Attached files
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| 8-K - 8-K - Western Midstream Operating, LP | wesq12015form8-k.htm |
EXHIBIT 99.1
WESTERN GAS ANNOUNCES
FIRST-QUARTER 2015 RESULTS
HOUSTON, May 5, 2015 – Western Gas Partners, LP (NYSE: WES) (“WES” or the “Partnership”) and Western Gas Equity Partners, LP (NYSE: WGP) (“WGP”) today announced first-quarter 2015 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income available to limited partners for the first quarter of 2015 totaled $39.8 million, or $0.26 per common unit (diluted). For the first quarter of 2015, Adjusted EBITDA(1) was $180.9 million and Distributable cash flow(1) was $148.0 million, resulting in a Coverage ratio(1) of 1.11 times for the period.
WES previously declared a quarterly distribution of $0.725 per unit for the first quarter of 2015. This distribution represented a 4% increase over the prior quarter’s distribution and a 16% increase over the first-quarter 2014 distribution of $0.625 per unit. The distribution will be paid on May 13, 2015, to unitholders of record at the close of business on April 30, 2015. The first-quarter 2015 Coverage ratio(1) of 1.11 times was based on the quarterly distribution of $0.725 per unit.
Total throughput attributable to WES for natural gas assets for the first quarter of 2015 averaged 3.9 Bcf/d, which was 8% above the prior quarter and 13% above the first quarter of 2014. Total throughput for crude/NGL assets for the first quarter of 2015 averaged 131 MBbls/d, which remained flat compared to the prior quarter and was 66% above the first quarter of 2014.
“Our excellent operating performance was primarily driven by volume increases in the DJ and Delaware Basins,” said Chief Executive Officer, Don Sinclair. “Our 2015 Adjusted EBITDA and distribution growth guidance is unchanged and assumes no additional acquisitions.”
(1) Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio. | ||
Capital expenditures attributable to WES on a cash basis, including equity investments but excluding acquisitions, totaled $202.4 million during the first quarter of 2015. Of this amount, maintenance capital expenditures were $12.6 million, or 7% of Adjusted EBITDA(1). Capital expenditures attributable to WES on an accrual basis, including equity investments but excluding acquisitions, totaled $167.8 million during the first quarter of 2015. The Partnership also announced that it now expects full year 2015 total capital expenditures, including equity investments but excluding acquisitions, to be between $640 and $700 million.
WESTERN GAS EQUITY PARTNERS, LP
WGP indirectly owns the entire general partner interest in WES, 100% of the incentive distribution rights in WES and 49,296,205 WES common units. Net income available to limited partners for the first quarter of 2015 totaled $55.3 million, or $0.25 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.34250 per unit for the first quarter of 2015. This distribution represented a 10% increase over the prior quarter’s distribution and a 37% increase over the first-quarter 2014 distribution of $0.25000. The distribution will be paid on May 22, 2015, to unitholders of record at the close of business on April 30, 2015. WGP will receive distributions from WES of $75.8 million attributable to the first quarter and will pay $75.0 million in distributions for the same period.
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
WES and WGP will host a joint conference call on Wednesday, May 6, 2015, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss first-quarter 2015 results. To participate via telephone, please dial 877.280.4956 and enter participant code 99241935. Please call in 10 minutes prior to the scheduled start time. To access the live audio webcast of the conference call and slide presentation, please visit www.westerngas.com. A replay of the call will also be available on the website for approximately two weeks following the conference call.
(1) Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio. | ||
2
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
3
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of (i) WES’s Distributable cash flow (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners, LP (“Adjusted EBITDA”) (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP) and to net cash provided by operating activities (GAAP), and (iii) Adjusted gross margin attributable to Western Gas Partners, LP (“Adjusted gross margin”) (non-GAAP) to operating income (GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES’s Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio are widely accepted financial indicators of WES’s financial performance compared to other publicly traded partnerships and are useful in assessing its ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES’s Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio should be considered in conjunction with net income and other applicable performance measures, such as operating income or cash flows from operating activities.
Distributable Cash Flow
WES defines Distributable cash flow as Adjusted EBITDA, plus interest income, less net cash paid for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, and income taxes.
