WESTERN GAS EQUITY PARTNERS LP HOUSTON, July 29, 2015 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced second-quarter 2015 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income available to limited partners for the second quarter of 2015 totaled $64.6 million, or $0.44 per common unit (diluted). For the second quarter of 2015, Adjusted EBITDA((1)) was $205.5 million and Distributable cash flow((1)) was $173.3 million, resulting in a Coverage ratio((1)) of 1.24 times for the period.
WES previously declared a quarterly distribution of $0.750 per unit for the second quarter of 2015. This distribution represented a 3% increase over the prior quarter's distribution and a 15% increase over the second-quarter 2014 distribution of $0.650 per unit. The distribution will be paid on August 12, 2015, to unitholders of record at the close of business on July 31, 2015. The second-quarter 2015 Coverage ratio((1)) of 1.24 times was based on the quarterly distribution of $0.750 per unit.
Total throughput attributable to WES for natural gas assets for the second quarter of 2015 averaged 4.1 Bcf/d, which was 4% above the prior quarter and 13% above the second quarter of 2014. Total throughput for crude/NGL assets for the second quarter of 2015 averaged 134 MBbls/d, which was 2% above the prior quarter and 17% above the second quarter of 2014.
"The successful startup of Lancaster Train II combined with significant sequential volume growth in the DJ and Delaware Basins has led to another quarter of solid operating performance," said Chief Executive Officer, Don Sinclair. "Furthermore, we have protected our cash flow in the second half of the year by extending our DJ Basin and Hugoton fixed-price agreements with Anadarko through December 31, 2015."
Capital expenditures attributable to WES on a cash basis, including equity investments but excluding acquisitions, totaled $136.3 million during the second quarter of 2015. Of this amount, maintenance capital expenditures were $10.3 million, or 5% of Adjusted EBITDA((1)). Capital expenditures attributable to WES on an accrual basis, including equity investments but excluding acquisitions, totaled $120.2 million during the second quarter of 2015. The Partnership is slightly revising its 2015 outlook for maintenance capital expenditures, now estimating they will be between 7% and 10% of Adjusted EBITDA.
WESTERN GAS EQUITY PARTNERS, LP
WGP indirectly owns the entire general partner interest in WES, 100% of the incentive distribution rights in WES and 49,296,205 WES common units. Net income available to limited partners for the second quarter of 2015 totaled $67.8 million, or $0.31 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.36375 per unit for the second quarter of 2015. This distribution represented a 6% increase over the prior quarter's distribution and a 34% increase over the second-quarter 2014 distribution of $0.27125. The distribution will be paid on August 21, 2015, to unitholders of record at the close of business on July 31, 2015. WGP will receive distributions from WES of $80.3 million attributable to the second quarter and will pay $79.6 million in distributions for the same period.
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
WES and WGP will host a joint conference call on Thursday, July 30, 2015, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss second-quarter 2015 results. Individuals who would like to participate should dial 866-777-2509 (Domestic) or 412-317-5413 (International) approximately 15 minutes before the scheduled conference call time.Pre-registration is available through the investor relations page at www.westerngas.com. Pre-registrants will be issued a personal identification number to use when dialing in to the live conference call, which will enable the participant to bypass the operator and gain immediate access to the call. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership's website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.
(1) Please see the tables at the end
of this release for a
reconciliation of non-GAAP to
GAAP measures and calculation
of the Coverage ratio.
Western Gas Partners, LP ("WES") is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream energy assets. With midstream assets located in the Rocky Mountains, the Mid-Continent, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko, as well as for other producers and customers.
Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.
This news release contains forward-looking statements. Western Gas Partners and Western Gas Equity Partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" sections of WES's and WGP's most recent Forms 10-K filed with the Securities and Exchange Commission and in their other public filings and press releases. Western Gas Partners and Western Gas Equity Partners undertake no obligation to publicly update or revise any forward-looking statements.
