February 15, 2018 - 4:15 PM EST
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Western Gas Announces Fourth-Quarter And Full-Year 2017 Results

HOUSTON, Feb. 15, 2018 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced fourth-quarter and full-year 2017 financial and operating results.

WESTERN GAS PARTNERS, LP

Net income (loss) available to limited partners for 2017 totaled $221.3 million, or $1.30 per common unit (diluted), with full-year 2017 Adjusted EBITDA(1) of $1.1 billion and full-year 2017 Distributable cash flow(1) of $929.0 million. Net income (loss) available to limited partners for the fourth quarter of 2017 totaled $67.7 million, or $0.39 per common unit (diluted), with fourth-quarter 2017 Adjusted EBITDA(1) of $273.3 million and fourth-quarter 2017 Distributable cash flow(1) of $233.4 million.

WES paid a quarterly distribution of $0.920 per unit for the fourth quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the fourth-quarter 2016 distribution of $0.860 per unit. The full-year 2017 distribution of $3.590 per unit represented a 7% increase over the full-year 2016 distribution of $3.350 per unit. The fourth-quarter 2017 Coverage ratio(1) of 1.08 times was based on the quarterly distribution of $0.920 per unit. The Partnership's Coverage ratio(1) for full-year 2017 was 1.13 times.

(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.

"Our impressive quarterly results were driven by strong volumetric growth in both the Delaware and DJ Basins where producer activity remains robust. In the Delaware Basin, we are pleased to report that Ramsey VI came online at the end of the quarter, just as the rest of the Ramsey facility was nearing capacity," said Chief Executive Officer, Benjamin Fink. "We still plan to execute our over $1 billion 2018 capital program without the need for additional equity, as we expect strong volumetric growth in the second half of the year once critical infrastructure is placed into service."

Total throughput attributable to WES for natural gas assets for the fourth quarter of 2017 averaged 3.5 Bcf/d, which was 1% above the prior quarter. Total throughput attributable to WES for natural gas assets for the fourth quarter of 2017 was approximately 3% above the prior quarter when adjusted for the non-cash impact of a one-time prior period volumetric adjustment. Additionally, total throughput attributable to WES for natural gas assets for the fourth quarter of 2017 was 14% below the fourth quarter of 2016 primarily due to 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 fourth quarter of 2017 averaged 240 MBbls/d, which was 15% above the prior quarter and 33% above the fourth quarter of 2016.

For full-year 2017, total throughput attributable to WES for natural gas assets averaged 3.6 Bcf/d, which was 9% below the prior-year average. For full-year 2017, total throughput for crude, NGL and produced water assets averaged 201 MBbls/d, which was 9% above the prior-year average.

Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $253.0 million on a cash basis and $291.6 million on an accrual basis during the fourth quarter of 2017, with maintenance capital expenditures on a cash basis of $16.6 million. For full-year 2017, capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $666.9 million on a cash basis and $792.0 million on an accrual basis, with maintenance capital expenditures on a cash basis of $49.7 million.

On February 15, 2018, WES amended its senior unsecured revolving credit facility to extend the maturity date from February 2020 to February 2023 and expand the borrowing capacity from $1.2 billion to $1.5 billion.

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 2017 totaled $376.6 million, or $1.72 per common unit (diluted). Net income (loss) available to limited partners for the fourth quarter of 2017 totaled $99.5 million, or $0.45 per common unit (diluted).

WGP previously declared a quarterly distribution of $0.54875 per unit for the fourth quarter of 2017. This distribution represented a 2% increase over the prior quarter's distribution and a 19% increase over the fourth-quarter 2016 distribution of $0.46250 per unit. The full-year 2017 distribution of $2.10500 per unit represented a 19% increase over the full-year 2016 distribution of $1.76750 per unit. WGP received distributions from WES of $122.3 million attributable to the fourth quarter and will pay $120.1 million in distributions for the same period.

On February 15, 2018, WGP amended its senior secured revolving credit facility by reducing total commitments from $250.0 million to $35.0 million.

CONFERENCE CALL TOMORROW AT 8 A.M. CST

WES and WGP will host a joint conference call on Friday, February 16, 2018, at 8:00 a.m. Central Standard Time (9:00 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 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 5796412. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.

Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania, Texas and New Mexico, WES is engaged in the business of gathering, compressing, treating, processing and transporting natural gas; gathering, stabilizing and transporting condensate, natural gas liquids and crude oil; and gathering and disposing of produced water for Anadarko, as well as for third-party producers and customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs or condensate under certain of its contracts.

Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko Petroleum Corporation to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.

For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.

This news release contains forward-looking statements. WES and WGP's management believes that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the supply of, demand for, and price of oil, natural gas, NGLs and related products or services; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in their other public filings and press releases. Western Gas Partners 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
[email protected]
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
 December 31,


Year Ended
 December 31,

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


$

148,637



$

143,004



$

567,483



$

591,331


Add:









Distributions from equity investments


29,897



27,160



110,465



103,423


Non-cash equity-based compensation expense


1,468



1,573



4,947



5,591


Non-cash settled interest expense, net (1)




4,350



71



(7,747)


Income tax (benefit) expense


(39)



941



4,866



8,372


Depreciation and amortization (2)


73,874



72,633



288,087



270,311


Impairments


8,295



4,222



178,374



15,535


Above-market component of swap agreements with Anadarko


11,832



11,038



58,551



45,820


Other expense (2)


5



128



145



224


Less:









Gain (loss) on divestiture and other, net


(2,629)



(5,872)



132,388



(14,641)


Equity income, net – affiliates


22,486



21,916



85,194



78,717


Cash paid for maintenance capital expenditures (2)


16,569



8,342



49,684



63,630


Capitalized interest


2,835



888



6,826



5,562


Cash paid for (reimbursement of) income taxes


1,005



771



1,194



838


Series A Preferred unit distributions




14,908



7,453



45,784


Other income (2)


323



252



1,283



524


Distributable cash flow


$

233,380



$

223,844



$

928,967



$

852,446


Distributions declared (3)









Limited partners – common units


$

140,394





$

538,244




General partner


76,192





286,624




Total


$

216,586





$

824,868




Coverage ratio


1.08


x



1.13


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 $0.920 and $3.590 per unit declared for the three months and year ended December 31, 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
 December 31,


Year Ended
 December 31,

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


$

148,637



$

143,004



$

567,483



$

591,331


Add:









Distributions from equity investments


29,897



27,160



110,465



103,423


Non-cash equity-based compensation expense


1,468



1,573



4,947



5,591


Interest expense


35,592



39,234



142,386



114,921


Income tax expense




941



4,905



8,372


Depreciation and amortization (1)


73,874



72,633



288,087



270,311


Impairments


8,295



4,222



178,374



15,535


Other expense (1)


5



128



145



224


Less:









Gain (loss) on divestiture and other, net


(2,629)



(5,872)



132,388



(14,641)


Equity income, net – affiliates


22,486



21,916



85,194



78,717


Interest income – affiliates


4,225



4,225



16,900



16,900


Other income (1)


323



252



1,283



524


Income tax benefit


39





39




Adjusted EBITDA attributable to Western Gas Partners, LP


$

273,324



$

268,374



$

1,060,988



$

1,028,208


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









Net cash provided by operating activities


$

256,396



$

259,847



$

901,495



$

917,585


Interest (income) expense, net


31,367



35,009



125,486



98,021


Uncontributed cash-based compensation awards


119



408



25



856


Accretion and amortization of long-term obligations, net


(1,060)



(5,387)



(4,254)



3,789


Current income tax (benefit) expense


1,385



707



2,408



5,817


Other (income) expense, net


(330)



(255)



(1,299)



(479)


Distributions from equity investments in excess of cumulative earnings – affiliates


6,830



4,646



23,085



21,238


Changes in operating working capital:









Accounts receivable, net


(30,845)



7,839



16,127



48,947


Accounts and imbalance payables and accrued liabilities, net


10,937



(34,256)



6,930



(58,359)


Other


1,426



2,922



4,491



4,367


Adjusted EBITDA attributable to noncontrolling interest


(2,901)



(3,106)



(13,506)



(13,574)


Adjusted EBITDA attributable to Western Gas Partners, LP


$

273,324



$

268,374



$

1,060,988



$

1,028,208


Cash flow information of Western Gas Partners, LP









Net cash provided by operating activities






$

901,495



$

917,585


Net cash used in investing activities






(763,604)



(1,105,534)


Net cash provided by (used in) financing activities






(417,002)



447,841




(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
 December 31,


Year Ended
 December 31,

thousands


2017


2016


2017


2016

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









Operating income (loss)


