HOUSTON, Oct. 28, 2015 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced third-quarter 2015 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income available to limited partners((1)) for the third quarter of 2015 totaled $111.1 million, or $0.77 per common unit (diluted). For the third quarter of 2015, Adjusted EBITDA((1)) was $182.9 million and Distributable cash flow((1)) was $152.8 million.
WES previously declared a quarterly distribution of $0.775 per unit for the third quarter of 2015. This distribution represented a 3% increase over the prior quarter's distribution and a 15% increase over the third-quarter 2014 distribution of $0.675 per unit. The distribution will be paid on November 12, 2015, to unitholders of record at the close of business on November 2, 2015. The third-quarter 2015 Coverage ratio((1)) of 1.05 times was based on the quarterly distribution of $0.775 per unit. For the nine-months ended September 30, 2015, the Coverage ratio((1) )of 1.13 times was based on a year-to-date distribution of $2.250 per unit.
Total throughput attributable to WES for natural gas assets for the third quarter of 2015 averaged 3.8 Bcf/d, which was 7% below the prior quarter and 7% above the third quarter of 2014. Approximately 44% of the sequential decline in throughput was due to the sale of the Dew and Pinnacle systems in July. Total throughput for crude/NGL assets for the third quarter of 2015 averaged 145 MBbls/d, which was 8% above the prior quarter and 5% above the third quarter of 2014.
"Despite scheduled and unscheduled downtime at our DBM complex and Lancaster plant, the quarter was in line with our expectations and we are raising the mid-point of our full-year Adjusted EBITDA outlook," said Chief Executive Officer, Don Sinclair. "We continue to be encouraged by the consistent activity in the Delaware Basin, and I am pleased to announce that our Board has approved the construction of an additional 200MMcf/d processing train at our DBM complex. We currently expect this new train to be operational in mid-2017, but have built in the flexibility to accelerate this timing if needed."
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $136.4 million on a cash basis and $128.5 million on an accrual basis, during the third quarter of 2015. Maintenance capital expenditures on a cash basis were $13.7 million, or 7% of Adjusted EBITDA((1)). The Partnership narrowed its outlook ranges for full-year Adjusted EBITDA, total capital expenditures (including equity investments but excluding acquisitions) and maintenance capital expenditures to $745 million to $770 million, $580 million to $620 million, and 7% to 9% of Adjusted EBITDA, respectively. The Partnership also announced that it intends to extend the DJ Basin and Hugoton commodity price swap agreements through December 31, 2016, with such extensions to be executed before the end of 2015.
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((1)) for the third quarter of 2015 totaled $88.3 million, or $0.40 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.38125 per unit for the third quarter of 2015. This distribution represented a 5% increase over the prior quarter's distribution and a 31% increase over the third-quarter 2014 distribution of $0.29125. The distribution will be paid on November 20, 2015, to unitholders of record at the close of business on November 2, 2015. WGP will receive distributions from WES of $84.7 million attributable to the third quarter and will pay $83.5 million in distributions for the same period.
(1) The $77.2 million net gain from the sale of the Dew and Pinnacle systems is included in Net income available to limited partners, but is excluded from Adjusted EBITDA and Distributable cash flow. 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.
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
WES and WGP will host a joint conference call on Thursday, October 29, 2015, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss third-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. Simultaneously with the issuance of this press release, the slide presentation to accompany the earnings call has been posted to the investor relations page of the Western Gas website.
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 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
Logo - http://photos.prnewswire.com/prnh/20150505/213920LOGO
Logo - http://photos.prnewswire.com/prnh/20150505/213919LOGO
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 and 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 Nine Months Ended September 30, September 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 $161,306 $109,159 $355,396 $299,382 Add: Distributions from equity investees 25,482 20,807 73,054 57,448 Non-cash equity-based compensation expense 1,148 1,034 3,423 3,188 Interest expense, net (non-cash settled) (2) 4,310 - 9,920 - Income tax (benefit) expense 1,661 3,891 4,305 8,199 Depreciation, amortization and impairments (3) 65,035 46,631 199,990 132,741 Above-market component of swap extensions with Anadarko 7,916 - 7,916 - Less: Gain on divestiture, net 77,244 - 77,244 - Equity income, net 21,976 19,063 59,137 41,322 Cash paid for maintenance capital expenditures (3) 13,695 12,561 36,589 35,554 Capitalized interest 1,039 1,900 6,826 7,347 Cash paid for (reimbursement of) income taxes - - (138) (340) Other income (3) (4) 82 94 219 251 ------------------- --- --- --- --- Distributable cash flow $152,822 $147,904 $474,127 $416,824 ----------------------- -------- -------- -------- -------- Distributions declared (5) Limited partners $99,645 $289,215 General partner 46,515 129,884 --------------- ------ ------- Total $146,160 $419,099 ----- -------- -------- Coverage ratio 1.05 x 1.13 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 for each of the three months ended September 30, 2015 and 2014, and zero and $0.5 million for the nine months ended September 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 $0.775 and $2.250 per unit declared for the three and nine months ended September 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 gain on divestiture, income from equity investments, interest income, income tax benefit and other income.
