Western Gas Announces Second-Quarter 2015 Results

Jul 29, 2015, 16:05 ET from Western Gas

HOUSTON, July 29, 2015 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced second-quarter 2015 financial and operating results.

WESTERN GAS PARTNERS, LP

Net income available to limited partners for the second quarter of 2015 totaled $64.6 million, or $0.44 per common unit (diluted). For the second quarter of 2015, Adjusted EBITDA(1) was $205.5 million and Distributable cash flow(1) was $173.3 million, resulting in a Coverage ratio(1) of 1.24 times for the period.

WES previously declared a quarterly distribution of $0.750 per unit for the second quarter of 2015. This distribution represented a 3% increase over the prior quarter's distribution and a 15% increase over the second-quarter 2014 distribution of $0.650 per unit. The distribution will be paid on August 12, 2015, to unitholders of record at the close of business on July 31, 2015. The second-quarter 2015 Coverage ratio(1) of 1.24 times was based on the quarterly distribution of $0.750 per unit.

Total throughput attributable to WES for natural gas assets for the second quarter of 2015 averaged 4.1 Bcf/d, which was 4% above the prior quarter and 13% above the second quarter of 2014. Total throughput for crude/NGL assets for the second quarter of 2015 averaged 134 MBbls/d, which was 2% above the prior quarter and 17% above the second quarter of 2014.

"The successful startup of Lancaster Train II combined with significant sequential volume growth in the DJ and Delaware Basins has led to another quarter of solid operating performance," said Chief Executive Officer, Don Sinclair. "Furthermore, we have protected our cash flow in the second half of the year by extending our DJ Basin and Hugoton fixed-price agreements with Anadarko through December 31, 2015."

Capital expenditures attributable to WES on a cash basis, including equity investments but excluding acquisitions, totaled $136.3 million during the second quarter of 2015. Of this amount, maintenance capital expenditures were $10.3 million, or 5% of Adjusted EBITDA(1). Capital expenditures attributable to WES on an accrual basis, including equity investments but excluding acquisitions, totaled $120.2 million during the second quarter of 2015. The Partnership is slightly revising its 2015 outlook for maintenance capital expenditures, now estimating they will be between 7% and 10% of Adjusted EBITDA.

WESTERN GAS EQUITY PARTNERS, LP

WGP indirectly owns the entire general partner interest in WES, 100% of the incentive distribution rights in WES and 49,296,205 WES common units. Net income available to limited partners for the second quarter of 2015 totaled $67.8 million, or $0.31 per common unit (diluted).

WGP previously declared a quarterly distribution of $0.36375 per unit for the second quarter of 2015. This distribution represented a 6% increase over the prior quarter's distribution and a 34% increase over the second-quarter 2014 distribution of $0.27125. The distribution will be paid on August 21, 2015, to unitholders of record at the close of business on July 31, 2015. WGP will receive distributions from WES of $80.3 million attributable to the second quarter and will pay $79.6 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 Thursday, July 30, 2015, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss second-quarter 2015 results. Individuals who would like to participate should dial 866-777-2509 (Domestic) or 412-317-5413 (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.

(1)

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

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 filed with the Securities and Exchange Commission and in their other public filings and press releases. Western Gas Partners and Western Gas Equity Partners undertake no obligation to publicly update or revise any forward-looking statements.

WESTERN GAS CONTACT Benjamin Fink, CFA SVP, Chief Financial Officer and Treasurer 832.636.6010 benjamin.fink@westerngas.com

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Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of (i) WES's Distributable cash flow (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP) and to net cash provided by operating activities (GAAP), and (iii) Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-GAAP) to operating income (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 and other applicable performance measures, such as operating income or cash flows from operating activities.

Distributable Cash Flow

WES defines Distributable cash flow as Adjusted EBITDA, plus interest income, plus the net settlement amounts from the sale and/or purchase of natural gas, drip condensate and NGLs under our commodity price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less net cash paid for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, and income taxes.

