Delaware (State or other jurisdiction of incorporation or organization) | 001-34046 (Commission File Number) | 26-1075808 (IRS Employer Identification No.) |
1201 Lake Robbins Drive The Woodlands, Texas 77380-1046 (Address of principal executive office) (Zip Code) | ||
(832) 636-6000 (Registrants’ telephone number, including area code) |
99.1 | Press Release dated August 5, 2014. |
WESTERN GAS PARTNERS, LP | ||||
By: | Western Gas Holdings, LLC, its general partner | |||
Dated: | August 5, 2014 | By: | /s/ Donald R. Sinclair | |
Donald R. Sinclair President and Chief Executive Officer |
99.1 | Press Release dated August 5, 2014. |
(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. |
(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 June 30, | Six Months Ended June 30, | |||||||||||||||
thousands except Coverage ratio | 2014 | 2013 (1) | 2014 | 2013 (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 | $ | 95,032 | $ | 60,016 | $ | 182,467 | $ | 110,730 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investees | 24,328 | 6,026 | 36,641 | 11,032 | ||||||||||||
Non-cash equity-based compensation expense | 1,056 | 824 | 2,153 | 1,701 | ||||||||||||
Income tax (benefit) expense | 226 | 53 | (2 | ) | 4,219 | |||||||||||
Depreciation, amortization and impairments (2) | 43,103 | 35,857 | 83,078 | 67,681 | ||||||||||||
Less: | ||||||||||||||||
Equity income, net | 13,008 | 3,456 | 22,259 | 7,424 | ||||||||||||
Cash paid for maintenance capital expenditures (2) | 11,698 | 6,174 | 20,540 | 12,206 | ||||||||||||
Capitalized interest | 2,007 | 3,260 | 5,447 | 6,441 | ||||||||||||
Cash paid for (reimbursement of) income taxes | — | — | (340 | ) | — | |||||||||||
Other income (2) (3) | 79 | 103 | 157 | 380 | ||||||||||||
Distributable cash flow | $ | 136,953 | $ | 89,783 | $ | 256,274 | $ | 168,912 | ||||||||
Distributions declared (4) | ||||||||||||||||
Limited partners | $ | 77,396 | $ | 151,103 | ||||||||||||
General partner | 28,259 | 53,301 | ||||||||||||||
Total | $ | 105,655 | $ | 204,404 | ||||||||||||
Coverage ratio | 1.30 | x | 1.25 | x |
(1) | Financial information has been recast to include the financial position and results attributable to the 20% interest in each of Texas Express Pipeline LLC (“TEP”) and Texas Express Gathering LLC (“TEG”) and a 33.33% interest in Front Range Pipeline LLC (“FRP”) acquired from Anadarko (collectively, the “TEFR Interests”). |
(2) | Includes WES’s 75% share of depreciation, amortization and impairments; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. |
(3) | Excludes income of $0.1 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively, and $0.5 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively, related to a component of a gas processing agreement accounted for as a capital lease. |
(4) | Reflects distributions of $0.650 and $1.275 per unit declared for the three and six months ended June 30, 2014, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands | 2014 | 2013 (1) | 2014 | 2013 (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 | $ | 95,032 | $ | 60,016 | $ | 182,467 | $ | 110,730 | ||||||||
Add: | ||||||||||||||||
Distributions from equity investees | 24,328 | 6,026 | 36,641 | 11,032 | ||||||||||||
Non-cash equity-based compensation expense | 1,057 | 824 | 2,154 | 1,701 | ||||||||||||
Interest expense | 20,864 | 12,654 | 34,825 | 24,465 | ||||||||||||
Income tax expense | 226 | 53 | 226 | 4,219 | ||||||||||||
Depreciation, amortization and impairments (2) | 43,103 | 35,857 | 83,078 | 67,681 | ||||||||||||
Less: | ||||||||||||||||
Equity income, net | 13,008 | 3,456 | 22,259 | 7,424 | ||||||||||||
