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 February 24, 2016. |
WESTERN GAS PARTNERS, LP | ||||
By: | Western Gas Holdings, LLC, its general partner | |||
Dated: | February 24, 2016 | By: | /s/ Donald R. Sinclair | |
Donald R. Sinclair President and Chief Executive Officer |
99.1 | Press Release dated February 24, 2016. |
(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. |
(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. |
• | Adjusted EBITDA(1) between $860 million and $950 million |
• | Total capital expenditures (including equity investments but excluding acquisitions) between $450 million and $490 million |
• | Maintenance capital expenditures between 7% and 10% of Adjusted EBITDA(1) |
• | Distribution Coverage ratio(1) of 1.1 times |
• | WES distribution growth of 10% |
• | WGP distribution growth of 20% |
• | Full-year results from the Springfield acquisition; |
• | No further acquisitions in 2016; |
• | Start-ups of Ramsey Trains IV and V at the DBM complex in the second and third quarters of 2016, respectively; |
• | Ramsey Train III returning to limited service in April and full service in conjunction with the start-up of Train IV; and |
• | Recovery of all business interruption insurance proceeds related to losses at the DBM complex by the end of the year. |
(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 December 31, | Year Ended December 31, | |||||||||||||||
thousands except Coverage ratio | 2015 | 2014 (1) | 2015 | 2014 (1) | ||||||||||||
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 | $ | (171,661 | ) | $ | 94,460 | $ | (73,538 | ) | $ | 393,842 | ||||||
Add: | ||||||||||||||||
Distributions from equity investees | 25,244 | 23,574 | 98,298 | 81,022 | ||||||||||||
Non-cash equity-based compensation expense | 979 | 907 | 4,402 | 4,095 | ||||||||||||
Interest expense, net (non-cash settled) (2) | 4,480 | — | 14,400 | — | ||||||||||||
Income tax (benefit) expense | (195 | ) | 3,460 | 3,380 | 11,659 | |||||||||||
Depreciation and amortization (3) | 59,792 | 53,635 | 241,556 | 183,945 | ||||||||||||
Impairments | 237,867 | 653 | 514,096 | 3,084 | ||||||||||||
Above-market component of swap extensions with Anadarko | 10,533 | — | 18,449 | — | ||||||||||||
Other expense (3) | 1,290 | — | 1,290 | — | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (20,224 | ) | — | 57,020 | — | |||||||||||
Equity income, net | 12,114 | 16,514 | 71,251 | 57,836 | ||||||||||||
Cash paid for maintenance capital expenditures (3) | 12,711 | 13,009 | 49,300 | 48,563 | ||||||||||||
Capitalized interest | 1,492 | 2,485 | 8,318 | 9,832 | ||||||||||||
Cash paid for (reimbursement of) income taxes | — | 250 | (138 | ) | (90 | ) | ||||||||||
Other income (3) (4) | — | 74 | 219 | 325 | ||||||||||||
Distributable cash flow | $ | 162,236 | $ | 144,357 | $ | 636,363 | $ | 561,181 | ||||||||
Distributions declared (5) | ||||||||||||||||
Limited partners | $ | 102,862 | $ | 392,077 | ||||||||||||
General partner | 49,726 | 179,610 | ||||||||||||||
Total | $ | 152,588 | $ | 571,687 | ||||||||||||
Coverage ratio | 1.06 | x | 1.11 | x |
(1) | In March 2015, WES acquired Anadarko’s interest in Delaware Basin JV Gathering LLC, which owns a 50% interest in a gathering system and related facilities (the “DBJV system”). WES will make a cash payment on March 1, 2020, to Anadarko as consideration for the acquisition. The net present value of this future obligation has been recorded on the consolidated balance sheet under Deferred purchase price obligation - Anadarko. Financial information has been recast to include the financial position and results attributable to the DBJV system. |
