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Western Gas Announces First-Quarter 2015 Results
05/05/2015

HOUSTON, May 5, 2015 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced first-quarter 2015 financial and operating results.

WESTERN GAS PARTNERS, LP

Net income available to limited partners for the first quarter of 2015 totaled $39.8 million, or $0.26 per common unit (diluted). For the first quarter of 2015, Adjusted EBITDA(1) was $180.9 million and Distributable cash flow(1) was $148.0 million, resulting in a Coverage ratio(1) of 1.11 times for the period.

WES previously declared a quarterly distribution of $0.725 per unit for the first quarter of 2015. This distribution represented a 4% increase over the prior quarter's distribution and a 16% increase over the first-quarter 2014 distribution of $0.625 per unit. The distribution will be paid on May 13, 2015, to unitholders of record at the close of business on April 30, 2015. The first-quarter 2015 Coverage ratio(1) of 1.11 times was based on the quarterly distribution of $0.725 per unit.

Total throughput attributable to WES for natural gas assets for the first quarter of 2015 averaged 3.9 Bcf/d, which was 8% above the prior quarter and 13% above the first quarter of 2014. Total throughput for crude/NGL assets for the first quarter of 2015 averaged 131 MBbls/d, which remained flat compared to the prior quarter and was 66% above the first quarter of 2014.

"Our excellent operating performance was primarily driven by volume increases in the DJ and Delaware Basins," said Chief Executive Officer, Don Sinclair. "Our 2015 Adjusted EBITDA and distribution growth guidance is unchanged and assumes no additional acquisitions."

(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.

 

Capital expenditures attributable to WES on a cash basis, including equity investments but excluding acquisitions, totaled $202.4 million during the first quarter of 2015. Of this amount, maintenance capital expenditures were $12.6 million, or 7% of Adjusted EBITDA(1). Capital expenditures attributable to WES on an accrual basis, including equity investments but excluding acquisitions, totaled $167.8 million during the first quarter of 2015. The Partnership also announced that it now expects full year 2015 total capital expenditures, including equity investments but excluding acquisitions, to be between $640 and $700 million.

WESTERN GAS EQUITY PARTNERS, LP

WGP indirectly owns the entire general partner interest in WES, 100% of the incentive distribution rights in WES and 49,296,205 WES common units. Net income available to limited partners for the first quarter of 2015 totaled $55.3 million, or $0.25 per common unit (diluted).

WGP previously declared a quarterly distribution of $0.34250 per unit for the first quarter of 2015. This distribution represented a 10% increase over the prior quarter's distribution and a 37% increase over the first-quarter 2014 distribution of $0.25000. The distribution will be paid on May 22, 2015, to unitholders of record at the close of business on April 30, 2015. WGP will receive distributions from WES of $75.8 million attributable to the first quarter and will pay $75.0 million in distributions for the same period.

CONFERENCE CALL TOMORROW AT 11 A.M. CDT

WES and WGP will host a joint conference call on Wednesday, May 6, 2015, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss first-quarter 2015 results. To participate via telephone, please dial 877.280.4956 and enter participant code 99241935. 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.

 

(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, 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

 

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

 

$

83,568

   

$

91,056

 

Add:

       

Distributions from equity investees

 

21,670

   

12,313

 

Non-cash equity-based compensation expense

 

1,112

   

1,097

 

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

 

1,420

   

 

Income tax (benefit) expense

 

4,460

   

1,785

 

Depreciation, amortization and impairments (3)

 

69,644

   

41,448

 

Less:

       

Equity income, net

 

18,220

   

9,251

 

Cash paid for maintenance capital expenditures (3)

 

12,632

   

10,144

 

Capitalized interest

 

3,094

   

3,440

 

Cash paid for (reimbursement of) income taxes

 

(138)

   

(340)

 

Other income (3) (4)

 

69

   

78

 

Distributable cash flow

 

$

147,997

   

$

125,126

 

Distributions declared (5)

       

Limited partners

 

$

93,139

     

General partner

 

40,064

     

Total

 

$

133,203

     

Coverage ratio

 

1.11

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 $0.4 million for the three months ended March 31, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease.

(5)

Reflects cash distributions of $0.725 per unit declared for the three months ended March 31, 2015.

 

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 income from equity investments, interest income, income tax benefit, and other income.

