Loading data...
Loading data...
MENU

WES Investors

Western Gas Announces Third-Quarter 2018 Results

HOUSTON, Oct. 30, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced third-quarter 2018 financial and operating results.

WESTERN GAS PARTNERS, LP

Net income (loss) available to limited partners for the third quarter of 2018 totaled $66.1 million, or $0.39 per common unit (diluted), with third-quarter 2018 Adjusted EBITDA(1) of $314.5 million and third-quarter 2018 Distributable cash flow(1) of $248.2 million.

WES previously declared a quarterly distribution of $0.965 per unit for the third quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the third-quarter 2017 distribution. The third-quarter 2018 Coverage ratio(1) of 1.08 times was based on the quarterly distribution of $0.965 per unit.

"We are delivering on our promise for the second half of the year: significant Delaware Basin volumetric growth as critical infrastructure comes online, meaningful growth in Adjusted EBITDA, and expanding coverage. Additionally, the firm takeaway secured by several of our large customers gives us significant visibility into our ability to grow throughout 2019 and beyond," said Chief Executive Officer, Benjamin Fink. "With this organic growth now materializing, we expect annual Adjusted EBITDA to grow by at least 20% in 2019."

Total throughput attributable to WES for natural gas assets for the third quarter of 2018 averaged 3.9 Bcf/d, which was 1% above the prior quarter and 12% above the third quarter of 2017. Total throughput for crude oil, NGL and produced water assets for the third quarter of 2018 averaged 421 MBbls/d, which was 23% above the prior quarter and 101% above the third 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.

 

Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $332.4 million on a cash basis and $328.9 million on an accrual basis during the third quarter of 2018, with maintenance capital expenditures on a cash basis of $23.8 million. WES adjusted its outlook for full-year 2018 Adjusted EBITDA(1) to a range of $1.175 billion to $1.225 billion(2) and its outlook for full-year 2018 maintenance capital expenditures to a range of $85 million to $95 million. In addition, WES noted that commissioning activities for the first train at the Mentone facility are underway, with startup expected in the coming weeks. The second train is expected to be in service in the first quarter of 2019.

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 2018 totaled $107.5 million, or $0.49 per common unit (diluted).

WGP previously declared a quarterly distribution of $0.5950 per unit for the third quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and an 11% increase over the third-quarter 2017 distribution. WGP will receive distributions from WES of $131.3 million attributable to the third quarter of 2018 and will pay $130.3 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, October 31, 2018, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss third-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 3261919. 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.

     

(1) 

Please see the tables at the end of this release for a reconciliation of GAAP to non-GAAP measures.

   

(2)

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

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
 September 30,

 

Nine Months Ended
 September 30,

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

 

$

154,646

   

$

143,506

   

$

336,717

   

$

418,846

 

Add:

               

Distributions from equity investments

 

51,023

   

29,145

   

111,924

   

80,568

 

Non-cash equity-based compensation expense

 

1,548

   

1,258

   

5,552

   

3,479

 

Non-cash settled interest expense, net (1)

 

   

   

   

71

 

Income tax (benefit) expense

 

1,517

   

510

   

3,301

   

4,905

 

Depreciation and amortization (2)

 

81,826

   

71,812

   

236,008

   

214,213

 

Impairments (2)

 

23,930

   

2,159

   

151,321

   

170,079

 

Above-market component of swap agreements with Anadarko

 

12,601

   

18,049

   

40,722

   

46,719

 

Other expense (2)

 

33

   

   

184

   

140

 

Less:

               

Recognized Service revenues – fee based (less than) in excess of customer billings

 

4,397

   

   

536

   

 

Gain (loss) on divestiture and other, net

 

65

   

72

   

351

   

135,017

 

Equity income, net – affiliates

 

43,110

   

21,519

   

102,752

   

62,708

 

Cash paid for maintenance capital expenditures (2)

 

23,837

   

10,591

   

61,162

   

33,115

 

Capitalized interest

 

6,967

   

2,115

   

17,032

   

3,991

 

Cash paid for (reimbursement of) income taxes

 

   

