Western Gas Announces Second-Quarter 2018 Results

Western Gas Announces Second-Quarter 2018 Results

PR Newswire

HOUSTON, July 31, 2018 /PRNewswire/ -- Western Gas Partners, LP WES ("WES" or the "Partnership") and Western Gas Equity Partners, LP WGP ("WGP") today announced second-quarter 2018 financial and operating results.

WESTERN GAS PARTNERS, LP

Net income (loss) available to limited partners for the second quarter of 2018 totaled $(51.5) million, or $(0.32) per common unit (diluted), with second-quarter 2018 Adjusted EBITDA(1) of $271.7 million and second-quarter 2018 Distributable cash flow(1) of $221.8 million. These results were impacted by the following amounts associated with the shutdown of two legacy gathering systems with less than 8 MMcf/d of throughput that had reached the end of their useful life: (i) an accrual of $10.9 million related to estimated future costs recorded as a reduction in affiliate product sales and (ii) $127.2 million recorded as impairment expense associated with reducing the net book value of the systems and additional asset retirement obligation. Adjusted EBITDA(1) includes the impact of the $10.9 million accrual.

WES previously declared a quarterly distribution of $0.950 per unit for the second quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and a 7% increase over the second-quarter 2017 distribution. The second-quarter 2018 Coverage ratio(1) of 0.98 times was impacted by 0.05 times due to the aforementioned $10.9 million accrual.

(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.

"Since we initially provided our 2018 guidance last fall, we have been discussing our expectation of a volumetric and cash flow ramp in the second half of this year. I'm pleased to say that it has begun," said Chief Executive Officer, Benjamin Fink. "Anadarko has successfully brought two Regional Oil Treating facilities online, one late in the second quarter and one earlier this month, and the Delaware Basin generated strong volumetric growth in the second quarter, which should accelerate throughout the remainder of the year. Furthermore, we remain on track to bring both the Mentone I and II trains online late in the third and fourth quarters."

Total throughput attributable to WES for natural gas assets for the second quarter of 2018 averaged 3.8 Bcf/d, which was 5% above the prior quarter and 9% above the second quarter of 2017. Total throughput for crude oil, NGL and produced water assets for the second quarter of 2018 averaged 343 MBbls/d, which was 33% above the prior quarter and 88% above the second quarter of 2017. These increases were primarily driven by the continued growth behind our DBM water systems and our acquisition of a 20% interest in Whitethorn (which owns the Midland-to-Sealy pipeline and related storage facilities) in June.

Capital expenditures attributable to WES, including equity investments but excluding acquisitions, totaled $369.2 million on a cash basis and $322.0 million on an accrual basis during the second quarter of 2018, with maintenance capital expenditures on a cash basis of $20.9 million. The Partnership also announced the increase of its outlook for 2018 maintenance capital expenditures to a range of $90 million to $100 million from the previously stated range of $80 million to $90 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 50,132,046 WES common units. Net income (loss) available to limited partners for the second quarter of 2018 totaled $67.6 million, or $0.31 per common unit (diluted).

WGP previously declared a quarterly distribution of $0.58250 per unit for the second quarter of 2018. This distribution represented a 2% increase over the prior quarter's distribution and a 10% increase over the second-quarter 2017 distribution. WGP will receive distributions from WES of $128.3 million attributable to the second quarter of 2018 and will pay $127.5 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, August 1, 2018, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss second-quarter 2018 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 participant access code 7387060. 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.

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 assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania, Texas and New Mexico, WES is engaged in the business of gathering, compressing, treating, processing and transporting natural gas; gathering, stabilizing and transporting condensate, natural gas liquids and crude oil; and gathering and disposing of produced water for Anadarko, as well as for third-party producers and customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs and condensate on behalf of itself and as agent for its customers under certain of its contracts.