Three Months Ended March 31, | ||||||||
thousands except Coverage ratio | 2015 | 2014 (1) | ||||||
Reconciliation of Net income attributable to Western Gas Partners, LP to Distributable cash flow and calculation of the Coverage ratio | ||||||||
Net income attributable to Western Gas Partners, LP | $ | 83,568 | $ | 91,056 | ||||
Add: | ||||||||
Distributions from equity investees | 21,670 | 12,313 | ||||||
Non-cash equity-based compensation expense | 1,112 | 1,097 | ||||||
Interest expense, net (non-cash settled) (2) | 1,420 | — | ||||||
Income tax (benefit) expense | 4,460 | 1,785 | ||||||
Depreciation, amortization and impairments (3) | 69,644 | 41,448 | ||||||
Less: | ||||||||
Equity income, net | 18,220 | 9,251 | ||||||
Cash paid for maintenance capital expenditures (3) | 12,632 | 10,144 | ||||||
Capitalized interest | 3,094 | 3,440 | ||||||
Cash paid for (reimbursement of) income taxes | (138 | ) | (340 | ) | ||||
Other income (3) (4) | 69 | 78 | ||||||
Distributable cash flow | $ | 147,997 | $ | 125,126 | ||||
Distributions declared (5) | ||||||||
Limited partners | $ | 93,139 | ||||||
General partner | 40,064 | |||||||
Total | $ | 133,203 | ||||||
Coverage ratio | 1.11 | x | ||||||
(1) | In March 2015, WES acquired Anadarko’s interest in Delaware Basin JV Gathering LLC, which owns a 50% interest in a gathering system and related facilities (the “DBJV system”). WES will make a cash payment on March 1, 2020, to Anadarko as consideration for the acquisition. The net present value of this future obligation has been recorded on the consolidated balance sheet under Deferred purchase price obligation - Anadarko. Financial information has been recast to include the financial position and results attributable to the DBJV system. |
(2) | Includes accretion expense related to the Deferred purchase price obligation - Anadarko associated with the acquisition of DBJV. |
(3) | Includes WES’s 75% share of depreciation, amortization and impairments; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. |
(4) | Excludes income of zero and $0.4 million for the three months ended March 31, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease. |
(5) | Reflects cash distributions of $0.725 per unit declared for the three months ended March 31, 2015. |
4
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted EBITDA Attributable to Western Gas Partners, LP
WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation, amortization and impairments, and other expense, less income from equity investments, interest income, income tax benefit, and other income.
Three Months Ended March 31, | ||||||||
thousands | 2015 | 2014 (1) | ||||||
Reconciliation of Net income attributable to Western Gas Partners, LP to Adjusted EBITDA attributable to Western Gas Partners, LP | ||||||||
Net income attributable to Western Gas Partners, LP | $ | 83,568 | $ | 91,056 | ||||
Add: | ||||||||
Distributions from equity investees | 21,670 | 12,313 | ||||||
Non-cash equity-based compensation expense | 1,112 | 1,097 | ||||||
Interest expense | 22,960 | 13,961 | ||||||
Income tax expense | 4,460 | 1,785 | ||||||
Depreciation, amortization and impairments (2) | 69,644 | 41,448 | ||||||
Less: | ||||||||
Equity income, net | 18,220 | 9,251 | ||||||
Interest income – affiliates | 4,225 | 4,225 | ||||||
Other income (2) (3) | 69 | 78 | ||||||
Adjusted EBITDA attributable to Western Gas Partners, LP | $ | 180,900 | $ | 148,106 | ||||
Reconciliation of Adjusted EBITDA attributable to Western Gas Partners, LP to Net cash provided by operating activities | ||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP | $ | 180,900 | $ | 148,106 | ||||
Adjusted EBITDA attributable to noncontrolling interest | 3,872 | 4,326 | ||||||
Interest income (expense), net | (18,735 | ) | (9,736 | ) | ||||
Uncontributed cash-based compensation awards | (77 | ) | 53 | |||||
Accretion and amortization of long-term obligations, net | 2,112 | 680 | ||||||
Current income tax benefit (expense) | (702 | ) | (792 | ) | ||||
