WESTERN GAS EQUITY PARTNERS LP HOUSTON, May 3, 2016 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced first-quarter 2016 financial and operating results.
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WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for the first quarter of 2016 totaled $47.0 million, or $0.31 per common unit (diluted), with first-quarter 2016 Adjusted EBITDA((1)) of $231.1 million and first-quarter 2016 Distributable cash flow((1)) of $191.9 million. Financial and operational information has been recast to include the financial position and results attributable to the acquisition of Springfield as if it had occurred at the beginning of the period.
WES previously declared a quarterly distribution of $0.815 per unit for the first quarter of 2016. This distribution represented a 2% increase over the prior quarter's distribution and a 12% increase over the first-quarter 2015 distribution of $0.725 per unit. The first-quarter 2016 Coverage ratio((1)) of 1.21 times was based on the quarterly distribution of $0.815 per unit and is calculated by dividing the quarter's Distributable cash flow((1)) by quarterly distributions paid to the general partner and common unitholders. Inclusion of $13.0 million((2)) of the expected recoveries under WES's business interruption insurance in Distributable cash flow((1)) would result in a ratio of 1.29 times.
"Our first quarter was driven by solid operating performance in a challenging environment. Furthermore, we were able to resume partial service at Ramsey III at the beginning of the second quarter and we look forward to bringing Ramsey IV online as scheduled," said Chief Executive Officer, Don Sinclair. "We are leaving our previously issued guidance for 2016 unchanged."
Total throughput attributable to WES for natural gas assets for the first quarter of 2016 averaged 3.8 Bcf/d, which was 4% below the prior quarter and 11% below the first quarter of 2015. The sequential decline in throughput was primarily attributable to the December 2015 incident at the Ramsey complex. The throughput decline from the first quarter of 2015 was also impacted by the Ramsey incident, as well as the sale of the Dew and Pinnacle systems in July 2015. Total throughput for crude/NGL assets for the first quarter of 2016 averaged 184 MBbls/d, which was 2% below the prior quarter and 1% above the first quarter of 2015.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $132.3 million on a cash basis and $139.0 million on an accrual basis during the first quarter of 2016, with maintenance capital expenditures on a cash basis of $18.9 million, or 8% of Adjusted EBITDA((1)).
WESTERN GAS EQUITY PARTNERS, LP
WGP indirectly owns the entire general partner interest in WES, 100% of the incentive distribution rights in WES and 50,132,046 WES common units. Net income (loss) available to limited partners for the first quarter of 2016 totaled $70.5 million, or $0.32 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.42375 per unit for the first quarter of 2016. This distribution represented a 5% increase over the prior quarter's distribution and a 24% increase over the first-quarter 2015 distribution of $0.34250. WGP received distributions from WES of $93.3 million attributable to the first quarter and will pay $92.8 million in distributions for the same period.
(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.
(2) Represents the midpoint of WES's
anticipated range of $11 million to
$15 million in reimbursable amounts
for the quarter.
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
WES and WGP will host a joint conference call on Wednesday, May 4, 2016, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss first-quarter 2016 results. Individuals who would like to participate should dial 844-836-8745 (Domestic) or 412-317-5439 (International) approximately 15 minutes before the scheduled conference call time. Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.
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, Western Gas Equity Partners, LP, and Western Gas Flash Feed updates, 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 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
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
832.636.6010
benjamin.fink@westerngas.com
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 (loss) attributable to Western Gas Partners, LP (GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP) to net income (loss) 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 (loss) (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) and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
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
March 31,
---------
thousands except
Coverage ratio 2016 2015 (1)
---------------- ---- -------
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 $116,060 $(156,493)
Add:
Distributions from
equity investees 24,639 21,670
Non-cash equity-
based compensation
expense 1,303 1,112
Interest expense, net
(non-cash settled)
(2) 4,537 1,420
Income tax (benefit)
expense 6,633 12,270
Depreciation and
amortization (3) 64,439 68,327
Impairments 6,518 272,624
Above-market
component of swap
extensions with
Anadarko 6,813 -
Less:
Gain (loss) on
divestiture and
other, net (632) (6)
Equity income, net 16,814 18,220
Cash paid for
maintenance capital
expenditures (3) 18,897 14,113
Capitalized interest 1,849 3,094
Cash paid for
(reimbursement of)
income taxes 67 (138)
Series A Preferred
unit distributions 1,887 -
Other income (3) 122 69
--------------- --- ---
Distributable cash
flow $191,938 $185,578
------------------ -------- --------
Distributions
declared (4)
Limited partners -
common units $106,493
General partner 52,412
--------------- ------
Total $158,905
----- --------
Coverage ratio 1.21 x
-------------- ---- ---
(1) In March 2016, WES acquired
Springfield Pipeline LLC
("Springfield") from Anadarko.
