WGP
$43.11
Western Gas Eqty Partners LP
$.50
1.17%
Earnings Details
3rd Quarter September 2016
Tuesday, November 01, 2016 4:05:00 PM
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Summary

Western Gas Eqty Partners LP Misses

Western Gas Eqty Partners LP (WGP) reported 3rd Quarter September 2016 earnings of $0.42 per share on revenue of $481.6 million. The consensus earnings estimate was $0.41 per share on revenue of $428.4 million. The Earnings Whisper number was $0.43 per share. Revenue grew 25.1% on a year-over-year basis.

Western Gas Equity Partners LP is engaged in gathering, processing, compressing, treating and transporting Anadarko and third-party natural gas, condensate, NGLs and crude oil in the U.S.

Results
Reported Earnings
$0.42
Earnings Whisper
$0.43
Consensus Estimate
$0.41
Reported Revenue
$481.6 Mil
Revenue Estimate
$428.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Western Gas Announces Third-Quarter 2016 Results

Western Gas Partners, LP (WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (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
September 30,
September 30,
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
September 30,
September 30,
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
September 30,
September 30,
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
September 30,
September 30,
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,
2016
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
September 30,
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
September 30,
September 30,
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
September 30, 2016
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
September 30,
September 30,
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,
2016
2015 (1)
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
September 30,
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.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/western-gas-announces-third-quarter-2016-results-300355327.html

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

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