HOUSTON, July 25, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced second-quarter 2017 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the second quarter of 2017 totaled $82.9 million, or $0.49 per common unit (diluted), with second-quarter 2017 Adjusted EBITDA((1)) of $274.8 million and second-quarter 2017 Distributable cash flow((1)) of $247.2 million.
WES previously declared a quarterly distribution of $0.890 per unit for the second quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the second-quarter 2016 distribution of $0.830 per unit. The second-quarter 2017 Coverage ratio((1)) of 1.19 times was based on the quarterly distribution of $0.890 per unit.
"We continue to achieve significant milestones in the Delaware Basin that enhance both our competitive position in the area and our ability to serve the increasing needs of producers. These include the DBJV-for-Marcellus asset exchange, the early settlement of the DBJV Deferred Purchase Price Obligation, and the successful start-up of our produced water gathering and disposal systems," said Chief Executive Officer, Benjamin Fink. "Additionally, we are excited to announce the sanctioning of the Latham plant in the DJ Basin, which will consist of two cryogenic processing trains with a total capacity of 400 MMcf/d. These trains will be supported by long-term volumetric commitments from Anadarko, and are scheduled to come online in the first and third quarters of 2019."
(1) Please see the tables at the end of this release for a reconciliation of GAAP to non- GAAP measures and calculation of the Coverage ratio.
Total throughput attributable to WES for natural gas assets for the second quarter of 2017 averaged 3.5 Bcf/d, which was 12% below the prior quarter and 10% below the second quarter of 2016. Total throughput attributable to WES for natural gas was 2% above the prior quarter when adjusted for the impact of the DBJV-for-Marcellus asset exchange that closed in March 2017. Total throughput for crude, NGL and produced water assets for the second quarter of 2017 averaged 182 MBbls/d, which was 8% above the prior quarter and 3% below the second quarter of 2016.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $133.6 million on a cash basis and $148.2 million on an accrual basis during the second quarter of 2017, with maintenance capital expenditures on a cash basis of $11.4 million.
WESTERN GAS EQUITY PARTNERS, LP
WGP indirectly owns the entire general partner interest in WES, 100% of the incentive distribution rights in WES and 50,132,046 WES common units. Net income (loss) available to limited partners for the second quarter of 2017 totaled $104.9 million, or $0.48 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.52750 per unit for the second quarter of 2017. This distribution represented a 7% increase over the prior quarter's distribution and a 22% increase over the second-quarter 2016 distribution of $0.43375 per unit. WGP will receive distributions from WES of $116.3 million attributable to the second quarter and will pay $115.5 million in distributions for the same period.
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
WES and WGP will host a joint conference call on Wednesday, July 26, 2017, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss second-quarter 2017 results. Individuals who would like to participate should dial 877-883-0383 (Domestic) or 412-902-6506 (International) approximately 15 minutes before the scheduled conference call time, and enter participant access code 1783522. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, compressing, treating, processing and transporting natural gas; gathering, stabilizing and transporting condensate, natural gas liquids and crude oil; and gathering and disposing of produced water for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.
This news release contains forward-looking statements. WES and WGP's management believes that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs and related products or services; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in their other public filings and press releases. Western Gas Partners and Western Gas Equity Partners undertake no obligation to publicly update or revise any forward-looking statements.
WESTERN GAS CONTACT
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of (i) net income (loss) attributable to Western Gas Partners, LP (GAAP) to WES's Distributable cash flow (non-GAAP), (ii) net income (loss) attributable to Western Gas Partners, LP (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing its ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio should be considered in conjunction with net income (loss) attributable to Western Gas Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Distributable Cash Flow
WES defines Distributable cash flow as Adjusted EBITDA, plus interest income and the net settlement amounts from the sale and/or purchase of natural gas, condensate and NGLs under WES's commodity price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less net cash paid (or to be paid) for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, Series A Preferred unit distributions and income taxes.