WESTERN GAS CONTACT
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
832.636.6010
benjamin.fink@westerngas.com
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Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of (i) WES's Distributable cash flow (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP) and to net cash provided by operating activities (GAAP), and (iii) Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-GAAP) to operating income (GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing its ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio should be considered in conjunction with net income and other applicable performance measures, such as operating income or cash flows from operating activities.
Distributable Cash Flow
WES defines Distributable cash flow as Adjusted EBITDA, plus interest income, plus the net settlement amounts from the sale and/or purchase of natural gas, drip condensate and NGLs under our commodity price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less net cash paid for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, and income taxes.
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
thousands except
Coverage ratio 2015 2014 (1) 2015 2014 (1)
---------------- ---- ------- ---- -------
Reconciliation of Net
income attributable to
Western Gas Partners,
LP to Distributable
cash flow and
calculation of the
Coverage ratio
Net income attributable
to Western Gas
Partners, LP $110,522 $99,167 $194,090 $190,223
Add:
Distributions from
equity investees 25,902 24,328 47,572 36,641
Non-cash equity-based
compensation expense 1,163 1,057 2,275 2,154
Interest expense, net
(non-cash settled) (2) 4,190 - 5,610 -
Income tax (benefit)
expense (1,816) 2,523 2,644 4,308
Depreciation,
amortization and
impairments (3) 65,311 44,662 134,955 86,110
Less:
Equity income, net 18,941 13,008 37,161 22,259
Cash paid for
maintenance capital
expenditures (3) 10,262 12,849 22,894 22,993
Capitalized interest 2,693 2,007 5,787 5,447
Cash paid for
(reimbursement of)
income taxes - - (138) (340)
Other income (3) (4) 68 79 137 157
------------------- --- --- --- ---
Distributable cash flow $173,308 $143,794 $321,305 $268,920
----------------------- -------- -------- -------- --------
Distributions declared
(5)
Limited partners $96,431 $189,570
General partner 43,305 83,369
--------------- ------ ------
Total $139,736 $272,939
----- -------- --------
Coverage ratio 1.24 x 1.18 x
-------------- ---- --- ---- ---
(1) In March 2015, WES acquired
Anadarko's interest in Delaware
Basin JV Gathering LLC, which
owns a 50% interest in a
gathering system and related
facilities (the "DBJV system").
WES will make a cash payment on
March 1, 2020, to Anadarko as
consideration for the
acquisition. The net present
value of this future obligation
has been recorded on the
consolidated balance sheet under
Deferred purchase price
obligation -Anadarko. Financial
information has been recast to
include the financial position
and results attributable to the
DBJV system.
(2) Includes accretion expense related
to the Deferred purchase price
obligation -Anadarko associated
with the acquisition of DBJV.
(3) Includes WES's 75% share of
depreciation, amortization and
impairments; cash paid for
maintenance capital expenditures;
and other income attributable to
Chipeta.
(4) Excludes income of zero and $0.1
million for the three months
ended June 30, 2015 and 2014,
respectively, and zero and $0.5
million for the six months ended
June 30, 2015 and 2014,
respectively, related to a
component of a gas processing
agreement accounted for as a
capital lease.
(5) Reflects cash distributions of
$0.750 and $1.475 per unit
declared for the three and six
months ended June 30, 2015,
respectively.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted EBITDA Attributable to Western Gas Partners, LP
WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation, amortization and impairments, and other expense, less gains on divestitures, income from equity investments, interest income, income tax benefit and other income.