$

181,815



$

181,155



$

707,271



$

708,208


Add:









Distributions from equity investments


29,897



27,160



110,465



103,423


Operation and maintenance


86,550



81,869



315,994



308,010


General and administrative


12,394



12,049



47,796



45,591


Property and other taxes


11,385



7,047



46,818



40,145


Depreciation and amortization


74,602



73,287



290,874



272,933


Impairments


8,295



4,222



178,374



15,535


Less:









Gain (loss) on divestiture and other, net


(2,629)



(5,872)



132,388



(14,641)


Proceeds from business interruption insurance claims






29,882



16,270


Equity income, net – affiliates


22,486



21,916



85,194



78,717


Reimbursed electricity-related charges recorded as revenues


14,485



14,026



56,823



59,733


Adjusted gross margin attributable to noncontrolling interest


3,638



3,735



16,827



16,323


Adjusted gross margin attributable to Western Gas Partners, LP


$

366,958



$

352,984



$

1,376,478



$

1,337,443


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


$

318,012



$

317,294



$

1,222,632



$

1,194,877


Adjusted gross margin for crude, NGL and produced water assets


48,946



35,690



153,846



142,566


 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three Months Ended
 December 31,


Year Ended
 December 31,

thousands except per-unit amounts


2017


2016


2017


2016

Revenues and other









Gathering, processing, transportation and disposal


$

324,513



$

317,517



$

1,237,949



$

1,227,849


Natural gas and natural gas liquids sales


299,443



192,728



989,933



572,313


Other


8,062



575



20,474



4,108


Total revenues and other


632,018



510,820



2,248,356



1,804,270


Equity income, net – affiliates


22,486



21,916



85,194



78,717


Operating expenses









Cost of product


276,834



167,235



908,693



494,194


Operation and maintenance


86,550



81,869



315,994



308,010


General and administrative


12,394



12,049



47,796



45,591


Property and other taxes


11,385



7,047



46,818



40,145


Depreciation and amortization


74,602



73,287



290,874



272,933


Impairments


8,295



4,222



178,374



15,535


Total operating expenses


470,060



345,709



1,788,549



1,176,408


Gain (loss) on divestiture and other, net


(2,629)



(5,872)



132,388



(14,641)


Proceeds from business interruption insurance claims






29,882



16,270


Operating income (loss)


181,815



181,155



707,271



708,208


Interest income – affiliates


4,225



4,225



16,900



16,900


Interest expense


(35,592)



(39,234)



(142,386)



(114,921)


Other income (expense), net


330



255



1,299



479


Income (loss) before income taxes


150,778



146,401



583,084



610,666


Income tax (benefit) expense


(39)



941



4,866



8,372


Net income (loss)


150,817



145,460



578,218



602,294


Net income attributable to noncontrolling interest


2,180



2,456



10,735



10,963


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


$

148,637



$

143,004



$

567,483



$

591,331


Limited partners' interest in net income (loss):









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


$

148,637



$

143,004



$

567,483



$

591,331


Pre-acquisition net (income) loss allocated to Anadarko








(11,326)


Series A Preferred units interest in net (income) loss




(25,904)



(42,373)



(76,893)


General partner interest in net (income) loss


(80,932)



(62,229)



(303,835)



(236,561)


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


$

67,705



$

54,871



$

221,275



$

266,551


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


$

0.39



$

0.35



$

1.30



$

1.74


Weighted-average common units outstanding – basic and diluted


152,602



130,672



147,194



130,253


 

Western Gas Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)




December 31,

thousands except number of units


2017


2016

Current assets


$

254,062



$

594,014


Note receivable – Anadarko


260,000



260,000


Net property, plant and equipment


5,730,891



5,049,932


Other assets


1,769,397



1,829,082


Total assets


$

8,014,350



$

7,733,028


Current liabilities


$

424,333



$

315,305


Long-term debt


3,464,712



3,091,461


Asset retirement obligations and other


154,294



149,043


Deferred purchase price obligation – Anadarko




41,440


Total liabilities


$

4,043,339



$

3,597,249


Equity and partners' capital





Series A Preferred units (zero and 21,922,831 units issued and outstanding at December 31, 2017 and 2016, respectively)


$



$

639,545


Common units (152,602,105 and 130,671,970 units issued and outstanding at December 31, 2017 and 2016, respectively)