Three Months Ended Nine Months Ended September 30, September 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 $161,306 $109,159 $355,396 $299,382 Add: Distributions from equity investees 25,482 20,807 73,054 57,448 Non-cash equity-based compensation expense 1,148 1,034 3,423 3,188 Interest expense 31,773 20,878 82,337 55,703 Income tax expense 1,661 3,891 6,121 8,199 Depreciation, amortization and impairments (2) 65,035 46,631 199,990 132,741 Less: Gain on divestiture, net 77,244 - 77,244 - Equity income, net 21,976 19,063 59,137 41,322 Interest income - affiliates 4,225 4,225 12,675 12,675 Other income (2) (3) 82 94 219 251 Income tax benefit - - 1,816 - ------------------ --- --- ----- --- Adjusted EBITDA attributable to Western Gas Partners, LP $182,878 $179,018 $569,230 $502,413 ------------------------------- -------- -------- -------- -------- 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 $182,878 $179,018 $569,230 $502,413 Adjusted EBITDA attributable to noncontrolling interest 2,838 4,506 10,173 12,922 Interest income (expense), net (27,548) (16,653) (69,662) (43,028) Uncontributed cash-based compensation awards (21) (11) (166) 22 Accretion and amortization of long-term obligations, net 5,226 687 12,296 2,045 Current income tax benefit (expense) (493) (2,085) (1,312) (4,175) Other income (expense), net (3) 85 97 227 260 Distributions from equity investments in excess of cumulative earnings (3,871) (4,539) (12,409) (14,387) Changes in operating working capital: Accounts receivable, net 22,031 (28,799) (24,104) (52,659) Accounts and natural gas imbalance payables and accrued liabilities, net 15,669 31,540 15,952 35,807 Other 147 (2,602) (1,817) 1,645 ----- --- ------ ------ ----- Net cash provided by operating activities $196,941 $161,159 $498,408 $440,865 ------------------------------ -------- -------- -------- -------- Cash flow information of Western Gas Partners, LP Net cash provided by operating activities $498,408 $440,865 Net cash used in investing activities $(337,989) $(950,282) Net cash provided by (used in) financing activities $(154,273) $476,526 ------------------------------ --------- --------
(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 for each of the three months ended September 30, 2015 and 2014, and zero and $0.5 million for the nine months ended September 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 and other less reimbursements for electricity-related expenses recorded as revenue, 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 Nine Months Ended September 30, September 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 $240,210 $228,112 $729,404 $646,796 Adjusted gross margin for crude/NGL assets 23,507 19,396 65,709 51,692 ------ ------ Adjusted gross margin attributable to Western Gas Partners, LP $263,717 $247,508 $795,113 $698,488 ---------------------- -------- -------- -------- -------- Adjusted gross margin attributable to noncontrolling interest $3,753 $5,582 $13,222 $15,611 Gain on divestiture, net 77,244 - 77,244 - Equity income, net 21,976 19,063 59,137 41,322 Reimbursed electricity- related charges recorded as revenues 15,392 12,021 40,423 28,574 Less: Distributions from equity investees 25,482 20,807 73,054 57,448 Operation and maintenance 80,633 67,489 218,640 184,023 General and administrative 9,318 8,339 28,497 25,688 Property and other taxes 8,343 6,793 25,641 21,343 Depreciation, amortization and impairments 65,688 47,277 201,941 134,667 ----------------- ------ ------ ------- ------- Operating income $192,618 $133,469 $437,366 $360,826 ---------------- -------- -------- -------- --------
(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 Nine Months Ended September 30, September 30, ------------- ------------- thousands except per-unit amounts 2015 2014 (1) 2015 2014 (1) ------------------------- ---- ------- ---- ------- Revenues and other Gathering, processing and transportation of natural gas and natural gas liquids $235,638 $195,825 $698,748 $542,760 Natural gas, natural gas liquids and drip condensate sales 147,000 153,672 486,874 461,740 Other 2,463 8,024 4,460 11,651 Total revenues and other 385,101 357,521 1,190,082 1,016,151 ------------------------ ------- ------- --------- --------- Equity income, net 21,976 19,063 59,137 41,322 ------ ------ ------ ------ Operating expenses Cost of product 127,721 113,217 414,378 330,926 Operation and maintenance 80,633 67,489 218,640 184,023 General and administrative 9,318 8,339 28,497 25,688 Property and other taxes 8,343 6,793 25,641 21,343 Depreciation, amortization and impairments 65,688 47,277 201,941 134,667 -------------------------- ------ ------ ------- ------- Total operating expenses 291,703 243,115 889,097 696,647 ------------------------ ------- ------- ------- ------- Gain on divestiture, net 77,244 - 77,244 - Operating income 192,618 133,469 437,366 360,826 Interest income - affiliates 4,225 4,225 12,675 12,675 Interest expense (31,773) (20,878) (82,337) (55,703) Other income (expense), net 85 97 227 788 --- --- --- --- Income before income taxes 165,155 116,913 367,931 318,586 Income tax (benefit) expense 1,661 3,891 4,305 8,199 ----- ----- ----- ----- Net income 163,494 113,022 363,626 310,387 Net income attributable to noncontrolling interest 2,188 3,863 8,230 11,005 -------------------------- ----- ----- ----- ------ Net income attributable to Western Gas Partners, LP $161,306 $109,159 $355,396 $299,382 Limited partners' interest in net income: Net income attributable to Western Gas Partners, LP $161,306 $109,159 $355,396 $299,382 Pre-acquisition net (income) loss allocated to Anadarko - (6,482) (1,742) (13,282) General partner interest in net (income) loss (50,213) (31,058) (138,121) (83,939) --------------------------- ------- ------- -------- ------- Limited partners' interest in net income $111,093 $71,619 $215,533 $202,161 Net income per common unit - basic $0.77 $0.60 $1.46 $1.71 Net income per common unit - diluted 0.77 0.60 1.46 1.71 Weighted-average common units outstanding - basic 128,575 119,068 128,267 118,326 Weighted-average common units outstanding - diluted 139,736 119,068 139,309 118,326
(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 September 30, December 31, 2014 units (1) 2015 --- ---- Current assets $235,137 $186,364 Note receivable - Anadarko 260,000 260,000 Net property, plant and equipment 4,789,922 4,571,443 Other assets 1,887,273 1,936,725 --------- --------- Total assets $7,172,332 $6,954,532 ------------ ---------- ---------- Current liabilities $222,826 $239,833 Long-term debt 2,587,189 2,422,954 Asset retirement obligations and other 126,459 157,370 Deferred purchase price obligation - Anadarko 184,196 - ----------------------- ------- --- Total liabilities $3,120,670 $2,820,157 ----------------- ---------- ---------- Equity and partners' capital Common units (128,574,646 and 127,695,130 units issued and outstanding at September 30, 2015, and December 31, 2014, respectively) $3,115,480 $3,119,714 Class C units (11,230,814 and 10,913,853 units issued and outstanding at September 30, 2015, and December 31, 2014, respectively) 744,840 716,957 General partner units (2,583,068 units issued and outstanding at September 30, 2015, and December 31, 2014) 123,792 105,725 Net investment by Anadarko - 122,509 Noncontrolling interest 67,550 69,470 ------ ------ Total liabilities, equity and partners' capital $7,172,332 $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) Nine Months Ended September 30, ------------- thousands 2015 2014 (1) --------- ---- ------- Cash flows from operating activities Net income $363,626 $310,387 Adjustments to reconcile net income to net cash provided by operating activities and changes in working capital: Depreciation, amortization and impairments 201,941 134,667 Gain on divestiture, net (77,244) - Change in other items, net 10,085 (4,189) -------------------------- ------ ------ Net cash provided by operating activities 498,408 440,865 --------------------- ------- ------- Cash flows from investing activities Capital expenditures $(473,394) $(529,197) Contributions in aid of construction costs from affiliates - 183 Acquisitions from affiliates (12,131) (372,393) Acquisitions from third parties (3,514) - Investments in equity affiliates (9,052) (63,267) Distributions from equity investments in excess of cumulative earnings 12,409 14,387 Proceeds from the sale of assets to affiliates 700 - Proceeds from the sale of assets to third parties 146,993 5 Net cash used in investing activities (337,989) (950,282) -------------------------- -------- -------- Cash