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Western Gas Announces First-Quarter 2013 Results
05/01/2013

HOUSTON--(BUSINESS WIRE)--May. 1, 2013-- Western Gas Partners, LP (NYSE: WES) (“WES”) andWestern Gas Equity Partners, LP (NYSE: WGP) (“WGP”) today announced first-quarter 2013 financial and operating results.

WESTERN GAS PARTNERS, LP

Net income available to limited partners for the first quarter of 2013, which includes results from the 33.75% interest in certain Anadarko-operated Marcellus gathering assets acquired from a third-party (the “Anadarko-Operated Marcellus Interest”) beginning in March 2013, totaled $32.4 million, or $0.31per common unit (diluted). For the first-quarter of 2013, Adjusted EBITDA (1) was $95.9 million and Distributable cash flow (1) was $79.1 million, resulting in a Coverage ratio (1) of 1.13 times for the period.

Total throughput attributable to WES for the first quarter of 2013 averaged 2.9 Bcf/d, flat with the prior quarter and 7% above the first quarter of 2012. These results include the net throughput attributable to the Mountain Gas Resources (“MGR”) assets and the 33.75% interest in certain third-party operated Marcellus gathering assets acquired from Anadarko (the “Non-Operated Marcellus Interest”) for all periods of comparison, throughput attributable to the additional Chipeta interest beginning in August 2012, and throughput attributable to the Anadarko-Operated Marcellus Interest beginning in March 2013.

Excluding acquisitions, capital expenditures attributable to WES on a cash basis totaled $161.5 million during the first quarter of 2013. Of this amount, maintenance capital expenditures were $6.0 million, or 6% of Adjusted EBITDA (1). Capital expenditures attributable to WES on an accrual basis and excluding acquisitions totaled $159.4 million during the first quarter of 2013.

“Our first quarter operating performance was in line with our expectations,” said President and Chief Executive Officer, Don Sinclair. “We are pleased by the volume trajectory of our recently acquired Marcellus assets, the over 50 first-quarter well connections in our liquids-rich areas that will drive throughput growth, and the projected start-up of our Brasada facility in June. We maintain the full-year 2013 guidance that we released in February.”

WES previously declared a quarterly distribution of $0.54 per unit for the first quarter of 2013, representing a 4% increase over the prior quarter and a 17% increase over the first-quarter 2012 distribution of $0.46 per unit. The distribution will be paid on May 13, 2013, to unitholders of record at the close of business on April 30, 2013. The first-quarter 2013 Coverage ratio (1) of 1.13 times is based on the quarterly distribution of $0.54 per unit.

WESTERN GAS EQUITY PARTNERS, LP

As of March 31, 2013, WGP indirectly owned the 2% general partner interest and 100% of the incentive distribution rights in WES and 49,296,205 WES common units. Net income available to limited partners for the first quarter of 2013, totaled $27.7 million, or $0.13 per common unit (diluted).

WGP previously declared a quarterly distribution of $0.17875 per unit for the first quarter of 2013, representing an 8% increase over the non-prorated distribution from the prior quarter. The distribution will be paid on May 22, 2013, to unitholders of record at the close of business on April 30, 2013. WGP will receive distributions from WES of $40.0 million attributable to the first quarter and will pay out$39.1 million in distributions for the first quarter of 2013.

CONFERENCE CALL TOMORROW AT 11 A.M. CDT

Western Gas Partners and Western Gas Equity Partners will host a joint conference call on Thursday, May 2, 2013, at 11 a.m. Central Daylight Time (12 p.m. Eastern Daylight Time) to discuss first-quarter 2013 results. To participate via telephone, please dial 877.621.4819 and enter participant code 36700946. Please call in 10 minutes prior to the scheduled start time. To access the live audio webcast of the conference call and slide presentation, please visit www.westerngas.com. A replay of the call will also be available on the website for approximately two weeks following the conference call.

Western Gas Partners, LP (“WES”) is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. With midstream assets in East, West and South Texas, the Rocky Mountains, north-centralPennsylvania and the Mid-Continent, WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko and other producers and customers.