   

(87)

   

189

 

Series A Preferred unit distributions

 

   

   

   

7,453

 

Other income (2)

 

592

   

283

   

2,592

   

960

 

Distributable cash flow

 

$

248,156

   

$

231,859

   

$

701,391

   

$

695,587

 

Distributions declared (3)

               

Limited partners – common units

 

$

147,268

       

$

434,930

     

General partner

 

82,971

       

242,133

     

Total

 

$

230,239

       

$

677,063

     

Coverage ratio

 

1.08

 

x

   

1.04

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 $0.965 and $2.850 per unit declared for the three and nine months ended September 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
 September 30,

 

Nine Months Ended
 September 30,

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

 

$

154,646

   

$

143,506

   

$

336,717

   

$

418,846

 

Add:

               

Distributions from equity investments

 

51,023

   

29,145

   

111,924

   

80,568

 

Non-cash equity-based compensation expense

 

1,548

   

1,258

   

5,552

   

3,479

 

Interest expense

 

47,991

   

35,544

   

131,663

   

106,794

 

Income tax expense

 

1,517

   

510

   

3,301

   

4,905

 

Depreciation and amortization (1)

 

81,826

   

71,812

   

236,008

   

214,213

 

Impairments (1)

 

23,930

   

2,159

   

151,321

   

170,079

 

Other expense (1)

 

33

   

   

184

   

140

 

Less:

               

Gain (loss) on divestiture and other, net

 

65

   

72

   

351

   

135,017

 

Equity income, net – affiliates

 

43,110

   

21,519

   

102,752

   

62,708

 

Interest income – affiliates

 

4,225

   

4,225

   

12,675

   

12,675

 

Other income (1)

 

592

   

283

   

2,592

   

960

 

Adjusted EBITDA attributable to Western Gas Partners, LP

 

$

314,522

   

$

257,835

   

$

858,300

   

$

787,664

 

Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP

               

Net cash provided by operating activities

 

$

236,811

   

$

211,947

   

$

751,722

   

$

645,099

 

Interest (income) expense, net

 

43,766

   

31,319

   

118,988

   

94,119

 

Uncontributed cash-based compensation awards

 

(55)

   

78

   

932

   

(94)

 

Accretion and amortization of long-term obligations, net

 

(1,257)

   

(1,055)

   

(3,883)

   

(3,194)

 

Current income tax (benefit) expense

 

(14)

   

395

   

247

   

1,023

 

Other (income) expense, net

 

(598)

   

(286)

   

(2,609)

   

(969)

 

Distributions from equity investments in excess of cumulative earnings – affiliates

 

5,592

   

7,034

   

18,097

   

16,255

 

Changes in assets and liabilities:

               

Accounts receivable, net

 

57,535

   

56,335

   

64,544

   

46,972

 

Accounts and imbalance payables and accrued liabilities, net

 

(14,781)

   

(45,982)

   

(55,354)

   

(4,007)

 

Other items, net

 

(9,379)

   

3,181

   

(24,049)

   

3,065

 

Adjusted EBITDA attributable to noncontrolling interest

 

(3,098)

   

(5,131)

   

(10,335)

   

(10,605)

 

Adjusted EBITDA attributable to Western Gas Partners, LP

 

$

314,522

   

$

257,835

   

$

858,300

   

$

787,664

 

Cash flow information of Western Gas Partners, LP

               

Net cash provided by operating activities

         

$

751,722

   

$

645,099

 

Net cash used in investing activities

         

(1,160,684)

   

(514,797)

 

Net cash provided by (used in) financing activities

         

460,816

   

(335,792)

 
   

(1) 

Includes WES's 75% share of depreciation and amortization; impairments; 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
 September 30,

 

Nine Months Ended
 September 30,

thousands

 

2018

 

2017

 

2018

 

2017

Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP

               

Operating income (loss)

 

$

200,321

   

$

179,456

   

$

463,183

   

$

525,456

 

Add:

               

Distributions from equity investments

 

51,023

   

29,145

   

111,924

   

80,568

 

Operation and maintenance

 

111,359

   