Springfield owns a 50.1%
interest in an oil gathering
system and a gas gathering
system, such interest being
referred to as the "Springfield
system." Financial information
has been recast to include the
financial position and results
attributable to the Springfield
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 and amortization;
cash paid for maintenance
capital expenditures; and other
income attributable to Chipeta.
(4) Reflects cash distributions of
$0.815 per unit declared for the
three months ended March 31,
2016.
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 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
March 31,
---------
thousands 2016 2015 (1)
--------- ---- -------
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 $116,060 $(156,493)
Add:
Distributions from
equity investees 24,639 21,670
Non-cash equity-
based
compensation
expense 1,303 1,112
Interest expense 32,036 22,960
Income tax expense 6,633 12,270
Depreciation and
amortization (2) 64,439 68,327
Impairments 6,518 272,624
Less:
Gain (loss) on
divestiture and
other, net (632) (6)
Equity income, net 16,814 18,220
Interest income -
affiliates 4,225 4,225
Other income (2) 122 69
Adjusted EBITDA
attributable to
Western Gas
Partners, LP $231,099 $219,962
---------------- -------- --------
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 $231,099 $219,962
Adjusted EBITDA
attributable to
noncontrolling
interest 3,677 3,872
Interest income
(expense), net (27,811) (18,735)
Uncontributed
cash-based
compensation
awards (72) (77)
Accretion and
amortization of
long-term
obligations, net 5,467 2,112
Current income tax
benefit (expense) (4,781) (6,461)
Other income
(expense), net 124 71
Distributions from
equity
investments in
excess of
cumulative
earnings (4,784) (2,964)
Changes in
operating working
capital:
Accounts
receivable, net 12,558 (14,633)
Accounts and
imbalance
payables and
accrued
liabilities, net 17,978 12,796
Other 3,048 (1,110)
----- ----- ------
Net cash provided
by (used in)
operating
activities $236,503 $194,833
----------------- -------- --------
Cash flow
information of
Western Gas
Partners, LP
Net cash provided
by (used in)
operating
activities $236,503 $194,833
Net cash provided
by (used in)
investing
activities $(842,818) $(214,224)
Net cash provided
by (used in)
financing
activities $616,761 $10,976
----------------- -------- -------
(1) Financial information has been
recast to include the
financial position and
results attributable to the
Springfield system.
(2) Includes WES's 75% share of
depreciation and amortization
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 investees and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended
March 31,
---------
thousands 2016 2015 (1)
--------- ---- -------
Reconciliation of
Adjusted gross
margin attributable
to Western Gas
Partners, LP to
Operating income
(loss)
Adjusted gross
margin attributable
to Western Gas
Partners, LP for
natural gas assets $276,529 $271,246
Adjusted gross
margin for crude/
NGL assets 34,695 31,404
Adjusted gross
margin attributable
to Western Gas
Partners, LP 311,224 302,650
-------------------- ------- -------
Adjusted gross
margin attributable
to noncontrolling
interest 4,421 4,808
Gain (loss) on
divestiture and
other, net (632) (6)
Equity income, net 16,814 18,220
Reimbursed
electricity-
related charges
recorded as
revenues 15,668 11,810
Less:
Distributions from
equity investees 24,639 21,670
Operation and
maintenance 76,213 76,185
General and
administrative 11,277 11,081
Property and other
taxes 10,350 9,280
Depreciation and
amortization 65,095 68,975
Impairments 6,518 272,624
----- -------
Operating income
(loss) $153,403 $(122,333)
---------------- -------- ---------
(1) Financial information has
been recast to include the
financial position and
results attributable to
the Springfield system.
