☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 26-1075808 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1201 Lake Robbins Drive The Woodlands, Texas | 77380 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ☑ | Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company ☐ | |||
(Do not check if a smaller reporting company) |
PAGE | |||
PART I | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands except per-unit amounts | 2016 | 2015 (1) | 2016 | 2015 (1) | ||||||||||||
Revenues and other – affiliates | ||||||||||||||||
Gathering, processing and transportation | $ | 186,733 | $ | 199,666 | $ | 374,451 | $ | 387,684 | ||||||||
Natural gas and natural gas liquids sales | 115,672 | 121,613 | 200,538 | 240,353 | ||||||||||||
Other | — | 132 | — | 302 | ||||||||||||
Total revenues and other – affiliates | 302,405 | 321,411 | 574,989 | 628,339 | ||||||||||||
Revenues and other – third parties | ||||||||||||||||
Gathering, processing and transportation | 114,403 | 91,234 | 220,689 | 173,484 | ||||||||||||
Natural gas and natural gas liquids sales | 11,321 | 52,589 | 15,011 | 99,521 | ||||||||||||
Other | 535 | 759 | 1,116 | 1,655 | ||||||||||||
Total revenues and other – third parties | 126,259 | 144,582 | 236,816 | 274,660 | ||||||||||||
Total revenues and other | 428,664 | 465,993 | 811,805 | 902,999 | ||||||||||||
Equity income, net – affiliates | 19,693 | 18,941 | 36,507 | 37,161 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of product (2) | 104,849 | 147,216 | 181,316 | 286,624 | ||||||||||||
Operation and maintenance (2) | 75,173 | 77,837 | 151,386 | 154,022 | ||||||||||||
General and administrative (2) | 10,883 | 9,408 | 22,160 | 20,489 | ||||||||||||
Property and other taxes | 12,078 | 9,586 | 22,428 | 18,866 | ||||||||||||
Depreciation and amortization | 67,305 | 68,554 | 132,400 | 137,529 | ||||||||||||
Impairments | 2,403 | 1,620 | 8,921 | 274,244 | ||||||||||||
Total operating expenses | 272,691 | 314,221 | 518,611 | 891,774 | ||||||||||||
Gain (loss) on divestiture and other, net | (1,907 | ) | — | (2,539 | ) | (6 | ) | |||||||||
Proceeds from business interruption insurance claims | 2,603 | — | 2,603 | — | ||||||||||||
Operating income (loss) | 176,362 | 170,713 | 329,765 | 48,380 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Interest expense (3) | (12,883 | ) | (27,604 | ) | (44,919 | ) | (50,564 | ) | ||||||||
Other income (expense), net | (53 | ) | 71 | 71 | 142 | |||||||||||
Income (loss) before income taxes | 167,651 | 147,405 | 293,367 | 6,408 | ||||||||||||
Income tax (benefit) expense | 326 | 12,246 | 6,959 | 24,516 | ||||||||||||
Net income (loss) | 167,325 | 135,159 | 286,408 | (18,108 | ) | |||||||||||
Net income attributable to noncontrolling interest | 2,804 | 2,816 | 5,827 | 6,042 | ||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | 164,521 | $ | 132,343 | $ | 280,581 | $ | (24,150 | ) | |||||||
Limited partners’ interest in net income (loss): | ||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | 164,521 | $ | 132,343 | $ | 280,581 | $ | (24,150 | ) | |||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (18,719 | ) | (11,326 | ) | (43,758 | ) | |||||||||
Series A Preferred units interest in net (income) loss (4) | (23,121 | ) | — | (25,450 | ) | — | ||||||||||
General partner interest in net (income) loss (4) | (58,381 | ) | (45,971 | ) | (113,781 | ) | (83,148 | ) | ||||||||
Common and Class C limited partners’ interest in net income (loss) (4) | 83,019 | 67,653 | 130,024 | (151,056 | ) | |||||||||||
Net income (loss) per common unit – basic and diluted (5) | $ | 0.55 | $ | 0.46 | $ | 0.86 | $ | (1.14 | ) |
(1) | Financial information has been recast to include the financial position and results attributable to the Springfield interest. See Note 1 and Note 2. |
(2) | Cost of product includes product purchases from Anadarko (as defined in Note 1) of $22.1 million and $46.7 million for the three and six months ended June 30, 2016, respectively, and $53.1 million and $97.0 million for the three and six months ended June 30, 2015, respectively. Operation and maintenance includes charges from Anadarko of $17.7 million and $35.6 million for the three and six months ended June 30, 2016, respectively, and $19.9 million and $36.7 million for the three and six months ended June 30, 2015, respectively. General and administrative includes charges from Anadarko of $9.2 million and $18.1 million for the three and six months ended June 30, 2016, respectively, and $8.1 million and $16.2 million for the three and six months ended June 30, 2015, respectively. See Note 5. |
(3) | Includes affiliate (as defined in Note 1) amounts of $(15.5) million and $(10.9) million for the three and six months ended June 30, 2016, respectively, and $4.2 million and $5.6 million for the three and six months ended June 30, 2015, respectively. See Note 2 and Note 9. |
(4) | Represents net income (loss) earned on and subsequent to the date of acquisition of the Partnership assets (as defined in Note 1). See Note 4. |
(5) | See Note 4 for the calculation of net income (loss) per common unit. |
thousands except number of units | June 30, 2016 | December 31, 2015 (1) | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 157,767 | $ | 98,033 | ||||
Accounts receivable, net (2) | 221,795 | 193,329 | ||||||
Other current assets | 5,691 | 7,855 | ||||||
Total current assets | 385,253 | 299,217 | ||||||
Note receivable – Anadarko | 260,000 | 260,000 | ||||||
Property, plant and equipment | ||||||||
Cost | 6,818,174 | 6,556,778 | ||||||
Less accumulated depreciation | 1,816,030 | 1,697,999 | ||||||
Net property, plant and equipment | 5,002,144 | 4,858,779 | ||||||
Goodwill | 419,186 | 419,186 | ||||||
Other intangible assets | 817,913 | 832,127 | ||||||
Equity investments | 606,125 | 618,887 | ||||||
Other assets | 13,481 | 13,001 | ||||||
Total assets | $ | 7,504,102 | $ | 7,301,197 | ||||
LIABILITIES, EQUITY AND PARTNERS’ CAPITAL | ||||||||
Current liabilities | ||||||||
Accounts and imbalance payables | $ | 90,914 | $ | 98,661 | ||||
Accrued ad valorem taxes | 20,633 | 17,808 | ||||||
Accrued liabilities | 130,018 | 119,019 | ||||||
Total current liabilities | 241,565 | 235,488 | ||||||
Long-term debt | 2,932,004 | 2,690,651 | ||||||
Deferred income taxes | 6,020 | 139,704 | ||||||
Asset retirement obligations and other | 137,139 | 128,652 | ||||||
Deferred purchase price obligation – Anadarko (3) | 29,150 | 188,674 | ||||||
Total long-term liabilities | 3,104,313 | 3,147,681 | ||||||
Total liabilities | 3,345,878 | 3,383,169 | ||||||
Equity and partners’ capital | ||||||||
Series A Preferred units (21,922,831 and zero units issued and outstanding at June 30, 2016, and December 31, 2015, respectively) (4) | 617,094 | — | ||||||
Common units (130,671,970 and 128,576,965 units issued and outstanding at June 30, 2016, and December 31, 2015, respectively) | 2,613,806 | 2,588,991 | ||||||
Class C units (11,946,008 and 11,411,862 units issued and outstanding at June 30, 2016, and December 31, 2015, respectively) (5) | 729,731 | 710,891 | ||||||
General partner units (2,583,068 units issued and outstanding at June 30, 2016, and December 31, 2015) | 131,842 | 120,164 | ||||||
Net investment by Anadarko | — | 430,598 | ||||||
Total partners’ capital | 4,092,473 | 3,850,644 | ||||||
Noncontrolling interest | 65,751 | 67,384 | ||||||
Total equity and partners’ capital | 4,158,224 | 3,918,028 | ||||||
Total liabilities, equity and partners’ capital | $ | 7,504,102 | $ | 7,301,197 |
(1) | Financial information has been recast to include the financial position and results attributable to the Springfield interest. See Note 1 and Note 2. |
(2) | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $81.3 million and $42.7 million as of June 30, 2016, and December 31, 2015, respectively. Accounts receivable, net as of June 30, 2016, and December 31, 2015, also includes an insurance claim receivable related to an incident at the DBM complex. See Note 1. |
(3) | See Note 2. |
(4) | The Series A Preferred units are convertible into common units at the holder’s election on a one-for-one basis at any time after the second anniversary of the issuance date. See Note 4. |
(5) | The Class C units will convert into common units on a one-for-one basis on December 31, 2017, unless the Partnership elects to convert such units earlier or Anadarko extends the conversion date. See Note 4. |
Partners’ Capital | ||||||||||||||||||||||||||||
thousands | Net Investment by Anadarko | Common Units | Class C Units | Series A Preferred Units | General Partner Units | Noncontrolling Interest | Total | |||||||||||||||||||||
Balance at December 31, 2015 (1) | $ | 430,598 | $ | 2,588,991 | $ | 710,891 | $ | — | $ | 120,164 | $ | 67,384 | $ | 3,918,028 | ||||||||||||||
Net income (loss) | 11,326 | 126,292 | 13,213 | 15,969 | 113,781 | 5,827 | 286,408 | |||||||||||||||||||||
Above-market component of swap extensions with Anadarko (2) | — | 16,365 | — | — | — | — | 16,365 | |||||||||||||||||||||
Issuance of common units, net of offering expenses | — | 25,000 | — | — | — | — | 25,000 | |||||||||||||||||||||
Issuance of Series A Preferred units, net of offering expenses | — | — | — | 686,940 | — | — | 686,940 | |||||||||||||||||||||
Beneficial conversion feature of Series A Preferred units | — | 93,409 | — | (93,409 | ) | — | — | — | ||||||||||||||||||||
Amortization of beneficial conversion feature of Class C units and Series A Preferred units | — | (15,108 | ) | 5,627 | 9,481 | — | — | — | ||||||||||||||||||||
Distributions to noncontrolling interest owner | — | — | — | — | — | (7,460 | ) | (7,460 | ) | |||||||||||||||||||
Distributions to unitholders | — | (209,355 | ) | — | (1,887 | ) | (102,138 | ) | — | (313,380 | ) | |||||||||||||||||
Acquisitions from affiliates | (549,865 | ) | (162,635 | ) | — | — | — | — | (712,500 | ) | ||||||||||||||||||
Revision to Deferred purchase price obligation – Anadarko (3) | — | 148,600 | — | — | — | — | 148,600 | |||||||||||||||||||||
Contributions of equity-based compensation from Anadarko | — | 2,012 | — | — | 41 | — | 2,053 | |||||||||||||||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | (27,459 | ) | — | — | — | — | — | (27,459 | ) | |||||||||||||||||||
Net distributions to Anadarko of other assets | — | (348 | ) | — | — | (6 | ) | — | (354 | ) | ||||||||||||||||||
Elimination of net deferred tax liabilities | 135,400 | — | — | — | — | — | 135,400 | |||||||||||||||||||||
Other | — | 583 | — | — | — | — | 583 | |||||||||||||||||||||
Balance at June 30, 2016 | $ | — | $ | 2,613,806 | $ | 729,731 | $ | 617,094 | $ | 131,842 | $ | 65,751 | $ | 4,158,224 |
(1) | Financial information has been recast to include the financial position and results attributable to the Springfield interest. See Note 1 and Note 2. |
(2) | See Note 5. |
(3) | See Note 2. |
Six Months Ended June 30, | ||||||||
thousands | 2016 | 2015 (1) | ||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 286,408 | $ | (18,108 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 132,400 | 137,529 | ||||||
Impairments | 8,921 | 274,244 | ||||||
Non-cash equity-based compensation expense | 2,391 | 2,130 | ||||||
Deferred income taxes | 1,980 | 6,382 | ||||||
Accretion and amortization of long-term obligations, net | (9,055 | ) | 7,070 | |||||
Equity income, net – affiliates | (36,507 | ) | (37,161 | ) | ||||
Distributions from equity investment earnings – affiliates | 38,519 | 39,034 | ||||||