Western Gas Equity Partners, LP (“WGP”) is a Delaware master limited partnership formed by Anadarko to own three types of interests in WES: (i) the 2.0% general partner interest, through WGP’s 100% ownership of WES’s general partner; (ii) all of the incentive distribution rights in WES; and (iii) 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 its 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; and construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures, as well as 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 other public filings and press releases by Western Gas Partners and Western Gas Equity Partners.Western Gas Partners and Western Gas Equity Partners undertake no obligation to publicly update or revise any forward-looking statements.

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

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

Below are reconciliations of the Partnership’s Distributable cash flow (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP) and Adjusted EBITDA (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP) and net cash provided by operating activities (GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that the Partnership’s Distributable cash flow, Adjusted EBITDA and Coverage ratio are widely accepted financial indicators of the Partnership’s financial performance compared to other publicly traded partnerships and are useful in assessing the Partnership’s ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA and Coverage ratio, as defined by the Partnership, may not be comparable to similarly titled measures used by other companies. Therefore, the Partnership’s Distributable cash flow, Adjusted EBITDA 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

The Partnership defines Distributable cash flow as Adjusted EBITDA, plus interest income, 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

 

 

 

March 31,

thousands except Coverage ratio

 

 

2013

 

 

2012 (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

 

 

$

50,657

 

 

$

53,651

 

Add:

 

 

 

 

 

 

 

 

Distributions from equity investees

 

 

 

5,006

 

 

 

4,441

 

Non-cash equity-based compensation expense

 

 

 

877

 

 

 

4,066

 

Interest expense, net (non-cash settled)

 

 

 

-

 

 

 

81

 

Income tax expense

 

 

 

4,236

 

 

 

4,429

 

Depreciation, amortization and impairments (2)

 

 

 

31,824

 

 

 

26,412

 

Less:

 

 

 

 

 

 

 

 

Equity income, net

 

 

 

3,980

 

 

 

3,613

 

Cash paid for maintenance capital expenditures (2)

 

 

 

6,032

 

 

 

6,315

 

Capitalized interest

 

 

 

3,181

 

 

 

657

 

Cash paid for income taxes

 

 

 

-

 

 

 

72

 

Other income (2) (3)

 

 

 

277

 

 

 

62

 

Distributable cash flow

 

 

$

79,130

 

 

$

82,361

 

 

 

 

 

 

 

 

 

 

Distributions declared (4)

 

 

 

 

 

 

 

 

Limited partners

 

 

$

56,759

 

 

 

 

General partner

 

 

 

13,384

 

 

 

 

Total

 

 

$

70,143

 

 

 

 

Coverage ratio

 

 

 

1.13

 

x

 

 

 

(1)

 

Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest.

(2)

 

Includes the Partnership’s 51% share for the three months ended March 31, 2012, and 75% share for the three months ended March 31, 2013, of depreciation, amortization and impairments; cash paid for maintenance capital expenditures; and other income attributable to Chipeta.

(3)

 

Excludes income of $0.4 million for each of the three months ended March 31, 2013 and 2012, related to a component of a gas processing agreement accounted for as a capital lease.

(4)

 

Reflects distributions of $0.54 per unit declared for the three months ended March 31, 2013.

 

 

 

 

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

Adjusted EBITDA

The Partnership defines Adjusted EBITDA as net income 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 income from equity investments, interest income, income tax benefit, other income and other nonrecurring adjustments that are not settled in cash.

 

 

Three Months Ended

 

 

March 31,

thousands

 

2013

 

2012 (1)

Reconciliation of Net income attributable to

 

 

 

 

Western Gas Partners, LP to Adjusted EBITDA

 

 

 

 

Net income attributable to Western Gas Partners, LP

 

$

50,657

 

 

$

53,651

 

Add:

 

 

 

 

Distributions from equity investees

 

 

5,006

 

 

 

4,441

 

Non-cash equity-based compensation expense

 

 

877

 

 

 

4,066

 

Interest expense

 

 

11,811

 

 

 

9,581

 

Income tax expense

 

 

4,236

 

 

 

4,429

 

Depreciation, amortization and impairments (2)

 

 

31,824

 

 

 

26,412

 

Less:

 

 

 

 

Equity income, net

 

 

3,980

 

 

 

3,613

 

Interest income, net – affiliates

 

 

4,225

 

 

 

4,225

 

Other income (2) (3)

 

 

277

 

 

 

62

 

Adjusted EBITDA

 

$

95,929

 

 

$

94,680

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA to

 

 

 

 