79,536

   

300,266

   

229,444

 

General and administrative

 

14,467

   

12,158

   

42,634

   

35,402

 

Property and other taxes

 

10,954

   

11,215

   

35,090

   

35,433

 

Depreciation and amortization

 

82,553

   

72,539

   

238,187

   

216,272

 

Impairments

 

25,317

   

2,159

   

152,708

   

170,079

 

Less:

               

Gain (loss) on divestiture and other, net

 

65

   

72

   

351

   

135,017

 

Proceeds from business interruption insurance claims

 

   

   

   

29,882

 

Equity income, net – affiliates

 

43,110

   

21,519

   

102,752

   

62,708

 

Reimbursed electricity-related charges recorded as revenues

 

17,455

   

14,323

   

50,139

   

42,338

 

Adjusted gross margin attributable to noncontrolling interest

 

3,803

   

5,878

   

12,350

   

13,189

 

Adjusted gross margin attributable to Western Gas Partners, LP

 

$

431,561

   

$

344,416

   

$

1,178,400

   

$

1,009,520

 

Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets

 

$

363,536

   

$

305,337

   

$

1,019,061

   

$

904,620

 

Adjusted gross margin for crude oil, NGL and produced water assets

 

68,025

   

39,079

   

159,339

   

104,900

 

 

 

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
   

Three Months Ended
 September 30,

 

Nine Months Ended
 September 30,

thousands except per-unit amounts

 

2018

 

2017

 

2018

 

2017

Revenues and other

               

Service revenues – fee based

 

$

409,106

   

$

306,187

   

$

1,146,099

   

$

913,436

 

Service revenues – product based

 

22,735

   

   

67,433

   

 

Product sales

 

75,150

   

259,141

   

217,738

   

690,490

 

Other

 

771

   

9,367

   

1,213

   

12,412

 

Total revenues and other

 

507,762

   

574,695

   

1,432,483

   

1,616,338

 

Equity income, net – affiliates

 

43,110

   

21,519

   

102,752

   

62,708

 

Operating expenses

               

Cost of product

 

105,966

   

239,223

   

303,518

   

631,859

 

Operation and maintenance

 

111,359

   

79,536

   

300,266

   

229,444

 

General and administrative

 

14,467

   

12,158

   

42,634

   

35,402

 

Property and other taxes

 

10,954

   

11,215

   

35,090

   

35,433

 

Depreciation and amortization

 

82,553

   

72,539

   

238,187

   

216,272

 

Impairments

 

25,317

   

2,159

   

152,708

   

170,079

 

Total operating expenses

 

350,616

   

416,830

   

1,072,403

   

1,318,489

 

Gain (loss) on divestiture and other, net

 

65

   

72

   

351

   

135,017

 

Proceeds from business interruption insurance claims

 

   

   

   

29,882

 

Operating income (loss)

 

200,321

   

179,456

   

463,183

   

525,456

 

Interest income – affiliates

 

4,225

   

4,225

   

12,675

   

12,675

 

Interest expense

 

(47,991)

   

(35,544)

   

(131,663)

   

(106,794)

 

Other income (expense), net

 

598

   

286

   

2,609

   

969

 

Income (loss) before income taxes

 

157,153

   

148,423

   

346,804

   

432,306

 

Income tax (benefit) expense

 

1,517

   

510

   

3,301

   

4,905

 

Net income (loss)

 

155,636

   

147,913

   

343,503

   

427,401

 

Net income attributable to noncontrolling interest

 

990

   

4,407

   

6,786

   

8,555

 

Net income (loss) attributable to Western Gas Partners, LP

 

$

154,646

   

$

143,506

   

$

336,717

   

$

418,846

 

Limited partners' interest in net income (loss):

               

Net income (loss) attributable to Western Gas Partners, LP

 

$

154,646

   

$

143,506

   

$

336,717

   

$

418,846

 

Series A Preferred units interest in net (income) loss

 

   

   

   

(42,373)

 

General partner interest in net (income) loss

 

(88,551)

   

(78,376)

   

(256,166)

   

(222,903)

 