(Gain) loss on divestiture and other, net | 2,539 | 6 | ||||||
Changes in assets and liabilities: | ||||||||
(Increase) decrease in accounts receivable, net | (33,242 | ) | (41,358 | ) | ||||
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | (2,227 | ) | 4,407 | |||||
Change in other items, net | 1,739 | (1,854 | ) | |||||
Net cash provided by operating activities | 393,866 | 372,321 | ||||||
Cash flows from investing activities | ||||||||
Capital expenditures | (255,923 | ) | (361,798 | ) | ||||
Contributions in aid of construction costs from affiliates | 3,854 | — | ||||||
Acquisitions from affiliates | (715,199 | ) | (9,056 | ) | ||||
Acquisitions from third parties | — | (3,514 | ) | |||||
Investments in equity affiliates | 139 | (6,770 | ) | |||||
Distributions from equity investments in excess of cumulative earnings – affiliates | 10,611 | 8,538 | ||||||
Proceeds from the sale of assets to affiliates | 613 | 700 | ||||||
Proceeds from the sale of assets to third parties | 137 | 22 | ||||||
Proceeds from property insurance claims | 2,944 | — | ||||||
Net cash used in investing activities | (952,824 | ) | (371,878 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings, net of debt issuance costs | 530,000 | 769,694 | ||||||
Repayments of debt | (290,000 | ) | (520,000 | ) | ||||
Increase (decrease) in outstanding checks | (1,314 | ) | (2,938 | ) | ||||
Proceeds from the issuance of common units, net of offering expenses | 25,000 | 57,376 | ||||||
Proceeds from the issuance of Series A Preferred units, net of offering expenses | 686,940 | — | ||||||
Distributions to unitholders (2) | (313,380 | ) | (259,247 | ) | ||||
Distributions to noncontrolling interest owner | (7,460 | ) | (7,175 | ) | ||||
Net contributions from (distributions to) Anadarko | (27,459 | ) | (17,439 | ) | ||||
Above-market component of swap extensions with Anadarko (2) | 16,365 | — | ||||||
Net cash provided by (used in) financing activities | 618,692 | 20,271 | ||||||
Net increase (decrease) in cash and cash equivalents | 59,734 | 20,714 | ||||||
Cash and cash equivalents at beginning of period | 98,033 | 67,054 | ||||||
Cash and cash equivalents at end of period | $ | 157,767 | $ | 87,768 | ||||
Supplemental disclosures | ||||||||
Acquisition of DBJV from Anadarko | $ | (159,524 | ) | $ | 174,276 | |||
Net distributions to (contributions from) Anadarko of other assets | 354 | 4,540 | ||||||
Interest paid, net of capitalized interest | 53,973 | 42,165 | ||||||
Taxes paid (reimbursements received) | 67 | (138 | ) |
(1) | Financial information has been recast to include the financial position and results attributable to the Springfield interest. See Note 1 and Note 2. |
(2) | See Note 5. |
Owned and Operated | Operated Interests | Non-Operated Interests | Equity Interests | |||||||||
Gathering systems | 12 | 4 | 5 | 2 | ||||||||
Treating facilities | 13 | 12 | — | 3 | ||||||||
Natural gas processing plants/trains | 19 | 5 | — | 2 | ||||||||
NGL pipelines | 2 | — | — | 3 | ||||||||
Natural gas pipelines | 5 | — | — | — | ||||||||
Oil pipelines | — | 1 | — | 1 |
Percentage Interest | |||
Equity investments (1) | |||
Fort Union | 14.81 | % | |
White Cliffs | 10 | % | |
Rendezvous | 22 | % | |
Mont Belvieu JV | 25 | % | |
TEP | 20 | % | |
TEG | 20 | % | |
FRP | 33.33 | % | |
Proportionate consolidation (2) | |||
Non-Operated Marcellus Interest systems | 33.75 | % | |
Anadarko-Operated Marcellus Interest systems | 33.75 | % | |
Newcastle system | 50 | % | |
DBJV system | 50 | % | |
Springfield system | 50.1 | % | |
Full consolidation | |||
Chipeta (3) | 75 | % |
(1) | Investments in non-controlled entities over which the Partnership exercises significant influence are accounted for under the equity method. “Equity investment throughput” refers to the Partnership’s share of average throughput for these investments. |
(2) | The Partnership proportionately consolidates its associated share of the assets, liabilities, revenues and expenses attributable to these assets. |
(3) | The 25% interest in Chipeta Processing LLC (“Chipeta”) held by a third-party member is reflected within noncontrolling interest in the consolidated financial statements. |
thousands except unit and percent amounts | Acquisition Date | Percentage Acquired | Deferred Purchase Price Obligation - Anadarko | Borrowings | Common Units Issued | Series A Preferred Units | |||||||||||||
DBJV (1) | 03/02/2015 | 100 | % | $ | 174,276 | $ | — | — | — | ||||||||||
Springfield (2) | 03/14/2016 | 100 | % | — | 247,500 | 2,089,602 | 14,030,611 |
(1) | The Partnership acquired Delaware Basin JV Gathering LLC (“DBJV”) from Anadarko. DBJV owns a 50% interest in a gathering system and related facilities. The DBJV gathering system and related facilities (the “DBJV system”) are located in the Delaware Basin in Loving, Ward, Winkler and Reeves Counties, Texas. The Partnership will make a cash payment on March 31, 2020, to Anadarko as consideration for the acquisition of DBJV. At the acquisition date, the Partnership estimated the future payment would be $282.8 million, the net present value of which was $174.3 million. For further information, including revisions to the estimated future payment, see DBJV acquisition—deferred purchase price obligation - Anadarko below. |
(2) | The Partnership acquired Springfield Pipeline LLC (“Springfield”) from Anadarko for $750.0 million, consisting of $712.5 million in cash and the issuance of 1,253,761 of the Partnership’s common units. Springfield owns a 50.1% interest in an oil gathering system and a gas gathering system, such interest being referred to in this report as the “Springfield interest.” The Springfield oil and gas gathering systems (collectively, the “Springfield system”) are located in Dimmit, La Salle, Maverick and Webb Counties in South Texas. The Partnership financed the cash portion of the acquisition through: (i) borrowings of $247.5 million on the Partnership’s senior unsecured revolving credit facility (“RCF”), (ii) the issuance of 835,841 of the Partnership’s common units to WGP and (iii) the issuance of Series A Preferred units to private investors. See Note 4 for further information regarding the Series A Preferred units. |
Three Months Ended June 30, 2015 | ||||||||||||||||
thousands | Partnership Historical | Springfield Interest | Eliminations | Combined | ||||||||||||
Revenues and other | $ | 416,572 | $ | 49,438 | $ | (17 | ) | $ | 465,993 | |||||||
Net income (loss) | 116,440 | 18,719 | — | 135,159 | ||||||||||||
Six Months Ended June 30, 2015 | ||||||||||||||||
thousands | Partnership Historical | Springfield Interest | Eliminations | Combined | ||||||||||||
Revenues and other | $ | 804,981 | $ | 98,051 | $ | (33 | ) | $ | 902,999 | |||||||
Net income (loss) | (60,124 | ) | 42,016 | — | (18,108 | ) |
Deferred purchase price obligation - Anadarko | Estimated future payment obligation | |||||||
Balance at March 2, 2015 – Acquisition date | $ | 174,276 | $ | 282,807 | ||||
Accretion expense (1) | 14,398 | |||||||
Balance at December 31, 2015 | 188,674 | |||||||
Accretion expense (1) | 4,537 | |||||||
Balance at March 31, 2016 | 193,211 | |||||||
Accretion revision (2) | (15,461 | ) | ||||||
Revision to Deferred purchase price obligation – Anadarko (3) | (148,600 | ) | ||||||
Balance at June 30, 2016 | $ | 29,150 | $ | 41,666 |
(1) | Accretion expense was recorded as a charge to Interest expense on the consolidated statements of operations. |
(2) | Interest expense on the consolidated statements of operations includes financing-related accretion revisions of $15.5 million and $10.9 million for the three and six months ended June 30, 2016, respectively. |
(3) | Recorded as revisions within Common units on the consolidated balance sheets and consolidated statement of equity and partners’ capital. |
thousands except per-unit amounts Quarters Ended | Total Quarterly Distribution per Unit | Total Quarterly Cash Distribution | Date of Distribution | ||||||||
2015 | |||||||||||
March 31 | $ | 0.725 | $ | 133,203 | May 2015 | ||||||
June 30 | 0.750 | 139,736 | August 2015 | ||||||||
September 30 | 0.775 | 146,160 | November 2015 | ||||||||
December 31 | 0.800 | 152,588 | February 2016 | ||||||||
2016 | |||||||||||
March 31 | $ | 0.815 | $ | 158,905 | May 2016 | ||||||
June 30 (1) | 0.830 | 162,827 | August 2016 |
(1) | On July 20, 2016, the Board of Directors of the Partnership’s general partner declared a cash distribution to the Partnership’s unitholders of $0.830 per unit, or $162.8 million in aggregate, including incentive distributions, but excluding distributions on Class C units (see Class C unit distributions below) and Series A Preferred units (see Series A Preferred unit distributions below). The cash distribution is payable on August 12, 2016, to unitholders of record at the close of business on August 1, 2016. |
Common Units | Class C Units | Series A Preferred Units | General Partner Units | Total | |||||||||||
Balance at December 31, 2015 | 128,576,965 | 11,411,862 | — | 2,583,068 | 142,571,895 | ||||||||||
PIK Class C units | — | 534,146 | — | — | 534,146 | ||||||||||
Springfield acquisition | 2,089,602 | — | 14,030,611 | — | 16,120,213 | ||||||||||
April 2016 Series A units | — | — | 7,892,220 | — | 7,892,220 | ||||||||||
Long-Term Incentive Plan award vestings | 5,403 | — | — | — | 5,403 | ||||||||||
Balance at June 30, 2016 | 130,671,970 | 11,946,008 | 21,922,831 | 2,583,068 | 167,123,877 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands except per-unit amounts | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | 164,521 | $ | 132,343 | $ | 280,581 | $ | (24,150 | ) | |||||||
Pre-acquisition net (income) loss allocated to Anadarko | — | (18,719 | ) | (11,326 | ) | (43,758 | ) | |||||||||
Series A Preferred units interest in net (income) loss (1) | (23,121 | ) | — | (25,450 | ) | — | ||||||||||
General partner interest in net (income) loss | (58,381 | ) | (45,971 | ) | (113,781 | ) | (83,148 | ) | ||||||||
Common and Class C limited partners’ interest in net income (loss) | $ | 83,019 | $ | 67,653 | $ | 130,024 | $ | (151,056 | ) | |||||||
Net income (loss) allocable to common units (1) | $ | 71,622 | $ | 59,119 | $ | 111,184 | $ | (146,139 | ) | |||||||
Net income (loss) allocable to Class C units (1) | 11,397 | 8,534 | 18,840 | (4,917 | ) | |||||||||||
Common and Class C limited partners’ interest in net income (loss) | $ | 83,019 | $ | 67,653 | $ | 130,024 | $ | (151,056 | ) | |||||||
Net income (loss) per unit | ||||||||||||||||
Common units – basic and diluted (2) | $ | 0.55 | $ | 0.46 | $ | 0.86 | $ | (1.14 | ) | |||||||
Weighted-average units outstanding | ||||||||||||||||
Common units – basic and diluted | 130,669 | 128,481 | 129,830 | 128,111 | ||||||||||||
Excluded due to anti-dilutive effect: | ||||||||||||||||
Class C units | 11,849 | 11,023 | 11,719 | 10,981 | ||||||||||||
Series A Preferred units assuming conversion to common units | 20,709 | — | 11,742 | — |
(1) | Adjusted to reflect amortization of the beneficial conversion features. |
(2) | The impact of Class C units and the conversion of Series A Preferred units would be anti-dilutive. |
per barrel except natural gas | 2016 | ||||||
Ethane | $ | 18.41 | − | 23.11 | |||
Propane | 47.08 | − | 52.90 | ||||
Isobutane | 62.09 | − | 73.89 | ||||
Normal butane | 54.62 | − | 64.93 | ||||
Natural gasoline | 72.88 | − | 81.68 | ||||
Condensate | 76.47 | − | 81.68 | ||||