Net cash provided by operating activities

 

 

 

 

Adjusted EBITDA attributable to Western Gas Partners, LP

 

$

95,929

 

 

$

94,680

 

Adjusted EBITDA attributable to noncontrolling interests

 

 

2,846

 

 

 

4,898

 

Interest income (expense), net

 

 

(7,586

)

 

 

(5,356

)

Non-cash equity based compensation expense

 

 

(73

)

 

 

(3,152

)

Debt-related amortization and other items, net

 

 

560

 

 

 

511

 

Current income tax expense

 

 

(3,112

)

 

 

7,783

 

Other income (expense), net (3)

 

 

278

 

 

 

62

 

Distributions from equity investees less than

 

 

 

 

(in excess of) equity income, net

 

 

(1,026

)

 

 

(828

)

Changes in operating working capital:

 

 

 

 

Accounts receivable and natural gas imbalance receivable

 

 

20,754

 

 

 

32,827

 

Accounts payable, accrued liabilities and natural gas imbalance payable

 

 

21,287

 

 

 

(13,665

)

Other

 

 

98

 

 

 

960

 

Net cash provided by operating activities

 

$

129,955

 

 

$

118,720

 

 

 

 

 

 

Cash flow information of Western Gas Partners, LP

 

 

 

 

Net cash provided by operating activities

 

$

129,955

 

 

$

118,720

 

Net cash used in investing activities

 

 

(771,888

)

 

 

(539,069

)

Net cash provided by financing activities

 

 

285,468

 

 

 

233,408

 

 

(1)

 

Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest.

(2)

 

Includes the Partnership’s 51% share for the three months ended March 31, 2012, and 75% share for the three months ended March 31, 2013, of depreciation, amortization and impairments and other income attributable to Chipeta.

(3)

 

Excludes income of $0.4 million for each of the three months ended March 31, 2013 and 2012, related to a component of a gas processing agreement accounted for as a capital lease.

 

 

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

thousands except unit and per-unit amounts

 

2013

 

 

2012 (1)

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

Gathering, processing and transportation of

 

 

 

 

 

 

 

natural gas and natural gas liquids

 

$

102,890

 

 

 

$

91,589

 

Natural gas, natural gas liquids and

 

 

 

 

 

 

 

condensate sales

 

 

121,729

 

 

 

 

128,486

 

Equity income and other, net

 

 

5,128

 

 

 

 

4,601

 

Total revenues

 

 

229,747

 

 

 

 

224,676

 

Operating expenses

 

 

 

 

 

 

 

Cost of product

 

 

83,083

 

 

 

 

83,156

 

Operation and maintenance

 

 

36,739

 

 

 

 

32,121

 

General and administrative

 

 

7,664

 

 

 

 

10,274

 

Property and other taxes

 

 

5,785

 

 

 

 

4,837

 

Depreciation, amortization and impairments

 

 

32,440

 

 

 

 

27,067

 

Total operating expenses

 

 

165,711

 

 

 

 

157,455

 

Operating income

 

 

64,036

 

 

 

 

67,221

 

Interest income, net – affiliates

 

 

4,225

 

 

 

 

4,225

 

Interest expense

 

 

(11,811

)

 

 

 

(9,581

)

Other income (expense), net

 

 

674

 

 

 

 

458

 

Income before income taxes

 

 

57,124

 

 

 

 

62,323

 

Income tax expense

 

 

4,236

 

 

 

 

4,429

 

Net income

 

 

52,888

 

 

 

 

57,894

 

Net income attributable to noncontrolling interests

 

 

2,231

 

 

 

 

4,243

 

Net income attributable to

 

 

 

 

 

 

 

Western Gas Partners, LP

 

$

50,657

 

 

 

$

53,651

 

Limited partners' interest in net income:

 

 

 

 

 

 

 

Net income attributable to

 

 

 

 

 

 

 

Western Gas Partners, LP

 

$

50,657

 

 

 

$

53,651

 

Pre-acquisition net (income) loss allocated to Anadarko

 

 

(5,401

)

 

 

 

(5,488

)

General partner interest in net (income) loss

 

 

(12,886

)

 

 

 

(4,339

)

Limited partners' interest in net income

 

$

32,370

 

 

 

$

43,824

 

 

 

 

 

 

 

 

 

Net income per common unit – basic and diluted

 

$

0.31

 

 

 

$

0.48

 

Weighted average common units outstanding – basic and diluted

 

 

104,815

 

 

 

 

90,690

 

 

(1)

 

Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest.

