WESTERN GAS PARTNERS, LP HOUSTON, Feb. 22, 2017 /PRNewswire/ -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced fourth-quarter and full-year 2016 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income (loss) available to limited partners for 2016 totaled $266.6 million, or $1.74 per common unit (diluted), with full-year 2016 Adjusted EBITDA((1)) of $1.03 billion and full-year 2016 Distributable cash flow((1)) of $852.4 million.
Net income (loss) available to limited partners for the fourth quarter of 2016 totaled $54.9 million, or $0.35 per common unit (diluted), with fourth-quarter 2016 Adjusted EBITDA((1)) of $268.4 million and fourth-quarter 2016 Distributable cash flow((1)) of $223.8 million.
WES paid a quarterly distribution of $0.860 per unit for the fourth quarter of 2016. This distribution represented a 2% increase over the prior quarter's distribution and an 8% increase over the fourth-quarter 2015 distribution of $0.800 per unit. The full-year 2016 distribution of $3.350 per unit represented a 10% increase over the full-year 2015 distribution of $3.050 per unit. The fourth-quarter 2016 Coverage ratio((1)) of 1.31 times was based on the quarterly distribution of $0.860 per unit. The Partnership's Coverage ratio((1)) for full-year 2016 was 1.29 times.
(1) Please see the tables at the
end of this release for a
reconciliation of GAAP to non-
GAAP measures and calculation
of the Coverage ratio.
"The Partnership delivered yet another outstanding financial quarter highlighted by the resiliency of our portfolio and the strength of our organic growth opportunities. Volumes and producer activity continue to accelerate at our Ramsey plant in the Delaware Basin, where Train V is now online and Train II has returned to service," said Chief Executive Officer, Benjamin Fink. "Additionally, Ramsey Train VI remains on schedule to begin service in the fourth quarter of 2017."
Total throughput attributable to WES for natural gas assets for the fourth quarter of 2016 averaged 4.0 Bcf/d, which was 1% below the prior quarter and 3% above the fourth quarter of 2015. For full-year 2016, total throughput attributable to WES for natural gas assets averaged 3.9 Bcf/d, which was 5% below the prior-year average. Total throughput for crude/NGL assets for the fourth quarter of 2016 averaged 181 MBbls/d, which was 2% below the prior quarter and 3% below the fourth quarter of 2015. For full-year 2016, total throughput for crude/NGL assets averaged 184 MBbls/d, which was 1% below the prior-year average.
Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $105.3 million on a cash basis and $135.0 million on an accrual basis during the fourth quarter of 2016, with maintenance capital expenditures on a cash basis of $8.3 million, or 3% of Adjusted EBITDA((1)). For full-year 2016, capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $468.3 million on a cash basis and $485.8 million on an accrual basis, with maintenance capital expenditures on a cash basis of $63.6 million, or 6% 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 2016 totaled $334.4 million, or $1.53 per common unit (diluted). Net income (loss) available to limited partners for the fourth quarter of 2016 totaled $83.7 million, or $0.38 per common unit (diluted).
(1) Please see the tables at the
end of this release for a
reconciliation of GAAP to non-
GAAP measures and calculation
of the Coverage ratio.
WGP paid a quarterly distribution of $0.46250 per unit for the fourth quarter of 2016. This distribution represented a 3% increase over the prior quarter's distribution and a 15% increase over the fourth-quarter 2015 distribution of $0.40375 per unit. The full-year 2016 distribution of $1.76750 per unit represented a 19% increase over the full-year 2015 distribution of $1.49125 per unit. WGP received distributions from WES of $101.4 million attributable to the fourth quarter and will pay $101.3 million in distributions for the same period.