(2) | Includes accretion expense related to the Deferred purchase price obligation - Anadarko associated with the acquisition of DBJV. |
(3) | Includes WES’s 75% share of depreciation and amortization; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. For the three months and year ended December 31, 2015, other expense also includes $0.4 million of lower of cost or market inventory adjustments at our DBM complex. |
(4) | Excludes income of zero for each of the three months ended December 31, 2015 and 2014, and zero and $0.5 million for the years ended December 31, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease. |
(5) | Reflects cash distributions of $0.800 and $3.050 per unit declared for the three months and year ended December 31, 2015, respectively. |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
thousands | 2015 | 2014 (1) | 2015 | 2014 (1) | ||||||||||||
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 | $ | (171,661 | ) | $ | 94,460 | $ | (73,538 | ) | $ | 393,842 | ||||||
Add: | ||||||||||||||||
Distributions from equity investees | 25,244 | 23,574 | 98,298 | 81,022 | ||||||||||||
Non-cash equity-based compensation expense | 979 | 907 | 4,402 | 4,095 | ||||||||||||
Interest expense | 31,535 | 21,063 | 113,872 | 76,766 | ||||||||||||
Income tax expense | — | 3,460 | 5,285 | 11,659 | ||||||||||||
Depreciation and amortization (2) | 59,792 | 53,635 | 241,556 | 183,945 | ||||||||||||
Impairments | 237,867 | 653 | 514,096 | 3,084 | ||||||||||||
Other expense (2) | 1,290 | — | 1,290 | — | ||||||||||||
Less: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (20,224 | ) | — | 57,020 | — | |||||||||||
Equity income, net | 12,114 | 16,514 | 71,251 | 57,836 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | ||||||||||||
Other income (2) (3) | — | 74 | 219 | 325 | ||||||||||||
Income tax benefit | 195 | — | 1,905 | — | ||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP | $ | 188,736 | $ | 176,939 | $ | 757,966 | $ | 679,352 | ||||||||
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 | $ | 188,736 | $ | 176,939 | $ | 757,966 | $ | 679,352 | ||||||||
Adjusted EBITDA attributable to noncontrolling interest | 2,526 | 3,661 | 12,699 | 16,583 | ||||||||||||
Interest income (expense), net | (27,310 | ) | (16,838 | ) | (96,972 | ) | (59,866 | ) | ||||||||
Uncontributed cash-based compensation awards | (48 | ) | (197 | ) | (214 | ) | (175 | ) | ||||||||
Accretion and amortization of long-term obligations, net | 5,402 | 691 | 17,698 | 2,736 | ||||||||||||
Current income tax benefit (expense) | (369 | ) | 5,841 | (1,448 | ) | 1,666 | ||||||||||
Other income (expense), net (3) | (846 | ) | 76 | (619 | ) | 336 | ||||||||||
Distributions from equity investments in excess of cumulative earnings | (3,835 | ) | (3,668 | ) | (16,244 | ) | (18,055 | ) | ||||||||
Changes in operating working capital: | ||||||||||||||||
Accounts receivable, net | 18,490 | 45,968 | (5,614 | ) | (6,691 | ) | ||||||||||
Accounts and imbalance payables and accrued liabilities, net | (12,565 | ) | (74,969 | ) | 3,154 | (39,162 | ) | |||||||||
Other | 1,020 | 1,840 | (797 | ) | 3,485 | |||||||||||
Net cash provided by operating activities | $ | 171,201 | $ | 139,344 | $ | 669,609 | $ | 580,209 | ||||||||
Cash flow information of Western Gas Partners, LP | ||||||||||||||||
Net cash provided by operating activities | $ | 669,609 | $ | 580,209 | ||||||||||||
Net cash used in investing activities | $ | (466,424 | ) | $ | (2,670,998 | ) | ||||||||||
Net cash provided by (used in) financing activities | $ | (172,206 | ) | $ | 2,057,115 |
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