Interest income, net – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Other income (2) (3) | 79 | 103 | 157 | 380 | ||||||||||||
Income tax benefit | — | — | 228 | — | ||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP | $ | 167,298 | $ | 107,646 | $ | 308,297 | $ | 203,574 | ||||||||
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 | $ | 167,298 | $ | 107,646 | $ | 308,297 | $ | 203,574 | ||||||||
Adjusted EBITDA attributable to noncontrolling interest | 4,090 | 2,499 | 8,416 | 5,345 | ||||||||||||
Interest income (expense), net | (16,639 | ) | (8,429 | ) | (26,375 | ) | (16,015 | ) | ||||||||
Non-cash equity-based compensation expense | (20 | ) | 54 | 33 | (19 | ) | ||||||||||
Debt-related amortization and other items, net | 678 | 566 | 1,358 | 1,126 | ||||||||||||
Current income tax (expense) benefit | (53 | ) | 10,032 | 465 | 15,136 | |||||||||||
Other income (expense), net (3) | 82 | 103 | 163 | 381 | ||||||||||||
Distributions from equity investments in excess of cumulative earnings | (7,804 | ) | — | (9,848 | ) | — | ||||||||||
Changes in operating working capital: | ||||||||||||||||
Accounts receivable, net | (12,371 | ) | (48,468 | ) | (23,353 | ) | (26,807 | ) | ||||||||
Accounts and natural gas imbalance payables and accrued liabilities, net | 2,521 | (20,951 | ) | 794 | 336 | |||||||||||
Other | 2,369 | 2,070 | 4,247 | 235 | ||||||||||||
Net cash provided by operating activities | $ | 140,151 | $ | 45,122 | $ | 264,197 | $ | 183,292 | ||||||||
Cash flow information of Western Gas Partners, LP | ||||||||||||||||
Net cash provided by operating activities | $ | 264,197 | $ | 183,292 | ||||||||||||
Net cash used in investing activities | $ | (770,776 | ) | $ | (1,182,682 | ) | ||||||||||
Net cash provided by financing activities | $ | 516,480 | $ | 653,589 |
(1) | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. |
(2) | Includes WES’s 75% share of depreciation, amortization and impairments and other income attributable to Chipeta. |
(3) | Excludes income of $0.1 million and $0.4 million for the three months ended June 30, 2014 and 2013, respectively, and $0.5 million and $0.8 million for the six months ended June 30, 2014 and 2013, respectively, related to a component of a gas processing agreement accounted for as a capital lease. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands | 2014 | 2013 (1) | 2014 | 2013 (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 | $ | 209,745 | $ | 157,084 | $ | 393,682 | $ | 297,479 | ||||||||
Adjusted gross margin for crude/NGL assets | 21,507 | 3,374 | 32,296 | 6,965 | ||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP | $ | 231,252 | $ | 160,458 | $ | 425,978 | $ | 304,444 | ||||||||
Adjusted gross margin attributable to noncontrolling interest | $ | 4,935 | $ | 3,510 | $ | 10,029 | $ | 7,213 | ||||||||
Equity income, net | 13,008 | 3,456 | 22,259 | 7,424 | ||||||||||||
Less: | ||||||||||||||||
Distributions from equity investees | 24,328 | 6,026 | 36,641 | 11,032 | ||||||||||||
Operation and maintenance | 50,875 | 41,669 | 91,407 | 78,408 | ||||||||||||
General and administrative | 8,000 | 7,288 | 16,415 | 14,952 | ||||||||||||
Property and other taxes | 7,113 | 6,086 | 14,154 | 11,871 | ||||||||||||
Depreciation, amortization and impairments | 43,746 | 36,496 | 84,358 | 68,936 | ||||||||||||
Operating income | $ | 115,133 | $ | 69,859 | $ | 215,291 | $ | 133,882 |
(1) | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands except per-unit amounts | 2014 | 2013 (1) | 2014 | 2013 (1) | ||||||||||||
Revenues | ||||||||||||||||
Gathering, processing and transportation of natural gas and natural gas liquids | $ | 161,250 | $ | 109,800 | $ | 302,699 | $ | 212,690 | ||||||||