Common and Class C limited partners' interest in net income (loss)

 

$

66,095

   

$

65,130

   

$

80,551

   

$

153,570

 

Net income (loss) per common unit – basic and diluted

 

$

0.39

   

$

0.38

   

$

0.46

   

$

0.91

 

Weighted-average common units outstanding – basic and diluted

 

152,609

   

152,602

   

152,605

   

145,371

 

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

thousands except number of units

 

September 30,
 2018

 

December 31,
 2017

Current assets

 

$

381,624

   

$

254,062

 

Note receivable – Anadarko

 

260,000

   

260,000

 

Net property, plant and equipment

 

6,418,634

   

5,730,891

 

Other assets

 

1,971,040

   

1,769,397

 

Total assets

 

$

9,031,298

   

$

8,014,350

 

Current liabilities

 

$

512,060

   

$

424,333

 

Long-term debt

 

4,566,464

   

3,464,712

 

Asset retirement obligations

 

157,933

   

143,394

 

Other liabilities

 

152,242

   

10,900

 

Total liabilities

 

5,388,699

   

4,043,339

 

Equity and partners' capital

       

Common units (152,609,285 and 152,602,105 units issued and outstanding at September 30, 2018, and December 31, 2017, respectively)

 

2,595,719

   

2,950,010

 

Class C units (14,045,429 and 13,243,883 units issued and outstanding at September 30, 2018, and December 31, 2017, respectively)

 

787,420

   

780,040

 

General partner units (2,583,068 units issued and outstanding at September 30, 2018, and December 31, 2017)

 

199,433

   

179,232

 

Noncontrolling interest

 

60,027

   

61,729

 

Total liabilities, equity and partners' capital

 

$

9,031,298

   

$

8,014,350

 

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 
   

Nine Months Ended
 September 30,

thousands

 

2018

 

2017

Cash flows from operating activities

       

Net income (loss)

 

$

343,503

   

$

427,401

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:

       

Depreciation and amortization

 

238,187

   

216,272

 

Impairments

 

152,708

   

170,079

 

(Gain) loss on divestiture and other, net

 

(351)

   

(135,017)

 

Change in other items, net

 

17,675

   

(33,636)

 

Net cash provided by operating activities

 

$

751,722

   

$

645,099

 

Cash flows from investing activities

       

Capital expenditures

 

$

(949,022)

   

$

(419,193)

 

Contributions in aid of construction costs from affiliates

 

   

1,386

 

Acquisitions from affiliates

 

(254)

   

(3,910)

 

Acquisitions from third parties

 

(161,858)

   

(155,298)

 

Investments in equity affiliates

 

(67,979)

   

(384)

 

Distributions from equity investments in excess of cumulative earnings – affiliates

 

18,097

   

16,255

 

Proceeds from the sale of assets to third parties

 

332

   

23,370

 

Proceeds from property insurance claims

 

   

22,977

 

Net cash used in investing activities

 

$

(1,160,684)

   

$

(514,797)

 

Cash flows from financing activities

       

Borrowings, net of debt issuance costs

 

$

2,135,637

   

$

249,989

 

Repayments of debt

 

(1,040,000)

   

 

Settlement of the Deferred purchase price obligation – Anadarko

 

   

(37,346)

 

Increase (decrease) in outstanding checks

 

(2,687)

   

3,310

 

Proceeds from the issuance of common units, net of offering expenses

 

   

(183)

 

Distributions to unitholders

 

(663,410)

   

(589,262)

 

Distributions to noncontrolling interest owner

 

(9,446)

   

(9,049)

 

Net contributions from (distributions to) Anadarko

 

   

30

 

Above-market component of swap agreements with Anadarko

 

40,722

   

46,719

 

Net cash provided by (used in) financing activities

 

$

460,816

   

$

(335,792)

 

Net increase (decrease) in cash and cash equivalents

 

$

51,854

   

$

(205,490)

 

Cash and cash equivalents at beginning of period

 

78,814

   

357,925

 

Cash and cash equivalents at end of period

 

$

130,668

   

$

152,435

 

 

