|
International |
0.7 |
Mid Cash Cycle |
0.5 |
|||||
|
Gulf of Mexico |
0.7 |
Long Cash Cycle |
0.5 |
|||||
|
Midstream & Other |
0.2 |
|||||||
|
Note: All amounts are approximates. |
|
Divestiture-Adjusted(2) Sales-Volume Expectations | |||
|
2016 Initial Expectations |
2015 | ||
|
Total (MMBOE) |
282 – 286 |
292 | |
|
Oil (MBOPD) |
308 – 313 |
312 | |
U.S. ONSHORE
Anadarko's U.S. onshore activities will be reduced the most, by almost $2.5 billion in capital investments year over year, as the company preserves its opportunities, including in two of the highest-returning onshore assets in North America – the Delaware and DJ basins – for a more compelling price environment. The company is reducing its U.S. onshore rig count by 80 percent to five operated rigs, from an average of 25 in 2015, while focusing on its base production and retaining the flexibility to leverage its inventory of approximately 230 drilled but intentionally uncompleted wells. In the Delaware Basin, Anadarko plans to run four operated rigs, which will be directed toward delineation and lease maintenance rather than development activities. To date, the company's successful activities in this play have reduced well costs, identified additional prospective zones and doubled the estimated recoverable resources to more than 2 billion BOE. In the DJ Basin, the company expects to operate one rig, compared to seven in 2015.
GULF OF MEXICO
Anadarko's 2016 Gulf of Mexico program will focus on the company's capital-efficient tieback oil opportunities, as well as on advancing appraisal activities. By leveraging its existing infrastructure, Anadarko's tieback opportunities offer returns of more than 30 percent at today's strip prices. These activities will include tiebacks at Lucius, Caesar/Tonga and K2. In addition, Anadarko plans to advance existing discoveries through appraisal activities at Shenandoah and Phobos. One exploration well is planned at the Warrior prospect, which if successful, could be a tieback to K2.
INTERNATIONAL
In 2016, Anadarko's planned international activity will include efforts to advance its Paon oil discovery offshore Côte d'Ivoire toward potential development with one appraisal well, a drillstem test, and two exploration wells. Once activities are completed in Côte d'Ivoire, the rig is scheduled to return to Colombia to conduct additional exploration drilling activities. Offshore Ghana, the company expects to achieve first oil at the TEN complex in the third quarter of 2016. In Mozambique, Anadarko expects minimal funding in 2016 as it works three parallel paths toward a Final Investment Decision (FID) for its LNG project. These processes include securing the necessary legal and contractual framework, progressing more than 8 million tonnes per annum of off-take toward long-term sales contracts and advancing project financing.
Four pages of supplemental materials including the company's 2016 initial guidance, updated hedging positions and a reconciliation of divestiture-adjusted sales volumes are provided in the tables attached to this release.
(1) Does not include capital investments by Western Gas Partners, LP (NYSE: WES).
(2) 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 divestitures.
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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 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 realize its expectations regarding performance in this challenging economic environment and meet financial and operating guidance; reduce its net debt; meet the objectives identified in this news release; consummate the transactions described in this news release and identify and complete additional transactions; execute the 2016 capital program; drill, develop and commercially operate the drilling prospects identified in this news release; achieve production and budget expectations on its mega projects; 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.
Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko uses certain terms in this news release, such as "recoverable resource," and similar terms that the SEC's guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2015, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.
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
Jeremy Smith, jeremy.smith@anadarko.com, 832.636.1544
Shandell Szabo, shandell.szabo@anadarko.com, 832.636.3977
|
Anadarko Petroleum Corporation | ||||||||||||||
|
Financial and Operating External Guidance | ||||||||||||||
|
March 1, 2016 | ||||||||||||||
|
Note: Guidance excludes 2016 sales volumes associated with pending East Chalk divestiture. | ||||||||||||||
|
1st-Qtr |
Full-Year | |||||||||||||
|
Guidance (see Note) |
Guidance (see Note) | |||||||||||||
|
Units |
Units | |||||||||||||
|
Total Sales Volumes (MMBOE) |
74 |
— |
76 |
282 |
— |
286 |
||||||||
|
Total Sales Volumes (MBOE/d) |
813 |
— |
835 |
770 |
— |
781 |
||||||||
|
Oil (MBbl/d) |
311 |
— |
316 |
308 |
— |
313 |
||||||||
|
United States |
229 |
— |
232 |
222 |
— |
225 |
||||||||
|
Algeria |
64 |
— |
65 |
59 |
— |
60 |
||||||||
|
Ghana |
18 |
— |
19 |
27 |
— |
28 |
||||||||
|
Natural Gas (MMcf/d) |
||||||||||||||
|
United States |
2,250 |
— |
2,290 |
2,030 |
— |
2,060 |
||||||||
|
Natural Gas Liquids (MBbl/d) |
||||||||||||||
|
United States |
119 |
— |
123 |
117 |
— |
120 |
||||||||
|
Algeria |
5 |
— |
7 |
5 |
— |
7 |
||||||||
|
$ / Unit |
$ / Unit | |||||||||||||
|
Price Differentials vs. NYMEX (w/o hedges) |
||||||||||||||
|
Oil ($/Bbl) |
(7.00) |
— |
(2.00) |
(7.00) |
— |
(2.00) |
||||||||
|
United States |
(8.00) |
— |
(3.00) |
(8.00) |
— |
(3.00) |
||||||||
|
Algeria |
(3.00) |
— |
— |
(4.00) |
— |
(1.00) |
||||||||
|
Ghana |
(3.00) |
— |
— |
(4.00) |
— |