Other income (expense), net (3) | 71 | 81 | ||||||
Distributions from equity investments in excess of cumulative earnings | (2,964 | ) | (2,044 | ) | ||||
Changes in operating working capital: | ||||||||
Accounts receivable, net | (17,672 | ) | (15,439 | ) | ||||
Accounts and natural gas imbalance payables and accrued liabilities, net | 10,451 | 6,706 | ||||||
Other | (1,220 | ) | 1,878 | |||||
Net cash provided by operating activities | $ | 156,036 | $ | 133,819 | ||||
Cash flow information of Western Gas Partners, LP | ||||||||
Net cash provided by operating activities | $ | 156,036 | $ | 133,819 | ||||
Net cash used in investing activities | $ | (203,960 | ) | $ | (586,520 | ) | ||
Net cash provided by financing activities | $ | 39,509 | $ | 435,064 | ||||
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
(2) | Includes WES’s 75% share of depreciation, amortization and impairments; and other income attributable to Chipeta. |
(3) | Excludes income of zero and $0.4 million for the three months ended March 31, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease. |
5
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted gross margin attributable to Western Gas Partners, LP
WES defines Adjusted gross margin as total revenues less cost of product, plus distributions from equity investees and excluding the noncontrolling interest owner’s proportionate share of revenue and cost of product.
Three Months Ended March 31, | ||||||||
thousands | 2015 | 2014 (1) | ||||||
Reconciliation of Adjusted gross margin attributable to Western Gas Partners, LP to Operating income | ||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets | $ | 233,852 | $ | 195,771 | ||||
Adjusted gross margin for crude/NGL assets | 20,184 | 10,789 | ||||||
Adjusted gross margin attributable to Western Gas Partners, LP | $ | 254,036 | $ | 206,560 | ||||
Adjusted gross margin attributable to noncontrolling interest | $ | 4,808 | $ | 5,094 | ||||
Equity income, net | 18,220 | 9,251 | ||||||
Less: | ||||||||
Distributions from equity investees | 21,670 | 12,313 | ||||||
Operation and maintenance | 56,149 | 44,577 | ||||||
General and administrative | 10,512 | 8,904 | ||||||
Property and other taxes | 8,523 | 7,234 | ||||||
Depreciation, amortization and impairments | 70,292 | 42,085 | ||||||
Operating income | $ | 109,918 | $ | 105,792 | ||||
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
6
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended March 31, | ||||||||
thousands except per-unit amounts | 2015 | 2014 (1) | ||||||
Revenues | ||||||||
Gathering, processing and transportation of natural gas and natural gas liquids | $ | 209,844 | $ | 154,497 | ||||
Natural gas, natural gas liquids and drip condensate sales | 164,168 | 137,649 | ||||||
Other | 1,082 | 1,571 | ||||||
Total revenues | 375,094 | 293,717 | ||||||
Equity income, net | 18,220 | 9,251 | ||||||
Operating expenses | ||||||||
Cost of product | 137,920 | 94,376 | ||||||
Operation and maintenance | 56,149 | 44,577 | ||||||
General and administrative | 10,512 | 8,904 | ||||||
Property and other taxes | 8,523 | 7,234 | ||||||
Depreciation, amortization and impairments | 70,292 | 42,085 | ||||||
Total operating expenses | 283,396 | 197,176 | ||||||
Operating income | 109,918 | 105,792 | ||||||
Interest income – affiliates | 4,225 | 4,225 | ||||||
Interest expense | (22,960 | ) | (13,961 | ) | ||||
Other income (expense), net | 71 | 477 | ||||||
Income before income taxes | 91,254 | 96,533 | ||||||
Income tax (benefit) expense | 4,460 | 1,785 | ||||||
Net income | 86,794 | 94,748 | ||||||
Net income attributable to noncontrolling interest | 3,226 | 3,692 | ||||||
Net income attributable to Western Gas Partners, LP | $ | 83,568 | $ | 91,056 | ||||
Limited partners’ interest in net income: | ||||||||
Net income attributable to Western Gas Partners, LP | $ | 83,568 | $ | 91,056 | ||||
Pre-acquisition net (income) loss allocated to Anadarko | (1,742 | ) | (2,665 | ) | ||||