Western Gas Equity Partners, LP ("WGP") is a Delaware master limited partnership formed by Anadarko Petroleum Corporation 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. WES and WGP's management believes 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, LP and Western Gas Equity Partners, LP 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 Service revenues – fee based recognized in Adjusted EBITDA (less than) in excess of customer billings, 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

 June 30,



Six Months Ended

 June 30,

thousands except Coverage ratio



2018



2017



2018



2017

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



$

32,708





$

173,451





$

182,071





$

275,340



Add:

















Distributions from equity investments



31,947





28,856





60,901





51,423



Non-cash equity-based compensation expense



1,852





975





4,004





2,221



Non-cash settled interest expense, net (1)















71



Income tax (benefit) expense



282





843





1,784





4,395



Depreciation and amortization (2)



78,066





73,352





154,182





142,401



Impairments



127,243





3,178





127,391





167,920



Above-market component of swap agreements with Anadarko



13,839





16,373





28,121





28,670



Other expense (2)



8





95





151





140



Less:

















Recognized Service revenues – fee based (less than) in excess of customer billings



(3,367)









(3,861)







Gain (loss) on divestiture and other, net



170





15,458





286





134,945



Equity income, net – affiliates



39,218





21,728





59,642





41,189



Cash paid for maintenance capital expenditures (2)



20,891





11,402





37,325





22,524



Capitalized interest



6,011





1,060





10,065





1,876



Cash paid for (reimbursement of) income taxes











(87)





189



Series A Preferred unit distributions















7,453



Other income (2)



1,223





250





2,000





677



Distributable cash flow



$

221,799





$

247,225





$

453,235





$

463,728



Distributions declared (3)

















Limited partners – common units



$

144,979









$

287,662







General partner



80,712









159,162







Total



$

225,691









$

446,824







Coverage ratio



0.98



x





1.01

x







(1)

Includes amounts 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 $0.950 and $1.885 per unit declared for the three and six months ended June 30, 2018, 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

 June 30,



Six Months Ended

 June 30,

thousands



2018



2017



2018



2017

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



$

32,708





$

173,451





$

182,071





$

275,340



Add:

















Distributions from equity investments



31,947





28,856





60,901





51,423



Non-cash equity-based compensation expense



1,852





975





4,004





2,221



Interest expense



44,389





35,746





83,672





71,250



Income tax expense



282





843





1,784





4,395



Depreciation and amortization (1)



78,066





73,352





154,182





142,401



Impairments



127,243





3,178





127,391





167,920



Other expense (1)



8





95





151





140



Less:

















Gain (loss) on divestiture and other, net



170





15,458





286





134,945



Equity income, net – affiliates



39,218





21,728





59,642





41,189



Interest income – affiliates



4,225





4,225





8,450





8,450



Other income (1)



1,223





250





2,000





677



Adjusted EBITDA attributable to Western Gas Partners, LP



$

271,659





$

274,835





$

543,778





$

529,829



Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP

















Net cash provided by operating activities



$

273,315





$

240,536





$

514,911





$

433,152



Interest (income) expense, net



40,164





31,521





75,222





62,800



Uncontributed cash-based compensation awards



398





(209)





987





(172)



Accretion and amortization of long-term obligations, net



(1,248)





(1,038)





(2,626)





(2,139)



Current income tax (benefit) expense



90





204





261





628



Other (income) expense, net



(1,229)





(253)





(2,011)





(683)



Distributions from equity investments in excess of cumulative earnings – affiliates



4,492





5,768





12,505





9,221



Changes in assets and liabilities:

















Accounts receivable, net



(21,639)





(10,876)





7,009





(9,363)



Accounts and imbalance payables and accrued liabilities, net



(13,498)





12,035





(40,573)





41,975



Other items, net



(5,655)





(131)





(14,670)





(116)



Adjusted EBITDA attributable to noncontrolling interest



(3,531)





(2,722)





(7,237)





(5,474)



Adjusted EBITDA attributable to Western Gas Partners, LP



$

271,659





$

274,835





$

543,778





$

529,829



Cash flow information of Western Gas Partners, LP

















Net cash provided by operating activities











$

514,911





$

433,152



Net cash used in investing activities











(826,653)





(363,131)



Net cash provided by (used in) financing activities











286,163





(239,749)







(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 reimbursements for electricity-related expenses recorded as revenue), less cost of product, plus distributions from equity investments, and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.