2017 OUTLOOK
WES and WGP also announced their 2017 outlook:
-- Adjusted EBTIDA((1)) between $1.0 billion and $1.1 billion (Please refer
to slide 8 of the earnings call presentation available at
www.westerngas.com for a reconciliation of items impacting the
comparability of our 2017 Adjusted EBITDA((1)) outlook to 2016 Adjusted
EBITDA((1)))
-- Total capital expenditures between $900 million and $1.0 billion
-- Maintenance capital expenditures between $60 million and $80 million
-- 2017 and 2018 distribution growth targets of 7% to 9% for WES and 12% to
18% for WGP
"2017 will feature the largest capital program in our history. We continue to focus on the Delaware and DJ Basins, where Anadarko and other third-party producer activity is accelerating," said Fink. "These investments support our objective of providing sustainable distribution growth over time, allowing us to extend our distribution growth guidance to cover both 2017 and 2018. Additionally, we have successfully negotiated an early conversion of the Series A Preferred units in 2017, and therefore expect to be able to fund this capital program without the need for additional equity issuances."
The 2017 outlook includes the following assumptions:
-- DBJV / Marcellus asset swap closing in the first quarter of 2017
-- Ramsey Train VI start-up in the fourth quarter of 2017
-- Mentone Trains I and II in the Delaware Basin beginning construction in
2017, with anticipated start-up dates in the third and fourth quarters
of 2018, respectively
-- Conversion of 50% of the Series A Preferred units into common units in
February 2017 and 50% in May 2017
-- Extension of the Class C units conversion date to March 1, 2020
(1) This press release contains
forward-looking estimates of
the range of Adjusted EBITDA
projected to be generated by
WES in its 2017 fiscal year. A
reconciliation of the Adjusted
EBITDA range to net cash
provided by operating
activities and net income is
not provided because the items
necessary to estimate such
amounts are not reasonably
accessible or estimable at this
time.
CONFERENCE CALL TOMORROW AT 8 A.M. CST
WES and WGP will host a joint conference call on Thursday, February 23, 2017, at 8:00 a.m. Central Standard Time (9:00 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2016 results. Individuals who would like to participate should dial 877-883-0383 (Domestic) or 412-902-6506 (International) approximately 15 minutes before the scheduled conference call time, and enter confirmation number 5700160. 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, North-central Pennsylvania and Texas, WES is engaged in the business of gathering, compressing, treating, processing and transporting natural gas, and gathering, stabilizing and transporting 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 supply of, demand for, and price of oil, natural gas, NGLs and related products or services; 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
Jonathon E. VandenBrand
Director, Investor Relations
jon.vandenbrand@anadarko.com
832.636.6000
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of (i) net income (loss) attributable to Western Gas Partners, LP (GAAP) to WES's Distributable cash flow (non-GAAP), (ii) net income (loss) attributable to Western Gas Partners, LP (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Gas Partners, LP ("Adjusted EBITDA") (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Gas Partners, LP ("Adjusted gross margin") (non-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) attributable to Western Gas Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
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 Year Ended
December 31, December 31,
thousands except
Coverage ratio 2016 2015 2016 2015
---------------- ---- ---- ---- ----
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 $143,004 $(155,881) $591,331 $4,106
Add:
Distributions from
equity investments 27,160 25,244 103,423 98,298
Non-cash equity-based
compensation expense 1,573 979 5,591 4,402
Non-cash settled -
interest expense, net
(1) 4,350 4,480 (7,747) 14,400
Income tax (benefit)
expense 941 8,372 8,372 45,532
Depreciation and
amortization (2) 72,633 67,059 270,311 270,004
Impairments 4,222 238,879 15,535 515,458
Above-market component
of swap extensions with
Anadarko 11,038 10,533 45,820 18,449
Other expense (2) 128 1,290 224 1,290
Less:
Gain (loss) on
divestiture and other,
net (5,872) (20,224) (14,641) 57,024
Equity income, net -
affiliates 21,916 12,114 78,717 71,251
Cash paid for
maintenance capital
expenditures (2) 8,342 13,073 63,630 53,882
Capitalized interest 888 1,492 5,562 8,318
Cash paid for
(reimbursement of)
income taxes 771 - 838 (138)
Series A Preferred unit
distributions 14,908 - 45,784 -
Other income (2) 252 - 524 219
--------------- --- --- --- ---
Distributable cash flow $223,844 $194,500 $852,446 $781,383
----------------------- -------- -------- -------- --------
Distributions declared
(3)
Limited partners -
common units $112,378 $437,747
General partner 58,279 221,384
--------------- ------ -------
Total $170,657 $659,131
----- -------- --------
Coverage ratio 1.31 x 1.29 x
-------------- ---- --- ----
(1) Includes accretion revisions
related to the Deferred purchase
price obligation -Anadarko.