Natural gas (per MMBtu) | 4.87 | − | 5.96 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Gains (losses) on commodity price swap agreements related to sales: (1) | ||||||||||||||||
Natural gas sales | $ | 5,202 | $ | 22,344 | $ | 12,243 | $ | 33,326 | ||||||||
Natural gas liquids sales | 20,480 | 38,297 | 40,550 | 82,729 | ||||||||||||
Total | 25,682 | 60,641 | 52,793 | 116,055 | ||||||||||||
Losses on commodity price swap agreements related to purchases (2) | (16,913 | ) | (41,720 | ) | (35,784 | ) | (75,899 | ) | ||||||||
Net gains (losses) on commodity price swap agreements | $ | 8,769 | $ | 18,921 | $ | 17,009 | $ | 40,156 |
(1) | Reported in affiliate Natural gas and natural gas liquids sales in the consolidated statements of operations in the period in which the related sale is recorded. |
(2) | Reported in Cost of product in the consolidated statements of operations in the period in which the related purchase is recorded. |
DJ Basin Complex | Hugoton System | |||||||||||||||
per barrel except natural gas | 2015 Swap Prices | Market Prices (1) | 2015 Swap Prices | Market Prices (1) | ||||||||||||
Ethane | $ | 18.41 | $ | 1.96 | — | — | ||||||||||
Propane | 47.08 | 13.10 | — | — | ||||||||||||
Isobutane | 62.09 | 19.75 | — | — | ||||||||||||
Normal butane | 54.62 | 18.99 | — | — | ||||||||||||
Natural gasoline | 72.88 | 52.59 | — | — | ||||||||||||
Condensate | 76.47 | 52.59 | $ | 78.61 | $ | 32.56 | ||||||||||
Natural gas (per MMBtu) | 5.96 | 2.75 | 5.50 | 2.74 |
(1) | Represents the New York Mercantile Exchange (“NYMEX”) forward strip price as of June 25, 2015, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs. |
DJ Basin Complex | Hugoton System | |||||||||||||||
per barrel except natural gas | 2016 Swap Prices | Market Prices (1) | 2016 Swap Prices | Market Prices (1) | ||||||||||||
Ethane | $ | 18.41 | $ | 0.60 | — | — | ||||||||||
Propane | 47.08 | 10.98 | — | — | ||||||||||||
Isobutane | 62.09 | 17.23 | — | — | ||||||||||||
Normal butane | 54.62 | 16.86 | — | — | ||||||||||||
Natural gasoline | 72.88 | 26.15 | — | — | ||||||||||||
Condensate | 76.47 | 34.65 | $ | 78.61 | $ | 18.81 | ||||||||||
Natural gas (per MMBtu) | 5.96 | 2.11 | 5.50 | 2.12 |
(1) | Represents the NYMEX forward strip price as of December 8, 2015, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs. |
Six Months Ended June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
thousands | Purchases | Sales | ||||||||||||||
Cash consideration | $ | 2,699 | $ | 9,056 | $ | 613 | $ | 700 | ||||||||
Net carrying value | 2,328 | 4,182 | 596 | 366 | ||||||||||||
Partners’ capital adjustment | $ | 371 | $ | 4,874 | $ | 17 | $ | 334 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues and other (1) | $ | 302,405 | $ | 321,411 | $ | 574,989 | $ | 628,339 | ||||||||
Equity income, net – affiliates (1) | 19,693 | 18,941 | 36,507 | 37,161 | ||||||||||||
Cost of product (1) | 22,145 | 53,062 | 46,725 | 96,957 | ||||||||||||
Operation and maintenance (2) | 17,661 | 19,854 | 35,636 | 36,671 | ||||||||||||
General and administrative (3) | 9,169 | 8,060 | 18,121 | 16,195 | ||||||||||||
Operating expenses | 48,975 | 80,976 | 100,482 | 149,823 | ||||||||||||
Interest income (4) | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Interest expense (5) | (15,461 | ) | 4,190 | (10,924 | ) | 5,610 | ||||||||||
Proceeds from the issuance of common units, net of offering expenses (6) | — | — | 25,000 | — | ||||||||||||
Distributions to unitholders (7) | 94,909 | 76,353 | 184,678 | 148,048 | ||||||||||||
Above-market component of swap extensions with Anadarko | 9,552 | — | 16,365 | — |
(1) | Represents amounts earned or incurred on and subsequent to the date of acquisition of the Partnership assets, as well as amounts earned or incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets, recognized under gathering, treating or processing agreements, and purchase and sale agreements. |
(2) | Represents expenses incurred on and subsequent to the date of the acquisition of the Partnership assets, as well as expenses incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets. |
(3) | Represents general and administrative expense incurred on and subsequent to the date of the Partnership’s acquisition of the Partnership assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of the Partnership assets by the Partnership. These amounts include equity-based compensation expense allocated to the Partnership by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plans within this Note 5). |
(4) | Represents interest income recognized on the note receivable from Anadarko. |
(5) | For the three and six months ended June 30, 2016, includes accretion revisions to the Deferred purchase price obligation - Anadarko (see Note 2 and Note 9). |
(6) | Represents proceeds from the issuance of 835,841 common units to WGP as partial funding for the acquisition of Springfield (see Note 2). |
(7) | Represents distributions paid under the partnership agreement (see Note 3 and Note 4). |
thousands | Estimated Useful Life | June 30, 2016 | December 31, 2015 | |||||||
Land | n/a | $ | 3,946 | $ | 3,744 | |||||
Gathering systems | 3 to 47 years | 6,409,489 | 6,061,004 | |||||||
Pipelines and equipment | 15 to 45 years | 135,319 | 136,290 | |||||||
Assets under construction | n/a | 239,617 | 329,887 | |||||||
Other | 3 to 40 years | 29,803 | 25,853 | |||||||
Total property, plant and equipment | 6,818,174 | 6,556,778 | ||||||||
Accumulated depreciation | 1,816,030 | 1,697,999 | ||||||||
Net property, plant and equipment | $ | 5,002,144 | $ | 4,858,779 |
Equity Investments | |||||||||||||||||||||||||||||||
thousands | Fort Union | White Cliffs | Rendezvous | Mont Belvieu JV | TEG | TEP | FRP | Total | |||||||||||||||||||||||
Balance at December 31, 2015 | $ | 17,122 | $ | 50,439 | $ | 50,913 | $ | 117,089 | $ | 16,283 | $ | 194,803 | $ | 172,238 | $ | 618,887 | |||||||||||||||
Investment earnings (loss), net of amortization | (1,360 | ) | 7,164 | 949 | 12,686 | 343 | 7,766 | 8,959 | 36,507 | ||||||||||||||||||||||
Contributions | — | 441 | — | — | — | (580 | ) | — | (139 | ) | |||||||||||||||||||||
Distributions | — | (6,873 | ) | (1,364 | ) | (12,303 | ) | (354 | ) | (7,892 | ) | (9,733 | ) | (38,519 | ) | ||||||||||||||||
Distributions in excess of cumulative earnings (1) | (3,354 | ) | (2,100 | ) | (1,541 | ) | (172 | ) | (188 | ) | (2,918 | ) | (338 | ) | (10,611 | ) | |||||||||||||||
Balance at June 30, 2016 | $ | 12,408 | $ | 49,071 | $ | 48,957 | $ | 117,300 | $ | 16,084 | $ | 191,179 | $ | 171,126 | $ | 606,125 |
(1) | Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, is calculated on an individual investment basis. |
thousands | June 30, 2016 | December 31, 2015 | ||||||
Trade receivables, net | $ | 177,507 | $ | 143,557 | ||||
Other receivables, net | 44,288 | 49,772 | ||||||
Total accounts receivable, net | $ | 221,795 | $ | 193,329 |
thousands | June 30, 2016 | December 31, 2015 | ||||||
Natural gas liquids inventory | $ | 4,032 | $ | 2,403 | ||||
Imbalance receivables | 1,359 | 2,122 | ||||||
Prepaid insurance | 300 | 2,296 | ||||||
Other | — | 1,034 | ||||||
Total other current assets | $ | 5,691 | $ | 7,855 |
thousands | June 30, 2016 | December 31, 2015 | ||||||
Accrued capital expenditures | $ | 70,725 | $ | 61,454 | ||||
Accrued plant purchases | 27,149 | 16,425 | ||||||
Accrued interest expense | 26,200 | 26,194 | ||||||
Short-term asset retirement obligations | 2,713 | 3,677 | ||||||
Short-term remediation and reclamation obligations | 1,136 | 1,136 | ||||||
Income taxes payable | 1,127 | 770 | ||||||
Other | 968 | 9,363 | ||||||
Total accrued liabilities | $ | 130,018 | $ | 119,019 |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
thousands | Principal | Carrying Value | Fair Value (1) | Principal | Carrying Value | Fair Value (1) | ||||||||||||||||||
2021 Notes | $ | 500,000 | $ | 494,215 | $ | 529,064 | $ | 500,000 | $ | 493,711 | $ | 513,645 | ||||||||||||
2022 Notes | 670,000 | 668,532 | 658,273 | 670,000 | 668,432 | 595,744 | ||||||||||||||||||
2018 Notes | 350,000 | 348,946 | 348,908 | 350,000 | 348,706 | 339,293 | ||||||||||||||||||
2044 Notes | 400,000 | 389,783 | 384,252 | 400,000 | 389,707 | 321,499 | ||||||||||||||||||
2025 Notes | 500,000 | 490,528 | 479,690 | 500,000 | 490,095 | 422,285 | ||||||||||||||||||
RCF | 540,000 | 540,000 | 540,000 | 300,000 | 300,000 | 300,000 | ||||||||||||||||||
Total long-term debt | $ | 2,960,000 | $ | 2,932,004 | $ | 2,940,187 | $ | 2,720,000 | $ | 2,690,651 | $ | 2,492,466 |
(1) | Fair value is measured using the market approach and Level 2 inputs. |
thousands | Carrying Value | |||
Balance at December 31, 2015 | $ | 2,690,651 | ||
RCF borrowings | 530,000 | |||
Repayments of RCF borrowings | (290,000 | ) | ||
Other | 1,353 | |||
Balance at June 30, 2016 | $ | 2,932,004 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Third parties | ||||||||||||||||
Long-term debt | $ | 28,281 | $ | 24,733 | $ | 56,099 | $ | 48,075 | ||||||||
Amortization of debt issuance costs and commitment fees | 1,545 | 1,374 | 3,075 | 2,666 | ||||||||||||
Capitalized interest | (1,482 | ) | (2,693 | ) | (3,331 | ) | (5,787 | ) | ||||||||
Total interest expense – third parties | 28,344 | 23,414 | 55,843 | 44,954 | ||||||||||||
Affiliates | ||||||||||||||||
Deferred purchase price obligation – Anadarko (1) | (15,461 | ) | 4,190 | (10,924 | ) | 5,610 | ||||||||||
Total interest expense – affiliates | (15,461 | ) | 4,190 | (10,924 | ) | 5,610 | ||||||||||
Interest expense | $ | 12,883 | $ | 27,604 | $ | 44,919 | $ | 50,564 |
(1) | See Note 2 for a discussion of the accretion and net present value of the Deferred purchase price obligation - Anadarko. |
• | our ability to pay distributions to our unitholders; |
• | our and Anadarko’s assumptions about the energy market; |
• | future throughput, including Anadarko’s production, which is gathered or processed by or transported through our assets; |
• | our operating results; |
• | competitive conditions; |
• | technology; |
• | the availability of capital resources to fund acquisitions, capital expenditures and other contractual obligations, and our ability to access those resources from Anadarko or through the debt or equity capital markets; |
• | the supply of, demand for, and the price of, oil, natural gas, NGLs and related products or services; |
• | weather and natural disasters; |
• | inflation; |
• | the availability of goods and services; |
• | general economic conditions, either internationally or domestically or in the jurisdictions in which we are doing business; |
• | federal, state and local laws, including those that limit Anadarko’s and other producers’ hydraulic fracturing or other oil and natural gas operations; |
• | environmental liabilities; |
• | legislative or regulatory changes, including changes affecting our status as a partnership for federal income tax purposes; |
• | changes in the financial or operational condition of Anadarko; |
• | the creditworthiness of Anadarko or our other counterparties, including financial institutions, operating partners, and other parties; |
• | changes in Anadarko’s capital program, strategy or desired areas of focus; |
• | our commitments to capital projects; |
• | our ability to use our RCF; |
• | our ability to repay debt; |
• | our ability to mitigate exposure to the commodity price risks inherent in our percent-of-proceeds and keep-whole contracts through the extension of our commodity price swap agreements with Anadarko, or otherwise; |