(2) | Includes WES’s 75% share of depreciation and amortization; other expense; and other income attributable to Chipeta. For the three months and year ended December 31, 2015, other expense also includes $0.4 million of lower of cost or market inventory adjustments at our DBM complex. |
(3) | Excludes income of zero for each of the three months ended December 31, 2015 and 2014, and zero and $0.5 million for the years ended December 31, 2015 and 2014, respectively, related to a component of a gas processing agreement accounted for as a capital lease. |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
thousands | 2015 | 2014 (1) | 2015 | 2014 (1) | ||||||||||||
Reconciliation of Adjusted gross margin attributable to Western Gas Partners, LP to Operating income (loss) | ||||||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets | $ | 242,235 | $ | 229,414 | $ | 971,639 | $ | 876,210 | ||||||||
Adjusted gross margin for crude/NGL assets | 22,933 | 22,022 | 88,642 | 73,714 | ||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP | $ | 265,168 | $ | 251,436 | $ | 1,060,281 | $ | 949,924 | ||||||||
Adjusted gross margin attributable to noncontrolling interest | $ | 3,557 | $ | 4,572 | $ | 16,779 | $ | 20,183 | ||||||||
Gain (loss) on divestiture and other, net | (20,224 | ) | — | 57,020 | — | |||||||||||
Equity income, net | 12,114 | 16,514 | 71,251 | 57,836 | ||||||||||||
Reimbursed electricity-related charges recorded as revenues | 13,752 | 10,764 | 54,175 | 39,338 | ||||||||||||
Less: | ||||||||||||||||
Distributions from equity investees | 25,244 | 23,574 | 98,298 | 81,022 | ||||||||||||
Operation and maintenance | 78,134 | 71,821 | 296,774 | 255,844 | ||||||||||||
General and administrative | 9,611 | 10,535 | 38,108 | 36,223 | ||||||||||||
Property and other taxes | 4,892 | 4,723 | 30,533 | 26,066 | ||||||||||||
Depreciation and amortization | 60,448 | 54,278 | 244,163 | 186,514 | ||||||||||||
Impairments | 237,867 | 653 | 514,096 | 3,084 | ||||||||||||
Operating income (loss) | $ | (141,829 | ) | $ | 117,702 | $ | 37,534 | $ | 478,528 |
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
thousands except per-unit amounts | 2015 | 2014 (1) | 2015 | 2014 (1) | ||||||||||||
Revenues and other | ||||||||||||||||
Gathering, processing and transportation of natural gas and natural gas liquids | $ | 239,373 | $ | 202,385 | $ | 938,121 | $ | 745,145 | ||||||||
Natural gas, natural gas liquids and drip condensate sales | 131,075 | 162,493 | 617,949 | 624,233 | ||||||||||||
Other | 842 | 1,839 | 5,302 | 13,490 | ||||||||||||
Total revenues and other | 371,290 | 366,717 | 1,561,372 | 1,382,868 | ||||||||||||
Equity income, net | 12,114 | 16,514 | 71,251 | 57,836 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 114,057 | 123,519 | 528,435 | 454,445 | ||||||||||||
Operation and maintenance | 78,134 | 71,821 | 296,774 | 255,844 | ||||||||||||
General and administrative | 9,611 | 10,535 | 38,108 | 36,223 | ||||||||||||
Property and other taxes | 4,892 | 4,723 | 30,533 | 26,066 | ||||||||||||
Depreciation and amortization | 60,448 | 54,278 | 244,163 | 186,514 | ||||||||||||
Impairments | 237,867 | 653 | 514,096 | 3,084 | ||||||||||||
Total operating expenses | 505,009 | 265,529 | 1,652,109 | 962,176 | ||||||||||||
Gain (loss) on divestiture and other, net (2) | (20,224 | ) | — | 57,020 | — | |||||||||||
Operating income (loss) | (141,829 | ) | 117,702 | 37,534 | 478,528 | |||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | ||||||||||||
Interest expense | (31,535 | ) | (21,063 | ) | (113,872 | ) | (76,766 | ) | ||||||||
Other income (expense), net | (846 | ) | 76 | (619 | ) | 864 | ||||||||||
Income (loss) before income taxes | (169,985 | ) | 100,940 | (60,057 | ) | 419,526 | ||||||||||
Income tax (benefit) expense | (195 | ) | 3,460 | 3,380 | 11,659 | |||||||||||