Three Months Ended June 30,

Six Months Ended June 30,

thousands except Coverage ratio

2015

2014 (1)

2015

2014 (1)

Reconciliation of Net income attributable to Western Gas Partners, LP to Distributable cash flow and calculation of the Coverage ratio

Net income attributable to Western Gas Partners, LP

$

110,522

$

99,167

$

194,090

$

190,223

Add:

Distributions from equity investees

25,902

24,328

47,572

36,641

Non-cash equity-based compensation expense

1,163

1,057

2,275

2,154

Interest expense, net (non-cash settled) (2)

4,190

5,610

Income tax (benefit) expense

(1,816)

2,523

2,644

4,308

Depreciation, amortization and impairments (3)

65,311

44,662

134,955

86,110

Less:

Equity income, net

18,941

13,008

37,161

22,259

Cash paid for maintenance capital expenditures (3)

10,262

12,849

22,894

22,993

Capitalized interest

2,693

2,007

5,787

5,447

Cash paid for (reimbursement of) income taxes

(138)

(340)

Other income (3) (4)

68

79

137

157

Distributable cash flow

$

173,308

$

143,794

$

321,305

$

268,920

Distributions declared (5)

Limited partners

$

96,431

$

189,570

General partner

43,305

83,369

Total

$

139,736

$

272,939

Coverage ratio

1.24

x

1.18

x

(1)

In March 2015, WES acquired Anadarko's interest in Delaware Basin JV Gathering LLC, which owns a 50% interest in a gathering system and related facilities (the "DBJV system"). WES will make a cash payment on March 1, 2020, to Anadarko as consideration for the acquisition. The net present value of this future obligation has been recorded on the consolidated balance sheet under Deferred purchase price obligation - Anadarko. Financial information has been recast to include the financial position and results attributable to the DBJV system.

(2)

Includes accretion expense related to the Deferred purchase price obligation - Anadarko associated with the acquisition of DBJV.

(3)

Includes WES's 75% share of depreciation, amortization and impairments; cash paid for maintenance capital expenditures; and other income attributable to Chipeta.

(4)

Excludes income of zero and $0.1 million for the three months ended June 30, 2015 and 2014, respectively, and zero and $0.5 million for the six months ended June 30, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease.

(5)

Reflects cash distributions of $0.750 and $1.475 per unit declared for the three and six months ended June 30, 2015, respectively.

 

Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued

Adjusted EBITDA Attributable to Western Gas Partners, LP

WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation, amortization and impairments, and other expense, less gains on divestitures, income from equity investments, interest income, income tax benefit and other income.

Three Months Ended June 30,

Six Months Ended June 30,

thousands

2015

2014 (1)

2015

2014 (1)

Reconciliation of Net income attributable to Western Gas Partners, LP to Adjusted EBITDA attributable to Western Gas Partners, LP

Net income attributable to Western Gas Partners, LP

$

110,522

$

99,167

$

194,090

$

190,223

Add:

Distributions from equity investees

25,902

24,328

47,572

36,641

Non-cash equity-based compensation expense

1,163

1,057

2,275

2,154

Interest expense

27,604

20,864

50,564

34,825

Income tax expense

2,523

4,460

4,308

Depreciation, amortization and impairments (2)

65,311

44,662

134,955

86,110

Less:

Equity income, net

18,941

13,008

37,161

22,259

Interest income – affiliates

4,225

4,225

8,450

8,450

Other income (2) (3)

68

79

137

157

Income tax benefit

1,816

1,816

Adjusted EBITDA attributable to Western Gas Partners, LP

$

205,452

$

175,289

$

386,352

$

323,395

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

Adjusted EBITDA attributable to Western Gas Partners, LP

$

205,452

$

175,289

$

386,352

$

323,395

Adjusted EBITDA attributable to noncontrolling interest

3,463

4,090

7,335

8,416

Interest income (expense), net

(23,379)