• | conflicts of interest among us, our general partner, WGP and its general partner, and affiliates, including Anadarko; |
• | our ability to maintain and/or obtain rights to operate our assets on land owned by third parties; |
• | our ability to acquire assets on acceptable terms; |
• | non-payment or non-performance of Anadarko or other significant customers, including under our gathering, processing and transportation agreements and our $260.0 million note receivable from Anadarko; |
• | the timing, amount and terms of future issuances of equity and debt securities; and |
• | other factors discussed below, in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” included in our 2015 Form 10-K, certain sections of which were recast to reflect the results of the Springfield interest in our Current Report on Form 8-K, as filed with the SEC on June 10, 2016, in our quarterly reports on Form 10-Q and in our other public filings and press releases. |
Owned and Operated | Operated Interests | Non-Operated Interests | Equity Interests | |||||||||
Gathering systems | 12 | 4 | 5 | 2 | ||||||||
Treating facilities | 13 | 12 | — | 3 | ||||||||
Natural gas processing plants/trains | 19 | 5 | — | 2 | ||||||||
NGL pipelines | 2 | — | — | 3 | ||||||||
Natural gas pipelines | 5 | — | — | — | ||||||||
Oil pipelines | — | 1 | — | 1 |
• | We completed the acquisition of Springfield from Anadarko for cash and common unit consideration totaling $750.0 million. See Acquisitions and Divestitures below. |
• | In May 2016, the Partnership commenced operation of Train IV, a 200 MMcf/d processing plant at the DBM complex. |
• | We raised our distribution to $0.830 per unit for the second quarter of 2016, representing a 2% increase over the distribution for the first quarter of 2016 and an 11% increase over the distribution for the second quarter of 2015. |
• | Throughput attributable to Western Gas Partners, LP for natural gas assets totaled 3,870 MMcf/d and 3,825 MMcf/d for the three and six months ended June 30, 2016, respectively, representing a 12% and 11% decrease, respectively, compared to the same periods in 2015. |
• | Throughput for crude/NGL assets totaled 187 MBbls/d and 186 MBbls/d for the three and six months ended June 30, 2016, respectively, representing a 1% increase compared to the same periods in 2015. |
• | Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets (as defined under the caption Key Performance Metrics within this Item 2) averaged $0.84 per Mcf and $0.82 per Mcf for the three and six months ended June 30, 2016, respectively, representing a 15% and 14% increase, respectively, compared to the same periods in 2015. |
• | Adjusted gross margin for crude/NGL assets (as defined under the caption Key Performance Metrics within this Item 2) averaged $2.03 per Bbl and $2.05 per Bbl for the three and six months ended June 30, 2016, respectively, representing a 3% and 5% increase, respectively, compared to the same periods in 2015. |
thousands except unit and percent amounts | Acquisition Date | Percentage Acquired | Deferred Purchase Price Obligation - Anadarko | Borrowings | Common Units Issued | Series A Preferred Units | |||||||||||||
DBJV (1) | 03/02/2015 | 100 | % | $ | 174,276 | $ | — | — | — | ||||||||||
Springfield (2) | 03/14/2016 | 100 | % | — | 247,500 | 2,089,602 | 14,030,611 |
(1) | We acquired DBJV from Anadarko. DBJV owns a 50% interest in the DBJV system. We will make a cash payment on March 31, 2020, to Anadarko as consideration for the acquisition of DBJV. At the acquisition date, we estimated the future payment would be $282.8 million, the net present value of which was $174.3 million. For further information, including revisions to the estimated future payment, see Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q. |
(2) | We acquired Springfield from Anadarko for $750.0 million, consisting of $712.5 million in cash and the issuance of 1,253,761 of our common units. Springfield owns a 50.1% interest in the Springfield system. We financed the cash portion of the acquisition through: (i) borrowings of $247.5 million on our RCF, (ii) the issuance of 835,841 of our common units to WGP and (iii) the issuance of Series A Preferred units to private investors. See Note 4—Equity and Partners’ Capital in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for a discussion of the Series A Preferred units. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenues and other (1) | $ | 428,664 | $ | 465,993 | $ | 811,805 | $ | 902,999 | ||||||||
Equity income, net – affiliates | 19,693 | 18,941 | 36,507 | 37,161 | ||||||||||||
Total operating expenses (1) | 272,691 | 314,221 | 518,611 | 891,774 | ||||||||||||
Gain (loss) on divestiture and other, net | (1,907 | ) | — | (2,539 | ) | (6 | ) | |||||||||
Proceeds from business interruption insurance claims (2) | 2,603 | — | 2,603 | — | ||||||||||||
Operating income (loss) | 176,362 | 170,713 | 329,765 | 48,380 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Interest expense | (12,883 | ) | (27,604 | ) | (44,919 | ) | (50,564 | ) | ||||||||
Other income (expense), net | (53 | ) | 71 | 71 | 142 | |||||||||||
Income (loss) before income taxes | 167,651 | 147,405 | 293,367 | 6,408 | ||||||||||||
Income tax (benefit) expense | 326 | 12,246 | 6,959 | 24,516 | ||||||||||||
Net income (loss) | 167,325 | 135,159 | 286,408 | (18,108 | ) | |||||||||||
Net income attributable to noncontrolling interest | 2,804 | 2,816 | 5,827 | 6,042 | ||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | 164,521 | $ | 132,343 | $ | 280,581 | $ | (24,150 | ) | |||||||
Key performance metrics (3) | ||||||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP | $ | 329,254 | $ | 326,797 | $ | 640,478 | $ | 629,447 | ||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP | 250,565 | 245,548 | 481,664 | 465,510 | ||||||||||||
Distributable cash flow | 199,349 | 211,674 | 391,287 | 397,252 |
(1) | Revenues and other include amounts earned from services provided to our affiliates, as well as from the sale of residue and NGLs to our affiliates. Operating expenses include amounts charged by our affiliates for services as well as reimbursement of amounts paid by affiliates to third parties on our behalf. See Note 5—Transactions with Affiliates in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q. |
(2) | See Note 1—Description of Business and Basis of Presentation in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q. |
(3) | Adjusted gross margin attributable to Western Gas Partners, LP, Adjusted EBITDA attributable to Western Gas Partners, LP and Distributable cash flow are defined under the caption Key Performance Metrics within this Item 2. For reconciliations of Adjusted gross margin attributable to Western Gas Partners, LP, Adjusted EBITDA attributable to Western Gas Partners, LP and Distributable cash flow to their most directly comparable financial measures calculated and presented in accordance with GAAP, see Key Performance Metrics within this Item 2. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | |||||||||||||
Throughput for natural gas assets (MMcf/d) | ||||||||||||||||||
Gathering, treating and transportation | 1,508 | 1,920 | (21 | )% | 1,553 | 1,942 | (20 | )% | ||||||||||
Processing | 2,320 | 2,465 | (6 | )% | 2,226 | 2,362 | (6 | )% | ||||||||||
Equity investment (1) | 170 | 172 | (1 | )% | 178 | 169 | 5 | % | ||||||||||
Total throughput for natural gas assets | 3,998 | 4,557 | (12 | )% | 3,957 | 4,473 | (12 | )% | ||||||||||
Throughput attributable to noncontrolling interest for natural gas assets | 128 | 159 | (19 | )% | 132 | 161 | (18 | )% | ||||||||||
Total throughput attributable to Western Gas Partners, LP for natural gas assets | 3,870 | 4,398 | (12 | )% | 3,825 | 4,312 | (11 | )% | ||||||||||
Throughput for crude/NGL assets (MBbls/d) | ||||||||||||||||||
Gathering, treating and transportation | 59 | 74 | (20 | )% | 59 | 75 | (21 | )% | ||||||||||
Equity investment (2) | 128 | 111 | 15 | % | 127 | 109 | 17 | % | ||||||||||
Total throughput for crude/NGL assets | 187 | 185 | 1 | % | 186 | 184 | 1 | % |
(1) | Represents our 14.81% share of average Fort Union throughput and our 22% share of average Rendezvous throughput. |
(2) | Represents 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. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
thousands except percentages | 2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | ||||||||||||||||
Gathering, processing and transportation revenues | $ | 301,136 | $ | 290,900 | 4 | % | $ | 595,140 | $ | 561,168 | 6 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
thousands except percentages and per-unit amounts | 2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | ||||||||||||||||
Natural gas sales (1) | $ | 44,366 | $ | 71,463 | (38 | )% | $ | 82,593 | $ | 133,654 | (38 | )% | ||||||||||
Natural gas liquids sales (1) | 82,627 | 102,739 | (20 | )% | 132,956 | 206,220 | (36 | )% | ||||||||||||||
Total | $ | 126,993 | $ | 174,202 | (27 | )% | $ | 215,549 | $ | 339,874 | (37 | )% | ||||||||||
Average price per unit (1): | ||||||||||||||||||||||
Natural gas (per Mcf) | $ | 2.09 | $ | 3.68 | (43 | )% | $ | 2.20 | $ | 3.64 | (40 | )% | ||||||||||
Natural gas liquids (per Bbl) | 20.33 | 21.78 | (7 | )% | 19.69 | 24.41 | (19 | )% |
(1) | Excludes amounts considered above market, with respect to our swap extensions at the DJ Basin complex and the Hugoton system beginning July 1, 2015, that are recorded as capital contributions in the statement of equity and partners’ capital. See Note 5—Transactions with Affiliates in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
thousands except percentages | 2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | ||||||||||||||||
Equity income, net – affiliates | $ | 19,693 | $ | 18,941 | 4 | % | $ | 36,507 | $ | 37,161 | (2 | )% |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
thousands except percentages | 2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | ||||||||||||||||
NGL purchases (1) | $ | 50,056 | $ | 73,866 | (32 | )% | $ | 82,725 | $ | 138,767 | (40 | )% | ||||||||||
Residue purchases (1) | 47,413 | 67,238 | (29 | )% | 86,398 | 135,959 | (36 | )% | ||||||||||||||
Other (1) | 7,380 | 6,112 | 21 | % | 12,193 | 11,898 | 2 | % | ||||||||||||||
Cost of product | 104,849 | 147,216 | (29 | )% | 181,316 | 286,624 | (37 | )% | ||||||||||||||
Operation and maintenance | 75,173 | 77,837 | (3 | )% | 151,386 | 154,022 | (2 | )% | ||||||||||||||
Total cost of product and operation and maintenance expenses | $ | 180,022 | $ | 225,053 | (20 | )% | $ | 332,702 | $ | 440,646 | (24 | )% |
(1) | Excludes amounts considered above market, with respect to our swap extensions at the DJ Basin complex and the Hugoton system beginning July 1, 2015, that are recorded as capital contributions in the statement of equity and partners’ capital. See Note 5—Transactions with Affiliates in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
thousands except percentages | 2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | ||||||||||||||||
General and administrative | $ | 10,883 | $ | 9,408 | 16 | % | $ | 22,160 | $ | 20,489 | 8 | % | ||||||||||
Property and other taxes | 12,078 | 9,586 | 26 | % | 22,428 | 18,866 | 19 | % | ||||||||||||||
Depreciation and amortization | 67,305 | 68,554 | (2 | )% | 132,400 | 137,529 | (4 | )% | ||||||||||||||
Impairments | 2,403 | 1,620 | 48 | % | 8,921 | 274,244 | (97 | )% | ||||||||||||||