(2) Includes WES's 75% share of
depreciation and amortization;
other expense; cash paid for
maintenance capital expenditures;
and other income
attributable to Chipeta.
(3) Reflects cash distributions of
$0.860 and $3.350 per unit
declared for the three months and
year ended December 31, 2016,
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 investments, 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 Year Ended
December 31, December 31,
thousands 2016 2015 2016 2015
--------- ---- ---- ---- ----
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 $143,004 $(155,881) $591,331 $4,106
Add:
Distributions from equity
investments 27,160 25,244 103,423 98,298
Non-cash equity-based
compensation expense 1,573 979 5,591 4,402
Interest expense 39,234 31,535 114,921 113,872
Income tax expense 941 8,372 8,372 45,532
Depreciation and amortization
(1) 72,633 67,059 270,311 270,004
Impairments 4,222 238,879 15,535 515,458
Other expense (1) 128 1,290 224 1,290
Less:
Gain (loss) on divestiture and
other, net (5,872) (20,224) (14,641) 57,024
Equity income, net - affiliates 21,916 12,114 78,717 71,251
Interest income - affiliates 4,225 4,225 16,900 16,900
Other income (1) 252 - 524 219
Adjusted EBITDA attributable to
Western Gas Partners, LP $268,374 $221,362 $1,028,208 $907,568
------------------------------- -------- -------- ---------- --------
Reconciliation of Net cash
provided by operating
activities to Adjusted EBITDA
attributable to Western Gas
Partners, LP
Net cash provided by (used in)
operating activities $259,847 $188,752 $917,585 $785,645
Interest (income) expense, net 35,009 27,310 98,021 96,972
Uncontributed cash-based
compensation awards 408 48 856 214
Accretion and amortization of
long-term obligations, net (5,387) (5,402) 3,789 (17,698)
Current income tax (benefit)
expense 707 7,022 5,817 34,186
Other (income) expense, net (255) 846 (479) 619
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 4,646 3,835 21,238 16,244
Changes in operating working
capital:
Accounts receivable, net 7,839 (14,246) 48,947 4,371
Accounts and imbalance payables
and accrued liabilities, net (34,256) 16,689 (58,359) (1,006)
Other 2,922 (966) 4,367 720
Adjusted EBITDA attributable to
noncontrolling interest (3,106) (2,526) (13,574) (12,699)
------ ------ ------- -------
Adjusted EBITDA attributable to
Western Gas Partners, LP $268,374 $221,362 $1,028,208 $907,568
------------------------------- -------- -------- ---------- --------
Cash flow information of Western
Gas Partners, LP
Net cash provided by (used in)
operating activities $917,585 $785,645
Net cash provided by (used in)
investing activities (1,105,534) (500,277)
Net cash provided by (used in)
financing activities 447,841 (254,389)
------------------------------ ------- --------
(1) Includes WES's 75% share of
depreciation and amortization;
other expense; 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 investments and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.