Three Months Ended Six Months Ended June 30, June 30, thousands except Coverage ratio 2017 2016 2017 2016 ---------------- ---- ---- ---- ---- Reconciliation of Net income (loss) attributable to Western Gas Partners, LP to Distributable cash flow and calculation of the Coverage ratio Net income (loss) attributable to Western Gas Partners, LP $173,451 $164,521 $275,340 $280,581 Add: Distributions from equity investments 28,856 24,491 51,423 49,130 Non-cash equity-based compensation expense 975 1,246 2,221 2,549 Non-cash settled - interest expense, net (1) - (15,461) 71 (10,924) Income tax (benefit) expense 843 326 4,395 6,959 Depreciation and amortization (2) 73,352 66,650 142,401 131,089 Impairments 3,178 2,403 167,920 8,921 Above-market component of swap agreements with Anadarko 16,373 9,552 28,670 16,365 Other expense (2) 95 56 140 56 Less: Gain (loss) on divestiture and other, net 15,458 (1,907) 134,945 (2,539) Equity income, net - affiliates 21,728 19,693 41,189 36,507 Cash paid for maintenance capital expenditures (2) 11,402 21,085 22,524 39,982 Capitalized interest 1,060 1,482 1,876 3,331 Cash paid for (reimbursement of) income taxes - - 189 67 Series A Preferred unit distributions - 14,082 7,453 15,969 Other income (2) 250 - 677 122 --------------- --- --- --- --- Distributable cash flow $247,225 $199,349 $463,728 $391,287 ----------------------- -------- -------- -------- -------- Distributions declared (3) Limited partners - common units $135,816 $259,745 General partner 71,675 136,499 --------------- ------ ------- Total $207,491 $396,244 ----- -------- -------- Coverage ratio 1.19 x 1.17 x -------------- ---- --- ----
(1) Includes amounts related to the Deferred purchase price obligation -Anadarko. (2) Includes WES's 75% share of depreciation and amortization; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. (3) Reflects cash distributions of $0.890 and $1.765 per unit declared for the three and six months ended June 30, 2017, respectively.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted EBITDA Attributable to Western Gas Partners, LP
WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investments, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairments, and other expense (including lower of cost or market inventory adjustments recorded in cost of product), less gain (loss) on divestiture and other, net, income from equity investments, interest income, income tax benefit, and other income.
Three Months Ended Six Months Ended June 30, June 30, thousands 2017 2016 2017 2016 --------- ---- ---- ---- ---- Reconciliation of Net income (loss) attributable to Western Gas Partners, LP to Adjusted EBITDA attributable to Western Gas Partners, LP Net income (loss) attributable to Western Gas Partners, LP $173,451 $164,521 $275,340 $280,581 Add: Distributions from equity investments 28,856 24,491 51,423 49,130 Non-cash equity-based compensation expense 975 1,246 2,221 2,549 Interest expense 35,746 12,883 71,250 44,919 Income tax expense 843 326 4,395 6,959 Depreciation and amortization (1) 73,352 66,650 142,401 131,089 Impairments 3,178 2,403 167,920 8,921 Other expense (1) 95 56 140 56 Less: Gain (loss) on divestiture and other, net 15,458 (1,907) 134,945 (2,539) Equity income, net - affiliates 21,728 19,693 41,189 36,507 Interest income - affiliates 4,225 4,225 8,450 8,450 Other income (1) 250 - 677 122 Adjusted EBITDA attributable to Western Gas Partners, LP $274,835 $250,565 $529,829 $481,664 ---------------------- -------- -------- -------- -------- Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP Net cash provided by (used in) operating activities $240,536 $157,363 $433,152 $393,866 Interest (income) expense, net 31,521 8,658 62,800 36,469 Uncontributed cash- based compensation awards (209) 86 (172) 158 Accretion and amortization of long- term obligations, net (1,038) 14,522 (2,139) 9,055 Current income tax (benefit) expense 204 198 628 4,979 Other (income) expense, net (253) 53 (683) (71) Distributions from equity investments in excess of cumulative earnings - affiliates 5,768 5,827 9,221 10,611 Changes in operating working capital: Accounts receivable, net (10,876) 45,800 (9,363) 33,242 Accounts and imbalance payables and accrued liabilities, net 12,035 20,205 41,975 2,227 Other (131) 1,309 (116) (1,739) Adjusted EBITDA attributable to noncontrolling interest (2,722) (3,456) (5,474) (7,133) ------ ------ ------ ------ Adjusted EBITDA attributable to Western Gas Partners, LP $274,835 $250,565 $529,829 $481,664 ---------------------- -------- -------- -------- -------- Cash flow information of Western Gas Partners, LP Net cash provided by (used in) operating activities $433,152 $393,866 Net cash provided by (used in) investing activities (363,131) (952,824) Net cash provided by (used in) financing activities (239,749) 618,692 -------------------- -------- -------