Total general and administrative, depreciation and amortization, impairments and other expenses | $ | 92,669 | $ | 89,168 | 4 | % | $ | 185,909 | $ | 451,128 | (59 | )% |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
thousands except percentages | 2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | ||||||||||||||||
Note receivable – Anadarko | $ | 4,225 | $ | 4,225 | — | % | $ | 8,450 | $ | 8,450 | — | % | ||||||||||
Interest income – affiliates | $ | 4,225 | $ | 4,225 | — | % | $ | 8,450 | $ | 8,450 | — | % | ||||||||||
Third parties | ||||||||||||||||||||||
Long-term debt | $ | (28,281 | ) | $ | (24,733 | ) | 14 | % | $ | (56,099 | ) | $ | (48,075 | ) | 17 | % | ||||||
Amortization of debt issuance costs and commitment fees | (1,545 | ) | (1,374 | ) | 12 | % | (3,075 | ) | (2,666 | ) | 15 | % | ||||||||||
Capitalized interest | 1,482 | 2,693 | (45 | )% | 3,331 | 5,787 | (42 | )% | ||||||||||||||
Affiliates | ||||||||||||||||||||||
Deferred purchase price obligation – Anadarko (1) | 15,461 | (4,190 | ) | NM | 10,924 | (5,610 | ) | NM | ||||||||||||||
Interest expense | $ | (12,883 | ) | $ | (27,604 | ) | (53 | )% | $ | (44,919 | ) | $ | (50,564 | ) | (11 | )% |
(1) | See Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q for a discussion of the accretion and net present value of the Deferred purchase price obligation - Anadarko. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
thousands except percentages | 2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | ||||||||||||||||
Income (loss) before income taxes | $ | 167,651 | $ | 147,405 | 14 | % | $ | 293,367 | $ | 6,408 | NM | |||||||||||
Income tax (benefit) expense | 326 | 12,246 | (97 | )% | 6,959 | 24,516 | (72 | )% | ||||||||||||||
Effective tax rate | — | % | 8 | % | 2 | % | NM |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
thousands except percentages and per-unit amounts | 2016 | 2015 | Inc/ (Dec) | 2016 | 2015 | Inc/ (Dec) | ||||||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets (1) | $ | 294,661 | $ | 293,560 | — | % | $ | 571,190 | $ | 564,806 | 1 | % | ||||||||||
Adjusted gross margin for crude/NGL assets (2) | 34,593 | 33,237 | 4 | % | 69,288 | 64,641 | 7 | % | ||||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP (3) | 329,254 | 326,797 | 1 | % | 640,478 | 629,447 | 2 | % | ||||||||||||||
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets (4) | 0.84 | 0.73 | 15 | % | 0.82 | 0.72 | 14 | % | ||||||||||||||
Adjusted gross margin per Bbl for crude/NGL assets (5) | 2.03 | 1.98 | 3 | % | 2.05 | 1.95 | 5 | % | ||||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP (3) | 250,565 | 245,548 | 2 | % | 481,664 | 465,510 | 3 | % | ||||||||||||||
Distributable cash flow (3) | 199,349 | 211,674 | (6 | )% | 391,287 | 397,252 | (2 | )% |
(1) | Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets is calculated as 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 our equity investments in Fort Union and Rendezvous, and excluding the noncontrolling interest owner’s proportionate share of revenue and cost of product. See the reconciliation of Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets to its most comparable GAAP measure below. |
(2) | Adjusted gross margin for crude/NGL assets is calculated as 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 our equity investments in White Cliffs, the Mont Belvieu JV, and the TEFR Interests. See the reconciliation of Adjusted gross margin for crude/NGL assets to its most comparable GAAP measure below. |
(3) | For a reconciliation of Adjusted gross margin attributable to Western Gas Partners, LP, Adjusted EBITDA attributable to Western Gas Partners, LP and Distributable cash flow to the most directly comparable financial measure calculated and presented in accordance with GAAP, see the descriptions below. |
(4) | Average for period. Calculated as Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets, divided by total throughput (MMcf/d) attributable to Western Gas Partners, LP for natural gas assets. |
(5) | Average for period. Calculated as Adjusted gross margin for crude/NGL assets, divided by total throughput (MBbls/d) for crude/NGL assets. |
• | our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to financing methods, capital structure or historical cost basis; |
• | the ability of our assets to generate cash flow to make distributions; and |
• | the viability of acquisitions and capital expenditure projects and the returns on investment of various investment opportunities. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands | 2016 | 2015 | 2016 | 2015 | ||||||||||||
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 | $ | 294,661 | $ | 293,560 | $ | 571,190 | $ | 564,806 | ||||||||
Adjusted gross margin for crude/NGL assets | 34,593 | 33,237 | 69,288 | 64,641 | ||||||||||||
Adjusted gross margin attributable to Western Gas Partners, LP | 329,254 | 326,797 | 640,478 | 629,447 | ||||||||||||
Adjusted gross margin attributable to noncontrolling interest | 4,183 | 4,661 | 8,604 | 9,469 | ||||||||||||
Gain (loss) on divestiture and other, net | (1,907 | ) | — | (2,539 | ) | (6 | ) | |||||||||
Proceeds from business interruption insurance claims | 2,603 | — | 2,603 | — | ||||||||||||
Equity income, net – affiliates | 19,693 | 18,941 | 36,507 | 37,161 | ||||||||||||
Reimbursed electricity-related charges recorded as revenues | 14,869 | 13,221 | 30,537 | 25,031 | ||||||||||||
Less: | ||||||||||||||||
Distributions from equity investees | 24,491 | 25,902 | 49,130 | 47,572 | ||||||||||||
Operation and maintenance | 75,173 | 77,837 | 151,386 | 154,022 | ||||||||||||
General and administrative | 10,883 | 9,408 | 22,160 | 20,489 | ||||||||||||
Property and other taxes | 12,078 | 9,586 | 22,428 | 18,866 | ||||||||||||
Depreciation and amortization | 67,305 | 68,554 | 132,400 | 137,529 | ||||||||||||
Impairments | 2,403 | 1,620 | 8,921 | 274,244 | ||||||||||||
Operating income (loss) | $ | 176,362 | $ | 170,713 | $ | 329,765 | $ | 48,380 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Reconciliation of Adjusted EBITDA attributable to Western Gas Partners, LP to Net income (loss) attributable to Western Gas Partners, LP | ||||||||||||||||
Adjusted EBITDA attributable to Western Gas Partners, LP | $ | 250,565 | $ | 245,548 | $ | 481,664 | $ | 465,510 | ||||||||
Less: | ||||||||||||||||
Distributions from equity investees | 24,491 | 25,902 | 49,130 | 47,572 | ||||||||||||
Non-cash equity-based compensation expense | 1,246 | 1,163 | 2,549 | 2,275 | ||||||||||||
Interest expense | 12,883 | 27,604 | 44,919 | 50,564 | ||||||||||||
Income tax expense | 326 | 12,246 | 6,959 | 24,516 | ||||||||||||
Depreciation and amortization (1) | 66,650 | 67,904 | 131,089 | 136,231 | ||||||||||||
Impairments | 2,403 | 1,620 | 8,921 | 274,244 | ||||||||||||
Other expense (1) | 56 | — | 56 | — | ||||||||||||
Add: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (1,907 | ) | — | (2,539 | ) | (6 | ) | |||||||||
Equity income, net – affiliates | 19,693 | 18,941 | 36,507 | 37,161 | ||||||||||||
Interest income – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | ||||||||||||
Other income (1) | — | 68 | 122 | 137 | ||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | 164,521 | $ | 132,343 | $ | 280,581 | $ | (24,150 | ) | |||||||
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 | $ | 250,565 | $ | 245,548 | $ | 481,664 | $ | 465,510 | ||||||||
Adjusted EBITDA attributable to noncontrolling interest | 3,456 | 3,463 | 7,133 | 7,335 | ||||||||||||
Interest income (expense), net | (8,658 | ) | (23,379 | ) | (36,469 | ) | (42,114 | ) | ||||||||
Uncontributed cash-based compensation awards | (86 | ) | (68 | ) | (158 | ) | (145 | ) | ||||||||
Accretion and amortization of long-term obligations, net | (14,522 | ) | 4,958 | (9,055 | ) | 7,070 | ||||||||||
Current income tax benefit (expense) | (198 | ) | (11,673 | ) | (4,979 | ) | (18,134 | ) | ||||||||
Other income (expense), net | (53 | ) | 71 | 71 | 142 | |||||||||||
Distributions from equity investments in excess of cumulative earnings – affiliates | (5,827 | ) | (5,574 | ) | (10,611 | ) | (8,538 | ) | ||||||||
Changes in operating working capital: | ||||||||||||||||
Accounts receivable, net | (45,800 | ) | (26,725 | ) | (33,242 | ) | (41,358 | ) | ||||||||
Accounts and imbalance payables and accrued liabilities, net | (20,205 | ) | (8,389 | ) | (2,227 | ) | 4,407 | |||||||||
Other | (1,309 | ) | (744 | ) | 1,739 | (1,854 | ) | |||||||||
Net cash provided by operating activities | $ | 157,363 | $ | 177,488 | $ | 393,866 | $ | 372,321 | ||||||||
Cash flow information of Western Gas Partners, LP | ||||||||||||||||
Net cash provided by operating activities | $ | 393,866 | $ | 372,321 | ||||||||||||
Net cash used in investing activities | (952,824 | ) | (371,878 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 618,692 | 20,271 |
(1) | Includes our 75% share of depreciation and amortization; other expense; and other income attributable to the Chipeta complex. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
thousands except Coverage ratio | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Reconciliation of Distributable cash flow to Net income (loss) attributable to Western Gas Partners, LP and calculation of the Coverage ratio | ||||||||||||||||
Distributable cash flow | $ | 199,349 | $ | 211,674 | $ | 391,287 | $ | 397,252 | ||||||||
Less: | ||||||||||||||||
Distributions from equity investees | 24,491 | 25,902 | 49,130 | 47,572 | ||||||||||||
Non-cash equity-based compensation expense | 1,246 | 1,163 | 2,549 | 2,275 | ||||||||||||
Interest expense, net (non-cash settled) (1) | (15,461 | ) | 4,190 | (10,924 | ) | 5,610 | ||||||||||
Income tax (benefit) expense | 326 | 12,246 | 6,959 | 24,516 | ||||||||||||
Depreciation and amortization (2) | 66,650 | 67,904 | 131,089 | 136,231 | ||||||||||||
Impairments | 2,403 | 1,620 | 8,921 | 274,244 | ||||||||||||
Above-market component of swap extensions with Anadarko (3) | 9,552 | — | 16,365 | — | ||||||||||||
Other expense (2) | 56 | — | 56 | — | ||||||||||||
Add: | ||||||||||||||||
Gain (loss) on divestiture and other, net | (1,907 | ) | — | (2,539 | ) | (6 | ) | |||||||||
Equity income, net – affiliates | 19,693 | 18,941 | 36,507 | 37,161 | ||||||||||||
Cash paid for maintenance capital expenditures (2) | 21,085 | 11,992 | 39,982 | 26,105 | ||||||||||||
Capitalized interest | 1,482 | 2,693 | 3,331 | 5,787 | ||||||||||||
Cash paid for (reimbursement of) income taxes | — | — | 67 | (138 | ) | |||||||||||
Series A Preferred unit distributions | 14,082 | — | 15,969 | — | ||||||||||||
Other income (2) | — | 68 | 122 | 137 | ||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ | 164,521 | $ | 132,343 | $ | 280,581 | $ | (24,150 | ) | |||||||
Distributions declared (4) | ||||||||||||||||
Limited partners – common units | $ | 108,458 | $ | 214,951 | ||||||||||||
General partner | 54,369 | 106,781 | ||||||||||||||
Total | $ | 162,827 | $ | 321,732 | ||||||||||||
Coverage ratio | 1.22 | x | 1.22 | x |
(1) | Includes accretion revisions related to the Deferred purchase price obligation - Anadarko. See Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q. |
(2) | Includes our 75% share of depreciation and amortization; other expense; cash paid for maintenance capital expenditures; and other income attributable to the Chipeta complex. |
(3) | See Note 5—Transactions with Affiliates in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q. |
(4) | Reflects cash distributions of $0.830 and $1.645 per unit declared for the three and six months ended June 30, 2016, respectively. |