(1.00) |
||||||||
|
Natural Gas ($/Mcf) |
||||||||||||||
|
United States |
(0.40) |
— |
(0.15) |
(0.40) |
— |
(0.20) |
||||||||
|
Anadarko Petroleum Corporation | ||||||||||||||
|
Financial and Operating External Guidance | ||||||||||||||
|
March 1, 2016 | ||||||||||||||
|
Note: Guidance excludes 2016 sales volumes associated with pending East Chalk divestiture. | ||||||||||||||
|
1st-Qtr |
Full-Year | |||||||||||||
|
Guidance (see Note) |
Guidance (see Note) | |||||||||||||
|
$ MM |
$ MM | |||||||||||||
|
Other Revenues |
||||||||||||||
|
Marketing and Gathering Margin |
15 |
— |
35 |
145 |
— |
165 |
||||||||
|
Minerals and Other |
45 |
— |
65 |
185 |
— |
205 |
||||||||
|
Costs and Expenses |
||||||||||||||
|
$ / BOE |
$ / BOE | |||||||||||||
|
Oil & Gas Direct Operating |
3.00 |
— |
3.15 |
3.20 |
— |
3.40 |
||||||||
|
Oil & Gas Transportation |
3.40 |
— |
3.60 |
3.55 |
— |
3.75 |
||||||||
|
Depreciation, Depletion, and Amortization |
14.90 |
— |
15.25 |
15.80 |
— |
16.00 |
||||||||
|
Production Taxes (% of Product Revenue) |
8.0 |
% |
— |
9.0 |
% |
8.0 |
% |
— |
9.0 |
% | ||||
|
$ MM |
$ MM | |||||||||||||
|
General and Administrative |
280 |
— |
300 |
975 |
— |
1,025 |
||||||||
|
Other Operating Expense |
25 |
— |
35 |
55 |
— |
65 |
||||||||
|
Exploration Expense |
||||||||||||||
|
Non-Cash |
60 |
— |
80 |
350 |
— |
450 |
||||||||
|
Cash |
50 |
— |
70 |
280 |
— |
300 |
||||||||
|
Interest Expense (net) |
205 |
— |
215 |
840 |
— |
860 |
||||||||
|
Other (Income) Expense |
50 |
— |
60 |
200 |
— |
225 |
||||||||
|
Taxes |
||||||||||||||
|
Algeria (100% current) |
70 |
% |
— |
75 |
% |
70 |
% |
— |
75 |
% | ||||
|
Rest of Company (1Q 5% current; Total Year 10% current) |
30 |
% |
— |
40 |
% |
30 |
% |
— |
40 |
% | ||||
|
Avg. Shares Outstanding (MM) |
||||||||||||||
|
Basic |
508 |
— |
509 |
509 |
— |
510 |
||||||||
|
Diluted |
509 |
— |
510 |
510 |
— |
511 |
||||||||
|
Capital Investment (Excluding Western Gas Partners, LP) |
$ MM |
$ MM | ||||||||||||
|
APC Capital Expenditures |
800 |
— |
900 |
2,600 |
— |
2,800 |
||||||||
|
Anadarko Petroleum Corporation | |||||||||
|
Commodity Hedge Positions | |||||||||
|
As of March 1, 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 | |||
|
Interest-Rate Derivatives | |||||
|
As of March 1, 2016 | |||||
|
Instrument |
Notional Amt. |
Reference Period |
Mandatory Termination Date |
Rate Paid |
Rate Received |
|
Swap |
$50 Million |
Sept. 2016 - Sept. 2026 |
Sept. 2016 |
5.910% |
3M LIBOR |
|
Swap |
$50 Million |
Sept. 2016 - Sept. 2046 |
Sept. 2016 |
6.290% |
3M LIBOR |
|
Swap |
$500 Million |
Sept. 2016 - Sept. 2046 |
Sept. 2018 |
6.559% |
3M LIBOR |
|
Swap |
$300 Million |
Sept. 2016 - Sept. 2046 |
Sept. 2020 |
6.509% |
3M LIBOR |
|
Swap |
$450 Million |
Sept. 2017 - Sept. 2047 |
Sept. 2018 |
6.445% |
3M LIBOR |
|
Swap |
$300 Million |
Sept. 2017 - Sept. 2047 |
Sept. 2020 |
6.569% |
3M LIBOR |
|
Swap |
$250 Million |
Sept. 2017 - Sept. 2047 |
Sept. 2021 |
6.570% |
3M LIBOR |
|
Anadarko Petroleum Corporation | |||||||||||
|
Reconciliation of Divestiture-Adjusted Sales Volumes | |||||||||||
|
Average Daily Sales Volumes | |||||||||||
|
Oil & |
|||||||||||
|
Condensate |
Natural Gas |
NGLs |
Total | ||||||||
|
MBbls/d |
MMcf/d |
MBbls/d |
MBOE/d | ||||||||
|
Quarter Ended March 31, 2015 |
|||||||||||
|
U.S. Onshore |
167 |
2,232 |
129 |
668 |
|||||||
|
Deepwater Gulf of Mexico |
46 |
221 |
6 |
89 |
|||||||
|
International and Alaska |
107 |
— |
7 |
114 |
|||||||
|
Divestiture-Adjusted Sales |
320 |
2,453 |
142 |
871 |
|||||||
|
Divestitures* |
15 |
285 |
1 |
63 |
|||||||
|
Total |
335 |
2,738 |
143 |
934 |
|||||||
|
Quarter Ended June 30, 2015 |
|||||||||||
|
U.S. Onshore |
173 |
1,976 |
122 |
625 |
|||||||
|
Deepwater Gulf of Mexico |
57 |
113 |
7 |
83 |
|||||||
|
International and Alaska |
87 |
— |
6 |
92 |
|||||||
|
Divestiture-Adjusted Sales |
317 |
2,089 |
135 |
800 |
|||||||
|
Divestitures* |
1 |
265 |
1 |
46 |
|||||||
|
Total |
318 |
2,354 |
136 |
846 |
|||||||
|
Quarter Ended September 30, 2015 |
|||||||||||
|
U.S. Onshore |
160 |
1,870 |
109 |
581 |
|||||||
|
Deepwater Gulf of Mexico |
55 |
158 |
7 |
88 |
|||||||
|
International and Alaska |
84 |
— |
5 |
89 |
|||||||
|
Divestiture-Adjusted Sales |
299 |
2,028 |
121 |
758 |
|||||||
|
Divestitures* |
2 |
158 |
1 |
29 |
|||||||
|
Total |
301 |
2,186 |
122 |
787 |
|||||||
|
Quarter Ended December. 31, 2015 |
|||||||||||
|
U.S. Onshore |
164 |
1,940 |
105 |
592 |
|||||||
|
Deepwater Gulf of Mexico |
54 |
115 |
6 |
80 |
|||||||
|
International and Alaska |
96 |
— |
6 |
102 |
|||||||
|
Divestiture-Adjusted Sales |
314 |
2,055 |
117 |
774 |
|||||||
|
Divestitures* |
2 |
13 |
1 |
5 |
|||||||
|
Total |
316 |
2,068 |
118 |
779 |
|||||||
|
Year Ended December 31, 2015 |
|||||||||||
|
U.S. Onshore |
165 |
2,003 |
116 |
615 |
|||||||
|
Deepwater Gulf of Mexico |
53 |
152 |
7 |
85 |
|||||||
|
International and Alaska |
94 |
— |
6 |
100 |
|||||||
|
Divestiture-Adjusted Sales |
312 |
2,155 |
129 |
800 |
|||||||
|
Divestitures* |
5 |
179 |
1 |
36 |
|||||||
|
Total |
317 |
2,334 |
130 |
836 |
|||||||
|
* |
Includes EOR, Bossier, Powder River Basin CBM, and East Chalk (transaction pending). |
SOURCE Anadarko Petroleum Corporation
Article Date
3/1/2016Anadarko Announces Monetizations Totaling Approximately $1.3 Billion
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Feb. 24, 2016 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced it has closed or signed agreements to monetize approximately $1.3 billion of assets since the beginning of the year. The monetizations include the forward sale of future royalty income from its natural soda ash interest, the divestiture of its East Chalk asset, and the sale of its interest in the Maverick Basin gathering system.
"These monetizations continue our track record of actively managing our portfolio," said Anadarko Chairman, President and CEO Al Walker. "Consistent with that, we have identified other significant asset monetization opportunities that we will continue to actively pursue during the year. Our actions to date, which include significantly lowering our 2016 capital spending, improving our cost structure, sharply reducing the dividend and monetizing assets, continue to demonstrate our commitment to financial discipline and managing our portfolio in a prudent manner, while investing within cash inflows and reducing net debt, without the need to issue equity."
On Feb. 23, 2016, Anadarko closed an agreement, under which it sold a portion of its future royalties associated with existing soda ash and coal leases in Sweetwater County, Wyo., to a third party for $420 million. On Feb. 10, 2016, Anadarko signed a sales agreement with an affiliate of Zarvona Energy LLC, to divest Anadarko's interest in the East Chalk area, primarily located in Tyler and Jasper counties, Texas, for approximately $105 million. The transaction is expected to close early in the second quarter of 2016, subject to applicable regulatory approvals and other contractual conditions. Anadarko also announced an agreement with Western Gas Partners, LP (NYSE: WES), whereby WES will acquire a 100-percent interest in Springfield Pipeline LLC, from Anadarko for $750 million. Springfield's sole asset is a 50.1-percent interest in the Maverick Basin gathering system, located in Dimmit, La Salle, Maverick and Webb counties in South Texas. The transaction is expected to close by March 15, 2016, subject to applicable regulatory approvals and other contractual conditions.
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 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 realize its expectations in this challenging economic environment and meet financial and operating guidance; reduce its net debt; to meet the objectives identified in this news release; and to consummate the transactions described in this news release and identify and complete additional transactions. 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
Jeremy Smith, Jeremy.Smith@anadarko.com, 832.636.1544
Shandell Szabo, Shandell.Szabo@anadarko.com, 832.636.3977
SOURCE Anadarko Petroleum Corporation
Article Date
2/24/2016Western Gas Announces Acquisition And Fourth-Quarter And Full-Year 2015 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Article Date
2/24/2016Anadarko Announces 2015 Fourth-Quarter And Full-Year Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
HOUSTON, Feb. 1, 2016 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2015 fourth-quarter results, reporting a net loss attributable to common stockholders of $1.250 billion, or $2.45 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased the net loss by $954 million, or $1.88 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the fourth quarter of 2015 was $257 million, and discretionary cash flow totaled $810 million.(2)
For the year ended Dec. 31, 2015, Anadarko reported a net loss attributable to common stockholders of $6.692 billion, or $13.18 per share (diluted). Full-year 2015 net cash used in operating activities was $1.877 billion. Discretionary cash flow for the year totaled $4.657 billion.(2)
2015 HIGHLIGHTS
"As discussed last year at this time, we did not expect oil prices to recover in 2015 and believed it could take well into 2016 before markets would stabilize on a sustained basis, costs would become more aligned with the new operating environment and investments in short-cycle assets would be more attractive. Therefore, value enhancement drove our capital-allocation philosophy," said Anadarko Chairman, President and CEO Al Walker. "As a result, we reduced our year-over-year spending in 2015 by more than $3 billion, down nearly 40 percent from the previous year, with the largest portion of this reduction coming from our short-cycle opportunities. Through the hard work and innovation of our employees, we exceeded our initial expectations on nearly every operating metric. We dramatically improved efficiencies and reduced controllable spending by approximately $500 million, while enhancing our base production, and delivering an incremental 25,000 barrels per day of higher-margin oil sales volumes. In addition, we closed $2 billion of monetizations, significantly in excess of our initial expectations.
"As we consider capital allocation for 2016, greater market dislocation appears likely, and the need to again materially lower our capital spending, while continuing to pursue value creation and preservation, is our best course of action," added Walker. "In light of this, we anticipate recommending to our Board an initial 2016 budget of approximately $2.8 billion, which would be nearly 50 percent lower than our actual 2015 capital investments and almost 70 percent lower than 2014. On March 1, we will host an investor conference call and look forward to going into greater detail at that time about our definitive 2016 capital plans and expectations.
"We believe the accomplishments achieved in 2015, coupled with the steps we are taking in 2016 to materially reduce our capital spending, leverage our competitive advantages and protect our balance sheet, will serve our shareholders well. These actions should enable us to successfully manage through the current market volatility and position Anadarko for future success."
SALES VOLUMES AND PROVED RESERVES
Anadarko's full-year sales volumes of crude oil, natural gas and natural gas liquids (NGLs) totaled 305 million barrels of oil equivalent (BOE), or an average of 836,000 BOE per day. Fourth-quarter 2015 sales volumes of crude oil, natural gas and NGLs averaged approximately 779,000 BOE per day.
Anadarko organically added 407 million BOE of proved reserves in 2015 before the effects of price revisions and incurred oil and natural gas exploration and development costs of approximately $5.8 billion.(2) The company estimates its proved reserves at year-end 2015 totaled approximately 2.06 billion BOE, with nearly 80 percent of its reserves categorized as proved developed. At year-end 2015, Anadarko's proved reserves were comprised of 52 percent liquids and 48 percent natural gas.
OPERATING HIGHLIGHTS
In 2015, Anadarko increased its percentage of capital investments in longer cash cycle opportunities, such as advancing its large-scale deepwater projects and exploration. The company's U.S. onshore investments were primarily allocated toward the Wattenberg field in northeastern Colorado and the Delaware Basin in West Texas, both of which demonstrated strong growth year over year. In the Wattenberg field, relative to 2014, Anadarko reduced drilling costs per foot by 50 percent and completion costs by 32 percent, while increasing oil sales volumes almost 30 percent. Anadarko also continued to successfully delineate its top-tier 600,000-gross-acre position with multiple stacked play opportunities in the Delaware Basin. With estimated ultimate recoveries (EURs) already approaching 1 million BOE per well in the Wolfcamp Shale, encouraging results from the Second Bone Spring formation, improved efficiencies, cost reductions, and expanded midstream infrastructure, the company expects to increase its identified drilling locations and recoverable-resource estimates in the basin beyond the current estimates of more than 1 billion BOE as the program continues to advance.
Anadarko also continued to demonstrate its industry-leading project management expertise as its Lucius development in the Gulf of Mexico achieved first oil on budget and on schedule in January 2015. Subsequent to year-end, the Anadarko-operated Heidelberg spar successfully achieved first oil with excellent safety performance, three months ahead of schedule and under budget.
During 2015, Anadarko made significant progress advancing its Mozambique LNG project. Milestones included the signing of a Unitization and Unit Operating agreement with Eni for the development of the natural gas resources that straddle Offshore Area 1 and Offshore Area 4, signing a Memorandum of Understanding with the Government of Mozambique to provide natural gas from the development for domestic use, selecting a contractor for the initial onshore development, and progressing more than 8 million tonnes per annum of LNG offtake to long-term sales contracts. Offshore Ghana, the third-party operated TEN development was more than 80-percent complete at year-end and on track to achieve first oil in the third quarter of 2016.
OPERATIONS REPORT
For additional details on Anadarko's fourth-quarter 2015 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.
FINANCIAL HIGHLIGHTS
Anadarko ended 2015 with $939 million of cash on hand, which reflects remittance of the $5.2 billion final payment resolving the Tronox Adversary Proceeding. In December, the company extended the maturity of its $3 billion unsecured revolving credit facility to January 2021, and in January 2016, Anadarko renewed its $2 billion 364-day credit facility to a new maturity in 2017, further supporting the company's strong liquidity position.
During the year, the company generated approximately $4.7 billion of discretionary cash flow(2) and $2.0 billion from monetizations, which more than covered its capital investments of approximately $5.9 billion, including approximately $525 million of capital investments by its subsidiary Western Gas Partners, LP (NYSE: WES).
CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host a conference call on Tuesday, Feb. 2, 2016, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2015 results. The dial-in number is 844.836.8743 in the U.S. or 412.317.5438 internationally. Participants can register for the conference at http://dpregister.com/10077883. 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 costs incurred, proved reserves and current hedge positions.
(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 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 realize its expectations regarding performance in this challenging economic environment, finalize year-end reserves, and timely complete and commercially operate the projects and drilling prospects identified in this news release, receipt of final approval of the Unitization and Unit Operating agreement from the Government of Mozambique, the ability of Anadarko and the Government of Mozambique to finalize the legal and contractual framework relating to the Memorandum of Understanding, and Anadarko's ability to enter into a definitive agreement with the contractor for onshore development, successfully plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG park in Mozambique, increase its recoverable-resource estimate in the Delaware Basin, and achieve production and budget expectations on its mega projects. See "Risk Factors" in the company's 2014 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.
Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their regulatory filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definition for such items. Anadarko uses terms in this news release such as "estimated ultimate recoveries," "recoverable-resource estimate," and similar terms that the SEC's guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2014, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.
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
Jeremy Smith, Jeremy.Smith@anadarko.com, 832.636.1544
Shandell Szabo, Shandell.Szabo@anadarko.com, 832.636.3977
|
Anadarko Petroleum Corporation | ||||||||||||
|
Certain Items Affecting Comparability | ||||||||||||
|
Quarter Ended December 31, 2015 | ||||||||||||
|
Before |
After |
Per Share | ||||||||||
|
millions except per-share amounts |
Tax |
Tax |
(diluted) | |||||||||
|
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* |
$ |
139 |
$ |
88 |
$ |
0.17 |
||||||
|
Gains (losses) on divestitures, net (after noncontrolling interest) |
(7) |
(5) |
(0.01) |
|||||||||
|
Impairments |
||||||||||||
|
Producing properties (after noncontrolling interest) |
(1,205) |
(761) |
(1.50) |
|||||||||
|
Exploration assets |
(144) |
(93) |
(0.18) |
|||||||||
|
Clean Water Act penalty accrual |
(70) |
(70) |
(0.14) |
|||||||||
|
Settlement accrual |
(74) |
(47) |
(0.09) |
|||||||||
|
Inventory adjustments |
(38) |
(25) |
(0.05) |
|||||||||
|
Environmental reserves |
(29) |
(18) |
(0.03) |
|||||||||
|
Other adjustments |
(13) |
(10) |
(0.02) |
|||||||||
|
Change in uncertain tax positions (FIN 48) |
— |
(13) |
(0.03) |
|||||||||
|
$ |
(1,441) |
$ |
(954) |
$ |
(1.88) |
|||||||
|
* Includes $106 million related to commodity derivatives, $32 million related to other derivatives, and $1 million related to gathering, processing, and marketing sales. |
|
Quarter Ended December 31, 2014 | ||||||||||||
|
Before |
After |
Per Share | ||||||||||
|
millions except per-share amounts |
Tax |
Tax |
(diluted) | |||||||||
|
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives* |
$ |
(254) |
$ |
(162) |
$ |
(0.32) |
||||||
|
Gains (losses) on divestitures, net |
(303) |
(192) |
(0.38) |
|||||||||
|
Impairments, including unproved properties |
(548) |
(346) |
(0.68) |
|||||||||
|
Inventory adjustments |
(60) |
(38) |
(0.07) |
|||||||||
|
Cash received in early settlement of oil derivatives |
126 |
80 |
0.16 |
|||||||||
|
Litigation settlement |
50 |
32 |
0.06 |
|||||||||
|
Interest expense related to Tronox settlement |
(22) |
(14) |
(0.03) |
|||||||||
|
Change in uncertain tax positions (FIN 48) |
— |
58 |
0.11 |
|||||||||
|
$ |
(1,011) |
$ |
(582) |
$ |
(1.15) |
|||||||
|
* Includes $40 million related to commodity derivatives, $(293) million related to other derivatives, and $(1) million related to gathering, processing, and marketing sales. |
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), as well as free cash flow (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management uses adjusted net income (loss) to evaluate the Company's operational trends and performance.
|
Quarter Ended |
Quarter Ended | ||||||||||||||
|
December 31, 2015 |
December 31, 2014 | ||||||||||||||
|
After |
Per Share |
After |
Per Share | ||||||||||||
|
millions except per-share amounts |
Tax |
(diluted) |
Tax |
(diluted) | |||||||||||
|
Net income (loss) attributable to common stockholders |
$ |
(1,250) |
$ |
(2.45) |
$ |
(395) |
$ |
(0.78) |
|||||||
|
Less certain items affecting comparability |
(954) |
(1.88) |
(582) |
(1.15) |
|||||||||||
|
Adjusted net income (loss) |
$ |
(296) |
$ |
(0.57) |
$ |
187 |
$ |
0.37 |
|||||||
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes certain fluctuations in assets and liabilities and current taxes related to certain items affecting comparability. Management uses free cash flow to demonstrate the Company's ability to internally fund capital expenditures and to service or incur additional debt.
|
Quarter Ended |
Year Ended | ||||||||||||||
|
December 31, |
December 31, | ||||||||||||||
|
millions |
2015 |
2014 |
2015 |
2014 | |||||||||||
|
Net cash provided by (used in) operating activities |
$ |
257 |
$ |
1,952 |
$ |
(1,877) |
$ |
8,466 |
|||||||
|
Add back |
|||||||||||||||
|
Increase (decrease) in accounts receivable |
25 |
1 |
2 |
(103) |
|||||||||||
|
(Increase) decrease in accounts payable and accrued expenses |
422 |
706 |
995 |
(97) |
|||||||||||
|
Other items, net |
28 |
(163) |
(772) |
71 |
|||||||||||
|
Tronox settlement payment |
— |
— |
5,215 |
— |
|||||||||||
|
Certain nonoperating and other excluded items |
70 |
1 |
96 |
119 |
|||||||||||
|
Current taxes related to asset monetizations and Tronox tax position |
8 |
(95) |
998 |
938 |
|||||||||||
|
Discretionary cash flow from operations |
$ |
810 |
$ |
2,402 |
$ |
4,657 |
$ |
9,394 |
|||||||
|
Quarter Ended |
Year Ended | ||||||||||||||
|
December 31, |
December 31, | ||||||||||||||
|
millions |
2015 |
2014 |
2015 |
2014 | |||||||||||
|
Discretionary cash flow from operations |
$ |
810 |
$ |
2,402 |
$ |
4,657 |
$ |
9,394 |
|||||||
|
Less capital expenditures* |
1,313 |
2,169 |
5,888 |
9,256 |
|||||||||||
|
Free cash flow |
$ |
(503) |
$ |
233 |
$ |
(1,231) |
$ |
138 |
|||||||
|
* Includes Western Gas Partners, LP (WES) capital expenditures of $120 million for the quarter ended December 31, 2015, $206 million for the quarter ended December 31, 2014, $525 million for the year ended December 31, 2015, and $696 million for the year ended December 31, 2014. |
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Presented below are reconciliations of costs incurred (GAAP) to oil and natural gas exploration and development costs (non-GAAP) and total debt (GAAP) to net debt (non-GAAP). Management believes oil and natural gas exploration and development costs is a more accurate reflection of the expenditures incurred during the current year, excluding certain obligations to be paid in future periods. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.
|
Year Ended | |||||||||||||
|
December 31, | |||||||||||||
|
millions |
2015 | ||||||||||||
|
Costs incurred |
$ |
5,753 |
|||||||||||
|
Asset retirement obligation liabilities incurred |
(207) |
||||||||||||
|
Cash expenditures for asset retirement obligations |
298 |
||||||||||||
|
Oil and natural gas exploration and development costs |
$ |
5,844 |
|||||||||||
|
December 31, 2015 | |||||||||||||
|
Anadarko | |||||||||||||
|
Anadarko |
WGP* |
excluding | |||||||||||
|
millions |
Consolidated |
Consolidated |
WGP | ||||||||||
|
Total debt |
$ |
15,751 |
$ |
2,707 |
$ |
13,044 |
|||||||
|
Less cash and cash equivalents |
939 |
100 |
839 |
||||||||||
|
Net debt |
$ |
14,812 |
$ |
2,607 |
$ |
12,205 |
|||||||
|
Anadarko | |||||||||||||
|
Anadarko |
excluding | ||||||||||||
|
millions |
Consolidated |
WGP | |||||||||||
|
Net debt |
$ |
14,812 |
$ |
12,205 |
|||||||||
|
Total equity |
15,457 |
12,819 |
|||||||||||
|
Adjusted capitalization |
$ |
30,269 |
$ |
25,024 |
|||||||||
|
Net debt to adjusted capitalization ratio |
49 |
% |
49 |
% | |||||||||
|
* 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 |
Year Ended | ||||||||||||||
|
Summary Financial Information |
December 31, |
December 31, | |||||||||||||
|
millions except per-share amounts |
2015 |
2014 |
2015 |
2014 | |||||||||||
|
Consolidated Statements of Income |
|||||||||||||||
|
Revenues and Other |
|||||||||||||||
|
Oil and condensate sales |
$ |
1,156 |
$ |
1,982 |
$ |
5,420 |
$ |
9,748 |
|||||||
|
Natural-gas sales |
395 |
811 |
2,007 |
3,849 |
|||||||||||
|
Natural-gas liquids sales |
189 |
351 |
833 |
1,572 |
|||||||||||
|
Gathering, processing, and marketing sales |
294 |
278 |
1,226 |
1,206 |
|||||||||||
|
Gains (losses) on divestitures and other, net |
19 |
(245) |
(788) |
2,095 |
|||||||||||
|
Total |
2,053 |
3,177 |
8,698 |
18,470 |
|||||||||||
|
Costs and Expenses |
|||||||||||||||
|
Oil and gas operating |
230 |
310 |
1,014 |
1,171 |
|||||||||||
|
Oil and gas transportation |
264 |
287 |
1,117 |
1,116 |
|||||||||||
|
Exploration |
384 |
639 |
2,644 |
1,639 |
|||||||||||
|
Gathering, processing, and marketing |
256 |
259 |
1,054 |
1,030 |
|||||||||||
|
General and administrative |
288 |
332 |
1,176 |
1,316 |
|||||||||||
|
Depreciation, depletion, and amortization |
1,022 |
1,215 |
4,603 |
4,550 |
|||||||||||
|
Other taxes |
93 |
263 |
553 |
1,244 |
|||||||||||
|
Impairments |
1,504 |
322 |
5,075 |
836 |
|||||||||||
|
Other operating expense |
154 |
29 |
271 |
165 |
|||||||||||
|
Total |
4,195 |
3,656 |
17,507 |
13,067 |
|||||||||||
|
Operating Income (Loss) |
(2,142) |
(479) |
(8,809) |
5,403 |
|||||||||||
|
Other (Income) Expense |
|||||||||||||||
|
Interest expense |
209 |
199 |
825 |
772 |
|||||||||||
|
(Gains) losses on derivatives, net |
(222) |
(256) |
(99) |
197 |
|||||||||||
|
Other (income) expense, net |
40 |
8 |
149 |
20 |
|||||||||||
|
Tronox-related contingent loss |
— |
22 |
5 |
4,360 |
|||||||||||
|
Total |
27 |
(27) |
880 |
5,349 |
|||||||||||
|
Income (Loss) Before Income Taxes |
(2,169) |
(452) |
(9,689) |
54 |
|||||||||||
|
Income Tax Expense (Benefit) |
(645) |
(102) |
(2,877) |
1,617 |
|||||||||||
|
Net Income (Loss) |
(1,524) |
(350) |
(6,812) |
(1,563) |
|||||||||||
|
Net Income (Loss) Attributable to Noncontrolling Interests |
(274) |
45 |
(120) |
187 |
|||||||||||
|
Net Income (Loss) Attributable to Common Stockholders |
$ |
(1,250) |
$ |
(395) |
$ |
(6,692) |
$ |
(1,750) |
|||||||
|
Per Common Share |
|||||||||||||||
|
Net income (loss) attributable to common stockholders—basic |
$ |
(2.45) |
$ |
(0.78) |
$ |
(13.18) |
$ |
(3.47) |
|||||||
|
Net income (loss) attributable to common stockholders—diluted |
$ |
(2.45) |
$ |
(0.78) |
$ |
(13.18) |
$ |
(3.47) |
|||||||
|
Average Number of Common Shares Outstanding—Basic |
508 |
507 |
508 |
506 |
|||||||||||
|
Average Number of Common Shares Outstanding—Diluted |
508 |
507 |
508 |
506 |
|||||||||||
|
Exploration Expense |
|||||||||||||||
|
Dry hole expense |
$ |
193 |
$ |
235 |
$ |
1,052 |
$ |
762 |
|||||||
|
Impairments of unproved properties |
81 |
267 |
1,215 |
483 |
|||||||||||
|
Geological and geophysical expense |
63 |
75 |
168 |
168 |
|||||||||||
|
Exploration overhead and other |
47 |
62 |
209 |
226 |
|||||||||||
|
Total |
$ |
384 |
$ |
639 |
$ |
2,644 |
$ |
1,639 |
|||||||
|
Anadarko Petroleum Corporation | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
Quarter Ended |
Year Ended | ||||||||||||||
|
Summary Financial Information |
December 31, |
December 31, | |||||||||||||
|
millions |
2015 |
2014 |
2015 |
2014 | |||||||||||
|
Cash Flows from Operating Activities |
|||||||||||||||
|
Net income (loss) |
$ |
(1,524) |
$ |
(350) |
$ |
(6,812) |
$ |
(1,563) |
|||||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|||||||||||||||
|
Depreciation, depletion, and amortization |
1,022 |
1,215 |
4,603 |
4,550 |
|||||||||||
|
Deferred income taxes |
(525) |
105 |
(3,152) |
(105) |
|||||||||||
|
Dry hole expense and impairments of unproved properties |
274 |
502 |
2,267 |
1,245 |
|||||||||||
|
Impairments |
1,504 |
322 |
5,075 |
836 |
|||||||||||
|
(Gains) losses on divestitures, net |
19 |
303 |
1,022 |
(1,891) |
|||||||||||
|
Total (gains) losses on derivatives, net |
(223) |
(255) |
(100) |
207 |
|||||||||||
|
Operating portion of net cash received (paid) in settlement of derivative instruments |
84 |
509 |
335 |
371 |
|||||||||||
|
Other |
101 |
123 |
320 |
327 |
|||||||||||
|
Changes in assets and liabilities |
|||||||||||||||
|
Tronox-related contingent liability |
— |
22 |
(5,210) |
4,360 |
|||||||||||
|
(Increase) decrease in accounts receivable |
(25) |
(1) |
(2) |
103 |
|||||||||||
|
Increase (decrease) in accounts payable and accrued expenses |
(422) |
(706) |
(995) |
97 |
|||||||||||
|
Other items, net |
(28) |
163 |
772 |
(71) |
|||||||||||
|
Net Cash Provided by (Used in) Operating Activities |
$ |
257 |
$ |
1,952 |
$ |
(1,877) |
$ |
8,466 |
|||||||
|
Capital Expenditures |
$ |
1,313 |
$ |
2,169 |
$ |
5,888 |
$ |
9,256 |
|||||||
|
December 31, |
December 31, | ||||||||||
|
millions |
2015 |
2014 | |||||||||
|
Condensed Balance Sheets |
|||||||||||
|
Cash and cash equivalents |
$ |
939 |
$ |
7,369 |
|||||||
|
Accounts receivable, net of allowance |
2,469 |
2,527 |
|||||||||
|
Other current assets |
574 |
603 |
|||||||||
|
Net properties and equipment |
33,751 |
41,589 |
|||||||||
|
Other assets |
2,350 |
2,310 |
|||||||||