Net income (loss) | (169,790 | ) | 97,480 | (63,437 | ) | 407,867 | ||||||||||
Net income (loss) attributable to noncontrolling interest | 1,871 | 3,020 | 10,101 | 14,025 | ||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | (171,661 | ) | $ | 94,460 | $ | (73,538 | ) | $ | 393,842 | ||||||
Limited partners’ interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | (171,661 | ) | $ | 94,460 | $ | (73,538 | ) | $ | 393,842 | ||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (3,071 | ) | (1,742 | ) | (16,353 | ) | |||||||||
General partner interest in net (income) loss | (47,581 | ) | (37,041 | ) | (180,996 | ) | (120,980 | ) | ||||||||
Limited partners’ interest in net income (loss) | $ | (219,242 | ) | $ | 54,348 | $ | (256,276 | ) | $ | 256,509 | ||||||
Net income (loss) per common unit – basic | $ | (1.60 | ) | $ | 0.42 | $ | (1.95 | ) | $ | 2.13 | ||||||
Net income (loss) per common unit – diluted | (1.60 | ) | 0.42 | (1.95 | ) | 2.12 | ||||||||||
Weighted-average common units outstanding – basic | 128,576 | 124,263 | 128,345 | 119,822 | ||||||||||||
Weighted-average common units outstanding – diluted | 139,905 | 128,652 | 139,459 | 120,928 |
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
(2) | For the three months and year ended December 31, 2015, includes a net loss of $20.3 million (inclusive of estimated property insurance recoveries) related to an incident at the DBM complex on December 3, 2015. |
December 31, | ||||||||
thousands except number of units | 2015 | 2014 (1) | ||||||
Current assets | $ | 286,881 | $ | 186,350 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant and equipment | 4,289,974 | 4,571,443 | ||||||
Other assets | 1,870,407 | 1,936,725 | ||||||
Total assets | $ | 6,707,262 | $ | 6,954,518 | ||||
Current liabilities | $ | 199,232 | $ | 239,833 | ||||
Long-term debt | 2,707,357 | 2,422,954 | ||||||
Asset retirement obligations and other | 124,569 | 157,356 | ||||||
Deferred purchase price obligation – Anadarko | 188,674 | — | ||||||
Total liabilities | $ | 3,219,832 | $ | 2,820,143 | ||||
Equity and partners’ capital | ||||||||
Common units (128,576,965 and 127,695,130 units issued and outstanding at December 31, 2015 and 2014, respectively) | $ | 2,588,991 | $ | 3,119,714 | ||||
Class C units (11,411,862 and 10,913,853 units issued and outstanding at December 31, 2015 and 2014, respectively) | 710,891 | 716,957 | ||||||
General partner units (2,583,068 units issued and outstanding at December 31, 2015 and 2014) | 120,164 | 105,725 | ||||||
Net investment by Anadarko | — | 122,509 | ||||||
Noncontrolling interest | 67,384 | 69,470 | ||||||
Total liabilities, equity and partners’ capital | $ | 6,707,262 | $ | 6,954,518 |
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
Year Ended December 31, | ||||||||
thousands | 2015 | 2014 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (63,437 | ) | $ | 407,867 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: | ||||||||
Depreciation and amortization | 244,163 | 186,514 | ||||||
Impairments | 514,096 | 3,084 | ||||||
Gain (loss) on divestiture and other, net (2) | (57,020 | ) | — | |||||
Change in other items, net | 31,807 | (17,256 | ) | |||||
Net cash provided by operating activities | 669,609 | 580,209 | ||||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (602,289 | ) | $ | (722,443 | ) | ||
Contributions in aid of construction costs from affiliates | 461 | 183 | ||||||
Acquisitions from affiliates | (12,664 | ) | (379,193 | ) | ||||
Acquisitions from third parties | (3,514 | ) | (1,523,327 | ) | ||||
Investments in equity affiliates | (11,442 | ) | (64,278 | ) | ||||
Distributions from equity investments in excess of cumulative earnings | 16,244 | 18,055 | ||||||