• | maintenance capital expenditures, which include those expenditures required to maintain the existing operating capacity and service capability of our assets, such as to replace system components and equipment that have been subject to significant use over time, become obsolete or reached the end of their useful lives, to remain in compliance with regulatory or legal requirements or to complete additional well connections to maintain existing system throughput and related cash flows (for fiscal year 2016, the general partner’s Board of Directors has approved Estimated Maintenance Capital Expenditures (as defined in our partnership agreement) of $17.7 million per quarter); or |
• | expansion capital expenditures, which include expenditures to construct new midstream infrastructure and those expenditures incurred to extend the useful lives of our assets, reduce costs, increase revenues or increase system throughput or capacity from current levels, including well connections that increase existing system throughput. |
Six Months Ended June 30, | ||||||||
thousands | 2016 | 2015 | ||||||
Acquisitions | $ | 715,199 | $ | 12,570 | ||||
Expansion capital expenditures | $ | 212,081 | $ | 335,486 | ||||
Maintenance capital expenditures | 39,988 | 26,312 | ||||||
Total capital expenditures (1) (2) | $ | 252,069 | $ | 361,798 | ||||
Capital incurred (2) (3) | $ | 261,342 | $ | 309,621 |
(1) | Maintenance capital expenditures for the six months ended June 30, 2016 and 2015, are presented net of $3.9 million and zero, respectively, of contributions in aid of construction costs from affiliates. Capital expenditures for the six months ended June 30, 2015, included $23.6 million of pre-acquisition capital expenditures for the Springfield system. |
(2) | Includes the noncontrolling interest owner’s share of Chipeta’s capital expenditures for all periods presented. For the six months ended June 30, 2016 and 2015, included $3.3 million and $5.8 million, respectively, of capitalized interest. |
(3) | Capital incurred for the six months ended June 30, 2015, included $22.2 million of pre-acquisition capital incurred for the Springfield system. |
Six Months Ended June 30, | ||||||||
thousands | 2016 | 2015 | ||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | 393,866 | $ | 372,321 | ||||
Investing activities | (952,824 | ) | (371,878 | ) | ||||
Financing activities | 618,692 | 20,271 | ||||||
Net increase in cash and cash equivalents | $ | 59,734 | $ | 20,714 |
• | $712.5 million of cash paid for the acquisition of Springfield; |
• | $252.1 million of capital expenditures, net of $3.9 million of contributions in aid of construction costs from affiliates, primarily related to plant construction and expansion at the DBM and DJ Basin complexes and the DBJV system; |
• | $2.7 million of cash paid for equipment purchases from Anadarko; |
• | $10.6 million of distributions from equity investments in excess of cumulative earnings; and |
• | $2.9 million of proceeds from property insurance claims attributable to the DBM outage. |
• | $361.8 million of capital expenditures primarily related to the construction of Train IV at the DBM complex, continued construction of Lancaster Train II (within the DJ Basin complex) and expansion at the DBJV system; |
• | $9.1 million of cash paid for equipment purchases from Anadarko; |
• | $6.8 million of cash contributed to equity investments, primarily related to the expansion projects at White Cliffs, TEP and FRP; |
• | $3.5 million of cash paid for post-closing purchase price adjustments related to the DBM acquisition; and |
• | $8.5 million of distributions from equity investments in excess of cumulative earnings. |
• | $440.0 million of net proceeds from the March 2016 Series A units issuance, all of which was used to fund a portion of the acquisition of Springfield; |
• | $530.0 million of borrowings under our RCF, which were used to fund a portion of the Springfield acquisition and for general partnership purposes, including funding capital expenditures; |
• | $246.9 million of net proceeds from the April 2016 Series A units issuance, all of which was used to pay down amounts borrowed under our RCF in connection with the Springfield acquisition; |
• | $25.0 million of net proceeds from the sale of common units to WGP, all of which was used to fund a portion of the acquisition of Springfield; |
• | $16.4 million of capital contribution from Anadarko related to the above-market component of swap extensions (see Note 5—Transactions with Affiliates in the Notes to Consolidated Financial Statements under Part I, Item 1 of this Form 10-Q); |
• | $313.4 million of distributions paid to our unitholders; |
• | $27.5 million of net contributions from Anadarko representing pre-acquisition intercompany transactions attributable to Springfield; and |
• | $7.5 million of distributions paid to the noncontrolling interest owner of Chipeta. |
• | $489.7 million of net proceeds from the 2025 Notes offering in June 2015, after underwriting and original issue discounts and offering costs, all of which was used to repay a portion of the outstanding borrowings under our RCF; |
• | $280.0 million of borrowings under our RCF, which were used for general partnership purposes, including funding capital expenditures; |
• | $57.4 million of net proceeds from sales of common units under the $500.0 million COP (as discussed in Securities within this Item 2). Net proceeds were used for general partnership purposes, including funding capital expenditures; |
• | $17.4 million of net contributions from Anadarko representing pre-acquisition intercompany transactions attributable to Springfield and DBJV; |
• | $259.2 million of distributions paid to our unitholders; and |
• | $7.2 million of distributions paid to the noncontrolling interest owner of Chipeta. |
thousands except unit amounts Quarters Ended | PIK Class C Units | Implied Fair Value | Date of Distribution | ||||||
2015 | |||||||||
December 31 | 323,584 | $ | 10,070 | February 2016 | |||||
2016 | |||||||||
March 31 | 210,562 | $ | 10,356 | May 2016 |
Exhibit Number | Description | |
2.1# | Contribution, Conveyance and Assumption Agreement by and among Western Gas Partners, LP, Western Gas Holdings, LLC, Anadarko Petroleum Corporation, WGR Holdings, LLC, Western Gas Resources, Inc., WGR Asset Holding Company LLC, Western Gas Operating, LLC and WGR Operating, LP, dated as of May 14, 2008 (incorporated by reference to Exhibit 10.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on May 14, 2008, File No. 001-34046). | |
2.2# | Contribution Agreement, dated as of November 11, 2008, by and among Western Gas Resources, Inc., WGR Asset Holding Company LLC, WGR Holdings, LLC, Western Gas Holdings, LLC, Western Gas Partners, LP, Western Gas Operating, LLC and WGR Operating, LP. (incorporated by reference to Exhibit 10.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on November 13, 2008, File No. 001-34046). | |
2.3# | Contribution Agreement, dated as of July 10, 2009, by and among Western Gas Resources, Inc., WGR Asset Holding Company LLC, Anadarko Uintah Midstream, LLC, WGR Holdings, LLC, Western Gas Holdings, LLC, WES GP, Inc., Western Gas Partners, LP, Western Gas Operating, LLC and WGR Operating, LP. (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on July 23, 2009, File No. 001-34046). | |
2.4# | Contribution Agreement, dated as of January 29, 2010 by and among Western Gas Resources, Inc., WGR Asset Holding Company LLC, Mountain Gas Resources LLC, WGR Holdings, LLC, Western Gas Holdings, LLC, WES GP, Inc., Western Gas Partners, LP, Western Gas Operating, LLC and WGR Operating, LP. (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on February 3, 2010 File No. 001-34046). | |
2.5# | Contribution Agreement, dated as of July 30, 2010, by and among Western Gas Resources, Inc., WGR Asset Holding Company LLC, WGR Holdings, LLC, Western Gas Holdings, LLC, WES GP, Inc., Western Gas Partners, LP, Western Gas Operating, LLC and WGR Operating, LP. (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on August 5, 2010, File No. 001-34046). | |
2.6# | Purchase and Sale Agreement, dated as of January 14, 2011, by and among Western Gas Partners, LP, Kerr-McGee Gathering LLC and Encana Oil & Gas (USA) Inc. (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on January 18, 2011 File No. 001-34046). | |
2.7# | Contribution Agreement, dated as of December 15, 2011, by and among Western Gas Resources, Inc., WGR Asset Holding Company LLC, WGR Holdings, LLC, Western Gas Holdings, LLC, WES GP, Inc., Western Gas Partners, LP, Western Gas Operating, LLC and WGR Operating, LP. (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on December 15, 2011, File No. 001-34046). | |
2.8# | Contribution Agreement, dated as of February 27, 2013, by and among Anadarko Marcellus Midstream, L.L.C., Western Gas Partners, LP, Western Gas Operating, LLC, WGR Operating, LP, Anadarko Petroleum Corporation and Anadarko E&P Onshore LLC (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on March 5, 2013, File No. 001-34046). | |
2.9# | Contribution Agreement, dated as of February 27, 2014, by and among WGR Asset Holding Company LLC, APC Midstream Holdings, LLC, Western Gas Partners, LP, Western Gas Operating, LLC, WGR Operating, LP and Anadarko Petroleum Corporation (incorporated by reference to Exhibit 2.9 to Western Gas Partners, LP’s Annual Report on Form 10-K filed on February 28, 2014, File No. 001-34046). | |
2.10# | Agreement and Plan of Merger, dated October 28, 2014, by and among Western Gas Partners, LP, Maguire Midstream LLC and Nuevo Midstream, LLC (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on October 28, 2014, File No. 001-34046). | |
2.11# | Purchase and Sale Agreement, dated as of March 2, 2015, by and among WGR Asset Holding Company LLC, Delaware Basin Midstream, LLC, Western Gas Partners, LP, and Anadarko Petroleum Corporation (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on March 3, 2015, File No. 001-34046). | |
2.12# | Contribution Agreement, dated as of February 24, 2016, by and among WGR Asset Holding Company, LLC, APC Midstream Holdings, LLC, Western Gas Partners, LP, Western Gas Operating, LLC, WGR Operating, LP and Anadarko Petroleum Corporation (incorporated by reference to Exhibit 2.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on March 1, 2016, File No.001-34046). |
Exhibit Number | Description | |
3.1 | Certificate of Limited Partnership of Western Gas Partners, LP (incorporated by reference to Exhibit 3.1 to Western Gas Partners, LP’s Registration Statement on Form S-1 filed on October 15, 2007, File No. 333-146700). | |
3.2 | Second Amended and Restated Agreement of Limited Partnership of Western Gas Partners, LP, dated March 14, 2016 (incorporated by reference to Exhibit 3.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on March 16, 2016, File No. 001-34046). | |
3.3 | Amendment No. 1 to Second Amended and Restated Agreement of Limited Partnership of Western Gas Partners, LP, dated March 14, 2016 (incorporated by reference to Exhibit 3.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on March 16, 2016, File No. 001-34046). | |
3.4 | Certificate of Formation of Western Gas Holdings, LLC (incorporated by reference to Exhibit 3.3 to Western Gas Partners, LP’s Registration Statement on Form S-1 filed on October 15, 2007, File No. 333-146700). | |