 

 

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

thousands except number of units

 

2013

 

 

2012 (1)

 

 

 

 

 

 

 

 

Current assets

 

$

100,513

 

 

$

477,212

Note receivable – Anadarko

 

 

260,000

 

 

 

260,000

Net property, plant and equipment

 

 

2,988,213

 

 

 

2,717,956

Other assets

 

 

297,680

 

 

 

294,754

Total assets

 

$

3,646,406

 

 

$

3,749,922

 

 

 

 

 

 

 

 

Current liabilities

 

$

201,816

 

 

$

185,306

Long-term debt

 

 

1,553,319

 

 

 

1,168,278

Asset retirement obligations and other

 

 

72,844

 

 

 

115,902

Total liabilities

 

$

1,827,979

 

 

$

1,469,486

 

 

 

 

 

 

 

 

Equity and partners’ capital

 

 

 

 

 

 

 

Common units (105,109,682 and 104,660,553 units issued and outstanding at

 

 

 

 

 

 

 

March 31, 2013, and December 31, 2012, respectively)

 

$

1,692,173

 

 

$

1,957,066

General partner units (2,145,096 and 2,135,930 units issued and outstanding at

 

 

 

 

 

 

 

March 31, 2013, and December 31, 2012, respectively)

 

 

54,918

 

 

 

52,752

Net investment by Anadarko

 

 

-

 

 

 

199,960

Noncontrolling interests

 

 

71,336

 

 

 

70,658

Total liabilities, equity and partners' capital

 

$

3,646,406

 

 

$

3,749,922

 

(1)

 

Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest.

 

 

 

 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

thousands

 

2013

 

 

2012 (1)

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

 

$

52,888

 

 

 

$

57,894

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation, amortization and impairments

 

 

32,440

 

 

 

 

27,067

 

Change in other items, net

 

 

44,627

 

 

 

 

33,759

 

Net cash provided by operating activities

 

$

129,955

 

 

 

$

118,720

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

Capital expenditures

 

$

(166,463

)

 

 

$

(75,837

)

Acquisitions from affiliates

 

 

(465,721

)

 

 

 

(463,232

)

Acquisitions from third parties

 

 

(134,869

)

 

 

 

-

 

Investments in equity affiliates

 

 

(4,835

)

 

 

 

-

 

Net cash used in investing activities

 

$

(771,888

)

 

 

$

(539,069

)

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Borrowings, net of debt issuance costs

 

$

384,946

 

 

 

$

319,000

 

Repayments of debt

 

 

-

 

 

 

 

(40,000

)

Increase (decrease) in accounts payable, banks

 

 

(2,808

)

 

 

 

4,919

 

Proceeds from issuance of common and general partner units,

 

 

 

 

 

 

 

net of offering expenses

 

 

500

 

 

 

 

-

 

Distributions to unitholders

 

 

(65,657

)

 

 

 

(43,027

)

Contributions from noncontrolling interest owners

 

 

1,097

 

 

 

 

9,849

 

Distributions to noncontrolling interest owners

 

 

(2,650

)

 

 

 

(5,145

)

Net contributions from (distributions to) Anadarko

 

 

(29,960

)

 

 

 

(12,188

)

Net cash provided by financing activities

 

$

285,468

 

 

 

$

233,408

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

$

(356,465

)

 

 

$

(186,941

)

Cash and cash equivalents at beginning of period

 

 

419,981

 

 

 

 

226,559

 

Cash and cash equivalents at end of period

 

$

63,516

 

 

 

$

39,618

 

 

(1)

 

Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest.

 

 

 

 

Western Gas Partners, LP

OPERATING STATISTICS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

MMcf/d except per-unit amounts

 

2013

 

 

2012 (1)

 

 

 

 

 

 

 

 

Throughput

 

 

 

 

 

 

 

Gathering, treating and transportation (2)

 

 

1,627

 

 

 

1,606

Processing (3)

 

 

1,233

 

 

 

1,150

Equity investment (4)

 

 

201

 

 

 

236

Total throughput (5)

 

 

3,061

 

 

 

2,992

Throughput attributable to noncontrolling interests

 

 

155

 

 

 

270

Total throughput attributable to

 

 

 

 

 

 

 

Western Gas Partners, LP

 

 

2,906

 

 

 

2,722

Gross margin per Mcf attributable to

 

 

 

 

 

 

 

Western Gas Partners, LP (6)

 

$

0.55

 

 

$

0.55

 

(1)

 

Throughput has been recast to include volumes attributable to the Non-Operated Marcellus Interest.