Western Gas Partners, LP

OPERATING STATISTICS

(Unaudited)

 
   

Three Months Ended
 September 30,

 

Nine Months Ended
 September 30,

   

2018

 

2017

 

2018

 

2017

Throughput for natural gas assets (MMcf/d)

               

Gathering, treating and transportation

 

954

   

784

   

886

   

1,029

 

Processing

 

2,844

   

2,588

   

2,820

   

2,528

 

Equity investment (1)

 

139

   

159

   

144

   

160

 

Total throughput for natural gas assets

 

3,937

   

3,531

   

3,850

   

3,717

 

Throughput attributable to noncontrolling interest for natural gas assets

 

87

   

104

   

92

   

107

 

Total throughput attributable to Western Gas Partners, LP for natural gas assets

 

3,850

   

3,427

   

3,758

   

3,610

 

Throughput for crude oil, NGL and produced water assets (MBbls/d)

               

Gathering, treating, transportation and disposal

 

154

   

77

   

141

   

57

 

Equity investment (2)

 

267

   

132

   

200

   

130

 

Total throughput for crude oil, NGL and produced water assets

 

421

   

209

   

341

   

187

 

Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (3)

 

$

1.03

   

$

0.97

   

$

0.99

   

$

0.92

 

Adjusted gross margin per Bbl for crude oil, NGL and produced water assets (4)

 

1.76

   

2.03

   

1.71

   

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, 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
 September 30, 2018

Distributions declared by Western Gas Partners, LP:

   

General partner interest

 

$

3,832

 

Incentive distribution rights

 

79,139

 

Common units held by WGP

 

48,377

 

Less:

   

Public company general and administrative expense

 

691

 

Interest expense

 

325

 

Cash available for distribution

 

$

130,332

 

Declared distribution per common unit

 

$

0.59500

 

Distributions declared by Western Gas Equity Partners, LP

 

$

130,268

 

Coverage ratio

 

1.00

x

 

 

 

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
   

Three Months Ended
 September 30,

 

Nine Months Ended
 September 30,

thousands except per-unit amounts

 

2018

 

2017

 

2018

 

2017

Revenues and other

               

Service revenues – fee based

 

$

409,106

   

$

306,187

   

$

1,146,099

   

$

913,436

 

Service revenues – product based

 

22,735

   

   

67,433

   

 

Product sales

 

75,150

   

259,141

   

217,738

   

690,490

 

Other

 

771

   

9,367

   

1,213

   

12,412

 

Total revenues and other

 

507,762

   

574,695

   

1,432,483

   

1,616,338

 

Equity income, net – affiliates

 

43,110

   

21,519

   

102,752

   

62,708

 

Operating expenses

               

Cost of product

 

105,966

   

239,223

   

303,518

   

631,859

 

Operation and maintenance

 

111,359

   

79,536

   

300,266

   

229,444

 

General and administrative

 

15,158

   

12,922

   

44,853

   

37,595

 

Property and other taxes

 

10,954

   

11,215

   

35,090

   

35,433

 

Depreciation and amortization

 

82,553

   

72,539

   

238,187

   

216,272

 

Impairments

 

25,317

   

2,159

   

152,708

   

170,079

 

Total operating expenses

 

351,307

   

417,594

   

1,074,622

   

1,320,682

 

Gain (loss) on divestiture and other, net

 

65

   

72

   

351

   

135,017

 

Proceeds from business interruption insurance claims

 

   

   

   

29,882

 

Operating income (loss)

 

199,630

   

178,692

   

460,964

   

523,263

 

Interest income – affiliates

 

4,225

   

4,225

   

12,675

   

12,675

 

Interest expense

 

(48,316)

   

(36,117)

   

(133,359)

   

(108,447)

 

Other income (expense), net

 

655

   

311

   

2,749

   

1,029

 

Income (loss) before income taxes

 

156,194

   

147,111

   

343,029

   

428,520

 

Income tax (benefit) expense

 

1,517

   

510

   

3,301

   

4,905

 

Net income (loss)

 

154,677

   

146,601

   

339,728

   

423,615

 