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
thousands 2015 2014 (1) 2015 2014 (1)
--------- ---- ------- ---- -------
Reconciliation of Net income
attributable to Western Gas
Partners, LP to Adjusted
EBITDA attributable to Western
Gas Partners, LP
Net income attributable to
Western Gas Partners, LP $110,522 $99,167 $194,090 $190,223
Add:
Distributions from equity
investees 25,902 24,328 47,572 36,641
Non-cash equity-based
compensation expense 1,163 1,057 2,275 2,154
Interest expense 27,604 20,864 50,564 34,825
Income tax expense - 2,523 4,460 4,308
Depreciation, amortization and
impairments (2) 65,311 44,662 134,955 86,110
Less:
Equity income, net 18,941 13,008 37,161 22,259
Interest income - affiliates 4,225 4,225 8,450 8,450
Other income (2) (3) 68 79 137 157
Income tax benefit 1,816 - 1,816 -
------------------ ----- --- ----- ---
Adjusted EBITDA attributable to
Western Gas Partners, LP $205,452 $175,289 $386,352 $323,395
------------------------------- -------- -------- -------- --------
Reconciliation of Adjusted
EBITDA attributable to Western
Gas Partners, LP to Net cash
provided by operating
activities
Adjusted EBITDA attributable to
Western Gas Partners, LP $205,452 $175,289 $386,352 $323,395
Adjusted EBITDA attributable to
noncontrolling interest 3,463 4,090 7,335 8,416
Interest income (expense), net (23,379) (16,639) (42,114) (26,375)
Uncontributed cash-based
compensation awards (68) (20) (145) 33
Accretion and amortization of
long-term obligations, net 4,958 678 7,070 1,358
Current income tax benefit
(expense) (117) (1,298) (819) (2,090)
Other income (expense), net (3) 71 82 142 163
Distributions from equity
investments in excess of
cumulative earnings (5,574) (7,804) (8,538) (9,848)
Changes in operating working
capital:
Accounts receivable, net (28,463) (8,421) (46,135) (23,860)
Accounts and natural gas
imbalance payables and accrued
liabilities, net (10,168) (2,439) 283 4,267
Other (744) 2,369 (1,964) 4,247
----- ---- ----- ------ -----
Net cash provided by operating
activities $145,431 $145,887 $301,467 $279,706
------------------------------ -------- -------- -------- --------
Cash flow information of
Western Gas Partners, LP
Net cash provided by operating
activities $301,467 $279,706
Net cash used in investing
activities $(349,170) $(801,530)
Net cash provided by financing
activities $68,417 $531,725
------------------------------ ------- --------
(1) Financial information has been
recast to include the financial
position and results
attributable to the DBJV
system.
(2) Includes WES's 75% share of
depreciation, amortization and
impairments; and other income
attributable to Chipeta.
(3) Excludes income of zero and $0.1
million for the three months
ended June 30, 2015 and 2014,
respectively, and zero and $0.5
million for the six months
ended June 30, 2015 and 2014,
respectively, related to a
component of a gas processing
agreement accounted for as a
capital lease.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted gross margin attributable to Western Gas Partners, LP
WES defines Adjusted gross margin as total revenues less gains on divestitures and cost of product, plus distributions from equity investees and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
thousands 2015 2014 (1) 2015 2014 (1)
--------- ---- ------- ---- -------
Reconciliation of Adjusted
gross margin attributable to
Western Gas Partners, LP to
Operating income
Adjusted gross margin
attributable to Western Gas
Partners, LP for natural gas
assets $255,342 $222,913 $489,194 $418,684
Adjusted gross margin for
crude/NGL assets 22,018 21,507 42,202 32,296
------ ------
Adjusted gross margin
attributable to Western Gas
Partners, LP $277,360 $244,420 $531,396 $450,980
---------------------------- -------- -------- -------- --------
Adjusted gross margin
attributable to
noncontrolling interest $4,661 $4,935 $9,469 $10,029
Equity income, net 18,941 13,008 37,161 22,259
Less:
Distributions from equity
investees 25,902 24,328 47,572 36,641
Operation and maintenance 56,827 55,404 112,976 99,981
General and administrative 8,667 8,445 19,179 17,349
Property and other taxes 8,775 7,316 17,298 14,550
Depreciation, amortization and
impairments 65,961 45,305 136,253 87,390
------------------------------ ------ ------ ------- ------
Operating income $134,830 $121,565 $244,748 $227,357
---------------- -------- -------- -------- --------
(1) Financial information has
been recast to include the
financial position and
results attributable to the
DBJV system.