General partner interest in net (income) loss | (41,993 | ) | (24,834 | ) | ||||
Limited partners’ interest in net income | 39,833 | 63,557 | ||||||
Net income per common unit – basic | $ | 0.26 | $ | 0.54 | ||||
Net income per common unit – diluted | 0.26 | 0.54 | ||||||
Weighted-average common units outstanding – basic | 127,736 | 117,716 | ||||||
Weighted-average common units outstanding – diluted | 138,674 | 117,716 | ||||||
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
7
Western Gas Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands except number of units | March 31, 2015 | December 31, 2014 (1) | ||||||
Current assets | $ | 213,337 | $ | 186,364 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant and equipment | 4,711,271 | 4,571,443 | ||||||
Other assets | 1,910,020 | 1,936,725 | ||||||
Total assets | $ | 7,094,628 | $ | 6,954,532 | ||||
Current liabilities | $ | 242,349 | $ | 239,833 | ||||
Long-term debt | 2,532,995 | 2,422,954 | ||||||
Asset retirement obligations and other | 122,568 | 157,370 | ||||||
Deferred purchase price obligation – Anadarko | 175,696 | — | ||||||
Total liabilities | $ | 3,073,608 | $ | 2,820,157 | ||||
Equity and partners’ capital | ||||||||
Common units (128,177,253 and 127,695,130 units issued and outstanding at March 31, 2015, and December 31, 2014, respectively) | $ | 3,116,504 | $ | 3,119,714 | ||||
Class C units (10,959,564 and 10,913,853 units issued and outstanding at March 31, 2015, and December 31, 2014, respectively) | 723,899 | 716,957 | ||||||
General partner units (2,583,068 units issued and outstanding at March 31, 2015, and December 31, 2014) | 111,071 | 105,725 | ||||||
Net investment by Anadarko | — | 122,509 | ||||||
Noncontrolling interest | 69,546 | 69,470 | ||||||
Total liabilities, equity and partners’ capital | $ | 7,094,628 | $ | 6,954,532 | ||||
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
8
Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31, | ||||||||
thousands | 2015 | 2014 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income | $ | 86,794 | $ | 94,748 | ||||
Adjustments to reconcile net income to net cash provided by operating activities and changes in working capital: | ||||||||
Depreciation, amortization and impairments | 70,292 | 42,085 | ||||||
Change in other items, net | (1,050 | ) | (3,014 | ) | ||||
Net cash provided by operating activities | 156,036 | 133,819 | ||||||
Cash flows from investing activities | ||||||||
Capital expenditures | (200,940 | ) | (199,150 | ) | ||||
Acquisitions from affiliates | (1,128 | ) | (360,952 | ) | ||||
Investments in equity affiliates | (4,878 | ) | (28,462 | ) | ||||
Distributions from equity investments in excess of cumulative earnings | 2,964 | 2,044 | ||||||
Proceeds from the sale of assets to third parties | 22 | — | ||||||
Net cash used in investing activities | (203,960 | ) | (586,520 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | 140,000 | 917,742 | ||||||
Repayments of debt | (30,000 | ) | (430,000 | ) | ||||
Increase (decrease) in outstanding checks | (2,468 | ) | 1,928 | |||||
Proceeds from the issuance of common and general partner units, net of offering expenses | 31,075 | 18,289 | ||||||
Distributions to unitholders | (126,044 | ) | (92,609 | ) | ||||
Distributions to noncontrolling interest owner | (3,150 | ) | (4,124 | ) | ||||
Net contributions from Anadarko | 30,096 | 23,838 | ||||||
Net cash provided by financing activities | 39,509 | 435,064 | ||||||
Net increase (decrease) in cash and cash equivalents | (8,415 | ) | (17,637 | ) | ||||
Cash and cash equivalents at beginning of period | 67,054 | 100,728 | ||||||
Cash and cash equivalents at end of period | $ | 58,639 | $ | 83,091 | ||||
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
9
Western Gas Partners, LP
OPERATING STATISTICS
(Unaudited)
Three Months Ended March 31, | ||||||||
MMcf/d except throughput measured in barrels and per-unit amounts | 2015 | 2014 (1) | ||||||