Three Months Ended

 June 30,



Six Months Ended

 June 30,

thousands



2018



2017



2018



2017

Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP

















Operating income (loss)



$

74,736





$

207,608





$

262,862





$

346,000



Add:

















Distributions from equity investments



31,947





28,856





60,901





51,423



Operation and maintenance



100,628





76,148





188,907





149,908



General and administrative



14,035





10,585





28,167





23,244



Property and other taxes



11,754





11,924





24,136





24,218



Depreciation and amortization



78,792





74,031





155,634





143,733



Impairments



127,243





3,178





127,391





167,920



Less:

















Gain (loss) on divestiture and other, net



170





15,458





286





134,945



Proceeds from business interruption insurance claims







24,115









29,882



Equity income, net – affiliates



39,218





21,728





59,642





41,189



Reimbursed electricity-related charges recorded as revenues



17,231





14,046





32,684





28,015



Adjusted gross margin attributable to noncontrolling interest



4,223





3,435





8,547





7,311



Adjusted gross margin attributable to Western Gas Partners, LP



$

378,293





$

333,548





$

746,839





$

665,104



Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets



$

329,653





$

297,778





$

655,525





$

599,283



Adjusted gross margin for crude oil, NGL and produced water assets



48,640





35,770





91,314





65,821



 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)







Three Months Ended

 June 30,



Six Months Ended

 June 30,

thousands except per-unit amounts



2018



2017



2018



2017

Revenues and other

















Service revenues – fee based



$

359,544





$

299,435





$

697,963





$

607,249



Service revenues – product based



22,105









44,698







Product sales



54,077





224,824





130,014





431,349



Other



223





1,191





442





3,045



Total revenues and other



435,949





525,450





873,117





1,041,643



Equity income, net – affiliates



39,218





21,728





59,642





41,189



Operating expenses

















Cost of product



68,149





203,277





145,948





392,636



Operation and maintenance



100,628





76,148





188,907





149,908



General and administrative



14,035





10,585





28,167





23,244



Property and other taxes



11,754





11,924





24,136





24,218



Depreciation and amortization



78,792





74,031





155,634





143,733



Impairments



127,243





3,178





127,391





167,920



Total operating expenses



400,601





379,143





670,183





901,659



Gain (loss) on divestiture and other, net



170





15,458





286





134,945



Proceeds from business interruption insurance claims







24,115









29,882



Operating income (loss)



74,736





207,608





262,862





346,000



Interest income – affiliates



4,225





4,225





8,450





8,450



Interest expense



(44,389)





(35,746)





(83,672)





(71,250)



Other income (expense), net



1,229





253





2,011





683



Income (loss) before income taxes



35,801





176,340





189,651





283,883



Income tax (benefit) expense



282





843





1,784





4,395



Net income (loss)



35,519





175,497





187,867





279,488



Net income attributable to noncontrolling interest



2,811





2,046





5,796





4,148



Net income (loss) attributable to Western Gas Partners, LP



$

32,708





$

173,451





$

182,071





$

275,340



Limited partners' interest in net income (loss):

















Net income (loss) attributable to Western Gas Partners, LP



$

32,708





$

173,451





$

182,071





$

275,340



Series A Preferred units interest in net (income) loss







(14,199)









(42,373)



General partner interest in net (income) loss



(84,176)





(76,365)





(167,615)





(144,527)



Common and Class C limited partners' interest in net income (loss)



$

(51,468)





$

82,887





$

14,456





$

88,440



Net income (loss) per common unit – basic and diluted



$

(0.32)





$

0.49





$

0.06





$

0.53



Weighted-average common units outstanding – basic and diluted



152,604





148,864





152,603





141,696



 

Western Gas Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



thousands except number of units



June 30,

 2018



December 31,

 2017

Current assets



$

247,138





$

254,062



Note receivable – Anadarko



260,000





260,000



Net property, plant and equipment



6,213,574





5,730,891



Other assets



1,945,898





1,769,397



Total assets



$

8,666,610





$

8,014,350



Current liabilities



$

489,117





$

424,333



Long-term debt



4,177,353





3,464,712



Asset retirement obligations



151,412





143,394



Other liabilities



147,246





10,900



Total liabilities



4,965,128





4,043,339



Equity and partners' capital









Common units (152,609,285 and 152,602,105 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively)



2,666,799





2,950,010



Class C units (13,778,265 and 13,243,883 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively)



781,057





780,040



General partner units (2,583,068 units issued and outstanding at June 30, 2018, and December 31, 2017)



191,564





179,232



Noncontrolling interest



62,062





61,729



Total liabilities, equity and partners' capital



$

8,666,610





$

8,014,350



 

Western Gas Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)





Six Months Ended

 June 30,

thousands



2018



2017

Cash flows from operating activities









Net income (loss)



$

187,867





$

279,488



Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:









Depreciation and amortization



155,634





143,733



Impairments



127,391





167,920



(Gain) loss on divestiture and other, net



(286)





(134,945)



Change in other items, net



44,305





(23,044)



Net cash provided by operating activities



$

514,911





$

433,152



Cash flows from investing activities









Capital expenditures



$

(650,096)





$

(260,480)



Contributions in aid of construction costs from affiliates







1,343



Acquisitions from affiliates







(3,910)



Acquisitions from third parties



(161,858)





(155,287)



Investments in equity affiliates



(27,490)





(287)



Distributions from equity investments in excess of cumulative earnings – affiliates



12,505





9,221



Proceeds from the sale of assets to third parties



286





23,292



Proceeds from property insurance claims







22,977



Net cash used in investing activities



$

(826,653)





$

(363,131)



Cash flows from financing activities









Borrowings, net of debt issuance costs



$

1,337,539





$

159,989



Repayments of debt



(630,000)







Settlement of the Deferred purchase price obligation – Anadarko







(37,346)



Increase (decrease) in outstanding checks



(5,357)





(2,763)



Proceeds from the issuance of common units, net of offering expenses







(183)



Distributions to unitholders



(437,719)





(381,771)



Distributions to noncontrolling interest owner



(6,421)





(6,375)



Net contributions from (distributions to) Anadarko







30



Above-market component of swap agreements with Anadarko



28,121





28,670



Net cash provided by (used in) financing activities



$

286,163





$

(239,749)



Net increase (decrease) in cash and cash equivalents



$

(25,579)





$

(169,728)



Cash and cash equivalents at beginning of period



78,814





357,925



Cash and cash equivalents at end of period



$

53,235





$

188,197



 

Western Gas Partners, LP

OPERATING STATISTICS

(Unaudited)







Three Months Ended

 June 30,



Six Months Ended

 June 30,





2018



2017



2018



2017

Throughput for natural gas assets (MMcf/d)

















Gathering, treating and transportation



887





866





852





1,155



Processing



2,860





2,555





2,808





2,498



Equity investment (1)



141





158





146





160



 Total throughput for natural gas assets



3,888





3,579





3,806





3,813



 Throughput attributable to noncontrolling interest for natural gas assets



94





107





95





108



Total throughput attributable to Western Gas Partners, LP for natural gas assets



3,794





3,472





3,711





3,705



Throughput for crude oil, NGL and produced water assets (MBbls/d)

















 Gathering, treating, transportation and disposal



145





50





134





47



 Equity investment (2)



198





132





167





129



Total throughput for crude oil, NGL and produced water assets



343



182



301



176

Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (3)



$

0.95





$

0.94





$

0.98





$

0.89



Adjusted gross margin per Bbl for crude oil, NGL and produced water assets (4)



1.56





2.15





1.68





2.07





































(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, WES's 33.33% share of average FRP throughput and WES's 20% share of average Whitethorn 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, 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 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 oil, NGL and produced water assets (total revenues and other for crude oil, NGL and produced water assets less reimbursements for electricity-related expenses recorded as revenue, less cost of product for crude oil, NGL and produced water assets, and plus distributions from WES's equity investments in White Cliffs, the Mont Belvieu JV, TEG, TEP, FRP and Whitethorn), divided by total throughput (MBbls/d) for crude oil, NGL and produced water assets.

 

Western Gas Equity Partners, LP

CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION

(Unaudited)



thousands except per-unit amount and Coverage ratio



Three Months Ended

 June 30, 2018

Distributions declared by Western Gas Partners, LP:





General partner interest



$

3,756



Incentive distribution rights



76,956



Common units held by WGP



47,625



Less:





Public company general and administrative expense



696



Interest expense



309



Cash available for distribution



$

127,332



Declared distribution per common unit



$

0.58250



Distributions declared by Western Gas Equity Partners, LP



$

127,531



Coverage ratio



1.00

x

 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)







Three Months Ended

 June 30,



Six Months Ended

 June 30,

thousands except per-unit amounts



2018



2017



2018



2017

Revenues and other

















Service revenues – fee based



$

359,544





$

299,435





$

697,963





$

607,249



Service revenues – product based



22,105









44,698







Product sales



54,077





224,824





130,014





431,349



Other



223





1,191





442





3,045



Total revenues and other



435,949





525,450





873,117





1,041,643



Equity income, net – affiliates



39,218





21,728





59,642





41,189



Operating expenses

















Cost of product



68,149





203,277





145,948





392,636



Operation and maintenance



100,628





76,148





188,907





149,908



General and administrative



14,731





11,197





29,695





24,673



Property and other taxes



11,754





11,924





24,136





24,218



Depreciation and amortization



78,792





74,031





155,634





143,733



Impairments



127,243





3,178





127,391





167,920



Total operating expenses



401,297





379,755





671,711





903,088



Gain (loss) on divestiture and other, net



170





15,458





286





134,945



Proceeds from business interruption insurance claims







24,115









29,882



Operating income (loss)



74,040





206,996





261,334





344,571



Interest income – affiliates



4,225





4,225





8,450





8,450



Interest expense



(44,697)





(36,297)





(85,043)





(72,330)



Other income (expense), net



1,277





272





2,094





718



Income (loss) before income taxes



34,845





175,196





186,835





281,409



Income tax (benefit) expense



282





843





1,784





4,395



Net income (loss)



34,563





174,353





185,051





277,014



Net income (loss) attributable to noncontrolling interests



(33,017)





69,409





16,466





96,130



Net income (loss) attributable to Western Gas Equity Partners, LP



$

67,580





$

104,944





$

168,585





$

180,884



Net income (loss) per common unit – basic and diluted



$

0.31





$

0.48





$

0.77





$

0.83



Weighted-average common units outstanding – basic and diluted



218,934





218,931





218,934





218,930



 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



thousands except number of units



June 30,

 2018



December 31,

 2017

Current assets



$

249,357





$

255,210



Note receivable – Anadarko



260,000





260,000



Net property, plant and equipment



6,213,574





5,730,891



Other assets



1,945,898





1,770,210



Total assets



$

8,668,829





$

8,016,311



Current liabilities



$

517,163





$

424,426



Long-term debt



4,177,353





3,492,712



Asset retirement obligations



151,412





143,394



Other liabilities



147,246





10,900



Total liabilities



4,993,174





4,071,432



Equity and partners' capital









Common units (218,937,797 and 218,933,141 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively)



994,418





1,061,125



Noncontrolling interests



2,681,237





2,883,754



Total liabilities, equity and partners' capital



$

8,668,829





$

8,016,311



 

Western Gas Equity Partners, LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)







Six Months Ended

 June 30,

thousands



2018



2017

Cash flows from operating activities









Net income (loss)



$

185,051





$

277,014



Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:









Depreciation and amortization



155,634





143,733



Impairments



127,391





167,920



(Gain) loss on divestiture and other, net



(286)





(134,945)



Change in other items, net



45,457





(22,364)



Net cash provided by operating activities



$

513,247





$

431,358



Cash flows from investing activities









Capital expenditures



$

(650,096)





$

(260,480)



Contributions in aid of construction costs from affiliates







1,343



Acquisitions from affiliates







(3,910)



Acquisitions from third parties



(161,858)





(155,287)



Investments in equity affiliates



(27,490)





(287)



Distributions from equity investments in excess of cumulative earnings – affiliates



12,505





9,221



Proceeds from the sale of assets to third parties



286





23,292



Proceeds from property insurance claims







22,977



Net cash used in investing activities



$

(826,653)





$

(363,131)



Cash flows from financing activities









Borrowings, net of debt issuance costs



$

1,337,531





$

159,989



Repayments of debt



(630,000)







Settlement of the Deferred purchase price obligation – Anadarko







(37,346)



Increase (decrease) in outstanding checks



(5,357)





(2,763)



Proceeds from the issuance of WES common units, net of offering expenses







(183)



Distributions to WGP unitholders



(244,658)





(208,803)



Distributions to Chipeta noncontrolling interest owner



(6,421)





(6,375)



Distributions to noncontrolling interest owners of WES



(190,081)





(171,689)



Net contributions from (distributions to) Anadarko







30



Above-market component of swap agreements with Anadarko



28,121





28,670



Net cash provided by (used in) financing activities



$

289,135





$

(238,470)



Net increase (decrease) in cash and cash equivalents



$

(24,271)





$

(170,243)



Cash and cash equivalents at beginning of period



79,588





359,072



Cash and cash equivalents at end of period



$

55,317





$

188,829



 

Western Gas Partners (PRNewsFoto/Western Gas Partners, LP) (PRNewsFoto/Western Gas Partners, LP)

 

Western Gas Equity Partners (PRNewsFoto/Western Gas Partners, LP) (PRNewsFoto/Western Gas Partners, LP)

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/western-gas-announces-second-quarter-2018-results-300689524.html

SOURCE Western Gas Partners, LP; Western Gas Equity Partners, LP

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