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
thousands except per-unit
amounts 2015 2014 (1) 2015 2014 (1)
------------------------- ---- ------- ---- -------
Revenues
Gathering, processing and
transportation of natural
gas and natural gas liquids $228,236 $175,885 $438,080 $330,382
Natural gas, natural gas
liquids and drip condensate
sales 173,261 167,628 337,429 305,277
Other 915 2,056 1,997 3,627
Total revenues 402,412 345,569 777,506 639,286
-------------- ------- ------- ------- -------
Equity income, net 18,941 13,008 37,161 22,259
------ ------ ------ ------
Operating expenses
Cost of product 146,293 120,542 284,213 214,918
Operation and maintenance 56,827 55,404 112,976 99,981
General and administrative 8,667 8,445 19,179 17,349
Property and other taxes 8,775 7,316 17,298 14,550
Depreciation, amortization
and impairments 65,961 45,305 136,253 87,390
-------------------------- ------ ------ ------- ------
Total operating expenses 286,523 237,012 569,919 434,188
------------------------ ------- ------- ------- -------
Operating income 134,830 121,565 244,748 227,357
Interest income - affiliates 4,225 4,225 8,450 8,450
Interest expense (27,604) (20,864) (50,564) (34,825)
Other income (expense), net 71 214 142 691
--- --- --- ---
Income before income taxes 111,522 105,140 202,776 201,673
Income tax (benefit) expense (1,816) 2,523 2,644 4,308
------ ----- ----- -----
Net income 113,338 102,617 200,132 197,365
Net income attributable to
noncontrolling interest 2,816 3,450 6,042 7,142
-------------------------- ----- ----- ----- -----
Net income attributable to
Western Gas Partners, LP $110,522 $99,167 $194,090 $190,223
Limited partners' interest
in net income:
Net income attributable to
Western Gas Partners, LP $110,522 $99,167 $194,090 $190,223
Pre-acquisition net
(income) loss allocated to
Anadarko - (4,135) (1,742) (6,800)
General partner interest in
net (income) loss (45,915) (28,047) (87,908) (52,881)
--------------------------- ------- ------- ------- -------
Limited partners' interest
in net income 64,607 66,985 $104,440 $130,542
Net income per common unit -
basic $0.44 $0.57 $0.70 $1.11
Net income per common unit -
diluted 0.44 0.57 0.70 1.11
Weighted-average common
units outstanding - basic 128,481 118,177 128,111 117,948
Weighted-average common
units outstanding - diluted 139,504 118,177 139,092 117,948
(1) Financial information has
been recast to include the
financial position and
results attributable to the
DBJV system.
Western Gas Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands December 31, 2014
except (1)
number
of
units June 30, 2015
---------- -------------
Current
assets $272,101 $186,364
Note
receivable
-
Anadarko 260,000 260,000
Net
property,
plant
and
equipment 4,782,541 4,571,443
Other
assets 1,901,400 1,936,725
--------- ---------
Total
assets $7,216,042 $6,954,532
------- ---------- ----------
Current
liabilities $213,063 $239,833
Long-
term
debt 2,677,023 2,422,954
Asset
retirement
obligations
and
other 125,910 157,370
Deferred
purchase
price
obligation
-
Anadarko 179,886 -
----------- ------- ---
Total
liabilities $3,195,882 $2,820,157
------------ ---------- ----------
Equity
and
partners'
capital
Common
units 2015,
(128,574,646 and
and December
127,695,130 31,
units 2014,
issued respectively)
and
outstanding
at June
30, $3,102,772 $3,119,714
Class C
units 2015,
(11,077,794 and
and December
10,913,853 31,
units 2014,
issued respectively)
and
outstanding
at June
30, 732,192 716,957
General
partner and
units December
(2,583,068 31,
units 2014)
issued
and
outstanding
at June
30,
2015, 116,859 105,725
Net
investment
by
Anadarko - 122,509
Noncontrolling
interest 68,337 69,470
------ ------
Total
liabilities,
equity
and
partners'
capital $7,216,042 $6,954,532
------------- ---------- ----------
(1) Financial information has
been recast to include the
financial position and
results attributable to the
DBJV system.