(16,639)

(42,114)

(26,375)

Uncontributed cash-based compensation awards

(68)

(20)

(145)

33

Accretion and amortization of long-term obligations, net

4,958

678

7,070

1,358

Current income tax benefit (expense)

(117)

(1,298)

(819)

(2,090)

Other income (expense), net (3)

71

82

142

163

Distributions from equity investments in excess of cumulative earnings

(5,574)

(7,804)

(8,538)

(9,848)

Changes in operating working capital:

Accounts receivable, net

(28,463)

(8,421)

(46,135)

(23,860)

Accounts and natural gas imbalance payables and accrued liabilities, net

(10,168)

(2,439)

283

4,267

Other

(744)

2,369

(1,964)

4,247

Net cash provided by operating activities

$

145,431

$

145,887

$

301,467

$

279,706

Cash flow information of Western Gas Partners, LP

Net cash provided by operating activities

$

301,467

$

279,706

Net cash used in investing activities

$

(349,170)

$

(801,530)

Net cash provided by financing activities

$

68,417

$

531,725

(1)

Financial information has been recast to include the financial position and results attributable to the DBJV system.

(2)

Includes WES's 75% share of depreciation, amortization and impairments; and other income attributable to Chipeta.

(3)

Excludes income of zero and $0.1 million for the three months ended June 30, 2015 and 2014, respectively, and zero and $0.5 million for the six months ended June 30, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease.

 

Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued

Adjusted gross margin attributable to Western Gas Partners, LP

WES defines Adjusted gross margin as total revenues less gains on divestitures and cost of product, plus distributions from equity investees and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.

Three Months Ended June 30,

Six Months Ended June 30,

thousands

2015

2014 (1)

2015

2014 (1)

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

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

$

255,342

$

222,913

$

489,194

$

418,684

Adjusted gross margin for crude/NGL assets

22,018

21,507

42,202

32,296

Adjusted gross margin attributable to Western Gas Partners, LP

$

277,360

$

244,420

$

531,396

$

450,980

Adjusted gross margin attributable to noncontrolling interest

$

4,661

$

4,935

$

9,469

$

10,029

Equity income, net

18,941

13,008

37,161

22,259

Less:

Distributions from equity investees

25,902

24,328

47,572

36,641

Operation and maintenance

56,827

55,404

112,976

99,981

General and administrative

8,667

8,445

19,179

17,349

Property and other taxes

8,775

7,316

17,298

14,550

Depreciation, amortization and impairments

65,961

45,305

136,253

87,390

Operating income

$

134,830

$

121,565

$

244,748

$

227,357

(1)

Financial information has been recast to include the financial position and results attributable to the DBJV system.

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

thousands except per-unit amounts

2015

2014 (1)

2015

2014 (1)

Revenues

Gathering, processing and transportation of natural gas and natural gas liquids

$

228,236

$

175,885

$

438,080

$

330,382

Natural gas, natural gas liquids and drip condensate sales

173,261

167,628

337,429

305,277

Other

915

2,056

1,997

3,627

Total revenues

402,412

345,569

777,506

639,286

Equity income, net

18,941

13,008

37,161

22,259

Operating expenses

Cost of product

146,293

120,542

284,213

214,918

Operation and maintenance

56,827

55,404

112,976

99,981

General and administrative

8,667

8,445

19,179

17,349

Property and other taxes

8,775

7,316

17,298

14,550

Depreciation, amortization and impairments

65,961

45,305

136,253

87,390

Total operating expenses

286,523

237,012

569,919

434,188

Operating income

134,830

121,565

244,748

227,357

Interest income – affiliates

4,225

4,225

8,450

8,450

Interest expense

(27,604)

(20,864)

(50,564)

(34,825)

Other income (expense), net

71

214

142

691

Income before income taxes

111,522

105,140

202,776

201,673

Income tax (benefit) expense

(1,816)