Net income (loss) attributable to noncontrolling interests

 

47,203

   

50,399

   

63,669

   

146,529

 

Net income (loss) attributable to Western Gas Equity Partners, LP

 

$

107,474

   

$

96,202

   

$

276,059

   

$

277,086

 

Net income (loss) per common unit – basic and diluted

 

$

0.49

   

$

0.44

   

$

1.26

   

$

1.27

 

Weighted-average common units outstanding – basic and diluted

 

218,938

   

218,933

   

218,935

   

218,931

 

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

thousands except number of units

 

September 30,
 2018

 

December 31, 2017

Current assets

 

$

383,883

   

$

255,210

 

Note receivable – Anadarko

 

260,000

   

260,000

 

Net property, plant and equipment

 

6,418,634

   

5,730,891

 

Other assets

 

1,971,040

   

1,770,210

 

Total assets

 

$

9,033,557

   

$

8,016,311

 

Current liabilities

 

$

540,278

   

$

424,426

 

Long-term debt

 

4,566,464

   

3,492,712

 

Asset retirement obligations

 

157,933

   

143,394

 

Other liabilities

 

152,242

   

10,900

 

Total liabilities

 

5,416,917

   

4,071,432

 

Equity and partners' capital

       

Common units (218,937,797 and 218,933,141 units issued and outstanding at September 30, 2018, and December 31, 2017, respectively)

 

981,408

   

1,061,125

 

Noncontrolling interests

 

2,635,232

   

2,883,754

 

Total liabilities, equity and partners' capital

 

$

9,033,557

   

$

8,016,311

 

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 
   

Nine Months Ended
 September 30,

thousands

 

2018

 

2017

Cash flows from operating activities

       

Net income (loss)

 

$

339,728

   

$

423,615

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:

       

Depreciation and amortization

 

238,187

   

216,272

 

Impairments

 

152,708

   

170,079

 

(Gain) loss on divestiture and other, net

 

(351)

   

(135,017)

 

Change in other items, net

 

19,107

   

(32,480)

 

Net cash provided by operating activities

 

$

749,379

   

$

642,469

 

Cash flows from investing activities

       

Capital expenditures

 

$

(949,022)

   

$

(419,193)

 

Contributions in aid of construction costs from affiliates

 

   

1,386

 

Acquisitions from affiliates

 

(254)

   

(3,910)

 

Acquisitions from third parties

 

(161,858)

   

(155,298)

 

Investments in equity affiliates

 

(67,979)

   

(384)

 

Distributions from equity investments in excess of cumulative earnings – affiliates

 

18,097

   

16,255

 

Proceeds from the sale of assets to third parties

 

332

   

23,370

 

Proceeds from property insurance claims

 

   

22,977

 

Net cash used in investing activities

 

$

(1,160,684)

   

$

(514,797)

 

Cash flows from financing activities

       

Borrowings, net of debt issuance costs

 

$

2,135,629

   

$

249,989

 

Repayments of debt

 

(1,040,000)

   

 

Settlement of the Deferred purchase price obligation – Anadarko

 

   

(37,346)

 

Increase (decrease) in outstanding checks

 

(2,687)

   

3,310

 

Proceeds from the issuance of WES common units, net of offering expenses

 

   

(183)

 

Distributions to WGP unitholders

 

(372,189)

   

(324,290)

 

Distributions to Chipeta noncontrolling interest owner

 

(9,446)

   

(9,049)

 

Distributions to noncontrolling interest owners of WES

 

(287,435)

   

(262,888)

 

Net contributions from (distributions to) Anadarko

 

   

30

 

Above-market component of swap agreements with Anadarko

 

40,722

   

46,719

 

Net cash provided by (used in) financing activities

 

$

464,594

   

$

(333,708)

 

Net increase (decrease) in cash and cash equivalents

 

$

53,289

   

$

(206,036)

 

Cash and cash equivalents at beginning of period

 

79,588

   

359,072

 

Cash and cash equivalents at end of period

 

$

132,877

   

$

153,036

 

 

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


print email rss pdf
TOP
CLOSE