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
--------
thousands 2015 2014 (1)
--------- ---- -------
Cash flows
from
operating
activities
Net income $200,132 $197,365
Adjustments
to
reconcile
net income
to net cash
provided by
operating
activities
and changes
in working
capital:
Depreciation,
amortization
and
impairments 136,253 87,390
Change in
other
items, net (34,918) (5,049)
----------- ------- ------
Net cash
provided by
operating
activities 301,467 279,706
------------ ------- -------
Cash flows
from
investing
activities
Capital
expenditures (338,178) (390,506)
Contributions
in aid of
construction
costs from
affiliates - 182
Acquisitions
from
affiliates (9,968) (360,952)
Acquisitions
from third
parties (3,514) -
Investments
in equity
affiliates (6,770) (60,102)
Distributions
from equity
investments
in excess
of
cumulative
earnings 8,538 9,848
Proceeds
from the
sale of
assets to
affiliates 700 -
Proceeds
from the
sale of
assets to
third
parties 22 -
Net cash
used in
investing
activities (349,170) (801,530)
----------- -------- --------
Cash flows
from
financing
activities
Borrowings,
net of debt
issuance
costs 769,694 1,076,895
Repayments
of debt (520,000) (480,000)
Increase
(decrease)
in
outstanding
checks (2,327) 2,517
Proceeds
from the
issuance of
common and
general
partner
units, net
of offering
expenses 57,376 92,588
Distributions
to
unitholders (259,247) (191,359)
Distributions
to
noncontrolling
interest
owner (7,175) (7,949)
Net
contributions
from
Anadarko 30,096 39,033
------ ------
Net cash
provided by
financing
activities 68,417 531,725
------------ ------ -------
Net increase
(decrease)
in cash and
cash
equivalents 20,714 9,901
Cash and
cash
equivalents
at
beginning
of period 67,054 100,728
------------ ------ -------
Cash and
cash
equivalents
at end of
period $87,768 $110,629
------------ ------- --------
(1) Financial information has
been recast to include the
financial position and
results attributable to the
DBJV system.
Western Gas Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
MMcf/d except throughput
measured in barrels and per-
unit amounts 2015 2014 (1) 2015 2014 (1)
----------------------------- ---- ------- ---- -------
Throughput for natural gas
assets
Gathering, treating and
transportation 1,605 1,673 1,630 1,660
Processing 2,465 1,971 2,362 1,885
Equity investment (2) 172 153 169 170
-------------------- --- --- --- ---
Total throughput for natural
gas assets 4,242 3,797 4,161 3,715
---------------------------- ----- ----- ----- -----
Throughput attributable to
noncontrolling interest for
natural gas assets 159 171 161 172
---------------------------- --- --- --- ---
Total throughput attributable
to Western Gas Partners, LP
for natural gas assets (3) 4,083 3,626 4,000 3,543
----------------------------- ----- ----- ----- -----
Total throughput (MBbls/d)
for crude/NGL assets (4) 134 115 133 97
-------------------------- --- --- --- ---
Adjusted gross margin per Mcf
attributable to Western Gas
Partners, LP for natural gas
assets (5) $0.69 $0.68 $0.68 $0.65
----------------------------- ----- ----- ----- -----
Adjusted gross margin per Bbl
for crude/NGL assets (6) $1.80 $2.06 $1.76 $1.84
----------------------------- ----- ----- ----- -----
(1) Throughput has been recast to
include throughput attributable
to the DBJV system.
(2) Represents WES's 14.81% share of
average Fort Union and 22% share
of average Rendezvous throughput.