Natural gas, natural gas liquids and condensate sales | 166,654 | 139,561 | 303,092 | 261,290 | ||||||||||||
Other, net | 2,040 | 2,041 | 3,610 | 3,188 | ||||||||||||
Total revenues | 329,944 | 251,402 | 609,401 | 477,168 | ||||||||||||
Equity income, net | 13,008 | 3,456 | 22,259 | 7,424 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 118,085 | 93,460 | 210,035 | 176,543 | ||||||||||||
Operation and maintenance | 50,875 | 41,669 | 91,407 | 78,408 | ||||||||||||
General and administrative | 8,000 | 7,288 | 16,415 | 14,952 | ||||||||||||
Property and other taxes | 7,113 | 6,086 | 14,154 | 11,871 | ||||||||||||
Depreciation, amortization and impairments | 43,746 | 36,496 | 84,358 | 68,936 | ||||||||||||
Total operating expenses | 227,819 | 184,999 | 416,369 | 350,710 | ||||||||||||
Operating income | 115,133 | 69,859 | 215,291 | 133,882 | ||||||||||||
Interest income, net – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Interest expense | (20,864 | ) | (12,654 | ) | (34,825 | ) | (24,465 | ) | ||||||||
Other income | 214 | 499 | 691 | 1,173 | ||||||||||||
Income before income taxes | 98,708 | 61,929 | 189,607 | 119,040 | ||||||||||||
Income tax (benefit) expense | 226 | 53 | (2 | ) | 4,219 | |||||||||||
Net income | 98,482 | 61,876 | 189,609 | 114,821 | ||||||||||||
Net income attributable to noncontrolling interest | 3,450 | 1,860 | 7,142 | 4,091 | ||||||||||||
Net income attributable to Western Gas Partners, LP | $ | 95,032 | $ | 60,016 | $ | 182,467 | $ | 110,730 | ||||||||
Limited partners’ interest in net income: | ||||||||||||||||
Net income attributable to Western Gas Partners, LP | $ | 95,032 | $ | 60,016 | $ | 182,467 | $ | 110,730 | ||||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | 948 | 956 | (4,510 | ) | |||||||||||
General partner interest in net (income) loss | (28,047 | ) | (16,154 | ) | (52,881 | ) | (29,040 | ) | ||||||||
Limited partners’ interest in net income | $ | 66,985 | $ | 44,810 | $ | 130,542 | $ | 77,180 | ||||||||
Net income per common unit – basic and diluted | $ | 0.57 | $ | 0.41 | $ | 1.11 | $ | 0.72 | ||||||||
Weighted average common units outstanding – basic and diluted | 118,177 | 108,736 | 117,948 | 106,784 |
(1) | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. |
thousands except number of units | June 30, 2014 | December 31, 2013 (1) | ||||||
Current assets | $ | 224,203 | $ | 194,810 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant and equipment | 3,655,367 | 3,383,255 | ||||||
Other assets | 825,242 | 779,743 | ||||||
Total assets | $ | 4,964,812 | $ | 4,617,808 | ||||
Current liabilities | $ | 176,658 | $ | 190,460 | ||||
Long-term debt | 2,022,876 | 1,418,169 | ||||||
Asset retirement obligations and other | 82,528 | 117,143 | ||||||
Total liabilities | $ | 2,282,062 | $ | 1,725,772 | ||||
Equity and partners’ capital | ||||||||
Common units (118,971,307 and 117,322,812 units issued and outstanding at June 30, 2014, and December 31, 2013, respectively) | $ | 2,528,069 | $ | 2,431,193 | ||||
General partner units (2,408,699 and 2,394,345 units issued and outstanding at June 30, 2014, and December 31, 2013, respectively) | 84,894 | 78,157 | ||||||
Net investment by Anadarko | — | 312,092 | ||||||
Noncontrolling interest | 69,787 | 70,594 | ||||||
Total liabilities, equity and partners’ capital | $ | 4,964,812 | $ | 4,617,808 |
(1) | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. |
Six Months Ended June 30, | ||||||||
thousands | 2014 | 2013 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income | $ | 189,609 | $ | 114,821 | ||||