   

Three Months Ended
 March 31,

thousands

 

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

 

$

83,568

   

$

91,056

 

Add:

       

Distributions from equity investees

 

21,670

   

12,313

 

Non-cash equity-based compensation expense

 

1,112

   

1,097

 

Interest expense

 

22,960

   

13,961

 

Income tax expense

 

4,460

   

1,785

 

Depreciation, amortization and impairments (2)

 

69,644

   

41,448

 

Less:

       

Equity income, net

 

18,220

   

9,251

 

Interest income – affiliates

 

4,225

   

4,225

 

Other income (2) (3)

 

69

   

78

 

Adjusted EBITDA attributable to Western Gas Partners, LP

 

$

180,900

   

$

148,106

 
 

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

 

$

180,900

   

$

148,106

 

Adjusted EBITDA attributable to noncontrolling interest

 

3,872

   

4,326

 

Interest income (expense), net

 

(18,735)

   

(9,736)

 

Uncontributed cash-based compensation awards

 

(77)

   

53

 

Accretion and amortization of long-term obligations, net

 

2,112

   

680

 

Current income tax benefit (expense)

 

(702)

   

(792)

 

Other income (expense), net (3)

 

71

   

81

 

Distributions from equity investments in excess of cumulative earnings

 

(2,964)

   

(2,044)

 

Changes in operating working capital:

       

  Accounts receivable, net

 

(17,672)

   

(15,439)

 

  Accounts and natural gas imbalance payables and accrued liabilities, net

 

10,451

   

6,706

 

  Other

 

(1,220)

   

1,878

 

Net cash provided by operating activities

 

$

156,036

   

$

133,819

 

Cash flow information of Western Gas Partners, LP

       

Net cash provided by operating activities

 

$

156,036

   

$

133,819

 

Net cash used in investing activities

 

$

(203,960)

   

$

(586,520)

 

Net cash provided by financing activities

 

$

39,509

   

$

435,064

 
   

(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 $0.4 million for the three months ended March 31, 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 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
 March 31,

thousands

 

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

 

$

233,852

   

$

195,771

 

Adjusted gross margin for crude/NGL assets

 

20,184

   

10,789

 

Adjusted gross margin attributable to Western Gas Partners, LP

 

$

254,036

   

$

206,560

 

Adjusted gross margin attributable to noncontrolling interest

 

$

4,808

   

$

5,094

 

Equity income, net

 

18,220

   

9,251

 

Less:

       

Distributions from equity investees

 

21,670

   

12,313

 

Operation and maintenance

 

56,149

   

44,577

 

General and administrative

 

10,512

   

8,904

 

Property and other taxes

 

8,523

   

7,234

 

Depreciation, amortization and impairments

 

70,292

   

42,085

 

Operating income

 

$

109,918

   

$

105,792

 
   

(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
 March 31,

thousands except per-unit amounts

 

2015

 

2014 (1)

Revenues

       

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

 

$

209,844

   

$

154,497

 

Natural gas, natural gas liquids and drip condensate sales

 

164,168

   

137,649

 

Other

 

1,082

   

1,571

 

Total revenues

 

375,094

   

293,717

 

Equity income, net

 

18,220

   

9,251

 

Operating expenses

       

Cost of product

 

137,920

   

94,376

 

Operation and maintenance

 

56,149

   

44,577

 

General and administrative

 

10,512

   

8,904

 

Property and other taxes

 

8,523

   

7,234

 

Depreciation, amortization and impairments

 

70,292

   

42,085

 

Total operating expenses

 

283,396

   

197,176

 

Operating income

 

109,918

   

105,792

 

Interest income – affiliates

 

4,225

   

4,225

 

Interest expense

 

(22,960)

   

(13,961)

 

Other income (expense), net

 

71

   

477

 

Income before income taxes

 

91,254

   

96,533

 

Income tax (benefit) expense

 

4,460

   

1,785

 

Net income

 

86,794

   

94,748

 

Net income attributable to noncontrolling interest

 

3,226

   

3,692

 

Net income attributable to Western Gas Partners, LP

 

$

83,568

   

$

91,056

 

Limited partners' interest in net income:

       

Net income attributable to Western Gas Partners, LP

 

$

83,568

   

$

91,056

 

Pre-acquisition net (income) loss allocated to Anadarko

 

(1,742)

   

(2,665)

 

General partner interest in net (income) loss

 

(41,993)

   

(24,834)

 

Limited partners' interest in net income

 

39,833

   

63,557

 

Net income per common unit – basic

 

$

0.26

   

$

0.54

 

Net income per common unit – diluted

 

0.26

   

0.54

 

Weighted-average common units outstanding – basic

 

