Western Gas Announces Fourth-Quarter And Full-Year 2016 Results
PROVIDES 2017 OUTLOOK
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
[email protected]
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 |
|||||||||||||||
| 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 |
| (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 |
|||||||||||||||
| 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 |
|||||||||||||||
| 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 |
|||||||||||||||
| 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 |
$ |
— |
||||
| Common units (130,671,970 and 128,576,965 units issued and outstanding at |
2,536,872 |
2,588,991 |
||||||
| Class C units (12,358,123 and 11,411,862 units issued and outstanding at |
750,831 |
710,891 |
||||||
| General partner units (2,583,068 units issued and outstanding at December 31, 2016 |
143,968 |
120,164 |
||||||
| 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 |
||||||||
| 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 |
|||||||||||||||
| 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 |
|||
| 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 |
|||||||||||||||
| 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 |
||||||||
| 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 |
||||
SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP
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