Adjustments to reconcile net income to net cash provided by operating activities and changes in working capital: | ||||||||
Depreciation, amortization and impairments | 84,358 | 68,936 | ||||||
Change in other items, net | (9,770 | ) | (465 | ) | ||||
Net cash provided by operating activities | $ | 264,197 | $ | 183,292 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (359,752 | ) | $ | (339,756 | ) | ||
Contributions in aid of construction costs from affiliates | 182 | — | ||||||
Acquisitions from affiliates | (360,952 | ) | (466,936 | ) | ||||
Acquisitions from third parties | — | (212,674 | ) | |||||
Investments in equity affiliates | (59,245 | ) | (156,217 | ) | ||||
Distributions from equity investments in excess of cumulative earnings | 9,848 | — | ||||||
Proceeds from the sale of assets to affiliates | — | 82 | ||||||
Proceeds from the sale of assets to third parties | — | 14 | ||||||
Capitalized interest on equity investments | (857 | ) | (7,195 | ) | ||||
Net cash used in investing activities | $ | (770,776 | ) | $ | (1,182,682 | ) | ||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 1,076,895 | $ | 494,948 | ||||
Repayments of debt | (480,000 | ) | (245,000 | ) | ||||
Increase (decrease) in outstanding checks | 2,517 | (1,809 | ) | |||||
Proceeds from the issuance of common and general partner units, net of offering expenses | 92,588 | 425,386 | ||||||
Distributions to unitholders | (191,359 | ) | (135,801 | ) | ||||
Contributions from noncontrolling interest owner | — | 1,097 | ||||||
Distributions to noncontrolling interest owner | (7,949 | ) | (4,660 | ) | ||||
Net contributions from Anadarko | 23,788 | 119,428 | ||||||
Net cash provided by financing activities | $ | 516,480 | $ | 653,589 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 9,901 | $ | (345,801 | ) | |||
Cash and cash equivalents at beginning of period | 100,728 | 419,981 | ||||||
Cash and cash equivalents at end of period | $ | 110,629 | $ | 74,180 |
(1) | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
MMcf/d except throughput measured in barrels and per-unit amounts | 2014 | 2013 (1) | 2014 | 2013 (1) | ||||||||||||
Throughput for natural gas assets | ||||||||||||||||
Gathering, treating and transportation (2) | 1,608 | 1,370 | 1,600 | 1,311 | ||||||||||||
Processing (2) | 1,971 | 1,725 | 1,885 | 1,667 | ||||||||||||
Equity investment (3) | 153 | 211 | 170 | 206 | ||||||||||||
Total throughput for natural gas assets | 3,732 | 3,306 | 3,655 | 3,184 | ||||||||||||
Throughput attributable to noncontrolling interest for natural gas assets | 171 | 167 | 172 | 161 | ||||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets (4) | 3,561 | 3,139 | 3,483 | 3,023 | ||||||||||||
Total throughput (MBbls/d) for crude/NGL assets (5) | 115 | 26 | 97 | 26 | ||||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (6) | $ | 0.65 | $ | 0.55 | $ | 0.62 | $ | 0.54 | ||||||||
Adjusted gross margin per Bbl for crude/NGL assets (7) | $ | 2.06 | $ | 1.43 | $ | 1.84 | $ | 1.45 |
(1) | Throughput has been recast to include throughput attributable to the TEFR Interests. |
(2) | The combination of WES’s Wattenberg and Platte Valley systems in the first quarter of 2014 into the entity now referred to as the “DJ Basin complex” (also includes the Lancaster plant) resulted in the following: (i) the Wattenberg system volumes previously reported as “Gathering, treating and transportation” are now reported as “Processing” for all periods presented, and (ii) beginning with the first quarter of 2014, volumes both gathered and processed by the two systems are no longer separately reported. |
(3) | 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). |