Three Months Ended Year Ended
December 31, December 31,
thousands 2016 2015 2016 2015
--------- ---- ---- ---- ----
Reconciliation of
Operating income
(loss) to Adjusted
gross margin
attributable to
Western Gas Partners,
LP
Operating income (loss) $181,155 $(117,482) $708,208 $157,330
Add:
Distributions from
equity investments 27,160 25,244 103,423 98,298
Operation and
maintenance 81,869 89,228 308,010 331,972
General and
administrative 12,049 10,687 45,591 41,319
Property and other
taxes 7,047 5,380 40,145 33,288
Depreciation and
amortization 73,287 67,715 272,933 272,611
Impairments 4,222 238,879 15,535 515,458
Less:
Gain (loss) on
divestiture and other,
net (5,872) (20,224) (14,641) 57,024
Proceeds from business
interruption insurance
claims - - 16,270 -
Equity income, net -
affiliates 21,916 12,114 78,717 71,251
Reimbursed electricity-
related charges
recorded as revenues 14,026 13,752 59,733 54,175
Adjusted gross margin
attributable to
noncontrolling
interest 3,735 3,557 16,323 16,779
----- ----- ------ ------
Adjusted gross margin
attributable to
Western Gas Partners,
LP $352,984 $310,452 $1,337,443 $1,251,047
---------------------- -------- -------- ---------- ----------
Adjusted gross margin
attributable to
Western Gas Partners,
LP for natural gas
assets $317,294 $277,342 $1,194,877 $1,119,555
Adjusted gross margin
for crude/NGL assets 35,690 33,110 142,566 131,492
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
thousands except per-unit
amounts 2016 2015 2016 2015
------------------------- ---- ---- ---- ----
Revenues and other
Gathering, processing and
transportation $317,517 $284,641 $1,227,849 $1,128,838
Natural gas and natural gas
liquids sales 192,728 131,075 572,313 617,949
Other 575 842 4,108 5,285
Total revenues and other 510,820 416,558 1,804,270 1,752,072
------------------------ ------- ------- --------- ---------
Equity income, net -
affiliates 21,916 12,114 78,717 71,251
------ ------ ------ ------
Operating expenses
Cost of product 167,235 114,041 494,194 528,369
Operation and maintenance 81,869 89,228 308,010 331,972
General and administrative 12,049 10,687 45,591 41,319
Property and other taxes 7,047 5,380 40,145 33,288
Depreciation and
amortization 73,287 67,715 272,933 272,611
Impairments 4,222 238,879 15,535 515,458
----------- ----- ------- ------ -------
Total operating expenses 345,709 525,930 1,176,408 1,723,017
------------------------ ------- ------- --------- ---------
Gain (loss) on divestiture
and other, net (5,872) (20,224) (14,641) 57,024
Proceeds from business
interruption insurance
claims - - 16,270 -
--- --- ------ ---
Operating income (loss) 181,155 (117,482) 708,208 157,330
Interest income - affiliates 4,225 4,225 16,900 16,900
Interest expense (39,234) (31,535) (114,921) (113,872)
Other income (expense), net 255 (846) 479 (619)
--- ---- --- ----
Income (loss) before income
taxes 146,401 (145,638) 610,666 59,739
Income tax (benefit) expense 941 8,372 8,372 45,532
--- ----- ----- ------
Net income (loss) 145,460 (154,010) 602,294 14,207
Net income attributable to
noncontrolling interest 2,456 1,871 10,963 10,101
-------------------------- ----- ----- ------ ------
Net income (loss)
attributable to Western Gas
Partners, LP $143,004 $(155,881) $591,331 $4,106
Limited partners' interest
in net income (loss):
Net income (loss)
attributable to Western Gas
Partners, LP $143,004 $(155,881) $591,331 $4,106
Pre-acquisition net
(income) loss allocated to
Anadarko - (15,780) (11,326) (79,386)
Series A Preferred units
interest in net (income)
loss (25,904) - (76,893) -
General partner interest in
net (income) loss (62,229) (47,581) (236,561) (180,996)
-------- --------
Common and Class C limited
partners' interest in net
income (loss) $54,871 $(219,242) $266,551 $(256,276)
Net income (loss) per common
unit - basic and diluted $0.35 $(1.60) $1.74 $(1.95)
Weighted-average common
units outstanding - basic 130,672 128,576 130,253 128,345
Weighted-average common
units outstanding - diluted 164,867 139,905 159,058 139,459
---------------------------- ------- ------- ------- -------
Western Gas Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
thousands
except number
of units 2016 2015
-------------- ---- ----
Current assets $594,014 $299,217
Note receivable
- Anadarko 260,000 260,000
Net property,
plant and
equipment 5,049,932 4,858,779
Other assets 1,829,082 1,883,201
--------- ---------
Total assets $7,733,028 $7,301,197
------------ ---------- ----------
Current
liabilities $315,305 $235,488
Long-term debt 3,091,461 2,690,651
Asset
retirement
obligations
and other 149,043 268,356