flows from financing activities Borrowings, net of debt issuance costs $769,606 $1,136,878 Repayments of debt (610,000) (480,000) Increase (decrease) in outstanding checks (1,482) 2,908 Proceeds from the issuance of common and general partner units, net of offering expenses 57,353 101,502 Distributions to unitholders (398,983) (297,013) Distributions to noncontrolling interest owner (10,150) (11,349) Net contributions from Anadarko 31,467 23,600 Above-market component of swap extensions with Anadarko 7,916 - ------------------------- ----- --- Net cash provided by (used in) financing activities (154,273) 476,526 -------------------------- -------- ------- Net increase (decrease) in cash and cash equivalents 6,146 (32,891) Cash and cash equivalents at beginning of period 67,054 100,728 ---------------------------- ------ ------- Cash and cash equivalents at end of period $73,200 $67,837 ---------------------------- ------- -------
(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 Nine Months Ended September 30, September 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 1,401 1,581 1,552 1,634 Processing 2,327 1,936 2,351 1,903 Equity investment (2) 177 175 171 171 -------------------- --- --- --- --- Total throughput for natural gas assets 3,905 3,692 4,074 3,708 ---------------------------- ----- ----- ----- ----- Throughput attributable to noncontrolling interest for natural gas assets 126 165 149 169 ---------------------------- --- --- --- --- Total throughput attributable to Western Gas Partners, LP for natural gas assets (3) 3,779 3,527 3,925 3,539 ----------------------------- ----- ----- ----- ----- Total throughput (MBbls/d) for crude/NGL assets (4) 145 138 137 111 -------------------------- --- --- --- --- Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (5) $0.69 $0.70 $0.68 $0.67 ----------------------------- ----- ----- ----- ----- Adjusted gross margin per Bbl for crude/NGL assets (6) $1.76 $1.53 $1.76 $1.71 ----------------------------- ----- ----- ----- -----
(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 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 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 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 September 30, and Coverage ratio 2015 -------------------------------- -------------- Distributions declared by Western Gas Partners, LP: General partner interest $2,879 Incentive distribution rights 43,637 Common units held by WGP 38,205 Less: Public company general and administrative expense 741 -------------------------- --- Cash available for distribution $83,980 ------------------------------- ------- Declared distribution per common unit $0.38125 -------------------------------- -------- Distributions declared by Western Gas Equity Partners, LP $83,461 --------------------------------- ------- Coverage ratio 1.01 x -------------- ---- ---
Western Gas Equity Partners, LP CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- thousands except per-unit amounts 2015 2014 (1) 2015 2014 (1) ------------------------- ---- ------- ---- ------- Revenues and other Gathering, processing and transportation of natural gas and natural gas liquids $235,638 $195,825 $698,748 $542,760 Natural gas, natural gas liquids and drip condensate sales 147,000 153,672 486,874 461,740 Other 2,463 8,024 4,460 11,651 ----- ----- ----- ------ Total revenues and other 385,101 357,521 1,190,082 1,016,151 ------------------------ ------- ------- --------- --------- Equity income, net 21,976 19,063 59,137 41,322 ------ ------ ------ ------ Operating expenses Cost of product 127,721 113,217 414,378 330,926 Operation and maintenance 80,633 67,489 218,640 184,023 General and administrative 10,059 9,116 30,848 28,193 Property and other taxes 8,355 6,793 25,679 21,343 Depreciation, amortization and impairments 65,688 47,277 201,941 134,667 -------------------------- ------ ------ ------- ------- Total operating expenses 292,456 243,892 891,486 699,152 ------------------------ ------- ------- ------- ------- Gain on divestiture, net 77,244 - 77,244 - Operating income 191,865 132,692 434,977 358,321 Interest income - affiliates 4,225 4,225 12,675 12,675 Interest expense (31,773) (20,878) (82,339) (55,703) Other income (expense), net 96 118 256 849 --- --- --- --- Income before