(4) | 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. |
(5) | Represents total throughput measured in barrels, consisting of throughput from our Chipeta NGL pipeline, our 10% share of average White Cliffs throughput, our 25% share of average Mont Belvieu JV throughput, our 20% share of average TEG and TEP throughput and our 33.33% share of average FRP throughput. |
(6) | 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 our equity investments in Fort Union and Rendezvous, which are measured in Mcf) divided by total throughput (MMcf/d) attributable to Western Gas Partners, LP for natural gas assets. |
(7) | 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 our equity investments in White Cliffs, the Mont Belvieu JV, TEG, TEP and FRP, which are measured in barrels), divided by total throughput (MBbls/d) for crude/NGL assets. |
Three Months Ended | |||
thousands except per-unit amount and Coverage ratio | June 30, 2014 | ||
Distributions declared by Western Gas Partners, LP: | |||
General partner interest | $ | 2,113 | |
Incentive distribution rights | 26,146 | ||
Common units held by WGP | 32,043 | ||
Less: | |||
Public company general and administrative expense | 728 | ||
Cash available for distribution | $ | 59,574 | |
Declared distribution per common unit | $ | 0.27125 | |
Distributions declared by Western Gas Equity Partners, LP | $ | 59,378 | |
Coverage ratio | 1.00 | x |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands except per-unit amounts | 2014 | 2013 (1) | 2014 | 2013 (1) | ||||||||||||
Revenues | ||||||||||||||||
Gathering, processing and transportation of natural gas and natural gas liquids | $ | 161,250 | $ | 109,800 | $ | 302,699 | $ | 212,690 | ||||||||
Natural gas, natural gas liquids and condensate sales | 166,654 | 139,561 | 303,092 | 261,290 | ||||||||||||
Other, net | 2,040 | 2,041 | 3,610 | 3,188 | ||||||||||||
Total revenues | 329,944 | 251,402 | 609,401 | 477,168 | ||||||||||||
Equity income, net | 13,008 | 3,456 | 22,259 | 7,424 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 118,085 | 93,460 | 210,035 | 176,543 | ||||||||||||
Operation and maintenance | 50,875 | 41,669 | 91,407 | 78,408 | ||||||||||||
General and administrative | 8,757 | 8,209 | 18,143 | 17,138 | ||||||||||||
Property and other taxes | 7,113 | 6,086 | 14,154 | 11,871 | ||||||||||||
Depreciation, amortization and impairments | 43,746 | 36,496 | 84,358 | 68,936 | ||||||||||||
Total operating expenses | 228,576 | 185,920 | 418,097 | 352,896 | ||||||||||||
Operating income | 114,376 | 68,938 | 213,563 | 131,696 | ||||||||||||
Interest income, net – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Interest expense | (20,864 | ) | (12,654 | ) | (34,825 | ) | (24,465 | ) | ||||||||
Other income | 235 | 493 | 731 | 1,220 | ||||||||||||
Income before income taxes | 97,972 | 61,002 | 187,919 | 116,901 | ||||||||||||
Income tax (benefit) expense | 226 | 53 | (2 | ) | 4,219 | |||||||||||
Net income | 97,746 | 60,949 | 187,921 | 112,682 | ||||||||||||
Net income attributable to noncontrolling interests | 42,492 | 26,422 | 83,126 | 45,783 | ||||||||||||
Net income attributable to Western Gas Equity Partners, LP | $ | 55,254 | $ | 34,527 | $ | 104,795 | $ | 66,899 | ||||||||
Limited partners’ interest in net income: | ||||||||||||||||
Net income attributable to Western Gas Equity Partners, LP | $ | 55,254 | $ | 34,527 | $ | 104,795 | $ | 66,899 | ||||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | 948 | 956 | (4,510 | ) | |||||||||||
Limited partners’ interest in net income | $ | 55,254 | $ | 35,475 | $ | 105,751 | $ | 62,389 | ||||||||