Excludes equity investment
throughput measured in barrels
(captured in "Total throughput
(MBbls/d) for crude/NGL assets"
as noted below).
(3) Includes affiliate, third-party
and equity investment throughput
(as equity investment throughput
is defined in the above
footnote), excluding the
noncontrolling interest owner's
proportionate share of
throughput.
(4) Represents total throughput
measured in barrels, consisting
of throughput from WES's Chipeta
NGL pipeline, WES's 10% share of
average White Cliffs throughput,
WES's 25% share of average Mont
Belvieu JV throughput, WES's 20%
share of average TEG and TEP
throughput and WES's 33.33% share
of average FRP throughput.
(5) Average for period. Calculated as
Adjusted gross margin
attributable to Western Gas
Partners, LP for natural gas
assets (total revenues for
natural gas assets less cost of
product for natural gas assets
plus distributions from WES's
equity investments in Fort Union
and Rendezvous, and excluding the
noncontrolling interest owners'
proportionate share of revenue
and cost of product) divided by
total throughput (MMcf/d)
attributable to Western Gas
Partners, LP for natural gas
assets.
(6) Average for period. Calculated as
Adjusted gross margin for crude/
NGL assets (total revenues for
crude/NGL assets less cost of
product for crude/NGL assets
plus distributions from WES's
equity investments in White
Cliffs, the Mont Belvieu JV, TEG,
TEP and FRP), divided by total
throughput (MBbls/d) for crude/
NGL assets.
Western Gas Equity Partners, LP
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(Unaudited)
Three Months
Ended
thousands except per-unit amount
and Coverage ratio June 30, 2015
-------------------------------- -------------
Distributions declared by Western Gas Partners, LP:
General partner interest $2,752
Incentive distribution rights 40,553
Common units held by WGP 36,972
Less:
Public company general and
administrative expense 640
-------------------------- ---
Cash available for distribution $79,637
------------------------------- -------
Declared distribution per common
unit $0.36375
-------------------------------- --------
Distributions declared by Western
Gas Equity Partners, LP $79,630
--------------------------------- -------
Coverage ratio 1.00 x
-------------- ---- ---
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
thousands except per-unit
amounts 2015 2014 (1) 2015 2014 (1)
------------------------- ---- ------- ---- -------
Revenues
Gathering, processing and
transportation of natural
gas and natural gas liquids $228,236 $175,885 $438,080 $330,382
Natural gas, natural gas
liquids and drip condensate
sales 173,261 167,628 337,429 305,277
Other 915 2,056 1,997 3,627
--- ----- ----- -----
Total revenues 402,412 345,569 777,506 639,286
-------------- ------- ------- ------- -------
Equity income, net 18,941 13,008 37,161 22,259
------ ------ ------ ------
Operating expenses
Cost of product 146,293 120,542 284,213 214,918
Operation and maintenance 56,827 55,404 112,976 99,981
General and administrative 9,442 9,202 20,789 19,077
Property and other taxes 8,801 7,316 17,324 14,550
Depreciation, amortization
and impairments 65,961 45,305 136,253 87,390
-------------------------- ------ ------ ------- ------
Total operating expenses 287,324 237,769 571,555 435,916
------------------------ ------- ------- ------- -------
Operating income 134,029 120,808 243,112 225,629
Interest income - affiliates 4,225 4,225 8,450 8,450
Interest expense (27,604) (20,864) (50,566) (34,825)
Other income (expense), net 80 235 160 731
--- --- --- ---
Income before income taxes 110,730 104,404 201,156 199,985
Income tax (benefit) expense (1,816) 2,523 2,644 4,308
------ ----- ----- -----
Net income 112,546 101,881 198,512 195,677
Net income attributable to
noncontrolling interests 44,751 42,492 73,688 83,126
-------------------------- ------ ------ ------ ------
Net income attributable to
Western Gas Equity
Partners, LP $67,795 $59,389 $124,824 $112,551
Limited partners' interest
in net income:
Net income attributable to
Western Gas Equity
Partners, LP $67,795 $59,389 $124,824 $112,551
Pre-acquisition net
(income) loss allocated to
Anadarko - (4,135) (1,742) (6,800)
--------------------------- --- ------ ------ ------
Limited partners' interest
in net income 67,795 55,254 $123,082 $105,751
Net income per common unit -
basic and diluted $0.31 $0.25 $0.56 $0.48
Weighted-average number of
common units outstanding -
basic and diluted 218,912 218,903 218,911 218,903
--------------------------- ------- ------- ------- -------
(1) Financial information has
been recast to include the
financial position and
results attributable to the
DBJV system.