2,523

2,644

4,308

Net income

113,338

102,617

200,132

197,365

Net income attributable to noncontrolling interest

2,816

3,450

6,042

7,142

Net income attributable to Western Gas Partners, LP

$

110,522

$

99,167

$

194,090

$

190,223

Limited partners' interest in net income:

Net income attributable to Western Gas Partners, LP

$

110,522

$

99,167

$

194,090

$

190,223

Pre-acquisition net (income) loss allocated to Anadarko

(4,135)

(1,742)

(6,800)

General partner interest in net (income) loss

(45,915)

(28,047)

(87,908)

(52,881)

Limited partners' interest in net income

64,607

66,985

$

104,440

$

130,542

Net income per common unit – basic

$

0.44

$

0.57

$

0.70

$

1.11

Net income per common unit – diluted

0.44

0.57

0.70

1.11

Weighted-average common units outstanding – basic

128,481

118,177

128,111

117,948

Weighted-average common units outstanding – diluted

139,504

118,177

139,092

117,948

(1) 

Financial information has been recast to include the financial position and results attributable to the DBJV system.

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

thousands except number of units

June 30, 2015

December 31, 2014 (1)

Current assets

$

272,101

$

186,364

Note receivable – Anadarko

260,000

260,000

Net property, plant and equipment

4,782,541

4,571,443

Other assets

1,901,400

1,936,725

Total assets

$

7,216,042

$

6,954,532

Current liabilities

$

213,063

$

239,833

Long-term debt

2,677,023

2,422,954

Asset retirement obligations and other

125,910

157,370

Deferred purchase price obligation – Anadarko

179,886

Total liabilities

$

3,195,882

$

2,820,157

Equity and partners' capital

Common units (128,574,646 and 127,695,130 units issued and outstanding at June 30, 2015, and December 31, 2014, respectively)

$

3,102,772

$

3,119,714

Class C units (11,077,794 and 10,913,853 units issued and outstanding at June 30, 2015, and December 31, 2014, respectively)

732,192

716,957

General partner units (2,583,068 units issued and outstanding at June 30, 2015, and December 31, 2014)

116,859

105,725

Net investment by Anadarko

122,509

Noncontrolling interest

68,337

69,470

Total liabilities, equity and partners' capital

$

7,216,042

$

6,954,532

(1)

Financial information has been recast to include the financial position and results attributable to the DBJV system.

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended June 30,

thousands

2015

2014 (1)

Cash flows from operating activities

Net income

$

200,132

$

197,365

Adjustments to reconcile net income to net cash provided by operating activities and changes in working capital:

Depreciation, amortization and impairments

136,253

87,390

Change in other items, net

(34,918)

(5,049)

Net cash provided by operating activities

301,467

279,706

Cash flows from investing activities

Capital expenditures

(338,178)

(390,506)

Contributions in aid of construction costs from affiliates

182

Acquisitions from affiliates

(9,968)

(360,952)

Acquisitions from third parties

(3,514)

Investments in equity affiliates

(6,770)

(60,102)

Distributions from equity investments in excess of cumulative earnings

8,538

9,848

Proceeds from the sale of assets to affiliates

700

Proceeds from the sale of assets to third parties

22

Net cash used in investing activities

(349,170)

(801,530)

Cash flows from financing activities

Borrowings, net of debt issuance costs

769,694

1,076,895

Repayments of debt

(520,000)

(480,000)

Increase (decrease) in outstanding checks

(2,327)

2,517

Proceeds from the issuance of common and general partner units, net of offering expenses

57,376

92,588

Distributions to unitholders

(259,247)

(191,359)

Distributions to noncontrolling interest owner

(7,175)

(7,949)

Net contributions from Anadarko

30,096

39,033

Net cash provided by financing activities

68,417

531,725

Net increase (decrease) in cash and cash equivalents

20,714

9,901

Cash and cash equivalents at beginning of period

67,054

100,728

Cash and cash equivalents at end of period

$

87,768

$

110,629

(1)

Financial information has been recast to include the financial position and results attributable to the DBJV system.