Proceeds from the sale of assets to affiliates | 925 | — | ||||||
Proceeds from the sale of assets to third parties | 145,855 | 5 | ||||||
Net cash used in investing activities | (466,424 | ) | (2,670,998 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 889,606 | $ | 1,646,878 | ||||
Repayments of debt | (610,000 | ) | (650,000 | ) | ||||
Increase (decrease) in outstanding checks | (1,751 | ) | 1,693 | |||||
Proceeds from the issuance of common and general partner units, net of offering expenses | 57,353 | 704,489 | ||||||
Proceeds from the issuance of Class C units | — | 750,000 | ||||||
Distributions to unitholders | (545,143 | ) | (408,621 | ) | ||||
Distributions to noncontrolling interest owner | (12,187 | ) | (15,149 | ) | ||||
Net contributions from Anadarko | 31,467 | 27,825 | ||||||
Above-market component of swap extensions with Anadarko | 18,449 | — | ||||||
Net cash provided by (used in) financing activities | (172,206 | ) | 2,057,115 | |||||
Net increase (decrease) in cash and cash equivalents | 30,979 | (33,674 | ) | |||||
Cash and cash equivalents at beginning of period | 67,054 | 100,728 | ||||||
Cash and cash equivalents at end of period | $ | 98,033 | $ | 67,054 |
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
(2) | For the year ended December 31, 2015, includes a net loss of $20.3 million (inclusive of estimated property insurance recoveries) related to an incident at the DBM complex on December 3, 2015. |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
MMcf/d except throughput measured in barrels and per-unit amounts | 2015 | 2014 (1) | 2015 | 2014 (1) | ||||||||||||
Throughput for natural gas assets | ||||||||||||||||
Gathering, treating and transportation | 1,294 | 1,607 | 1,487 | 1,627 | ||||||||||||
Processing | 2,272 | 1,991 | 2,331 | 1,925 | ||||||||||||
Equity investment (2) | 196 | 170 | 178 | 171 | ||||||||||||
Total throughput for natural gas assets | 3,762 | 3,768 | 3,996 | 3,723 | ||||||||||||
Throughput attributable to noncontrolling interest for natural gas assets | 122 | 153 | 142 | 165 | ||||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets (3) | 3,640 | 3,615 | 3,854 | 3,558 | ||||||||||||
Total throughput (MBbls/d) for crude/NGL assets (4) | 142 | 131 | 138 | 116 | ||||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (5) | $ | 0.72 | $ | 0.69 | $ | 0.69 | $ | 0.67 | ||||||||
Adjusted gross margin per Bbl for crude/NGL assets (6) | $ | 1.76 | $ | 1.83 | $ | 1.76 | $ | 1.75 |
(1) | Throughput has been recast to include throughput attributable to the DBJV system. |
(2) | Represents WES’s 14.81% share of average Fort Union and 22% share of average Rendezvous throughput. Excludes equity investment throughput measured in barrels (captured in “Total throughput (MBbls/d) for crude/NGL assets” as noted below). |
(3) | Includes affiliate, third-party and equity investment throughput (as equity investment throughput is defined in the above footnote), excluding the noncontrolling interest owner’s proportionate share of throughput. |
(4) | Represents total throughput measured in barrels, consisting of throughput from WES’s Chipeta NGL pipeline, WES’s 10% share of average White Cliffs throughput, WES’s 25% share of average Mont Belvieu JV throughput, WES’s 20% share of average TEG and TEP throughput and WES’s 33.33% share of average FRP throughput. |
(5) | Average for period. Calculated as Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets (total revenues 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 owners’ proportionate share of revenue and cost of product) divided by total throughput (MMcf/d) attributable to Western Gas Partners, LP for natural gas assets. |