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
---------
thousands
except
per-
unit
amounts 2016 2015 (1)
--------- ---- -------
Revenues
and
other
Gathering,
processing
and
transportation $294,004 $270,268
Natural
gas and
natural
gas
liquids
sales 88,556 165,672
Other 581 1,066
Total
revenues
and
other 383,141 437,006
--------- ------- -------
Equity
income,
net 16,814 18,220
------ ------
Operating
expenses
Cost of
product 76,467 139,408
Operation
and
maintenance 76,213 76,185
General
and
administrative 11,277 11,081
Property
and
other
taxes 10,350 9,280
Depreciation
and
amortization 65,095 68,975
Impairments 6,518 272,624
----------- ----- -------
Total
operating
expenses 245,920 577,553
---------- ------- -------
Gain
(loss)
on
divestiture
and
other,
net (632) (6)
Operating
income
(loss) 153,403 (122,333)
Interest
income -
affiliates 4,225 4,225
Interest
expense (32,036) (22,960)
Other
income
(expense),
net 124 71
--- ---
Income
(loss)
before
income
taxes 125,716 (140,997)
Income
tax
(benefit)
expense 6,633 12,270
----- ------
Net
income
(loss) 119,083 (153,267)
Net
income
(loss)
attributable
to
noncontrolling
interest 3,023 3,226
--------------- ----- -----
Net
income
(loss)
attributable
to
Western
Gas
Partners,
LP $116,060 $(156,493)
Limited
partners'
interest
in net
income
(loss):
Net
income
(loss)
attributable
to
Western
Gas
Partners,
LP $116,060 $(156,493)
Pre-
acquisition
net
(income)
loss
allocated
to
Anadarko (11,326) (25,039)
Series A
Preferred
units
interest
in net
(income)
loss (2,329) -
General
partner
interest
in net
(income)
loss (55,400) (37,177)
Common
and
Class C
limited
partners'
interest
in net
income
(loss) 47,005 (218,709)
Net
income
(loss)
per
common
unit -
basic
and
diluted $0.31 $(1.61)
Weighted-
average
common
units
outstanding
- basic 128,990 127,736
Weighted-
average
common
units
outstanding
-
diluted 143,355 138,674
(1) Financial information has
been recast to include the
financial position and
results attributable to
the Springfield system.
Western Gas Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands except number of
units March 31, December 31,
2016 2015 (1)
--- ----
Current assets $291,807 $299,217
Note receivable - Anadarko 260,000 260,000
Net property, plant and
equipment 4,940,219 4,858,779
Other assets 1,868,534 1,883,201
--------- ---------
Total assets $7,360,560 $7,301,197
------------ ---------- ----------
Current liabilities $259,467 $235,488
Long-term debt 3,021,325 2,690,651
Asset retirement
obligations and other 138,032 268,356
Deferred purchase price
obligation - Anadarko 193,211 188,674
----------------------- ------- -------
Total liabilities $3,612,035 $3,383,169
----------------- ---------- ----------
Equity and partners'
capital
Series A Preferred units
(14,030,611 and zero
units issued and
outstanding at March 31,
2016, and December 31,
2015, respectively) $420,582 $ -
Common units (130,666,567
and 128,576,965 units
issued and outstanding at
March 31, 2016, and
December 31, 2015,
respectively) 2,417,194 2,588,991
Class C units (11,735,446
and 11,411,862 units
issued and outstanding at
March 31, 2016, and
December 31, 2015,
respectively) 718,334 710,891
General partner units
(2,583,068 units issued
and outstanding at March
31, 2016, and December
31, 2015) 125,846 120,164
Net investment by Anadarko - 430,598
Noncontrolling interest 66,569 67,384
------ ------
Total liabilities, equity
and partners' capital $7,360,560 $7,301,197
------------------------- ---------- ----------
(1) Financial information has
been recast to include the
financial position and
results attributable to
the Springfield system.
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
---------
thousands 2016 2015 (1)
--------- ---- -------
Cash flows from operating
activities
Net income (loss) $119,083 $(153,267)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities and changes
in working capital:
Depreciation and amortization 65,095 68,975
Impairments 6,518 272,624
Gain (loss) on divestiture and
other, net 632 6
Change in other items, net 45,175 6,495
-------------------------- ------ -----
Net cash provided by (used in)
operating activities 236,503 194,833
------------------------------ ------- -------
Cash flows from investing
activities
Capital expenditures $(136,987) $(211,567)
Contributions in aid of
construction costs from affiliates 2,369 -
Acquisitions from affiliates (713,596) (765)
Investments in equity affiliates 474 (4,878)
Distributions from equity
investments in excess of
cumulative earnings 4,784 2,964
Proceeds from the sale of assets to
third parties 138 22
Net cash provided by (used in)
investing activities (842,818) (214,224)
------------------------------ -------- --------
Cash flows from financing
activities
Borrowings, net of debt issuance
costs $330,000 $140,000
Repayments of debt - (30,000)
Increase (decrease) in outstanding
checks (994) (2,198)
Proceeds from the issuance of
common and general partner units,
net of offering expenses 25,000 31,075
Proceeds from the issuance of
Series A Preferred units, net of
offering expenses 440,000 -
Distributions to unitholders (152,588) (126,044)
Distributions to noncontrolling
interest owner (3,838) (3,150)
Net contributions from
(distributions to) Anadarko (27,632) 1,293
Above-market component of swap
extensions with Anadarko 6,813 -
------------------------------ ----- ---
Net cash provided by (used in)
financing activities 616,761 10,976
------------------------------ ------- ------
Net increase (decrease) in cash and
cash equivalents 10,446 (8,415)
Cash and cash equivalents at
beginning of period 98,033 67,054
---------------------------- ------ ------
Cash and cash equivalents at end of
period $108,479 $58,639
----------------------------------- -------- -------
(1) Financial information has
been recast to include the
financial position and
results attributable to
the Springfield system.