2,950,010



2,536,872


Class C units (13,243,883 and 12,358,123 units issued and outstanding at December 31, 2017 and 2016, respectively)


780,040



750,831


General partner units (2,583,068 units issued and outstanding at December 31, 2017 and 2016)


179,232



143,968


Noncontrolling interest


61,729



64,563


Total liabilities, equity and partners' capital


$

8,014,350



$

7,733,028


 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Year Ended
 December 31,

thousands


2017


2016

Cash flows from operating activities





Net income (loss)


$

578,218



$

602,294


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





Depreciation and amortization


290,874



272,933


Impairments


178,374



15,535


(Gain) loss on divestiture and other, net


(132,388)



14,641


Change in other items, net


(13,583)



12,182


Net cash provided by operating activities


$

901,495



$

917,585


Cash flows from investing activities





Capital expenditures


$

(675,025)



$

(479,993)


Contributions in aid of construction costs from affiliates


1,387



6,135


Acquisitions from affiliates


(3,910)



(716,465)


Acquisitions from third parties


(155,298)




Investments in equity affiliates


(384)



(27)


Distributions from equity investments in excess of cumulative earnings – affiliates


23,085



21,238


Proceeds from the sale of assets to affiliates




623


Proceeds from the sale of assets to third parties


23,564



45,490


Proceeds from property insurance claims


22,977



17,465


Net cash used in investing activities


$

(763,604)



$

(1,105,534)


Cash flows from financing activities





Borrowings, net of debt issuance costs


$

369,989



$

1,297,218


Repayments of debt




(900,000)


Settlement of the Deferred purchase price obligation – Anadarko


(37,346)




Increase (decrease) in outstanding checks


5,593



2,079


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




686,937


Distributions to unitholders


(801,300)



(671,938)


Distributions to noncontrolling interest owner


(13,569)



(13,784)


Net contributions from (distributions to) Anadarko


1,263



(23,491)


Above-market component of swap agreements with Anadarko


58,551



45,820


Net cash provided by (used in) financing activities


$

(417,002)



$

447,841


Net increase (decrease) in cash and cash equivalents


$

(279,111)



$

259,892


Cash and cash equivalents at beginning of period


357,925



98,033


Cash and cash equivalents at end of period


$

78,814



$

357,925


 

Western Gas Partners, LP

OPERATING STATISTICS

(Unaudited)




Three Months Ended
 December 31,


Year Ended
 December 31,



2017


2016


2017


2016

Throughput for natural gas assets (MMcf/d)









Gathering, treating and transportation


747



1,480



958



1,537


Processing


2,663



2,500



2,563



2,350


Equity investment (1)


158



173



159



177


  Total throughput for natural gas assets


3,568



4,153



3,680



4,064


  Throughput attributable to noncontrolling interest for natural gas assets


98



113



105



124


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


3,470



4,040



3,575



3,940


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









Gathering, treating, transportation and disposal


111



49



71



57


Equity investment (2)


129



132



130



127


  Total throughput for crude, NGL and produced water assets


240



181



201



184


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


$

1.00



$

0.85



$

0.94



$

0.83


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


2.21



2.15



2.10



2.11



















(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
 December 31, 2017

Distributions declared by Western Gas Partners, LP:



General partner interest


$

3,605


Incentive distribution rights


72,587


Common units held by WGP


46,121


Less:



Public company general and administrative expense


679


Interest expense


576


Cash available for distribution


$

121,058


Declared distribution per common unit


$

0.54875


Distributions declared by Western Gas Equity Partners, LP


$

120,140


Coverage ratio


1.01

x

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three Months Ended
 December 31,


Year Ended
 December 31,

thousands except per-unit amounts


2017


2016


2017


2016

Revenues and other









Gathering, processing, transportation and disposal


$

324,513



$

317,517



$

1,237,949



$

1,227,849


Natural gas and natural gas liquids sales


299,443



192,728



989,933



572,313


Other


8,062



575



20,474



4,108


Total revenues and other


632,018



510,820



2,248,356



1,804,270


Equity income, net – affiliates


22,486



21,916



85,194



78,717


Operating expenses









Cost of product


276,834



167,235



908,693



494,194


Operation and maintenance


86,550



81,869



315,994



308,010


General and administrative


13,073



12,734



50,668



49,248


Property and other taxes


11,385



7,048



46,818



40,161


Depreciation and amortization


74,602



73,287



290,874



272,933


Impairments


8,295



4,222



178,374



15,535


Total operating expenses


470,739



346,395



1,791,421



1,180,081


Gain (loss) on divestiture and other, net


(2,629)