(1) Includes WES's 75% share of depreciation and amortization; other expense; and other income attributable to Chipeta.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted Gross Margin Attributable to Western Gas Partners, LP
WES defines Adjusted gross margin as total revenues and other, less cost of product and reimbursements for electricity-related expenses recorded as revenue, plus distributions from equity investments and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended Six Months Ended June 30, June 30, thousands 2017 2016 2017 2016 --------- ---- ---- ---- ---- Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP Operating income (loss) $207,608 $176,362 $346,000 $329,765 Add: Distributions from equity investments 28,856 24,491 51,423 49,130 Operation and maintenance 76,148 75,173 149,908 151,386 General and administrative 10,585 10,883 23,244 22,160 Property and other taxes 11,924 12,078 24,218 22,428 Depreciation and amortization 74,031 67,305 143,733 132,400 Impairments 3,178 2,403 167,920 8,921 Less: Gain (loss) on divestiture and other, net 15,458 (1,907) 134,945 (2,539) Proceeds from business interruption insurance claims 24,115 2,603 29,882 2,603 Equity income, net - affiliates 21,728 19,693 41,189 36,507 Reimbursed electricity- related charges recorded as revenues 14,046 14,869 28,015 30,537 Adjusted gross margin attributable to noncontrolling interest 3,435 4,183 7,311 8,604 ----- ----- ----- ----- Adjusted gross margin attributable to Western Gas Partners, LP $333,548 $329,254 $665,104 $640,478 ---------------------- -------- -------- -------- -------- Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets $297,778 $294,661 $599,283 $571,190 Adjusted gross margin for crude, NGL and produced water assets 35,770 34,593 65,821 69,288
Western Gas Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, thousands except per-unit amounts 2017 2016 2017 2016 ------------------------- ---- ---- ---- ---- Revenues and other Gathering, processing and transportation $299,435 $301,136 $607,249 $595,140 Natural gas and natural gas liquids sales 224,824 126,993 431,349 215,549 Other 1,191 535 3,045 1,116 Total revenues and other 525,450 428,664 1,041,643 811,805 ------------------------ ------- ------- --------- ------- Equity income, net - affiliates 21,728 19,693 41,189 36,507 ------ ------ ------ ------ Operating expenses Cost of product 203,277 104,849 392,636 181,316 Operation and maintenance 76,148 75,173 149,908 151,386 General and administrative 10,585 10,883 23,244 22,160 Property and other taxes 11,924 12,078 24,218 22,428 Depreciation and amortization 74,031 67,305 143,733 132,400 Impairments 3,178 2,403 167,920 8,921 ----------- ----- ----- ------- ----- Total operating expenses 379,143 272,691 901,659 518,611 ------------------------ ------- ------- ------- ------- Gain (loss) on divestiture and other, net 15,458 (1,907) 134,945 (2,539) Proceeds from business interruption insurance claims 24,115 2,603 29,882 2,603 ------ ----- ------ ----- Operating income (loss) 207,608 176,362 346,000 329,765 Interest income - affiliates 4,225 4,225 8,450 8,450 Interest expense (35,746) (12,883) (71,250) (44,919) Other income (expense), net 253 (53) 683 71 --- --- --- --- Income (loss) before income taxes 176,340 167,651 283,883 293,367 Income tax (benefit) expense 843 326 4,395 6,959 --- --- ----- ----- Net income (loss) 175,497 167,325 279,488 286,408 Net income attributable to noncontrolling interest 2,046 2,804 4,148 5,827 -------------------------- ----- ----- ----- ----- Net income (loss) attributable to Western Gas Partners, LP $173,451 $164,521 $275,340 $280,581 Limited partners' interest in net income (loss): Net income (loss) attributable to Western Gas Partners, LP $173,451 $164,521 $275,340 $280,581 Pre-acquisition net (income) loss allocated to Anadarko - - - (11,326) Series A Preferred units interest in net (income) loss (14,199) (23,121) (42,373) (25,450) General partner interest in net (income) loss (76,365) (58,381) (144,527) (113,781) --------------------------- -------- -------- Common and Class C limited partners' interest in net income (loss) $82,887 $83,019 $88,440 $130,024 Net income (loss) per common unit - basic and diluted $0.49 $0.55 $0.53 $0.86 Weighted-average common units outstanding - basic 148,864 130,669 141,696 129,830 Weighted-average common units outstanding - diluted 165,248 163,227 165,149 153,291 ---------------------------- ------- ------- ------- -------