income taxes 164,413 116,157 365,569 316,142 Income tax (benefit) expense 1,661 3,891 4,305 8,199 ----- ----- ----- ----- Net income 162,752 112,266 361,264 307,943 Net income attributable to noncontrolling interests 74,468 45,832 148,156 128,958 -------------------------- ------ ------ ------- ------- Net income attributable to Western Gas Equity Partners, LP $88,284 $66,434 $213,108 $178,985 Limited partners' interest in net income: Net income attributable to Western Gas Equity Partners, LP $88,284 $66,434 $213,108 $178,985 Pre-acquisition net (income) loss allocated to Anadarko - (6,482) (1,742) (13,282) --------------------------- --- ------ ------ ------- Limited partners' interest in net income $88,284 $59,952 $211,366 $165,703 Net income per common unit - basic and diluted $0.40 $0.27 $0.97 $0.76 Weighted-average number of common units outstanding - basic and diluted 218,914 218,903 218,912 218,903 --------------------------- ------- ------- ------- -------
(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 September 30, December 31, 2014 units (1) 2015 --- ---- Current assets $236,809 $187,073 Note receivable - Anadarko 260,000 260,000 Net property, plant and equipment 4,789,922 4,571,443 Other assets 1,887,273 1,936,725 --------- --------- Total assets $7,174,004 $6,955,241 ------------ ---------- ---------- Current liabilities $222,999 $241,058 Long-term debt 2,587,189 2,422,954 Asset retirement obligations and other 126,459 157,370 Deferred purchase price obligation - Anadarko 184,196 - ----------------------- ------- Total liabilities $3,120,843 $2,821,382 ----------------- ---------- ---------- Equity and partners' capital Common units (218,913,688 and 218,909,977 units issued and outstanding at September 30, 2015, and December 31, 2014, respectively) $1,264,012 $1,260,195 Net investment by Anadarko - 122,509 Noncontrolling interests 2,789,149 2,751,155 --------- --------- Total liabilities, equity and partners' capital $7,174,004 $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) Nine Months Ended September 30, ------------- thousands 2015 2014 (1) --------- ---- ------- Cash flows from operating activities Net income $361,264 $307,943 Adjustments to reconcile net income to net cash provided by operating activities and changes in working capital: Depreciation, amortization and impairments 201,941 134,667 Gain on divestiture, net (77,244) - Change in other items, net 10,850 (4,294) -------------------------- ------ ------ Net cash provided by operating activities 496,811 438,316 --------------------- ------- ------- Cash flows from investing activities Capital expenditures $(473,394) $(529,197) Contributions in aid of construction costs from affiliates - 183 Acquisitions from affiliates (12,131) (372,393) Acquisitions from third parties (3,514) - Investments in equity affiliates (9,052) (63,267) Distributions from equity investments in excess of cumulative earnings 12,409 14,387 Proceeds from the sale of assets to affiliates 700 - Proceeds from the sale of assets to third parties 146,993 5 Net cash used in investing activities (337,989) (950,282) -------------------------- -------- -------- Cash flows from financing activities Borrowings, net of debt issuance costs $769,606 $1,136,878 Repayments of debt (611,150) (480,000) Increase (decrease) in outstanding checks (1,482) 2,908 Proceeds from the issuance of WES common units, net of offering expenses 57,353 99,035 Distributions to WGP unitholders (223,016) (164,725) Distributions to Chipeta noncontrolling interest owner (10,150) (11,349) Distributions to noncontrolling interest owners of WES (171,737) (129,247) Net contributions from Anadarko 31,467 23,600 Above-market component of swap extensions with Anadarko 7,916 - ------------------------- ----- --- Net cash provided by (used in) financing activities (151,193) 477,100 -------------------------- -------- ------- Net increase (decrease) in cash and cash equivalents 7,629 (34,866) Cash and cash equivalents at beginning of period 67,213 113,085 ---------------------------- ------ ------- Cash and cash equivalents at end of period $74,842 $78,219 ---------------------------- ------- -------
(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-third-quarter-2015-results-300168072.html
SOURCE Western Gas Partners, LP