Western Gas Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended
March 31,
---------
MMcf/d except
throughput measured in
barrels and per-unit
amounts 2016 2015 (1)
----------------------- ---- -------
Throughput for natural
gas assets (MMcf/d)
Gathering, treating and
transportation 1,597 1,964
Processing 2,134 2,260
Equity investment (2) 185 165
-------------------- --- ---
Total throughput for
natural gas assets 3,916 4,389
-------------------- ----- -----
Throughput attributable
to noncontrolling
interest for natural
gas assets 135 162
Total throughput
attributable to
Western Gas Partners,
LP for natural gas
assets 3,781 4,227
---------------------- ----- -----
Throughput for crude/
NGL assets (MBbls/d)
Gathering, treating and
transportation 60 75
Equity investment (3) 124 107
--- ---
Total throughput for
crude/NGL assets 184 182
-------------------- --- ---
Adjusted gross margin
per Mcf attributable
to Western Gas
Partners, LP for
natural gas assets (4) $0.80 $0.71
----------------------- ----- -----
Adjusted gross margin
per Bbl for crude/NGL
assets (5) $2.07 $1.91
---------------------- ----- -----
(1) Throughput and adjusted gross margin
have been recast to include results
attributable to the Springfield
system.
(2) Represents WES's 14.81% share of
average Fort Union throughput and
22% share of average Rendezvous
throughput.
(3) Represents equity investment
throughput measured in barrels,
which consists of WES's 10% share of
average of White Cliffs throughput,
WES's 25% share of Mont Belvieu JV
throughput, WES's 20% share of
average TEG and TEP throughput and
WES's 33.33% share of average FRP
throughput.
(4) 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.
(5) Average for period. Calculated as
Adjusted gross margin for crude/NGL
assets (total revenues and other for
crude/NGL assets less
reimbursements for electricity-
related expenses recorded as
revenue, and 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, 2016
-------------------------------- --------------
Distributions declared by Western Gas Partners, LP:
General partner interest $3,080
Incentive distribution rights 49,331
Common units held by WGP 40,858
Less:
Public company general and
administrative expense 1,238
Interest expense $103
---------------- ----
Cash available for distribution $91,928
------------------------------- -------
Declared distribution per common
unit $0.42375
-------------------------------- --------
Distributions declared by Western
Gas Equity Partners, LP $92,767
--------------------------------- -------
Coverage ratio 0.99 x
-------------- ---- ---
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
---------
thousands
except
per-unit
amounts 2016 2015 (1)
--------- ---- -------
Revenues
and
other
Gathering,
processing
and
transportation $294,004 $270,268
Natural
gas and
natural
gas
liquids
sales 88,556 165,672
Other 581 1,066
--- -----
Total
revenues
and
other 383,141 437,006
--------- ------- -------
Equity
income,
net 16,814 18,220
------ ------
Operating
expenses
Cost of
product 76,467 139,408
Operation
and
maintenance 76,213 76,185
General
and
administrative 12,515 11,916
Property
and
other
taxes 10,350 9,280
Depreciation
and
amortization 65,095 68,975
Impairments 6,518 272,624
----------- ----- -------
Total
operating
expenses 247,158 578,388
---------- ------- -------
Gain
(loss)
on
divestiture
and
other,
net (632) (6)
Operating
income
(loss) 152,165 (123,168)
Interest
income -
affiliates 4,225 4,225
Interest
expense (32,139) (22,962)
Other
income
(expense),
net 141 80
--- ---
Income
(loss)
before
income
taxes 124,392 (141,825)
Income
tax
(benefit)
expense 6,633 12,270
----- ------
Net
income
(loss) 117,759 (154,095)
Net
income
(loss)
attributable
to
noncontrolling
interests 35,943 (137,723)
--------------- ------ --------
Net
income
(loss)
attributable
to
Western
Gas
Equity
Partners,
LP $81,816 $(16,372)
Limited
partners'
interest
in net
income
(loss):
Net
income
(loss)
attributable
to
Western
Gas
Equity
Partners,
LP $81,816 $(16,372)
Pre-
acquisition
net
(income)
loss
allocated
to
Anadarko (11,326) (25,039)
------------ ------- -------
Limited
partners'
interest
in net
income
(loss) $70,490 $(41,411)
Net
income
(loss)
per
common
unit -
basic
and
diluted $0.32 $(0.19)
Weighted-
average
number of
common
units
outstanding
- basic
and
diluted 218,919 218,910
------------ ------- -------
(1) Financial information has
been recast to include the
financial position and
results attributable to
the Springfield system.