Western Gas Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) thousands except number of units June 30, December 31, 2017 2016 --- ---- ---- Current assets $334,802 $594,014 Note receivable - Anadarko 260,000 260,000 Net property, plant and equipment 5,347,794 5,049,932 Other assets 1,803,119 1,829,082 --------- --------- Total assets $7,745,715 $7,733,028 ------- ---------- ---------- Current liabilities $277,395 $315,305 Long-term debt 3,253,065 3,091,461 Asset retirement obligations and other 152,695 149,043 Deferred purchase price obligation - Anadarko - 41,440 ----------- --- ------ Total liabilities $3,683,155 $3,597,249 ------------ ---------- ---------- Equity and partners' capital Series A Preferred and units December (zero and 31, 2016, 21,922,831 respectively) units issued and outstanding at June 30, 2017, $ - $639,545 Common units and (152,602,105 December and 31, 2016, 130,671,970 respectively) units issued and outstanding at June 30, 2017, 3,070,608 2,536,872 Class C units and (21,743,318 December and 31, 2016, 12,358,123 respectively) units issued and outstanding at June 30, 2017, 764,174 750,831 General partner December units 31, 2016) (2,583,068 units issued and outstanding at June 30, 2017, and 165,442 143,968 Noncontrolling interest 62,336 64,563 ------ ------ Total liabilities, equity and partners' capital $7,745,715 $7,733,028 ------------- ---------- ----------
Western Gas Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, thousands 2017 2016 --------- ---- ---- Cash flows from operating activities Net income (loss) $279,488 $286,408 Adjustments to activities reconcile and net changes income in (loss) working to net capital: cash provided by operating Depreciation and amortization 143,733 132,400 Impairments 167,920 8,921 (Gain) loss on divestiture and other, net (134,945) 2,539 Change in other items, net (23,044) (36,402) ------- ------- ------- Net cash provided by (used in) operating activities $433,152 $393,866 ----------- -------- -------- Cash flows from investing activities Capital expenditures $(260,480) $(255,923) Contributions in aid of construction costs from affiliates 1,343 3,854 Acquisitions from affiliates (3,910) (715,199) Acquisitions from third parties (155,287) - Investments in equity affiliates (287) 139 Distributions from equity investments in excess of cumulative earnings - affiliates 9,221 10,611 Proceeds from the sale of assets to affiliates - 613 Proceeds from the sale of assets to third parties 23,292 137 Proceeds from property insurance claims 22,977 2,944 ------ ----- Net cash provided by (used in) investing activities $(363,131) $(952,824) ----------- --------- --------- Cash flows from financing activities Borrowings, net of debt issuance costs $159,989 $530,000 Repayments of debt - (290,000) Settlement of the Deferred purchase price obligation - Anadarko (37,346) - Increase (decrease) in outstanding checks (2,763) (1,314) Proceeds from the issuance of common units, net of offering expenses (183) 25,000 Proceeds from the issuance of Series A Preferred units, net of offering expenses - 686,940 Distributions to unitholders (381,771) (313,380) Distributions to noncontrolling interest owner (6,375) (7,460) Net contributions from (distributions to) Anadarko 30 (27,459) Above- market component of swap agreements with Anadarko 28,670 16,365 ----------- ------ ------ Net cash provided by (used in) financing activities $(239,749) $618,692 ----------- --------- -------- Net increase (decrease) in cash and cash equivalents $(169,728) $59,734 Cash and cash equivalents at beginning of period 357,925 98,033 ------------ ------- ------ Cash and cash equivalents at end of period $188,197 $157,767 ------------ -------- --------