(2)

 

Excludes average NGL pipeline volumes of 20 MBbls/d and 27 MBbls/d for the three months ended March 31, 2013 and 2012, respectively. Includes 100% of Wattenberg system volumes for all periods presented, and throughput beginning March 2013 attributable to the Anadarko-Operated Marcellus Interest.

(3)

 

Consists of 100% of Chipeta, Hilight and Platte Valley system volumes, 100% of the Granger and Red Desert complex volumes, and 50% of Newcastle volumes.

(4)

 

Represents our 14.81% share of Fort Union and 22% share of Rendezvous gross volumes, and excludes our 10% share of average White Cliffs pipeline volumes consisting of 7 MBbls/d and 5 MBbls/d for the three months ended March 31, 2013 and 2012, respectively.

(5)

 

Includes affiliate, third-party and equity-investment volumes.

(6)

 

Average for period. Calculated as gross margin, excluding the noncontrolling interest owners’ proportionate share of revenues and cost of product, divided by total throughput attributable to the Partnership (excluding throughput measured in barrels). Calculation includes gross margin attributable to our NGL pipelines and income attributable to our investments in Fort Union, White Cliffs and Rendezvous and volumes attributable to our investments in Fort Union and Rendezvous.

 

 

 

 

Western Gas Equity Partners, LP

CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION

(Unaudited)

 

 

 

 

 

Three Months Ended

thousands except per-unit amount and Coverage ratio

 

March 31, 2013

Distributions declared by Western Gas Partners, LP:

 

 

 

 

General partner interest

 

$

1,403

 

Incentive distribution rights

 

 

11,981

 

Common units held by WGP

 

 

26,620

 

Less:

 

 

 

 

Public company general and administrative expense

 

 

1,211

 

Cash available for distribution

 

$

38,793

 

 

 

 

 

 

Declared distribution per common unit

 

$

0.17875

 

 

 

 

 

 

Distributions declared by Western Gas Equity Partners, LP

 

$

39,128

 

 

 

 

 

 

 

 

 

 

 

Coverage ratio

 

 

0.99

x

 

 

 

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

thousands except unit and per-unit amounts

 

2013

 

 

2012 (1)

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

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

 

$

102,890

 

 

 

$

91,589

 

Natural gas, natural gas liquids and condensate sales

 

 

121,729

 

 

 

 

128,486

 

Equity income and other, net

 

 

5,128

 

 

 

 

4,601

 

Total revenues

 

 

229,747

 

 

 

 

224,676

 

Operating expenses

 

 

 

 

 

 

 

Cost of product

 

 

83,083

 

 

 

 

83,156

 

Operation and maintenance

 

 

36,739

 

 

 

 

32,121

 

General and administrative

 

 

8,929

 

 

 

 

10,274

 

Property and other taxes

 

 

5,785

 

 

 

 

4,837

 

Depreciation, amortization and impairments

 

 

32,440

 

 

 

 

27,067

 

Total operating expenses

 

 

166,976

 

 

 

 

157,455

 

Operating income

 

 

62,771

 

 

 

 

67,221

 

Interest income, net – affiliates

 

 

4,225

 

 

 

 

4,225

 

Interest expense

 

 

(11,811

)

 

 

 

(9,581

)

Other income (expense), net

 

 

727

 

 

 

 

458

 

Income before income taxes

 

 

55,912

 

 

 

 

62,323

 

Income tax expense

 

 

4,236

 

 

 

 

16,695

 

Net income

 

 

51,676

 

 

 

 

45,628

 

Net income attributable to noncontrolling interests

 

 

19,361

 

 

 

 

28,574

 

Net income attributable to

 

 

 

 

 

 

 

Western Gas Equity Partners, LP

 

$

32,315

 

 

 

$

17,054

 

Limited partners' interest in net income: (2)

 

 

 

 

 

 

 

Net income attributable to

 

 

 

 

 

 

 

Western Gas Equity Partners, LP

 

$

32,315

 

 

 

 

 

Pre-acquisition net (income) loss allocated to Anadarko

 

 

(4,567

)

 

 

 

 

Limited partners' interest in net income

 

$

27,748

 

 

 

 

 

Net income per common unit – basic and diluted (2)

 

$

0.13

 

 

 

 

 

Weighted average number of

 

 

 

 

 

 

 

common units outstanding – basic and diluted (2)

 

 

218,896

 

 

 

 

 

 

(1)

 

Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest.