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands except number of June 30, 2015 December 31, 2014
units (1)
-------------------------- ------------- -----------------
Current assets $273,712 $187,073
Note receivable - Anadarko 260,000 260,000
Net property, plant and
equipment 4,782,541 4,571,443
Other assets 1,901,400 1,936,725
--------- ---------
Total assets $7,217,653 $6,955,241
------------ ---------- ----------
Current liabilities $213,143 $241,058
Long-term debt 2,677,023 2,422,954
Asset retirement
obligations and other 125,910 157,370
Deferred purchase price
obligation - Anadarko 179,886 -
----------------------- -------
Total liabilities $3,195,962 $2,821,382
----------------- ---------- ----------
Equity and partners'
capital
Common units (218,913,688
and 218,909,977 units
issued and outstanding at
June 30, 2015, and
December 31, 2014,
respectively) $1,244,765 $1,260,195
Net investment by Anadarko - 122,509
Noncontrolling interests 2,776,926 2,751,155
--------- ---------
Total liabilities, equity
and partners' capital $7,217,653 $6,955,241
------------------------- ---------- ----------
(1) Financial information has
been recast to include the
financial position and
results attributable to the
DBJV system.
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
--------
thousands 2015 2014 (1)
--------- ---- -------
Cash flows from operating
activities
Net income $198,512 $195,677
Adjustments to reconcile net
income to net cash provided
by operating activities and
changes in working capital:
Depreciation, amortization
and impairments 136,253 87,390
Change in other items, net (34,396) (5,425)
-------------------------- ------- ------
Net cash provided by
operating activities 300,369 277,642
--------------------- ------- -------
Cash flows from investing
activities
Capital expenditures $(338,178) $(390,506)
Contributions in aid of
construction costs from
affiliates - 182
Acquisitions from affiliates (9,968) (360,952)
Acquisitions from third
parties (3,514) -
Investments in equity
affiliates (6,770) (60,102)
Distributions from equity
investments in excess of
cumulative earnings 8,538 9,848
Proceeds from the sale of
assets to affiliates 700 -
Proceeds from the sale of
assets to third parties 22 -
Net cash used in investing
activities (349,170) (801,530)
-------------------------- -------- --------
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $769,694 $1,076,895
Repayments of debt (521,150) (480,000)
Increase (decrease) in
outstanding checks (2,327) 2,517
Proceeds from the issuance
of WES common units, net of
offering expenses 57,376 91,690
Distributions to WGP
unitholders (143,386) (105,347)
Distributions to Chipeta
noncontrolling interest
owner (7,175) (7,949)
Distributions to
noncontrolling interest
owners of WES (112,278) (83,894)
Net contributions from
Anadarko 30,096 39,033
------ ------
Net cash provided by
financing activities 70,850 532,945
--------------------- ------ -------
Net increase (decrease) in
cash and cash equivalents 22,049 9,057
Cash and cash equivalents at
beginning of period 67,213 113,085
---------------------------- ------ -------
Cash and cash equivalents at
end of period $89,262 $122,142
---------------------------- ------- --------
(1) Financial information has
been recast to include the
financial position and
results attributable to the
DBJV system.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/western-gas-announces-second-quarter-2015-results-300120775.html
SOURCE Western Gas