(6) | Average for period. Calculated as Adjusted gross margin for crude/NGL assets (total revenues 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. |
Three Months Ended | |||
thousands except per-unit amount and Coverage ratio | December 31, 2015 | ||
Distributions declared by Western Gas Partners, LP: | |||
General partner interest | $ | 3,005 | |
Incentive distribution rights | 46,721 | ||
Common units held by WGP | 39,437 | ||
Less: | |||
Public company general and administrative expense | 757 | ||
Cash available for distribution | $ | 88,406 | |
Declared distribution per common unit | $ | 0.40375 | |
Distributions declared by Western Gas Equity Partners, LP | $ | 88,389 | |
Coverage ratio | 1.00 | x |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
thousands except per-unit amounts | 2015 | 2014 (1) | 2015 | 2014 (1) | ||||||||||||
Revenues and other | ||||||||||||||||
Gathering, processing and transportation of natural gas and natural gas liquids | $ | 239,373 | $ | 202,385 | $ | 938,121 | $ | 745,145 | ||||||||
Natural gas, natural gas liquids and drip condensate sales | 131,075 | 162,493 | 617,949 | 624,233 | ||||||||||||
Other | 842 | 1,839 | 5,302 | 13,490 | ||||||||||||
Total revenues and other | 371,290 | 366,717 | 1,561,372 | 1,382,868 | ||||||||||||
Equity income, net | 12,114 | 16,514 | 71,251 | 57,836 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product | 114,057 | 123,519 | 528,435 | 454,445 | ||||||||||||
Operation and maintenance | 78,134 | 71,821 | 296,774 | 255,844 | ||||||||||||
General and administrative | 10,369 | 11,246 | 41,217 | 39,439 | ||||||||||||
Property and other taxes | 4,893 | 4,757 | 30,572 | 26,100 | ||||||||||||
Depreciation and amortization | 60,448 | 54,278 | 244,163 | 186,514 | ||||||||||||
Impairments | 237,867 | 653 | 514,096 | 3,084 | ||||||||||||
Total operating expenses | 505,768 | 266,274 | 1,655,257 | 965,426 | ||||||||||||
Gain (loss) on divestiture and other, net (2) | (20,224 | ) | — | 57,020 | — | |||||||||||
Operating income (loss) | (142,588 | ) | 116,957 | 34,386 | 475,278 | |||||||||||
Interest income – affiliates | 4,225 | 4,225 | 16,900 | 16,900 | ||||||||||||
Interest expense | (31,535 | ) | (21,066 | ) | (113,874 | ) | (76,769 | ) | ||||||||
Other income (expense), net | (834 | ) | 89 | (578 | ) | 938 | ||||||||||
Income (loss) before income taxes | (170,732 | ) | 100,205 | (63,166 | ) | 416,347 | ||||||||||
Income tax (benefit) expense | (195 | ) | 3,460 | 3,380 | 11,659 | |||||||||||
Net income (loss) | (170,537 | ) | 96,745 | (66,546 | ) | 404,688 | ||||||||||
Net income (loss) attributable to noncontrolling interests | (139,766 | ) | 36,510 | (154,409 | ) | 165,468 | ||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP | $ | (30,771 | ) | $ | 60,235 | $ | 87,863 | $ | 239,220 | |||||||
Limited partners’ interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Gas Equity Partners, LP | $ | (30,771 | ) | $ | 60,235 | $ | 87,863 | $ | 239,220 | |||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (3,071 | ) | (1,742 | ) | (16,353 | ) | |||||||||
Limited partners’ interest in net income (loss) | $ | (30,771 | ) | $ | 57,164 | $ | 86,121 | $ | 222,867 | |||||||
Net income (loss) per common unit – basic and diluted | $ | (0.14 | ) | $ | 0.26 | $ | 0.39 | $ | 1.02 | |||||||
Weighted-average number of common units outstanding – basic and diluted | 218,916 | 218,910 | 218,913 | 218,910 |
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
(2) | For the three months and year ended December 31, 2015, includes a net loss of $20.3 million (inclusive of estimated property insurance recoveries) related to an incident at the DBM complex on December 3, 2015. |