Deferred
purchase price
obligation -
Anadarko 41,440 188,674
--------------- ------ -------
Total
liabilities $3,597,249 $3,383,169
------------ ---------- ----------
Equity and
partners'
capital
Series A
Preferred
units
(21,922,831
and zero units
issued and
outstanding at $639,545 $ -
December 31,
2016 and 2015,
respectively)
Common units
(130,671,970
and
128,576,965
units issued
and
outstanding at 2,536,872 2,588,991
December 31,
2016 and 2015,
respectively)
Class C units
(12,358,123
and 11,411,862
units issued
and
outstanding at 750,831 710,891
December 31,
2016 and 2015,
respectively)
General partner
units
(2,583,068
units issued
and
outstanding at
December 31,
2016 143,968 120,164
and 2015)
Net investment
by Anadarko - 430,598
Noncontrolling
interest 64,563 67,384
------ ------
Total
liabilities,
equity and
partners'
capital $7,733,028 $7,301,197
------------- ---------- ----------
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended
December 31,
thousands 2016 2015
--------- ---- ----
Cash flows from operating
activities
Net income (loss) $602,294 $14,207
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities and changes in
working capital:
Depreciation and
amortization 272,933 272,611
Impairments 15,535 515,458
(Gain) loss on divestiture
and other, net 14,641 (57,024)
Change in other items, net 12,182 40,393
-------------------------- ------ ------
Net cash provided by (used
in) operating activities $917,585 $785,645
-------------------------- -------- --------
Cash flows from investing
activities
Capital expenditures $(479,993) $(637,964)
Contributions in aid of
construction costs from
affiliates 6,135 461
Acquisitions from affiliates (716,465) (10,903)
Acquisitions from third
parties - (3,514)
Investments in equity
affiliates (27) (11,442)
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 21,238 16,244
Proceeds from the sale of
assets to affiliates 623 925
Proceeds from the sale of
assets to third parties 45,490 145,916
Proceeds from property
insurance claims 17,465 -
------ ---
Net cash provided by (used
in) investing activities $(1,105,534) $(500,277)
-------------------------- ----------- ---------
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $1,297,218 $889,606
Repayments of debt (900,000) (610,000)
Increase (decrease) in
outstanding checks 2,079 (2,666)
Proceeds from the issuance
of common units, net of
offering expenses 25,000 57,353
Proceeds from the issuance
of Series A Preferred
units, net of offering
expenses 686,937 -
Distributions to unitholders (671,938) (545,143)
Distributions to
noncontrolling interest
owner (13,784) (12,187)
Net contributions from
(distributions to) Anadarko (23,491) (49,801)
Above-market component of
swap extensions with
Anadarko 45,820 18,449
------------------------- ------ ------
Net cash provided by (used
in) financing activities $447,841 $(254,389)
-------------------------- -------- ---------
Net increase (decrease) in
cash and cash equivalents $259,892 $30,979
Cash and cash equivalents at
beginning of period 98,033 67,054
---------------------------- ------ ------
Cash and cash equivalents at
end of period $357,925 $98,033
---------------------------- -------- -------
Western Gas Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2016 2015 2016 2015
---- ---- ---- ----
Throughput for natural gas
assets (MMcf/d)
Gathering, treating and
transportation 1,480 1,581 1,537 1,791
Processing 2,500 2,272 2,350 2,331
Equity investment (1) 173 196 177 178
-------------------- --- --- --- ---
Total throughput for natural gas
assets 4,153 4,049 4,064 4,300
-------------------------------- ----- ----- ----- -----
Throughput attributable to
noncontrolling interest for
natural gas assets 113 122 124 142
----------------------------
Total throughput attributable to
Western Gas Partners, LP for
natural gas assets 4,040 3,927 3,940 4,158
-------------------------------- ----- ----- ----- -----
Throughput for crude/NGL assets
(MBbls/d)
Gathering, treating and
transportation 49 60 57 69
Equity investment (2) 132 127 127 117
--- --- --- ---
Total throughput for crude/NGL
assets 181 187 184 186
------------------------------ --- --- --- ---
Adjusted gross margin per Mcf
attributable to Western Gas
Partners, LP for natural gas
assets (3) $0.85 $0.77 $0.83 $0.74
----------------------------- ----- ----- ----- -----
Adjusted gross margin per Bbl
for crude/NGL assets (4) 2.15 1.92 2.11 1.93
----------------------------- ---- ---- ---- ----
(1) Represents WES's 14.81% share of
average Fort Union throughput and 22%
share of average Rendezvous
throughput.