(2)

 

Amounts not applicable prior to WGP’s IPO on December 12, 2012.

 

 

 

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

thousands except number of units

 

2013

 

 

2012 (1)

 

 

 

 

 

 

 

 

Current assets

 

$

129,038

 

 

$

478,104

Note receivable – Anadarko

 

 

260,000

 

 

 

260,000

Net property, plant and equipment

 

 

2,988,213

 

 

 

2,717,956

Other assets

 

 

297,680

 

 

 

294,754

Total assets

 

$

3,674,931

 

 

$

3,750,814

 

 

 

 

 

 

 

 

Current liabilities

 

$

203,290

 

 

$

186,255

Long-term debt

 

 

1,553,319

 

 

 

1,168,278

Asset retirement obligations and other

 

 

72,844

 

 

 

115,902

Total liabilities

 

$

1,829,453

 

 

$

1,470,435

 

 

 

 

 

 

 

 

Equity and partners’ capital

 

 

 

 

 

 

 

Common units (218,895,515 issued and outstanding at

 

 

 

 

 

 

 

March 31, 2013, and December 31, 2012)

 

$

682,752

 

 

$

912,376

Net investment by Anadarko

 

 

-

 

 

 

199,960

Noncontrolling interests

 

 

1,162,726

 

 

 

1,168,043

Total liabilities, equity and partners' capital

 

$

3,674,931

 

 

$

3,750,814

 

(1)

 

Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest.

 

 

 

 

 

 

 

 

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

thousands

 

2013

 

 

2012 (1)

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

 

$

51,676

 

 

 

$

45,628

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation, amortization and impairments

 

 

32,440

 

 

 

 

27,067

 

Change in other items, net

 

 

45,045

 

 

 

 

21,838

 

Net cash provided by operating activities

 

$

129,161

 

 

 

$

94,533

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

Capital expenditures

 

$

(166,463

)

 

 

$

(75,837

)

Acquisitions from affiliates

 

 

(465,721

)

 

 

 

(463,232

)

Acquisitions from third parties

 

 

(134,869

)

 

 

 

-

 

Investments in equity affiliates

 

 

(4,835

)

 

 

 

-

 

Net cash used in investing activities

 

$

(771,888

)

 

 

$

(539,069

)

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Borrowings, net of debt issuance costs

 

$

384,946

 

 

 

$

319,000

 

Repayments of debt

 

 

-

 

 

 

 

(40,000

)

Increase (decrease) in accounts payable, banks

 

 

(2,808

)

 

 

 

4,919

 

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

 

 

(2,367

)

 

 

 

-

 

Contributions received from Chipeta noncontrolling interest owners (including Anadarko)

 

 

1,097

 

 

 

 

9,849

 

Distributions to Chipeta noncontrolling interest owners (including Anadarko)

 

 

(2,650

)

 

 

 

(5,145

)

Distributions to WES noncontrolling interest owners

 

 

(28,789

)

 

 

 

(22,155

)

Distributions to WGP unitholders

 

 

(7,852

)

 

 

 

-

 

Net contributions from (distributions to) Anadarko

 

 

(29,942

)

 

 

 

(8,873

)

Net cash provided by financing activities

 

$

311,635

 

 

 

$

257,595

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

$

(331,092

)

 

 

$

(186,941

)

Cash and cash equivalents at beginning of period

 

 

422,556

 

 

 

 

226,559

 

Cash and cash equivalents at end of period

 

$

91,464

 

 

 

$

39,618

 

 

(1)

 

Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest.

 

Photos/Multimedia Gallery Available:http://www.businesswire.com/multimedia/home/20130501006654/en/

Source: Western Gas Partners, LP

Western Gas Partners, LP
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
832.636.6010
benjamin.fink@westerngas.com

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