Throughput for natural gas assets | ||||||||
Gathering, treating and transportation | 1,654 | 1,648 | ||||||
Processing | 2,260 | 1,799 | ||||||
Equity investment (2) | 165 | 186 | ||||||
Total throughput for natural gas assets | 4,079 | 3,633 | ||||||
Throughput attributable to noncontrolling interest for natural gas assets | 162 | 173 | ||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets (3) | 3,917 | 3,460 | ||||||
Total throughput (MBbls/d) for crude/NGL assets (4) | 131 | 79 | ||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (5) | $ | 0.66 | $ | 0.63 | ||||
Adjusted gross margin per Bbl for crude/NGL assets (6) | $ | 1.71 | $ | 1.52 | ||||
(1) | Throughput has been recast to include throughput attributable to the DBJV system. |
(2) | Represents WES’s 14.81% share of average Fort Union and 22% share of average Rendezvous throughput. Excludes equity investment throughput measured in barrels (captured in “Total throughput (MBbls/d) for crude/NGL assets” as noted below). |
(3) | Includes affiliate, third-party and equity investment throughput (as equity investment throughput is defined in the above footnote), excluding the noncontrolling interest owner’s proportionate share of throughput. |
(4) | Represents total throughput measured in barrels, consisting of throughput from WES’s Chipeta NGL pipeline, WES’s 10% share of average White Cliffs throughput, WES’s 25% share of average Mont Belvieu JV throughput, WES’s 20% share of average TEG and TEP throughput, and WES’s 33.33% share of average FRP throughput. |
(5) | Average for period. Calculated as Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets (total revenues for natural gas assets less cost of product for natural gas assets plus distributions from WES’s equity investments in Fort Union and Rendezvous, and excluding the noncontrolling interest owners’ proportionate share of revenue and cost of product) divided by total throughput (MMcf/d) attributable to Western Gas Partners, LP for natural gas assets. |
(6) | Average for period. Calculated as Adjusted gross margin for crude/NGL assets (total revenues for crude/NGL assets less cost of product for crude/NGL assets plus distributions from WES’s equity investments in White Cliffs, the Mont Belvieu JV, TEG, TEP and FRP), divided by total throughput (MBbls/d) for crude/NGL assets. |
10
Western Gas Equity Partners, LP
CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION
(Unaudited)
Three Months Ended | |||
thousands except per-unit amount and Coverage ratio | March 31, 2015 | ||
Distributions declared by Western Gas Partners, LP: | |||
General partner interest | $ | 2,625 | |
Incentive distribution rights | 37,439 | ||
Common units held by WGP | 35,740 | ||
Less: | |||
Public company general and administrative expense | 800 | ||
Cash available for distribution | $ | 75,004 | |
Declared distribution per common unit | $ | 0.34250 | |
Distributions declared by Western Gas Equity Partners, LP | $ | 74,977 | |
Coverage ratio | 1.00 | x | |
11
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended March 31, | ||||||||
thousands except per-unit amounts | 2015 | 2014 (1) | ||||||
Revenues | ||||||||
Gathering, processing and transportation of natural gas and natural gas liquids | $ | 209,844 | $ | 154,497 | ||||
Natural gas, natural gas liquids and drip condensate sales | 164,168 | 137,649 | ||||||
Other | 1,082 | 1,571 | ||||||
Total revenues | 375,094 | 293,717 | ||||||
Equity income, net | 18,220 | 9,251 | ||||||
Operating expenses | ||||||||
Cost of product | 137,920 | 94,376 | ||||||
Operation and maintenance | 56,149 | 44,577 | ||||||
General and administrative | 11,347 | 9,875 | ||||||
Property and other taxes | 8,523 | 7,234 | ||||||
Depreciation, amortization and impairments | 70,292 | 42,085 | ||||||
Total operating expenses | 284,231 | 198,147 | ||||||
Operating income | 109,083 | 104,821 | ||||||
Interest income – affiliates | 4,225 | 4,225 | ||||||
Interest expense | (22,962 | ) | (13,961 | ) | ||||