(2) Represents 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.
(3) 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.
(4) 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)
thousands except per-unit amount and Coverage ratio Three Months Ended
December 31, 2016
--- -----------------
Distributions declared by Western Gas Partners, LP:
General partner interest $3,308
Incentive distribution rights 54,971
Common units held by WGP 43,114
Less:
Public company general and administrative expense 685
Interest expense 525
---------------- ---
Cash available for distribution $100,183
------------------------------- --------
Declared distribution per common unit $0.46250
------------------------------------- --------
Distributions declared by Western Gas Equity Partners, LP $101,254
--------------------------------------------------------- --------
Coverage ratio 0.99 x
-------------- ---- ---
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
thousands except per-unit
amounts 2016 2015 2016 2015
------------------------- ---- ---- ---- ----
Revenues and other
Gathering, processing and
transportation $317,517 $284,641 $1,227,849 $1,128,838
Natural gas and natural gas
liquids sales 192,728 131,075 572,313 617,949
Other 575 842 4,108 5,285
--- --- ----- -----
Total revenues and other 510,820 416,558 1,804,270 1,752,072
------------------------ ------- ------- --------- ---------
Equity income, net -
affiliates 21,916 12,114 78,717 71,251
------ ------ ------ ------
Operating expenses
Cost of product 167,235 114,041 494,194 528,369
Operation and maintenance 81,869 89,228 308,010 331,972
General and administrative 12,734 11,445 49,248 44,428
Property and other taxes 7,048 5,381 40,161 33,327
Depreciation and
amortization 73,287 67,715 272,933 272,611
Impairments 4,222 238,879 15,535 515,458
----------- ----- ------- ------ -------
Total operating expenses 346,395 526,689 1,180,081 1,726,165
------------------------ ------- ------- --------- ---------
Gain (loss) on divestiture
and other, net (5,872) (20,224) (14,641) 57,024
-------------------------- ------ ------- ------- ------
Proceeds from business
interruption insurance
claims - - 16,270 -
--- --- ------ ---
Operating income (loss) 180,469 (118,241) 704,535 154,182
Interest income - affiliates 4,225 4,225 16,900 16,900
Interest expense (39,759) (31,535) (116,628) (113,874)
Other income (expense), net 275 (834) 545 (578)
--- ---- --- ----
Income (loss) before income
taxes 145,210 (146,385) 605,352 56,630
Income tax (benefit) expense 941 8,372 8,372 45,532
--- ----- ----- ------
Net income (loss) 144,269 (154,757) 596,980 11,098
Net income (loss)
attributable to
noncontrolling interests 60,573 (139,766) 251,208 (154,409)
------------------------- ------ -------- ------- --------
Net income (loss)
attributable to Western Gas
Equity Partners, LP $83,696 $(14,991) $345,772 $165,507
Limited partners' interest
in net income (loss):
Net income (loss)
attributable to Western Gas
Equity Partners, LP $83,696 $(14,991) $345,772 $165,507
Pre-acquisition net
(income) loss allocated to
Anadarko - (15,780) (11,326) (79,386)
--------------------------- --- ------- ------- -------
Limited partners' interest
in net income (loss) $83,696 $(30,771) $334,446 $86,121
Net income (loss) per common
unit - basic and diluted $0.38 $(0.14) $1.53 $0.39
Weighted-average common
units outstanding - basic
and diluted 218,925 218,916 218,922 218,913
-------------------------- ------- ------- ------- -------
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,
thousands except
number of units 2016 2015