 

Western Gas Partners, LP

OPERATING STATISTICS

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

MMcf/d except throughput measured in barrels and per-unit amounts

2015

2014 (1)

2015

2014 (1)

Throughput for natural gas assets

Gathering, treating and transportation

1,605

1,673

1,630

1,660

Processing

2,465

1,971

2,362

1,885

Equity investment (2)

172

153

169

170

Total throughput for natural gas assets

4,242

3,797

4,161

3,715

Throughput attributable to noncontrolling interest for natural gas assets

159

171

161

172

Total throughput attributable to Western Gas Partners, LP for natural gas assets (3)

4,083

3,626

4,000

3,543

Total throughput (MBbls/d) for crude/NGL assets (4)

134

115

133

97

Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (5)

$

0.69

$

0.68

$

0.68

$

0.65

Adjusted gross margin per Bbl for crude/NGL assets (6)

$

1.80

$

2.06

$

1.76

$

1.84

(1)

Throughput has been recast to include throughput attributable to the DBJV system.

(2)

Represents WES's 14.81% share of average Fort Union and 22% share of average Rendezvous throughput. Excludes equity investment throughput measured in barrels (captured in "Total throughput (MBbls/d) for crude/NGL assets" as noted below).

(3)

Includes affiliate, third-party and equity investment throughput (as equity investment throughput is defined in the above footnote), excluding the noncontrolling interest owner's proportionate share of throughput.

(4)

Represents total throughput measured in barrels, consisting of throughput from WES's Chipeta NGL pipeline, WES's 10% share of average White Cliffs throughput, WES's 25% share of average Mont Belvieu JV throughput, WES's 20% share of average TEG and TEP throughput and WES's 33.33% share of average FRP throughput.

(5)

Average for period. Calculated as Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets (total revenues for natural gas assets 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 owners' proportionate share of revenue and cost of product) divided by total throughput (MMcf/d) attributable to Western Gas Partners, LP for natural gas assets.

(6)

Average for period. Calculated as Adjusted gross margin for crude/NGL assets (total revenues for crude/NGL assets less cost of product for crude/NGL assets plus distributions from WES's equity investments in White Cliffs, the Mont Belvieu JV, TEG, TEP and FRP), divided by total throughput (MBbls/d) for crude/NGL assets.

 

Western Gas Equity Partners, LP

CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION

(Unaudited)

Three Months Ended

thousands except per-unit amount and Coverage ratio

June 30, 2015

Distributions declared by Western Gas Partners, LP:

General partner interest

$

2,752

Incentive distribution rights

40,553

Common units held by WGP

36,972

Less:

Public company general and administrative expense

640

Cash available for distribution

$

79,637

Declared distribution per common unit

$

0.36375

Distributions declared by Western Gas Equity Partners, LP

$

79,630

Coverage ratio

1.00

x

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

thousands except per-unit amounts

2015

2014 (1)

2015

2014 (1)

Revenues

Gathering, processing and transportation of natural gas and natural gas liquids

$

228,236

$

175,885

$

438,080

$

330,382

Natural gas, natural gas liquids and drip condensate sales

173,261

167,628

337,429

305,277

Other

915

2,056

1,997

3,627

Total revenues

402,412

345,569

777,506

639,286

Equity income, net

18,941

13,008

37,161

22,259

Operating expenses

Cost of product

146,293

120,542

284,213

214,918

Operation and maintenance

56,827

55,404

112,976

99,981

General and administrative

9,442

9,202

20,789

19,077

Property and other taxes

8,801

7,316

17,324

14,550

Depreciation, amortization and impairments

65,961

45,305

136,253

87,390

Total operating expenses

287,324

237,769

571,555

435,916

Operating income

134,029

120,808

243,112

225,629

Interest income – affiliates

4,225

4,225

8,450

8,450

Interest expense

(27,604)

(20,864)