Other income (expense), net | 80 | 496 | ||||||
Income before income taxes | 90,426 | 95,581 | ||||||
Income tax (benefit) expense | 4,460 | 1,785 | ||||||
Net income | 85,966 | 93,796 | ||||||
Net income attributable to noncontrolling interests | 28,937 | 40,634 | ||||||
Net income attributable to Western Gas Equity Partners, LP | $ | 57,029 | $ | 53,162 | ||||
Limited partners’ interest in net income: | ||||||||
Net income attributable to Western Gas Equity Partners, LP | $ | 57,029 | $ | 53,162 | ||||
Pre-acquisition net (income) loss allocated to Anadarko | (1,742 | ) | (2,665 | ) | ||||
Limited partners’ interest in net income | 55,287 | 50,497 | ||||||
Net income per common unit – basic and diluted | $ | 0.25 | $ | 0.23 | ||||
Weighted-average number of common units outstanding – basic and diluted | 218,910 | 218,903 | ||||||
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
12
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
thousands except number of units | March 31, 2015 | December 31, 2014 (1) | ||||||
Current assets | $ | 214,984 | $ | 187,073 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant and equipment | 4,711,271 | 4,571,443 | ||||||
Other assets | 1,910,020 | 1,936,725 | ||||||
Total assets | $ | 7,096,275 | $ | 6,955,241 | ||||
Current liabilities | $ | 242,526 | $ | 241,058 | ||||
Long-term debt | 2,532,995 | 2,422,954 | ||||||
Asset retirement obligations and other | 122,568 | 157,370 | ||||||
Deferred purchase price obligation – Anadarko | 175,696 | — | ||||||
Total liabilities | $ | 3,073,785 | $ | 2,821,382 | ||||
Equity and partners’ capital | ||||||||
Common units (218,909,977 units issued and outstanding at March 31, 2015, and December 31, 2014) | $ | 1,252,921 | $ | 1,260,195 | ||||
Net investment by Anadarko | — | 122,509 | ||||||
Noncontrolling interests | 2,769,569 | 2,751,155 | ||||||
Total liabilities, equity and partners’ capital | $ | 7,096,275 | $ | 6,955,241 | ||||
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
13
Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31, | ||||||||
thousands | 2015 | 2014 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income | $ | 85,966 | $ | 93,796 | ||||
Adjustments to reconcile net income to net cash provided by operating activities and changes in working capital: | ||||||||
Depreciation, amortization and impairments | 70,292 | 42,085 | ||||||
Change in other items, net | (803 | ) | (3,624 | ) | ||||
Net cash provided by operating activities | 155,455 | 132,257 | ||||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (200,940 | ) | $ | (199,150 | ) | ||
Acquisitions from affiliates | (1,128 | ) | (360,952 | ) | ||||
Investments in equity affiliates | (4,878 | ) | (28,462 | ) | ||||
Distributions from equity investments in excess of cumulative earnings | 2,964 | 2,044 | ||||||
Proceeds from the sale of assets to third parties | 22 | — | ||||||
Net cash used in investing activities | (203,960 | ) | (586,520 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 140,000 | $ | 917,742 | ||||
Repayments of debt | (31,150 | ) | (430,000 | ) | ||||
Increase (decrease) in outstanding checks | (2,468 | ) | 1,928 | |||||
Proceeds from the issuance of WES common units, net of offering expenses | 31,075 | 17,530 | ||||||
Distributions to WGP unitholders | (68,409 | ) | (50,621 | ) | ||||
Distributions to Chipeta noncontrolling interest owner | (3,150 | ) | (4,124 | ) | ||||
Distributions to noncontrolling interest owners of WES | (54,879 | ) | (40,996 | ) | ||||
Net contributions from Anadarko | 30,096 | 23,838 | ||||||
Net cash provided by financing activities | 41,115 | 435,297 | ||||||
Net increase (decrease) in cash and cash equivalents | (7,390 | ) | (18,966 | ) | ||||
Cash and cash equivalents at beginning of period | 67,213 | 113,085 | ||||||
Cash and cash equivalents at end of period | $ | 59,823 | $ | 94,119 | ||||
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
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