127,736

   

117,716

 

Weighted-average common units outstanding – diluted

 

138,674

   

117,716

 
   

(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

 

March 31,
 2015

 

December 31, 2014 (1)

Current assets

 

$

213,337

   

$

186,364

 

Note receivable – Anadarko

 

260,000

   

260,000

 

Net property, plant and equipment

 

4,711,271

   

4,571,443

 

Other assets

 

1,910,020

   

1,936,725

 

Total assets

 

$

7,094,628

   

$

6,954,532

 

Current liabilities

 

$

242,349

   

$

239,833

 

Long-term debt

 

2,532,995

   

2,422,954

 

Asset retirement obligations and other

 

122,568

   

157,370

 

Deferred purchase price obligation – Anadarko

 

175,696

   

 

Total liabilities

 

$

3,073,608

   

$

2,820,157

 

Equity and partners' capital

       

Common units (128,177,253 and 127,695,130 units issued and outstanding at March 31, 2015, and December 31, 2014, respectively)

 

$

3,116,504

   

$

3,119,714

 

Class C units (10,959,564 and 10,913,853 units issued and outstanding at March 31, 2015, and December 31, 2014, respectively)

 

723,899

   

716,957

 

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

 

111,071

   

105,725

 

Net investment by Anadarko

 

   

122,509

 

Noncontrolling interest

 

69,546

   

69,470

 

Total liabilities, equity and partners' capital

 

$

7,094,628

   

$

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)

     
   

Three Months Ended
 March 31,

thousands

 

2015

 

2014 (1)

Cash flows from operating activities

       

Net income

 

$

86,794

   

$

94,748

 

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

       

Depreciation, amortization and impairments

 

70,292

   

42,085

 

Change in other items, net

 

(1,050)

   

(3,014)

 

Net cash provided by operating activities

 

156,036

   

133,819

 

Cash flows from investing activities

       

Capital expenditures

 

(200,940)

   

(199,150)

 

Acquisitions from affiliates

 

(1,128)

   

(360,952)

 

Investments in equity affiliates

 

(4,878)

   

(28,462)

 

Distributions from equity investments in excess of cumulative earnings

 

2,964

   

2,044

 

Proceeds from the sale of assets to third parties

 

22

   

 

Net cash used in investing activities

 

(203,960)

   

(586,520)

 

Cash flows from financing activities

       

Borrowings, net of debt issuance costs

 

140,000

   

917,742

 

Repayments of debt

 

(30,000)

   

(430,000)

 

Increase (decrease) in outstanding checks

 

(2,468)

   

1,928

 

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

 

31,075

   

18,289

 

Distributions to unitholders

 

(126,044)

   

(92,609)

 

Distributions to noncontrolling interest owner

 

(3,150)

   

(4,124)

 

Net contributions from Anadarko

 

30,096

   

23,838

 

Net cash provided by financing activities

 

39,509

   

435,064

 

Net increase (decrease) in cash and cash equivalents

 

(8,415)

   

(17,637)

 

Cash and cash equivalents at beginning of period

 

67,054

   

100,728

 

Cash and cash equivalents at end of period

 

$

58,639

   

$

83,091

 
   

(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
 March 31,

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

 

2015

 

2014 (1)

         

Throughput for natural gas assets

       

Gathering, treating and transportation

 

1,654

   

1,648

 

Processing

 

2,260

   

1,799

 

Equity investment (2)

 

165

   

186

 

  Total throughput for natural gas assets

 

4,079

   

3,633

 

Throughput attributable to noncontrolling interest for natural gas assets

 

162

   

173

 

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

 

3,917

   

3,460

 

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

 

131

   

79

 

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

 

$

0.66

   

$

0.63

 

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

 

$

1.71

   

$

1.52

 
   

(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

March 31, 2015

Distributions declared by Western Gas Partners, LP:

 

General partner interest

$

2,625

 

Incentive distribution rights

37,439

 

Common units held by WGP

35,740

 

Less:

 

Public company general and administrative expense

800

 

Cash available for distribution

$

75,004

 

Declared distribution per common unit

$

0.34250

 

Distributions declared by Western Gas Equity Partners, LP

$

74,977

 

Coverage ratio

1.00

x

 

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

     
   

Three Months Ended
 March 31,

thousands except per-unit amounts

 

2015

 

2014 (1)

Revenues

       

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

 

$

209,844

   

$

154,497

 

Natural gas, natural gas liquids and drip condensate sales

 

164,168

   

137,649

 

Other

 