Western Gas Partners, LP OPERATING STATISTICS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 ---- ---- ---- ---- Throughput for natural gas assets (MMcf/d) Gathering, treating and transportation 866 1,508 1,155 1,553 Processing 2,555 2,320 2,498 2,226 Equity investment (1) 158 170 160 178 -------------------- --- --- --- --- Total throughput for natural gas assets 3,579 3,998 3,813 3,957 ---------------------------- ----- ----- ----- ----- Throughput attributable to noncontrolling interest for natural gas assets 107 128 108 132 ---------------------------- Total throughput attributable to Western Gas Partners, LP for natural gas assets 3,472 3,870 3,705 3,825 ----------------------------- ----- ----- ----- ----- Throughput for crude, NGL and produced water assets (MBbls/ d) Gathering, treating and transportation 50 59 47 59 Equity investment (2) 132 128 129 127 --- --- --- --- Total throughput for crude, NGL and produced water assets 182 187 176 186 ------------------------------- --- --- --- --- Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (3) $0.94 $0.84 $0.89 $0.82 ----------------------------- ----- ----- ----- ----- Adjusted gross margin per Bbl for crude, NGL and produced water assets (4) 2.15 2.03 2.07 2.05 ----------------------------- ---- ---- ---- ----
(1) Represents WES's 14.81% share of average Fort Union throughput and 22% share of average Rendezvous throughput. (2) Represents WES's 10% share of average White Cliffs throughput, WES's 25% share of average Mont Belvieu JV throughput, WES's 20% share of average TEG and TEP throughput, and WES's 33.33% share of average FRP throughput. (3) Average for period. Calculated as Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets (total revenues and other for natural gas assets, less reimbursements for electricity- related expenses recorded as revenue and cost of product for natural gas assets, plus distributions from WES's equity investments in Fort Union and Rendezvous, and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product), divided by total throughput (MMcf/d) attributable to Western Gas Partners, LP for natural gas assets. (4) Average for period. Calculated as Adjusted gross margin for crude, NGL and produced water assets (total revenues and other for crude, NGL and produced water assets, less reimbursements for electricity- related expenses recorded as revenue and cost of product for crude, NGL and produced water assets, plus distributions from WES's equity investments in White Cliffs, the Mont Belvieu JV, TEG, TEP and FRP), divided by total throughput (MBbls/ d) for crude, NGL and produced water assets.
Western Gas Equity Partners, LP CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION (Unaudited) thousands except per-unit amount and Coverage ratio Three Months Ended June 30, 2017 --- ------------- Distributions declared by Western Gas Partners, LP: General partner interest $3,454 Incentive distribution rights 68,221 Common units held by WGP 44,618 Less: Public company general and administrative expense 612 Interest expense 551 ---------------- --- Cash available for distribution $115,130 ------------------------------- -------- Declared distribution per common unit $0.52750 -------------------------------- -------- Distributions declared by Western Gas Equity Partners, LP $115,487 --------------------------------- -------- Coverage ratio 1.00 x -------------- ---- ---
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, June 30, thousands except per-unit amounts 2017 2016 2017 2016 ------------------------- ---- ---- ---- ---- Revenues and other Gathering, processing and transportation $299,435 $301,136 $607,249 $595,140 Natural gas and natural gas liquids sales 224,824 126,993 431,349 215,549 Other 1,191 535 3,045 1,116 ----- --- ----- ----- Total revenues and other 525,450 428,664 1,041,643 811,805 ------------------------ ------- ------- --------- ------- Equity income, net - affiliates 21,728 19,693 41,189 36,507 ------ ------ ------ ------ Operating expenses Cost of product 203,277 104,849 392,636 181,316 Operation and maintenance 76,148 75,173 149,908 151,386 General and administrative 11,197 11,887 24,673 24,402 Property and other taxes 11,924 12,093 24,218 22,443 Depreciation and amortization 74,031 67,305 143,733 132,400 Impairments 3,178 2,403 167,920 8,921 ----------- ----- ----- ------- ----- Total operating expenses 379,755 273,710 903,088 520,868 ------------------------ ------- ------- ------- ------- Gain (loss) on divestiture and other, net 15,458 (1,907) 134,945 (2,539) -------------------------- ------ ------ ------- ------ Proceeds from business interruption insurance claims 24,115 2,603 29,882 2,603 ------ ----- ------ ----- Operating income (loss) 206,996 175,343 344,571 327,508 Interest income - affiliates 4,225 4,225 8,450 8,450 Interest expense (36,297) (13,429) (72,330) (45,568) Other income (expense), net 272 (36) 718 105 --- --- --- --- Income (loss) before income taxes 175,196 166,103 281,409 290,495 Income tax (benefit) expense 843 326 4,395 6,959 --- --- ----- ----- Net income (loss) 174,353 165,777 277,014 283,536 Net income (loss) attributable to noncontrolling interests 69,409 76,914 96,130 112,857 ------------------------- ------ ------ ------ ------- Net income (loss) attributable to Western Gas Equity Partners, LP $104,944 $88,863 $180,884 $170,679 Limited partners' interest in net income (loss): Net income (loss) attributable to Western Gas Equity Partners, LP $104,944 $88,863 $180,884 $170,679 Pre-acquisition net (income) loss allocated to Anadarko - - - (11,326) --------------------------- --- --- --- ------- Limited partners' interest in net income (loss) $104,944 $88,863 $180,884 $159,353 Net income (loss) per common unit - basic and diluted $0.48 $0.41 $0.83 $0.73 Weighted-average common units outstanding - basic and diluted 218,931 218,921 218,930 218,920 -------------------------- ------- ------- ------- -------
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) thousands except number of units June 30, December 31, 2017 2016 --- ---- ---- Current assets $335,683 $595,591 Note receivable - Anadarko 260,000 260,000 Net property, plant and equipment 5,347,794 5,049,932 Other assets 1,804,275 1,830,574 --------- --------- Total assets $7,747,752 $7,736,097 ------- ---------- ---------- Current liabilities $277,536 $315,387 Long-term debt 3,281,065 3,119,461 Asset retirement obligations and other 152,695 149,043 Deferred purchase price obligation - Anadarko - 41,440 ----------- --- Total liabilities $3,711,296 $3,625,331 ------------ ---------- ---------- Equity and partners' capital Common units and (218,933,141 December and 31, 2016, 218,928,570 respectively) units issued and outstanding at June 30, 2017, $1,070,254 $1,048,143 Noncontrolling interests 2,966,202 3,062,623 --------- --------- Total liabilities, equity and partners' capital $7,747,752 $7,736,097 ------------- ---------- ----------
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, thousands 2017 2016 --------- ---- ---- Cash flows from operating activities Net income (loss) $277,014 $283,536 Adjustments to activities reconcile and net changes income in (loss) working to net capital: cash provided by operating Depreciation and amortization 143,733 132,400 Impairments 167,920 8,921 (Gain) loss on divestiture and other, net (134,945) 2,539 Change in other items, net (22,364) (35,581) --------- ------- ------- Net cash provided by (used in) operating activities $431,358 $391,815 ----------- -------- -------- Cash flows from investing activities Capital expenditures $(260,480) $(255,923) Contributions in aid of construction costs from affiliates 1,343 3,854 Acquisitions from affiliates (3,910) (715,199) Acquisitions from third parties (155,287) - Investments in equity affiliates (287) 139 Distributions from equity investments in excess of cumulative earnings - affiliates 9,221 10,611 Proceeds from the sale of assets to affiliates - 613 Proceeds from the sale of assets to third parties 23,292 137 Proceeds from property insurance claims 22,977 2,944 ------ ----- Net cash provided by (used in) investing activities $(363,131) $(952,824) ----------- --------- --------- Cash flows from financing activities Borrowings, net of debt issuance costs $159,989 $556,017 Repayments of debt - (290,000) Settlement of the Deferred purchase price obligation - Anadarko (37,346) - Increase (decrease) in outstanding checks (2,763) (1,314) Proceeds from the issuance of WES common units, net of offering expenses (183) - Proceeds from the issuance of WES Series A Preferred units, net of offering expenses - 686,940 Distributions to WGP unitholders (208,803) (181,156) Distributions to Chipeta noncontrolling interest owner (6,375) (7,460) Distributions to noncontrolling interest owners of WES (171,689) (130,947) Net contributions from (distributions to) Anadarko 30 (27,459) Above- market component of swap agreements with Anadarko 28,670 16,365 ----------- ------ ------ Net cash provided by (used in) financing activities $(238,470) $620,986 ----------- --------- -------- Net increase (decrease) in cash and cash equivalents $(170,243) $59,977 Cash and cash equivalents at beginning of period 359,072 99,694 ------------ ------- ------ Cash and cash equivalents at end of period $188,829 $159,671 ------------ -------- --------
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SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP