Delaware | 001-34046 | 26-1075808 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation or organization) | File Number) | Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition | ||||||||
Item 9.01 Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX | ||||||||
EX-99.1 |
99.1 | Western Gas Partners, LP Press Release, dated November 1, 2011. |
WESTERN GAS PARTNERS, LP | ||||||
By: | Western Gas Holdings, LLC, | |||||
its general partner | ||||||
Dated: November 1, 2011
|
By: | /s/ Donald R. Sinclair
|
||||
Donald R. Sinclair | ||||||
President and Chief Executive Officer |
(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. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
thousands except coverage ratio | 2011 | 2010 (1) | 2011 | 2010 (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 |
$ | 36,809 | $ | 30,656 | $ | 108,513 | $ | 89,238 | ||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
2,426 | 1,381 | 7,873 | 3,619 | ||||||||||||
Non-cash equity-based compensation expense |
2,389 | 569 | 6,235 | 1,817 | ||||||||||||
Interest expense, net (non-cash settled) |
| 1,160 | 1,214 | 1,772 | ||||||||||||
Income tax
expense (2) |
92 | 1,061 | 1,715 | 9,861 | ||||||||||||
Depreciation, amortization and impairments (2) |
21,928 | 18,619 | 63,380 | 52,572 | ||||||||||||
Other expense (2) |
| | 3,683 | 2,393 | ||||||||||||
Less: |
||||||||||||||||
Equity income, net |
2,299 | 1,912 | 6,989 | 4,599 | ||||||||||||
Cash paid
for maintenance capital expenditures (2) |
9,690 | 5,983 | 18,767 | 16,750 | ||||||||||||
Capitalized interest |
121 | | 134 | | ||||||||||||
Cash paid for income taxes |
190 | | 190 | | ||||||||||||
Other income (2) |
6 | 61 | 1,765 | 80 | ||||||||||||
Distributable cash flow |
$ | 51,338 | $ | 45,490 | $ | 164,768 | $ | 139,843 | ||||||||
Distribution declared for the
three months ended September 30, 2011
(3) |
||||||||||||||||
Limited partners |
$ | 37,859 | ||||||||||||||
General partner |
2,464 | |||||||||||||||
Total |
$ | 40,323 | ||||||||||||||
Distribution coverage ratio |
1.27 | x | ||||||||||||||
(1) | Financial information for 2010 has been revised to include results attributable to the Bison assets. | |
(2) | Includes the Partnerships 51% share of income tax expense; depreciation, amortization and impairments; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta Processing LLC (Chipeta). | |
(3) | Reflects distribution of $0.42 per unit payable on November 10, 2011. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
thousands | 2011 | 2010 (1) | 2011 | 2010 (1) | ||||||||||||
Reconciliation of Net income attributable to Western Gas Partners, LP to Adjusted EBITDA |
||||||||||||||||
Net income attributable to Western Gas Partners, LP |
$ | 36,809 | $ | 30,656 | $ | 108,513 | $ | 89,238 | ||||||||
Add: |
||||||||||||||||
Distributions from equity investees |
2,426 | 1,381 | 7,873 | 3,619 | ||||||||||||
Non-cash equity-based compensation expense |
2,389 | 569 | 6,235 | 1,817 | ||||||||||||
Interest expense |
8,931 | 6,808 | 22,952 | 14,547 | ||||||||||||
Income tax expense (2) |
92 | 1,061 | 1,715 | 9,861 | ||||||||||||
Depreciation, amortization and impairments (2) |
21,928 | 18,619 | 63,380 | 52,572 | ||||||||||||
Other expense (2) |
| | 3,683 | 2,393 | ||||||||||||
Less: |
||||||||||||||||
Equity income, net |
2,299 | 1,912 | 6,989 | 4,599 | ||||||||||||
Interest
income affiliates |
4,225 | 4,225 | 12,675 | 12,675 | ||||||||||||
Other income (2) |
6 | 61 | 1,765 | 80 | ||||||||||||
Adjusted EBITDA |
$ | 66,045 | $ | 52,896 | $ | 192,922 | $ | 156,693 | ||||||||
(1) | Financial information for 2010 has been revised to include results attributable to the Bison assets. | |
(2) | Includes the Partnerships 51% share of income tax expense; depreciation, amortization and impairments; other expense; and other income attributable to Chipeta. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
thousands except per-unit amounts | 2011 | 2010 (1) | 2011 | 2010 (1) | ||||||||||||
Revenues |
||||||||||||||||
Gathering, processing and transportation of
natural gas and natural gas liquids |
$ | 71,873 | $ | 60,363 | $ | 211,418 | $ | 172,769 | ||||||||
Natural gas, natural gas liquids and
condensate sales |
101,079 | 59,887 | 263,041 | 196,792 | ||||||||||||
Equity income and other, net |
2,911 | 2,801 | 10,051 | 7,409 | ||||||||||||
Total revenues |
175,863 | 123,051 | 484,510 | 376,970 | ||||||||||||
Operating expenses |
||||||||||||||||
Cost of product |
68,675 | 37,444 | 177,877 | 117,923 | ||||||||||||
Operation and maintenance |
27,012 | 19,924 | 74,628 | 64,798 | ||||||||||||
General and administrative |
7,643 | 5,970 | 21,777 | 17,600 | ||||||||||||
Property and other taxes |
4,411 | 3,610 | 12,632 | 10,878 | ||||||||||||
Depreciation, amortization and impairments |
22,650 | 19,324 | 65,512 | 54,683 | ||||||||||||
Total operating expenses |
130,391 | 86,272 | 352,426 | 265,882 | ||||||||||||
Operating income |
45,472 | 36,779 | 132,084 | 111,088 | ||||||||||||
Interest
income affiliates |
4,225 | 4,225 | 12,675 | 12,675 | ||||||||||||
Interest expense |
(8,931 | ) | (6,808 | ) | (22,952 | ) | (14,547 | ) | ||||||||
Other income (expense), net |
8 | 62 | (1,914 | ) | (2,311 | ) | ||||||||||
Income before income taxes |
40,774 | 34,258 | 119,893 | 106,905 | ||||||||||||
Income tax expense |
92 | 1,061 | 1,715 | 9,861 | ||||||||||||
Net income |
40,682 | 33,197 | 118,178 | 97,044 | ||||||||||||
Net income attributable to noncontrolling interests |
3,873 | 2,541 | 9,665 | 7,806 | ||||||||||||
Net income attributable to
Western Gas Partners, LP |
$ | 36,809 | $ | 30,656 | $ | 108,513 | $ | 89,238 | ||||||||
Limited partners interest in net income: |
||||||||||||||||
Net income attributable to
Western Gas Partners, LP |
$ | 36,809 | $ | 30,656 | $ | 108,513 | $ | 89,238 | ||||||||
Pre-acquisition net (income) loss allocated to Parent |
| 789 | (2,780 | ) | (10,250 | ) | ||||||||||
General
partner interest in net (income) loss |
(2,394 | ) | (888 | ) | (5,684 | ) | (1,890 | ) | ||||||||
Limited partners interest in net income |
$ | 34,415 | $ | 30,557 | $ | 100,049 | $ | 77,098 | ||||||||
Net
income per unit basic and diluted |
||||||||||||||||
Common units |
$ | 0.41 | $ | 0.44 | $ | 1.32 | $ | 1.17 | ||||||||
Subordinated
units (2) |
$ | | $ | 0.44 | $ | 0.96 | $ | 1.17 | ||||||||
Weighted
average units outstanding basic and diluted |
||||||||||||||||
Common units |
84,667 | 42,257 | 59,647 | 39,412 | ||||||||||||
Subordinated
units (2) |
| 26,536 | 21,968 | 26,536 | ||||||||||||
(1) | Financial information for 2010 has been revised to include results attributable to the Bison assets. | |
(2) | All subordinated units were converted to common units on a one-for-one basis on August 15, 2011. For purposes of calculating net income per common and subordinated unit, the conversion of the subordinated units is deemed to have occurred on July 1, 2011. |
September 30, | December 31, | |||||||
thousands except number of units | 2011 | 2010 (1) | ||||||
Current assets |
$ | 285,140 | $ | 43,184 | ||||
Note
receivable Anadarko |
260,000 | 260,000 | ||||||
Net property, plant and equipment |
1,732,934 | 1,446,043 | ||||||
Other assets |
165,469 | 106,903 | ||||||
Total assets |
$ | 2,443,543 | $ | 1,856,130 | ||||
Current liabilities |
$ | 81,529 | $ | 45,864 | ||||
Long-term debt |
669,061 | 474,000 | ||||||
Asset retirement obligations and other |
62,860 | 61,840 | ||||||
Total liabilities |
$ | 813,450 | $ | 581,704 | ||||
Common units (90,140,999 and 51,036,968 units issued and outstanding at
September 30, 2011, and December 31, 2010, respectively) |
$ | 1,492,186 | $ | 810,717 | ||||
Subordinated units (zero and 26,536,306 units issued and outstanding at
September 30, 2011, and December 31, 2010, respectively) (2) |
| 282,384 | ||||||
General partner units (1,839,613 and 1,583,128 units issued and outstanding at
September 30, 2011, and December 31, 2010, respectively) |
31,124 | 21,505 | ||||||
Parent net investment |
| 69,358 | ||||||
Noncontrolling interests |
106,783 | 90,462 | ||||||
Total liabilities, equity and partners capital |
$ | 2,443,543 | $ | 1,856,130 | ||||
(1) | Financial information for 2010 has been revised to include results attributable to the Bison assets. | |
(2) | All subordinated units were converted to common units on a one-for-one basis on August 15, 2011. For purposes of calculating net income per common and subordinated unit, the conversion of the subordinated units is deemed to have occurred on July 1, 2011. |
Nine Months Ended | ||||||||
September 30, | ||||||||
thousands | 2011 | 2010 (1) | ||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 118,178 | $ | 97,044 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation, amortization and impairments |
65,512 | 54,683 | ||||||
Change in other items, net |
17,040 | 3,982 | ||||||
Net cash provided by operating activities |
$ | 200,730 | $ | 155,709 | ||||
Cash flows from investing activities |
||||||||
Capital expenditures |
$ | (75,034 | ) | $ | (105,545 | ) | ||
Acquisitions from affiliates |
(25,000 | ) | (734,780 | ) | ||||
Acquisitions from third parties |
(301,957 | ) | (18,047 | ) | ||||
Investments in equity affiliates |
(93 | ) | (310 | ) | ||||
Proceeds from sale of assets to affiliates |
382 | 2,805 | ||||||
Proceeds from sale of assets to third parties |
| 2,425 | ||||||
Net cash used in investing activities |
$ | (401,702 | ) | $ | (853,452 | ) | ||
Cash flows from financing activities |
||||||||
Borrowings, net of issuance costs |
$ | 1,055,939 | $ | 669,987 | ||||
Repayments of debt |
(869,000 | ) | (100,000 | ) | ||||
Proceeds from issuance of common and general partner units,
net of offering expenses |
335,348 | 99,279 | ||||||
Distributions to unitholders |
(99,795 | ) | (67,813 | ) | ||||
Contributions from noncontrolling interest owners |
16,876 | 2,053 | ||||||
Distributions to noncontrolling interest owners |
(10,219 | ) | (10,313 | ) | ||||
Net contributions from (distributions to) Parent |
(3,793 | ) | 70,966 | |||||
Net cash provided by financing activities |
$ | 425,356 | $ | 664,159 | ||||
Net increase (decrease) in cash and cash equivalents |
$ | 224,384 | $ | (33,584 | ) | |||
Cash and cash equivalents at beginning of period |
27,074 | 69,984 | ||||||
Cash and cash equivalents at end of period |
$ | 251,458 | $ | 36,400 | ||||
(1) | Financial information for 2010 has been revised to include results attributable to the Bison assets. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 (1) | 2011 | 2010 (1) | |||||||||||||
Throughput (MMcf/d) |
||||||||||||||||
Gathering,
treating and transportation (2) |
1,219 | 1,132 | 1,270 | 1,089 | ||||||||||||
Processing (3) |
917 | 707 | 840 | 668 | ||||||||||||
Equity investment (4) |
79 | 115 | 69 | 117 | ||||||||||||
Total throughput (5) |
2,215 | 1,954 | 2,179 | 1,874 | ||||||||||||
Throughput attributable to noncontrolling interests |
258 | 195 | 237 | 194 | ||||||||||||
Total throughput attributable to
Western Gas Partners, LP |
1,957 | 1,759 | 1,942 | 1,680 | ||||||||||||
Gross
margin per Mcf attributable to Western Gas Partners, LP (6) |
$ | 0.56 | $ | 0.50 | $ | 0.55 | $ | 0.54 | ||||||||
(1) | Throughput for 2010 has been revised to include volumes attributable to the Bison assets. | |
(2) | Excludes average NGL pipeline volumes of 25 MBbls/d and 11 MBbls/d, for the three months ended September 30, 2011 and 2010, respectively, and 23 MBbls/d and 15 MBbls/d, for the nine months ended September 30, 2011 and 2010, respectively. | |
(3) | Includes 100% of Chipeta, Granger and Hilight system volumes and 50% of Newcastle system volumes for all periods presented as well as throughput beginning March 2011 attributable to the Platte Valley system. | |
(4) | Represents the Partnerships 14.81% share of Fort Unions gross volumes and excludes crude oil throughput measured in barrels attributable to White Cliffs. | |
(5) | Includes affiliate, third-party and equity-investment volumes. | |
(6) | Average for period. Calculated as gross margin, excluding the noncontrolling interest owners proportionate share of revenues and cost of product, divided by total throughput attributable to Western Gas Partners, LP. Calculation includes income attributable to the Partnerships investments in Fort Union and White Cliffs and volumes attributable to the Partnerships investment in Fort Union. |
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