1,082

   

1,571

 

Total revenues

 

375,094

   

293,717

 

Equity income, net

 

18,220

   

9,251

 

Operating expenses

       

Cost of product

 

137,920

   

94,376

 

Operation and maintenance

 

56,149

   

44,577

 

General and administrative

 

11,347

   

9,875

 

Property and other taxes

 

8,523

   

7,234

 

Depreciation, amortization and impairments

 

70,292

   

42,085

 

Total operating expenses

 

284,231

   

198,147

 

Operating income

 

109,083

   

104,821

 

Interest income – affiliates

 

4,225

   

4,225

 

Interest expense

 

(22,962)

   

(13,961)

 

Other income (expense), net

 

80

   

496

 

Income before income taxes

 

90,426

   

95,581

 

Income tax (benefit) expense

 

4,460

   

1,785

 

Net income

 

85,966

   

93,796

 

Net income attributable to noncontrolling interests

 

28,937

   

40,634

 

Net income attributable to Western Gas Equity Partners, LP

 

$

57,029

   

$

53,162

 

Limited partners' interest in net income:

       

Net income attributable to Western Gas Equity Partners, LP

 

$

57,029

   

$

53,162

 

Pre-acquisition net (income) loss allocated to Anadarko

 

(1,742)

   

(2,665)

 

Limited partners' interest in net income

 

55,287

   

50,497

 

Net income per common unit – basic and diluted

 

$

0.25

   

$

0.23

 

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

 

218,910

   

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

 

March 31,
 2015

 

December 31, 2014 (1)

Current assets

 

$

214,984

   

$

187,073

 

Note receivable – Anadarko

 

260,000

   

260,000

 

Net property, plant and equipment

 

4,711,271

   

4,571,443

 

Other assets

 

1,910,020

   

1,936,725

 

Total assets

 

$

7,096,275

   

$

6,955,241

 

Current liabilities

 

$

242,526

   

$

241,058

 

Long-term debt

 

2,532,995

   

2,422,954

 

Asset retirement obligations and other

 

122,568

   

157,370

 

Deferred purchase price obligation – Anadarko

 

175,696

   

 

Total liabilities

 

$

3,073,785

   

$

2,821,382

 

Equity and partners' capital

       

Common units (218,909,977 units issued and outstanding at March 31, 2015, and December 31, 2014)

 

$

1,252,921

   

$

1,260,195

 

Net investment by Anadarko

 

   

122,509

 

Noncontrolling interests

 

2,769,569

   

2,751,155

 

Total liabilities, equity and partners' capital

 

$

7,096,275

   

$

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)

     
   

Three Months Ended
 March 31,

thousands

 

2015

 

2014 (1)

Cash flows from operating activities

       

Net income

 

$

85,966

   

$

93,796

 

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

       

Depreciation, amortization and impairments

 

70,292

   

42,085

 

Change in other items, net

 

(803)

   

(3,624)

 

Net cash provided by operating activities

 

155,455

   

132,257

 

Cash flows from investing activities

       

Capital expenditures

 

$

(200,940)

   

$

(199,150)

 

Acquisitions from affiliates

 

(1,128)

   

(360,952)

 

Investments in equity affiliates

 

(4,878)

   

(28,462)

 

Distributions from equity investments in excess of cumulative earnings

 

2,964

   

2,044

 

Proceeds from the sale of assets to third parties

 

22

   

 

Net cash used in investing activities

 

(203,960)

   

(586,520)

 

Cash flows from financing activities

       

Borrowings, net of debt issuance costs

 

$

140,000

   

$

917,742

 

Repayments of debt

 

(31,150)

   

(430,000)

 

Increase (decrease) in outstanding checks

 

(2,468)

   

1,928

 

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

 

31,075

   

17,530

 

Distributions to WGP unitholders

 

(68,409)

   

(50,621)

 

Distributions to Chipeta noncontrolling interest owner

 

(3,150)

   

(4,124)

 

Distributions to noncontrolling interest owners of WES

 

(54,879)

   

(40,996)

 

Net contributions from Anadarko

 

30,096

   

23,838

 

Net cash provided by financing activities

 

41,115

   

435,297

 

Net increase (decrease) in cash and cash equivalents

 

(7,390)

   

(18,966)

 

Cash and cash equivalents at beginning of period

 

67,213

   

113,085

 

Cash and cash equivalents at end of period

 

$

59,823

   

$

94,119

 
   

(1) 

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

                   

 

SOURCE Western Gas Partners, LP

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