(50,566)

(34,825)

Other income (expense), net

80

235

160

731

Income before income taxes

110,730

104,404

201,156

199,985

Income tax (benefit) expense

(1,816)

2,523

2,644

4,308

Net income

112,546

101,881

198,512

195,677

Net income attributable to noncontrolling interests

44,751

42,492

73,688

83,126

Net income attributable to Western Gas Equity Partners, LP

$

67,795

$

59,389

$

124,824

$

112,551

Limited partners' interest in net income:

Net income attributable to Western Gas Equity Partners, LP

$

67,795

$

59,389

$

124,824

$

112,551

Pre-acquisition net (income) loss allocated to Anadarko

(4,135)

(1,742)

(6,800)

Limited partners' interest in net income

67,795

55,254

$

123,082

$

105,751

Net income per common unit – basic and diluted

$

0.31

$

0.25

$

0.56

$

0.48

Weighted-average number of common units outstanding – basic and diluted

218,912

218,903

218,911

218,903

(1)

Financial information has been recast to include the financial position and results attributable to the DBJV system.

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

thousands except number of units

June 30, 2015

December 31, 2014 (1)

Current assets

$

273,712

$

187,073

Note receivable – Anadarko

260,000

260,000

Net property, plant and equipment

4,782,541

4,571,443

Other assets

1,901,400

1,936,725

Total assets

$

7,217,653

$

6,955,241

Current liabilities

$

213,143

$

241,058

Long-term debt

2,677,023

2,422,954

Asset retirement obligations and other

125,910

157,370

Deferred purchase price obligation – Anadarko

179,886

Total liabilities

$

3,195,962

$

2,821,382

Equity and partners' capital

Common units (218,913,688 and 218,909,977 units issued and outstanding at June 30, 2015, and December 31, 2014, respectively)

$

1,244,765

$

1,260,195

Net investment by Anadarko

122,509

Noncontrolling interests

2,776,926

2,751,155

Total liabilities, equity and partners' capital

$

7,217,653

$

6,955,241

(1)

Financial information has been recast to include the financial position and results attributable to the DBJV system.

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended June 30,

thousands

2015

2014 (1)

Cash flows from operating activities

Net income

$

198,512

$

195,677

Adjustments to reconcile net income to net cash provided by operating activities and changes in working capital:

Depreciation, amortization and impairments

136,253

87,390

Change in other items, net

(34,396)

(5,425)

Net cash provided by operating activities

300,369

277,642

Cash flows from investing activities

Capital expenditures

$

(338,178)

$

(390,506)

Contributions in aid of construction costs from affiliates

182

Acquisitions from affiliates

(9,968)

(360,952)

Acquisitions from third parties

(3,514)

Investments in equity affiliates

(6,770)

(60,102)

Distributions from equity investments in excess of cumulative earnings

8,538

9,848

Proceeds from the sale of assets to affiliates

700

Proceeds from the sale of assets to third parties

22

Net cash used in investing activities

(349,170)

(801,530)

Cash flows from financing activities

Borrowings, net of debt issuance costs

$

769,694

$

1,076,895

Repayments of debt

(521,150)

(480,000)

Increase (decrease) in outstanding checks

(2,327)

2,517

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

57,376

91,690

Distributions to WGP unitholders

(143,386)

(105,347)

Distributions to Chipeta noncontrolling interest owner

(7,175)

(7,949)

Distributions to noncontrolling interest owners of WES

(112,278)

(83,894)

Net contributions from Anadarko

30,096

39,033

Net cash provided by financing activities

70,850

532,945

Net increase (decrease) in cash and cash equivalents

22,049

9,057

Cash and cash equivalents at beginning of period

67,213

113,085

Cash and cash equivalents at end of period

$

89,262

$

122,142

(1)

Financial information has been recast to include the financial position and results attributable to the DBJV system.

 

SOURCE Western Gas



RELATED LINKS

http://www.westerngas.com