|
Goodwill and other intangible assets |
6,331 |
6,569 |
|||||||||
|
Total Assets |
$ |
46,414 |
$ |
60,967 |
|||||||
|
Short-term debt |
33 |
— |
|||||||||
|
Other current liabilities |
4,148 |
5,024 |
|||||||||
|
Tronox-related contingent liability |
— |
5,210 |
|||||||||
|
Long-term debt |
15,718 |
15,092 |
|||||||||
|
Deferred income taxes |
5,400 |
8,527 |
|||||||||
|
Other long-term liabilities |
5,658 |
4,796 |
|||||||||
|
Stockholders' equity |
12,819 |
19,725 |
|||||||||
|
Noncontrolling interests |
2,638 |
2,593 |
|||||||||
|
Total Equity |
$ |
15,457 |
$ |
22,318 |
|||||||
|
Total Liabilities and Equity |
$ |
46,414 |
$ |
60,967 |
|||||||
|
Capitalization |
|||||||||||
|
Total debt |
$ |
15,751 |
$ |
15,092 |
|||||||
|
Total equity |
15,457 |
22,318 |
|||||||||
|
Total |
$ |
31,208 |
$ |
37,410 |
|||||||
|
Capitalization Ratios |
|||||||||||
|
Total debt |
50 |
% |
40 |
% | |||||||
|
Total equity |
50 |
% |
60 |
% | |||||||
|
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 December 31, 2015 |
|||||||||||||||||||||||||||||
|
United States |
229 |
2,068 |
112 |
21 |
190 |
10 |
$ |
37.83 |
$ |
2.08 |
$ |
16.86 |
|||||||||||||||||
|
Algeria |
68 |
— |
6 |
7 |
— |
— |
44.69 |
— |
30.04 |
||||||||||||||||||||
|
Other International |
19 |
— |
— |
1 |
— |
— |
44.42 |
— |
— |
||||||||||||||||||||
|
Total |
316 |
2,068 |
118 |
29 |
190 |
10 |
$ |
39.71 |
$ |
2.08 |
$ |
17.52 |
|||||||||||||||||
|
Quarter Ended December 31, 2014 |
|||||||||||||||||||||||||||||
|
United States |
220 |
2,549 |
119 |
20 |
234 |
12 |
$ |
68.66 |
$ |
3.46 |
$ |
27.57 |
|||||||||||||||||
|
Algeria |
70 |
— |
10 |
6 |
— |
1 |
79.80 |
— |
54.02 |
||||||||||||||||||||
|
Other International |
10 |
— |
— |
1 |
— |
— |
81.64 |
— |
— |
||||||||||||||||||||
|
Total |
300 |
2,549 |
129 |
27 |
234 |
13 |
$ |
71.67 |
$ |
3.46 |
$ |
29.63 |
|||||||||||||||||
|
Year Ended December 31, 2015 |
|||||||||||||||||||||||||||||
|
United States |
232 |
2,334 |
124 |
85 |
852 |
45 |
$ |
45.00 |
$ |
2.36 |
$ |
17.03 |
|||||||||||||||||
|
Algeria |
59 |
— |
6 |
22 |
— |
2 |
51.93 |
— |
29.85 |
||||||||||||||||||||
|
Other International |
26 |
— |
— |
9 |
— |
— |
51.09 |
— |
— |
||||||||||||||||||||
|
Total |
317 |
2,334 |
130 |
116 |
852 |
47 |
$ |
46.79 |
$ |
2.36 |
$ |
17.61 |
|||||||||||||||||
|
Year Ended December 31, 2014 |
|||||||||||||||||||||||||||||
|
United States |
203 |
2,589 |
116 |
74 |
945 |
43 |
$ |
87.99 |
$ |
4.07 |
$ |
35.48 |
|||||||||||||||||
|
Algeria |
66 |
— |
3 |
24 |
— |
1 |
98.53 |
— |
56.16 |
||||||||||||||||||||
|
Other International |
23 |
— |
— |
8 |
— |
— |
103.42 |
— |
— |
||||||||||||||||||||
|
Total |
292 |
2,589 |
119 |
106 |
945 |
44 |
$ |
91.58 |
$ |
4.07 |
$ |
36.01 |
|||||||||||||||||
|
Average Daily Sales Volumes |
Sales Volumes |
||||||||||||||||||||||||||||
|
Quarter Ended December 31, 2015 |
779 |
71 |
|||||||||||||||||||||||||||
|
Quarter Ended December 31, 2014 |
854 |
79 |
|||||||||||||||||||||||||||
|
Year Ended December 31, 2015 |
836 |
305 |
|||||||||||||||||||||||||||
|
Year Ended December 31, 2014 |
843 |
308 |
|||||||||||||||||||||||||||
|
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 December 31, 2015 |
||||||||||||||||||||||||
|
United States |
$ |
799 |
$ |
395 |
$ |
173 |
$ |
— |
$ |
84 |
$ |
— |
||||||||||||
|
Algeria |
282 |
— |
16 |
— |
— |
— |
||||||||||||||||||
|
Other International |
75 |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
1,156 |
$ |
395 |
$ |
189 |
$ |
— |
$ |
84 |
$ |
— |
||||||||||||
|
Quarter Ended December 31, 2014 |
||||||||||||||||||||||||
|
United States |
$ |
1,394 |
$ |
811 |
$ |
301 |
$ |
149 |
$ |
22 |
$ |
3 |
||||||||||||
|
Algeria |
514 |
— |
50 |
335 |
— |
— |
||||||||||||||||||
|
Other International |
74 |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
1,982 |
$ |
811 |
$ |
351 |
$ |
484 |
$ |
22 |
$ |
3 |
||||||||||||
|
Year Ended December 31, 2015 |
||||||||||||||||||||||||
|
United States |
$ |
3,817 |
$ |
2,007 |
$ |
769 |
$ |
6 |
$ |
312 |
$ |
17 |
||||||||||||
|
Algeria |
1,125 |
— |
64 |
— |
— |
— |
||||||||||||||||||
|
Other International |
478 |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
5,420 |
$ |
2,007 |
$ |
833 |
$ |
6 |
$ |
312 |
$ |
17 |
||||||||||||
|
Year Ended December 31, 2014 |
||||||||||||||||||||||||
|
United States |
$ |
6,519 |
$ |
3,849 |
$ |
1,509 |
$ |
81 |
$ |
(85) |
$ |
6 |
||||||||||||
|
Algeria |
2,372 |
— |
63 |
375 |
— |
— |
||||||||||||||||||
|
Other International |
857 |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
$ |
9,748 |
$ |
3,849 |
$ |
1,572 |
$ |
456 |
$ |
(85) |
$ |
6 |
||||||||||||
|
Anadarko Petroleum Corporation | |||||||||
|
