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WES Investors

Western Gas Announces First-Quarter 2018 Results
SECURES EQUITY OPTIONS IN TWO PERMIAN BASIN LONG HAUL CRUDE PIPELINES

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
 March 31,

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
 March 31,

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
 March 31,

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
 March 31,

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,
 2018

 

December 31,
 2017

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
 March 31,

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
 March 31,

   

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
 March 31, 2018

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
 March 31,

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,
 2018

 

December 31,
 2017

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
 March 31,

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

 

Western Gas Partners (PRNewsFoto/Western Gas Partners, LP) (PRNewsFoto/Western Gas Partners, LP)

 

Western Gas Equity Partners (PRNewsFoto/Western Gas Partners, LP) (PRNewsFoto/Western Gas Partners, LP)

 

 

SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP


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