December 31, | ||||||||
thousands except number of units | 2015 | 2014 | ||||||
Current assets | $ | 289,028 | $ | 187,059 | ||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Net property, plant and equipment | 4,289,974 | 4,571,443 | ||||||
Other assets | 1,870,407 | 1,936,725 | ||||||
Total assets | $ | 6,709,409 | $ | 6,955,227 | ||||
Current liabilities | $ | 199,309 | $ | 241,058 | ||||
Long-term debt | 2,707,357 | 2,422,954 | ||||||
Asset retirement obligations and other | 124,569 | 157,356 | ||||||
Deferred purchase price obligation – Anadarko | 188,674 | — | ||||||
Total liabilities | $ | 3,219,909 | $ | 2,821,368 | ||||
Equity and partners’ capital | ||||||||
Common units (218,919,380 and 218,909,977 units issued and outstanding at December 31, 2015 and 2014, respectively) | $ | 1,060,842 | $ | 1,260,195 | ||||
Net investment by Anadarko | — | 122,509 | ||||||
Noncontrolling interests | 2,428,658 | 2,751,155 | ||||||
Total liabilities, equity and partners’ capital | $ | 6,709,409 | $ | 6,955,227 |
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
Year Ended December 31, | ||||||||
thousands | 2015 | 2014 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (66,546 | ) | $ | 404,688 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in working capital: | ||||||||
Depreciation and amortization | 244,163 | 186,514 | ||||||
Impairments | 514,096 | 3,084 | ||||||
Gain (loss) on divestiture and other, net (2) | (57,020 | ) | — | |||||
Change in other items, net | 32,080 | (17,910 | ) | |||||
Net cash provided by operating activities | 666,773 | 576,376 | ||||||
Cash flows from investing activities | ||||||||
Capital expenditures | $ | (602,289 | ) | $ | (722,443 | ) | ||
Contributions in aid of construction costs from affiliates | 461 | 183 | ||||||
Acquisitions from affiliates | (12,664 | ) | (379,193 | ) | ||||
Acquisitions from third parties | (3,514 | ) | (1,523,327 | ) | ||||
Investments in equity affiliates | (11,442 | ) | (64,278 | ) | ||||
Distributions from equity investments in excess of cumulative earnings | 16,244 | 18,055 | ||||||
Proceeds from the sale of assets to affiliates | 925 | — | ||||||
Proceeds from the sale of assets to third parties | 145,855 | 5 | ||||||
Net cash used in investing activities | (466,424 | ) | (2,670,998 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | $ | 889,606 | $ | 1,648,028 | ||||
Repayments of debt | (611,150 | ) | (650,000 | ) | ||||
Increase (decrease) in outstanding checks | (1,751 | ) | 1,693 | |||||
Proceeds from the issuance of WES common units, net of offering expenses | 57,353 | 691,178 | ||||||
Proceeds from the issuance of WES Class C units | — | 750,000 | ||||||
Distributions to WGP unitholders | (306,477 | ) | (228,481 | ) | ||||
Distributions to Chipeta noncontrolling interest owner | (12,187 | ) | (15,149 | ) | ||||
Distributions to noncontrolling interest owners of WES | (233,178 | ) | (176,344 | ) | ||||
Net contributions from Anadarko | 31,467 | 27,825 | ||||||
Above-market component of swap extensions with Anadarko | 18,449 | — | ||||||
Net cash provided by (used in) financing activities | (167,868 | ) | 2,048,750 | |||||
Net increase (decrease) in cash and cash equivalents | 32,481 | (45,872 | ) | |||||
Cash and cash equivalents at beginning of period | 67,213 | 113,085 | ||||||
Cash and cash equivalents at end of period | $ | 99,694 | $ | 67,213 |
(1) | Financial information has been recast to include the financial position and results attributable to the DBJV system. |
(2) | For the year ended December 31, 2015, includes a net loss of $20.3 million (inclusive of estimated property insurance recoveries) related to an incident at the DBM complex on December 3, 2015. |