3.5 | Second Amended and Restated Limited Liability Company Agreement of Western Gas Holdings, LLC, dated December 12, 2012 (incorporated by reference to Exhibit 3.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on December 12, 2012, File No. 001-34046). | |
4.1 | Specimen Unit Certificate for the Common Units (incorporated by reference to Exhibit 4.1 to Western Gas Partners, LP’s Quarterly Report on Form 10-Q filed on June 13, 2008, File No. 001-34046). | |
4.2 | Indenture, dated as of May 18, 2011, among Western Gas Partners, LP, as Issuer, the Subsidiary Guarantors named therein, as Guarantors, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on May 18, 2011, File No. 001-34046). | |
4.3 | First Supplemental Indenture, dated as of May 18, 2011, among Western Gas Partners, LP, as Issuer, the Subsidiary Guarantors named therein, as Guarantors, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on May 18, 2011, File No. 001-34046). | |
4.4 | Form of 5.375% Senior Notes due 2021 (incorporated by reference to Exhibit 4.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on May 18, 2011, File No. 001-34046). | |
4.5 | Fourth Supplemental Indenture, dated as of June 28, 2012, among Western Gas Partners, LP, as Issuer, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on June 28, 2012, File No. 001-34046). | |
4.6 | Form of 4.000% Senior Notes due 2022 (incorporated by reference to Exhibit 4.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on June 28, 2012, File No. 001-34046). | |
4.7 | Fifth Supplemental Indenture, dated as of August 14, 2013, among Western Gas Partners, LP, as Issuer, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on August 14, 2013, File No. 001-34046). | |
4.8 | Form of 2.600% Senior Notes due 2018 (incorporated by reference to Exhibit 4.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on August 14, 2013, File No. 001-34046). | |
4.9 | Sixth Supplemental Indenture, dated as of March 20, 2014, among Western Gas Partners, LP, as Issuer, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on March 20, 2014, File No. 001-34046). | |
4.10 | Form of 5.450% Senior Notes due 2044 (incorporated by reference to Exhibit 4.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on March 20, 2014, File No. 001-34046). | |
4.11 | Seventh Supplemental Indenture, dated as of June 4, 2015, among Western Gas Partners, LP, as Issuer, and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on June 4, 2015, File No. 001-34046). | |
4.12 | Form of 3.950% Senior Notes due 2025 (incorporated by reference to Exhibit 4.2 to Western Gas Partners, LP’s Current Report on Form 8-K filed on June 4, 2015, File No. 001-34046). | |
4.13 | Registration Rights Agreement by and between Western Gas Partners, LP and the Purchasers party thereto, dated as of March 14, 2016, (incorporated by reference to Exhibit 4.1 to Western Gas Partners, LP’s Current Report on Form 8-K filed on March 16, 2016, File No. 001-34046). |
Exhibit Number | Description | |
31.1* | Certification of Chief Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification of Chief Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1** | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS* | XBRL Instance Document | |
101.SCH* | XBRL Schema Document | |
101.CAL* | XBRL Calculation Linkbase Document | |
101.DEF* | XBRL Definition Linkbase Document | |
101.LAB* | XBRL Label Linkbase Document | |
101.PRE* | XBRL Presentation Linkbase Document |
# | Pursuant to Item 601(b)(2) of Regulation S-K, the registrant agrees to furnish supplementally a copy of any omitted schedule to the Securities and Exchange Commission upon request. |
WESTERN GAS PARTNERS, LP | |
July 27, 2016 | |
/s/ Donald R. Sinclair | |
Donald R. Sinclair President and Chief Executive Officer Western Gas Holdings, LLC (as general partner of Western Gas Partners, LP) | |
July 27, 2016 | |
/s/ Benjamin M. Fink | |
Benjamin M. Fink Senior Vice President, Chief Financial Officer and Treasurer Western Gas Holdings, LLC (as general partner of Western Gas Partners, LP) |
1. | I have reviewed this quarterly report on Form 10-Q of Western Gas Partners, LP (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Donald R. Sinclair | |
Donald R. Sinclair President and Chief Executive Officer Western Gas Holdings, LLC (as general partner of Western Gas Partners, LP) |
1. | I have reviewed this quarterly report on Form 10-Q of Western Gas Partners, LP (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Benjamin M. Fink | |
Benjamin M. Fink Senior Vice President, Chief Financial Officer and Treasurer Western Gas Holdings, LLC (as general partner of Western Gas Partners, LP) |
(1) | the Quarterly Report on Form 10-Q of the Partnership for the period ending June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
July 27, 2016 | ||
/s/ Donald R. Sinclair | ||
Donald R. Sinclair | ||
President and Chief Executive Officer | ||
Western Gas Holdings, LLC | ||
(as general partner of Western Gas Partners, LP) | ||
July 27, 2016 | ||
/s/ Benjamin M. Fink | ||
Benjamin M. Fink | ||
Senior Vice President, Chief Financial Officer and Treasurer | ||
Western Gas Holdings, LLC | ||
(as general partner of Western Gas Partners, LP) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 25, 2016 |
|
Document And Entity Information [Abstract] | ||
Trading Symbol | WES | |
Entity Registrant Name | Western Gas Partners LP | |
Entity Central Index Key | 0001414475 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Units Outstanding | 130,671,970 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||||||||||||||||||||||||||
Revenues and Other | |||||||||||||||||||||||||||||||
Total revenues and other | $ 428,664 | $ 465,993 | [1] | $ 811,805 | $ 902,999 | [1] | |||||||||||||||||||||||||
Equity income, net – affiliates | [2] | 19,693 | 18,941 | [1] | 36,507 | 37,161 | [1] | ||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||
Cost of product | [3] | 104,849 | 147,216 | [1] | 181,316 | 286,624 | [1] | ||||||||||||||||||||||||
Operation and maintenance | [3] | 75,173 | 77,837 | [1] | 151,386 | 154,022 | [1] | ||||||||||||||||||||||||
General and administrative | [3] | 10,883 | 9,408 | [1] | 22,160 | 20,489 | [1] | ||||||||||||||||||||||||
Property and other taxes | 12,078 | 9,586 | [1] | 22,428 | 18,866 | [1] | |||||||||||||||||||||||||
Depreciation and amortization | 67,305 | 68,554 | [1] | 132,400 | 137,529 | [1] | |||||||||||||||||||||||||
Impairments | 2,403 | 1,620 | [1] | 8,921 | 274,244 | [1] | |||||||||||||||||||||||||
Total operating expenses | 272,691 | 314,221 | [1] | 518,611 | 891,774 | [1] | |||||||||||||||||||||||||
Gain (loss) on divestiture and other, net | (1,907) | 0 | [1] | (2,539) | (6) | [1] | |||||||||||||||||||||||||
Proceeds from business interruption insurance claims | 2,603 | 0 | [1] | 2,603 | 0 | [1] | |||||||||||||||||||||||||
Operating income (loss) | 176,362 | 170,713 | [1] | 329,765 | 48,380 | [1] | |||||||||||||||||||||||||
Interest income - affiliates | [4] | 4,225 | 4,225 | [1] | 8,450 | 8,450 | [1] | ||||||||||||||||||||||||
Interest expense | [5] | (12,883) | (27,604) | [1] | (44,919) | (50,564) | [1] | ||||||||||||||||||||||||
Other income (expense), net | (53) | 71 | [1] | 71 | 142 | [1] | |||||||||||||||||||||||||
Income (loss) before income taxes | 167,651 | 147,405 | [1] | 293,367 | 6,408 | [1] | |||||||||||||||||||||||||
Income tax (benefit) expense | 326 | 12,246 | [1] | 6,959 | 24,516 | [1] | |||||||||||||||||||||||||
Net income (loss) | 167,325 | 135,159 | [1] | 286,408 | (18,108) | [1] | |||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 2,804 | 2,816 | [1] | 5,827 | 6,042 | [1] | |||||||||||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | 164,521 | 132,343 | [1] | 280,581 | (24,150) | [1] | |||||||||||||||||||||||||
Limited partners' interest in net income (loss): | |||||||||||||||||||||||||||||||
Pre-acquisition net (income) loss allocated to Anadarko | 0 | (18,719) | [1] | (11,326) | (43,758) | [1] | |||||||||||||||||||||||||
General partner interest in net (income) loss | [6] | $ (58,381) | $ (45,971) | [1] | $ (113,781) | $ (83,148) | [1] | ||||||||||||||||||||||||
Net income (loss) per common unit – basic and diluted | [7],[8] | $ 0.55 | $ 0.46 | [1] | $ 0.86 | $ (1.14) | [1] | ||||||||||||||||||||||||
Series A Preferred Units [Member] | |||||||||||||||||||||||||||||||
Limited partners' interest in net income (loss): | |||||||||||||||||||||||||||||||
Limited partners’ interest in net income (loss) | [6],[9] | $ (23,121) | $ 0 | [1] | $ (25,450) | $ 0 | [1] | ||||||||||||||||||||||||
Common and Class C Units [Member] | |||||||||||||||||||||||||||||||
Limited partners' interest in net income (loss): | |||||||||||||||||||||||||||||||
Limited partners’ interest in net income (loss) | [6] | (83,019) | (67,653) | [1] | (130,024) | 151,056 | [1] | ||||||||||||||||||||||||
Affiliates [Member] | |||||||||||||||||||||||||||||||
Revenues and Other | |||||||||||||||||||||||||||||||
Gathering, processing and transportation | 186,733 | 199,666 | [1] | 374,451 | 387,684 | [1] | |||||||||||||||||||||||||
Natural gas and natural gas liquids sales | 115,672 | 121,613 | [1] | 200,538 | 240,353 | [1] | |||||||||||||||||||||||||
Other | 0 | 132 | [1] | 0 | 302 | [1] | |||||||||||||||||||||||||
Total revenues and other | [2] | 302,405 | 321,411 | [1] | 574,989 | 628,339 | [1] | ||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||
Cost of product | [2] | 22,145 | 53,062 | 46,725 | 96,957 | ||||||||||||||||||||||||||
Operation and maintenance | [10] | 17,661 | 19,854 | 35,636 | 36,671 | ||||||||||||||||||||||||||
General and administrative | [11] | 9,169 | 8,060 | 18,121 | 16,195 | ||||||||||||||||||||||||||
Total operating expenses | 48,975 | 80,976 | 100,482 | 149,823 | |||||||||||||||||||||||||||
Interest expense | [12] | 15,461 | (4,190) | 10,924 | (5,610) | ||||||||||||||||||||||||||
Third Parties [Member] | |||||||||||||||||||||||||||||||
Revenues and Other | |||||||||||||||||||||||||||||||
Gathering, processing and transportation | 114,403 | 91,234 | [1] | 220,689 | 173,484 | [1] | |||||||||||||||||||||||||
Natural gas and natural gas liquids sales | 11,321 | 52,589 | [1] | 15,011 | 99,521 | [1] | |||||||||||||||||||||||||
Other | 535 | 759 | [1] | 1,116 | 1,655 | [1] | |||||||||||||||||||||||||
Total revenues and other | 126,259 | 144,582 | [1] | 236,816 | 274,660 | [1] | |||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||
Interest expense | $ (28,344) | $ (23,414) | $ (55,843) | $ (44,954) | |||||||||||||||||||||||||||
|
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||||||||||||||||
Cost of product | [1] | $ 104,849 | $ 147,216 | [2] | $ 181,316 | $ 286,624 | [2] | ||||||||||||||
Operation and maintenance | [1] | 75,173 | 77,837 | [2] | 151,386 | 154,022 | [2] | ||||||||||||||
General and administrative | [1] | 10,883 | 9,408 | [2] | 22,160 | 20,489 | [2] | ||||||||||||||
Interest expense | [3] | 12,883 | 27,604 | [2] | 44,919 | 50,564 | [2] | ||||||||||||||
Affiliates [Member] | |||||||||||||||||||||
Cost of product | [4] | 22,145 | 53,062 | 46,725 | 96,957 | ||||||||||||||||
Operation and maintenance | [5] | 17,661 | 19,854 | 35,636 | 36,671 | ||||||||||||||||
General and administrative | [6] | 9,169 | 8,060 | 18,121 | 16,195 | ||||||||||||||||
Interest expense | [7] | $ (15,461) | $ 4,190 | $ (10,924) | $ 5,610 | ||||||||||||||||
|
Consolidated Balance Sheets - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