Net income per common unit – basic and diluted | $ | 0.25 | $ | 0.16 | $ | 0.48 | $ | 0.29 | ||||||||
Weighted average number of common units outstanding – basic and diluted | 218,903 | 218,896 | 218,903 | 218,896 |
(1) | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. |
thousands except number of units | June 30, 2014 | December 31, 2013 (1) | ||||||
Current assets | $ | 235,865 | $ | 207,827 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant and equipment | 3,655,367 | 3,383,255 | ||||||
Other assets | 825,242 | 779,743 | ||||||
Total assets | $ | 4,976,474 | $ | 4,630,825 | ||||
Current liabilities | $ | 176,735 | $ | 191,483 | ||||
Long-term debt | 2,022,876 | 1,418,169 | ||||||
Asset retirement obligations and other | 82,528 | 117,143 | ||||||
Total liabilities | $ | 2,282,139 | $ | 1,726,795 | ||||
Equity and partners’ capital | ||||||||
Common units (218,903,498 and 218,895,515 units issued and outstanding at June 30, 2014, and December 31, 2013, respectively) | $ | 941,814 | $ | 905,082 | ||||
Net investment by Anadarko | — | 312,092 | ||||||
Noncontrolling interests | 1,752,521 | 1,686,856 | ||||||
Total liabilities, equity and partners’ capital | $ | 4,976,474 | $ | 4,630,825 |
(1) | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. |
Six Months Ended June 30, | ||||||||
thousands | 2014 | 2013 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income | $ | 187,921 | $ | 112,682 | ||||
Adjustments to reconcile net income to net cash provided by operating activities and changes in working capital: | ||||||||
Depreciation, amortization and impairments | 84,358 | 68,936 | ||||||
Change in other items, net | (10,146 | ) | (927 | ) | ||||
Net cash provided by operating activities | $ | 262,133 | $ | 180,691 | ||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (359,752 | ) | $ | (339,756 | ) | ||
Contributions in aid of construction costs from affiliates | 182 | — | ||||||
Acquisitions from affiliates | (360,952 | ) | (466,936 | ) | ||||
Acquisitions from third parties | — | (212,674 | ) | |||||
Investments in equity affiliates | (59,245 | ) | (156,217 | ) | ||||
Distributions from equity investments in excess of cumulative earnings | 9,848 | — | ||||||
Proceeds from the sale of assets to affiliates | — | 82 | ||||||
Proceeds from the sale of assets to third parties | — | 14 | ||||||
Capitalized interest on equity investments | (857 | ) | (7,195 | ) | ||||
Net cash used in investing activities | $ | (770,776 | ) | $ | (1,182,682 | ) | ||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 1,076,895 | $ | 494,948 | ||||
Repayments of debt | (480,000 | ) | (245,000 | ) | ||||
Increase (decrease) in outstanding checks | 2,517 | (1,809 | ) | |||||
Offering expenses from the issuance of WGP common units | — | (2,367 | ) | |||||
Proceeds from the issuance of WES common units, net of offering expenses | 91,690 | 416,119 | ||||||
Distributions to WGP unitholders | (105,347 | ) | (46,980 | ) | ||||
Contributions received from Chipeta noncontrolling interest owner | — | 1,097 | ||||||
Distributions to Chipeta noncontrolling interest owner | (7,949 | ) | (4,660 | ) | ||||
Distributions to noncontrolling interest owners of WES | (83,894 | ) | (58,929 | ) | ||||
Net contributions from Anadarko | 23,788 | 119,428 | ||||||
Net cash provided by financing activities | $ | 517,700 | $ | 671,847 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 9,057 | $ | (330,144 | ) | |||
Cash and cash equivalents at beginning of period | 113,085 | 422,556 | ||||||
Cash and cash equivalents at end of period | $ | 122,142 | $ | 92,412 |
(1) | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. |