Estimated Year-End Proved Reserves 2013 - 2015 | |||||||||
|
MMBOE |
2015 |
2014 |
2013 | ||||||
|
Proved Reserves |
|||||||||
|
Beginning of year |
2,858 |
2,792 |
2,560 |
||||||
|
Reserves additions and revisions |
|||||||||
|
Discoveries and extensions |
29 |
63 |
145 |
||||||
|
Infill-drilling additions |
89 |
577 |
410 |
||||||
|
Drilling-related reserves additions and revisions |
118 |
640 |
555 |
||||||
|
Other non-price-related revisions |
289 |
(137) |
(40) |
||||||
|
Net organic reserves additions |
407 |
503 |
515 |
||||||
|
Acquisition of proved reserves in place |
1 |
— |
36 |
||||||
|
Price-related revisions |
(624) |
(1) |
(23) |
||||||
|
Total reserves additions and revisions |
(216) |
502 |
528 |
||||||
|
Sales in place |
(279) |
(124) |
(12) |
||||||
|
Production |
(306) |
(312) |
(284) |
||||||
|
End of year |
2,057 |
2,858 |
2,792 |
||||||
|
Proved Developed Reserves |
|||||||||
|
Beginning of year |
1,969 |
2,003 |
1,883 |
||||||
|
End of year |
1,632 |
1,969 |
2,003 |
||||||
|
Anadarko Petroleum Corporation | |||||||||
|
Commodity Hedge Positions | |||||||||
|
As of February 1, 2016 | |||||||||
|
Weighted Average Price per barrel | |||||||||
|
Volume |
Floor Sold |
Floor Purchased |
Ceiling Sold | ||||||
|
Crude 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 | |||
|
Interest-Rate Derivatives
| |||||
|
As of February 1, 2016 | |||||
|
Instrument |
Notional Amt. |
Reference Period |
Mandatory |
Rate Paid |
Rate Received |
|
Swap |
$50 Million |
Sept. 2016 - Sept. 2026 |
Sept. 2016 |
5.910% |
3M LIBOR |
|
Swap |
$50 Million |
Sept. 2016 - Sept. 2046 |
Sept. 2016 |
6.290% |
3M LIBOR |
|
Swap |
$250 Million |
Sept. 2016 - Sept. 2046 |
Sept. 2018 |
6.310% |
3M LIBOR |
|
Swap |
$300 Million |
Sept. 2016 - Sept. 2046 |
Sept. 2020 |
6.509% |
3M LIBOR |
|
Swap |
$250 Million |
Sept. 2016 - Sept. 2046 |
Sept. 2021 |
6.724% |
3M LIBOR |
|
Swap |
$200 Million |
Sept. 2017 - Sept. 2047 |
Sept. 2018 |
6.049% |
3M LIBOR |
|
Swap |
$300 Million |
Sept. 2017 - Sept. 2047 |
Sept. 2020 |
6.569% |
3M LIBOR |
|
Swap |
$500 Million |
Sept. 2017 - Sept. 2047 |
Sept. 2021 |
6.654% |
3M LIBOR |
|
Anadarko Petroleum Corporation | |||||||||||||||||||||||
|
Reconciliation of Same-Store Sales | |||||||||||||||||||||||
|
Average Daily Sales Volumes | |||||||||||||||||||||||
|
Quarter Ended December 31, 2015 |
Quarter Ended December 31, 2014 | ||||||||||||||||||||||
|
Oil & |
Oil & |
||||||||||||||||||||||
|
Condensate |
Natural Gas |
NGLs |
Total |
Condensate |
Natural Gas |
NGLs |
Total | ||||||||||||||||
|
MBbls/d |
MMcf/d |
MBbls/d |
MBOE/d |
MBbls/d |
MMcf/d |
MBbls/d |
MBOE/d | ||||||||||||||||
|
U.S. Onshore |
166 |
1,958 |
106 |
598 |
152 |
2,088 |
113 |
613 |
|||||||||||||||
|
Deepwater Gulf of Mexico |
54 |
115 |
6 |
80 |
47 |
179 |
6 |
83 |
|||||||||||||||
|
International and Alaska |
96 |
— |
6 |
102 |
88 |
— |
10 |
98 |
|||||||||||||||
|
Same-Store Sales |
316 |
2,073 |
118 |
780 |
287 |
2,267 |
129 |
794 |
|||||||||||||||
|
Divestitures* |
— |
(5) |
— |
(1) |
13 |
282 |
— |
60 |
|||||||||||||||
|
Total |
316 |
2,068 |
118 |
779 |
300 |
2,549 |
129 |
854 |
|||||||||||||||
|
Year Ended December 31, 2015 |
Year Ended December 31, 2014 | ||||||||||||||||||||||
|
Oil & |
Oil & |
||||||||||||||||||||||
|
Condensate |
Natural Gas |
NGLs |
Total |
Condensate |
Natural Gas |
NGLs |
Total | ||||||||||||||||
|
MBbls/d |
MMcf/d |
MBbls/d |
MBOE/d |
MBbls/d |
MMcf/d |
MBbls/d |
MBOE/d | ||||||||||||||||
|
U.S. Onshore |
167 |
2,017 |
117 |
620 |
136 |
2,092 |
110 |
595 |
|||||||||||||||
|
Deepwater Gulf of Mexico |
53 |
152 |
7 |
85 |
45 |
195 |
6 |
83 |
|||||||||||||||
|
International and Alaska |
94 |
— |
6 |
100 |
94 |
— |
3 |
97 |
|||||||||||||||
|
Same-Store Sales |
314 |
2,169 |
130 |
805 |
275 |
2,287 |
119 |
775 |
|||||||||||||||
|
Divestitures* |
3 |
165 |
— |
31 |
17 |
302 |
— |
68 |
|||||||||||||||
|
Total |
317 |
2,334 |
130 |
836 |
292 |
2,589 |
119 |
843 |
|||||||||||||||
|
* Includes China, Pinedale/Jonah, EOR, Bossier, and Powder River Basin CBM. |
PDF - http://origin-qps.onstreammedia.com/origin/multivu_archive/ENR/328123-4q15-operations.pdf
SOURCE Anadarko Petroleum Corporation
Article Date
2/1/20161/21/2016 - Western Gas Announces Fourth Quarter 2015 Distribution And Schedules Earnings Conference Call
Western Gas Announces Fourth Quarter 2015 Distribution And Schedules Earnings Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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
Logo - http://photos.prnewswire.com/prnh/20150505/213919LOGO
SOURCE Western Gas Partners, LP
Article Date
1/21/2016Projects & Assets
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