(5,872)



132,388



(14,641)


Proceeds from business interruption insurance claims






29,882



16,270


Operating income (loss)


181,136



180,469



704,399



704,535


Interest income – affiliates


4,225



4,225



16,900



16,900


Interest expense


(36,168)



(39,759)



(144,615)



(116,628)


Other income (expense), net


355



275



1,384



545


Income (loss) before income taxes


149,548



145,210



578,068



605,352


Income tax (benefit) expense


(39)



941



4,866



8,372


Net income (loss)


149,587



144,269



573,202



596,980


Net income (loss) attributable to noncontrolling interests


50,066



60,573



196,595



251,208


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


$

99,521



$

83,696



$

376,607



$

345,772


Limited partners' interest in net income (loss):









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


$

99,521



$

83,696



$

376,607



$

345,772


Pre-acquisition net (income) loss allocated to Anadarko








(11,326)


Limited partners' interest in net income (loss)


$

99,521



$

83,696



$

376,607



$

334,446


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


$

0.45



$

0.38



$

1.72



$

1.53


Weighted-average common units outstanding – basic and diluted


218,933



218,925



218,931



218,922


 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)




December 31,

thousands except number of units


2017


2016

Current assets


$

255,210



$

595,591


Note receivable – Anadarko


260,000



260,000


Net property, plant and equipment


5,730,891



5,049,932


Other assets


1,770,210



1,830,574


Total assets


$

8,016,311



$

7,736,097


Current liabilities


$

424,426



$

315,387


Long-term debt


3,492,712



3,119,461


Asset retirement obligations and other


154,294



149,043


Deferred purchase price obligation – Anadarko




41,440


Total liabilities


$

4,071,432



$

3,625,331


Equity and partners' capital





Common units (218,933,141 and 218,928,570 units issued and outstanding at December 31, 2017 and 2016, respectively)


$

1,061,125



$

1,048,143


Noncontrolling interests


2,883,754



3,062,623


Total liabilities, equity and partners' capital


$

8,016,311



$

7,736,097


 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Year Ended
 December 31,

thousands


2017


2016

Cash flows from operating activities





Net income (loss)


$

573,202



$

596,980


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





Depreciation and amortization


290,874



272,933


Impairments


178,374



15,535


(Gain) loss on divestiture and other, net


(132,388)



14,641


Change in other items, net


(12,650)



12,987


Net cash provided by operating activities


$

897,412



$

913,076


Cash flows from investing activities





Capital expenditures


$

(675,025)



$

(479,993)


Contributions in aid of construction costs from affiliates


1,387



6,135


Acquisitions from affiliates


(3,910)



(716,465)


Acquisitions from third parties


(155,298)




Investments in equity affiliates


(384)



(27)


Distributions from equity investments in excess of cumulative earnings – affiliates


23,085



21,238


Proceeds from the sale of assets to affiliates




623


Proceeds from the sale of assets to third parties


23,564



45,490


Proceeds from property insurance claims


22,977



17,465


Net cash used in investing activities


$

(763,604)



$

(1,105,534)


Cash flows from financing activities





Borrowings, net of debt issuance costs


$

369,989



$

1,323,198


Repayments of debt




(900,000)


Settlement of the Deferred purchase price obligation – Anadarko


(37,346)




Increase (decrease) in outstanding checks


5,593



2,079


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




686,937


Distributions to WGP unitholders


(441,967)



(374,082)


Distributions to Chipeta noncontrolling interest owner


(13,569)



(13,784)


Distributions to noncontrolling interest owners of WES


(355,623)



(294,841)


Net contributions from (distributions to) Anadarko


1,263



(23,491)


Above-market component of swap agreements with Anadarko


58,551



45,820


Net cash provided by (used in) financing activities


$

(413,292)



$

451,836


Net increase (decrease) in cash and cash equivalents


$

(279,484)



$

259,378


Cash and cash equivalents at beginning of period


359,072



99,694


Cash and cash equivalents at end of period


$

79,588



$

359,072


 

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

 

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

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-fourth-quarter-and-full-year-2017-results-300599768.html

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


Source: PR Newswire (February 15, 2018 - 4:15 PM EST)

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