---------------- ---- ----
Current assets $595,591 $301,364
Note receivable -
Anadarko 260,000 260,000
Net property,
plant and
equipment 5,049,932 4,858,779
Other assets 1,830,574 1,883,201
--------- ---------
Total assets $7,736,097 $7,303,344
------------ ---------- ----------
Current
liabilities $315,387 $235,565
Long-term debt 3,119,461 2,690,651
Asset retirement
obligations and
other 149,043 268,356
Deferred purchase
price obligation
- Anadarko 41,440 188,674
----------------- ------
Total liabilities $3,625,331 $3,383,246
----------------- ---------- ----------
Equity and
partners'
capital
Common units
(218,928,570 and
218,919,380
units issued and
outstanding at
December 31,
2016 and 2015,
respectively) $1,048,143 $1,060,842
Net investment by
Anadarko - 430,598
Noncontrolling
interests 3,062,623 2,428,658
--------- ---------
Total
liabilities,
equity and
partners'
capital $7,736,097 $7,303,344
------------- ---------- ----------
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended
December 31,
thousands 2016 2015
--------- ---- ----
Cash flows from operating
activities
Net income (loss) $596,980 $11,098
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities and changes in
working capital:
Depreciation and
amortization 272,933 272,611
Impairments 15,535 515,458
(Gain) loss on divestiture
and other, net 14,641 (57,024)
Change in other items, net 12,987 40,666
-------------------------- ------ ------
Net cash provided by (used
in) operating activities $913,076 $782,809
-------------------------- -------- --------
Cash flows from investing
activities
Capital expenditures $(479,993) $(637,964)
Contributions in aid of
construction costs from
affiliates 6,135 461
Acquisitions from affiliates (716,465) (10,903)
Acquisitions from third
parties - (3,514)
Investments in equity
affiliates (27) (11,442)
Distributions from equity
investments in excess of
cumulative earnings -
affiliates 21,238 16,244
Proceeds from the sale of
assets to affiliates 623 925
Proceeds from the sale of
assets to third parties 45,490 145,916
Proceeds from property
insurance claims 17,465 -
------ ---
Net cash provided by (used
in) investing activities $(1,105,534) $(500,277)
-------------------------- ----------- ---------
Cash flows from financing
activities
Borrowings, net of debt
issuance costs $1,323,198 $889,606
Repayments of debt (900,000) (611,150)
Increase (decrease) in
outstanding checks 2,079 (2,666)
Proceeds from the issuance
of WES common units, net of
offering expenses - 57,353
Proceeds from the issuance
of WES Series A Preferred
units, net of offering
expenses 686,937 -
Distributions to WGP
unitholders (374,082) (306,477)
Distributions to Chipeta
noncontrolling interest
owner (13,784) (12,187)
Distributions to
noncontrolling interest
owners of WES (294,841) (233,178)
Net contributions from
(distributions to) Anadarko (23,491) (49,801)
Above-market component of
swap extensions with
Anadarko 45,820 18,449
------------------------- ------ ------
Net cash provided by (used
in) financing activities $451,836 $(250,051)
-------------------------- -------- ---------
Net increase (decrease) in
cash and cash equivalents $259,378 $32,481
Cash and cash equivalents at
beginning of period 99,694 67,213
---------------------------- ------ ------
Cash and cash equivalents at
end of period $359,072 $99,694
---------------------------- -------- -------
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/western-gas-announces-fourth-quarter-and-full-year-2016-results-300411959.html
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