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands
except
number
of
units March 31, December 31,
2016 2015 (1)
--- ---- -------
Current
assets $295,121 $301,364
Note
receivable
-
Anadarko 260,000 260,000
Net
property,
plant
and
equipment 4,940,219 4,858,779
Other
assets 1,870,343 1,883,201
--------- ---------
Total
assets $7,365,683 $7,303,344
------- ---------- ----------
Current
liabilities $260,010 $235,565
Long-
term
debt 3,049,325 2,690,651
Asset
retirement
obligations
and
other 138,032 268,356
Deferred
purchase
price
obligation
-
Anadarko 193,211 188,674
----------- -------
Total
liabilities $3,640,578 $3,383,246
------------ ---------- ----------
Equity
and
partners'
capital
Common
units and
(218,919,380 December
units 31,
issued 2015,
and respectively)
outstanding
at
March
31,
2016, $876,876 $1,060,842
Net
investment
by
Anadarko - 430,598
Noncontrolling
interests 2,848,229 2,428,658
--------- ---------
Total
liabilities,
equity
and
partners'
capital $7,365,683 $7,303,344
------------- ---------- ----------
(1) Financial information has
been recast to include the
financial position and
results attributable to
the Springfield system.
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
---------
thousands 2016 2015 (1)
--------- ---- -------
Cash flows from operating
activities
Net income (loss) $117,759 $(154,095)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities and changes
in working capital:
Depreciation and amortization 65,095 68,975
Impairments 6,518 272,624
Gain (loss) on divestiture and
other, net 632 6
Change in other items, net 45,879 6,742
-------------------------- ------ -----
Net cash provided by (used in)
operating activities 235,883 194,252
------------------------------ ------- -------
Cash flows from investing
activities
Capital expenditures $(136,987) $(211,567)
Contributions in aid of
construction costs from affiliates 2,369 -
Acquisitions from affiliates (713,596) (765)
Investments in equity affiliates 474 (4,878)
Distributions from equity
investments in excess of
cumulative earnings 4,784 2,964
Proceeds from the sale of assets to
third parties 138 22
Net cash provided by (used in)
investing activities (842,818) (214,224)
------------------------------ -------- --------
Cash flows from financing
activities
Borrowings, net of debt issuance
costs $356,162 $140,000
Repayments of debt - (31,150)
Increase (decrease) in outstanding
checks (994) (2,198)
Proceeds from the issuance of WES
common units, net of offering
expenses - 31,075
Proceeds from the issuance of WES
Series A Preferred units, net of
offering expenses 440,000 -
Distributions to WGP unitholders (88,389) (68,409)
Distributions to Chipeta
noncontrolling interest owner (3,838) (3,150)
Distributions to noncontrolling
interest owners of WES (63,425) (54,879)
Net contributions from
(distributions to) Anadarko (27,632) 1,293
Above-market component of swap
extensions with Anadarko 6,813 -
------------------------------ ----- ---
Net cash provided by (used in)
financing activities 618,697 12,582
------------------------------ ------- ------
Net increase (decrease) in cash and
cash equivalents 11,762 (7,390)
Cash and cash equivalents at
beginning of period 99,694 67,213
---------------------------- ------ ------
Cash and cash equivalents at end of
period $111,456 $59,823
----------------------------------- -------- -------
(1) Financial information has
been recast to include the
financial position and
results attributable to
the Springfield system.
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SOURCE Western Gas