[1] | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Current assets | ||||||||||||||
Cash and cash equivalents | $ 157,767 | $ 98,033 | ||||||||||||
Accounts receivable, net | [2] | 221,795 | 193,329 | |||||||||||
Other current assets | 5,691 | 7,855 | ||||||||||||
Total current assets | 385,253 | 299,217 | ||||||||||||
Note receivable - Anadarko | 260,000 | 260,000 | ||||||||||||
Property, plant and equipment | ||||||||||||||
Cost | 6,818,174 | 6,556,778 | ||||||||||||
Less accumulated depreciation | 1,816,030 | 1,697,999 | ||||||||||||
Net property, plant and equipment | 5,002,144 | 4,858,779 | ||||||||||||
Goodwill | 419,186 | 419,186 | ||||||||||||
Other intangible assets | 817,913 | 832,127 | ||||||||||||
Equity investments | 606,125 | 618,887 | ||||||||||||
Other assets | 13,481 | 13,001 | ||||||||||||
Total assets | 7,504,102 | 7,301,197 | ||||||||||||
Current liabilities | ||||||||||||||
Accounts and imbalance payables | 90,914 | 98,661 | ||||||||||||
Accrued ad valorem taxes | 20,633 | 17,808 | ||||||||||||
Accrued liabilities | 130,018 | 119,019 | ||||||||||||
Total current liabilities | 241,565 | 235,488 | ||||||||||||
Long-term debt | 2,932,004 | 2,690,651 | ||||||||||||
Deferred income taxes | 6,020 | 139,704 | ||||||||||||
Asset retirement obligations and other | 137,139 | 128,652 | ||||||||||||
Deferred purchase price obligation - Anadarko | [3] | 29,150 | 188,674 | |||||||||||
Total long-term liabilities | 3,104,313 | 3,147,681 | ||||||||||||
Total liabilities | 3,345,878 | 3,383,169 | ||||||||||||
Equity and partners' capital | ||||||||||||||
General partner units (2,583,068 units issued and outstanding at June 30, 2016, and December 31, 2015) | 131,842 | 120,164 | ||||||||||||
Net investment by Anadarko | 0 | 430,598 | ||||||||||||
Total partners' capital | 4,092,473 | 3,850,644 | ||||||||||||
Noncontrolling interest | 65,751 | 67,384 | ||||||||||||
Total equity and partners' capital | 4,158,224 | 3,918,028 | ||||||||||||
Total liabilities, equity and partners' capital | 7,504,102 | 7,301,197 | ||||||||||||
Series A Preferred Units [Member] | ||||||||||||||
Equity and partners' capital | ||||||||||||||
Series A Preferred units, Common units and Class C Units | [4] | 617,094 | 0 | |||||||||||
Common Units [Member] | ||||||||||||||
Equity and partners' capital | ||||||||||||||
Series A Preferred units, Common units and Class C Units | 2,613,806 | 2,588,991 | ||||||||||||
Class C Units [Member] | ||||||||||||||
Equity and partners' capital | ||||||||||||||
Series A Preferred units, Common units and Class C Units | [5] | $ 729,731 | $ 710,891 | |||||||||||
|
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
General partner units issued | 2,583,068 | 2,583,068 | |||||
General partner units outstanding | 2,583,068 | 2,583,068 | |||||
Accounts receivable, net | [1] | $ 221,795 | $ 193,329 | [2] | |||
Series A Preferred Units [Member] | |||||||
Units issued | 21,922,831 | 0 | |||||
Units outstanding | 21,922,831 | 0 | |||||
Common Units [Member] | |||||||
Units issued | 130,671,970 | 128,576,965 | |||||
Units outstanding | 130,671,970 | 128,576,965 | |||||
Class C Units [Member] | |||||||
Units issued | 11,946,008 | 11,411,862 | |||||
Units outstanding | 11,946,008 | 11,411,862 | |||||
Affiliates [Member] | |||||||
Accounts receivable, net | $ 81,300 | $ 42,700 | |||||
|
Consolidated Statement of Equity and Partners' Capital - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands |
Total |
Net Investment by Anadarko [Member] |
Common Units [Member] |
Class C Units [Member] |
Series A Preferred Units [Member] |
General Partner Units [Member] |
Noncontrolling Interest [Member] |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2015 | [1] | $ 3,918,028 | $ 430,598 | $ 2,588,991 | $ 710,891 | $ 0 | $ 120,164 | $ 67,384 | ||||||
Net income (loss) | 286,408 | 11,326 | 126,292 | 13,213 | 15,969 | 113,781 | 5,827 | |||||||
Above-market component of swap extensions with Anadarko | [2] | 16,365 | 16,365 | |||||||||||
Issuance of common units, net of offering expenses | 25,000 | 25,000 | ||||||||||||
Issuance of Series A Preferred units, net of offering expenses | 686,940 | 686,940 | ||||||||||||
Beneficial conversion feature of Series A Preferred units | 0 | 93,409 | (93,409) | |||||||||||
Amortization of beneficial conversion feature of Class C units and Series A Preferred units | 0 | (15,108) | 5,627 | 9,481 | ||||||||||
Distributions to noncontrolling interest owner | (7,460) | (7,460) | ||||||||||||
Distributions to unitholders | (313,380) | (209,355) | (1,887) | (102,138) | ||||||||||
Acquisitions from affiliates | (712,500) | (549,865) | (162,635) | |||||||||||
Revision to Deferred purchase price obligation – Anadarko | [3] | 148,600 | 148,600 | |||||||||||
Contributions of equity-based compensation from Anadarko | 2,053 | 2,012 | 41 | |||||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | (27,459) | (27,459) | ||||||||||||
Net distributions to Anadarko of other assets | (354) | (348) | (6) | |||||||||||
Elimination of net deferred tax liabilities | 135,400 | 135,400 | ||||||||||||
Other | 583 | 583 | ||||||||||||
Balance at Jun. 30, 2016 | $ 4,158,224 | $ 0 | $ 2,613,806 | $ 729,731 | $ 617,094 | $ 131,842 | $ 65,751 | |||||||
|
Description of Business and Basis of Presentation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business and Basis of Presentation | General. Western Gas Partners, LP is a growth-oriented Delaware master limited partnership (“MLP”) formed by Anadarko Petroleum Corporation in 2007 to acquire, own, develop and operate midstream energy assets. For purposes of these consolidated financial statements, the “Partnership” refers to Western Gas Partners, LP and its subsidiaries. The Partnership’s general partner, Western Gas Holdings, LLC (the “general partner”), is owned by Western Gas Equity Partners, LP (“WGP”), a Delaware MLP formed by Anadarko Petroleum Corporation in September 2012 to own the Partnership’s general partner, as well as a significant limited partner interest in the Partnership (see Western Gas Equity Partners, LP below). WGP has no independent operations or material assets other than owning the partnership interests in WES (see Holdings of Partnership equity in Note 4). Western Gas Equity Holdings, LLC is WGP’s general partner and is a wholly owned subsidiary of Anadarko Petroleum Corporation. “Anadarko” refers to Anadarko Petroleum Corporation and its subsidiaries, excluding the Partnership and the general partner, and “affiliates” refers to subsidiaries of Anadarko, excluding the Partnership, but including equity interests in Fort Union Gas Gathering, LLC (“Fort Union”), White Cliffs Pipeline, LLC (“White Cliffs”), Rendezvous Gas Services, LLC (“Rendezvous”), Enterprise EF78 LLC (the “Mont Belvieu JV”), Texas Express Pipeline LLC (“TEP”), Texas Express Gathering LLC (“TEG”) and Front Range Pipeline LLC (“FRP”). The interests in TEP, TEG and FRP are referred to collectively as the “TEFR Interests.” The “MGR assets” include the Red Desert complex, the Granger straddle plant and the interest in Rendezvous. The Partnership is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil for Anadarko, as well as for third-party producers and customers. As of June 30, 2016, the Partnership’s assets and investments accounted for under the equity method consisted of the following:
These assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), the Mid-Continent (Kansas and Oklahoma), North-central Pennsylvania and Texas. In May 2016, the Partnership commenced operation of Train IV, a processing plant, at the DBM complex. The Partnership is constructing Train V, an additional processing plant at the DBM complex, with operations expected to commence during the second half of 2016. The Partnership has also made progress payments toward the construction of another cryogenic unit at the DBM complex (Train VI). The Partnership is evaluating when construction of Train VI will start and believe the earliest the plant will be online is the first quarter of 2018. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Basis of presentation. The following table outlines the Partnership’s ownership interests and the accounting method of consolidation used in the Partnership’s consolidated financial statements:
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The consolidated financial statements include the accounts of the Partnership and entities in which it holds a controlling financial interest. All significant intercompany transactions have been eliminated. In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other methods considered reasonable. Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. Effects on the business, financial condition and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information furnished herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements, and certain prior-period amounts have been reclassified to conform to the current-year presentation. Certain information and note disclosures commonly included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying consolidated financial statements and notes should be read in conjunction with the Partnership’s 2015 Form 10-K, as filed with the SEC on February 25, 2016, certain sections of which were recast to reflect the results of the Springfield interest in the Partnership’s Current Report on Form 8-K, as filed with the SEC on June 10, 2016. Management believes that the disclosures made are adequate to make the information not misleading. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Presentation of Partnership assets. The term “Partnership assets” refers to the assets owned and interests accounted for under the equity method (see Note 7) by the Partnership as of June 30, 2016. Because Anadarko controls the Partnership through its ownership and control of WGP, which owns the Partnership’s entire general partner interest, each acquisition of Partnership assets from Anadarko has been considered a transfer of net assets between entities under common control. As such, the Partnership assets acquired from Anadarko were initially recorded at Anadarko’s historic carrying value, which did not correlate to the total acquisition price paid by the Partnership. Further, after an acquisition of Partnership assets from Anadarko, the Partnership may be required to recast its financial statements to include the activities of such Partnership assets from the date of common control. See Note 2. For those periods requiring recast, the consolidated financial statements for periods prior to the Partnership’s acquisition of the Partnership assets from Anadarko have been prepared from Anadarko’s historical cost-basis accounts and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned the Partnership assets during the periods reported. Net income (loss) attributable to the Partnership assets acquired from Anadarko for periods prior to the Partnership’s acquisition of the Partnership assets is not allocated to the limited partners. Insurance recoveries. Involuntary conversions result from the loss of an asset because of some unforeseen event (e.g., destruction due to fire). Some of these events are insurable and result in property damage insurance recovery. Amounts the Partnership receives from insurance carriers are net of any deductibles related to the covered event. The Partnership records a receivable from insurance to the extent it recognizes a loss from an involuntary conversion event and the likelihood of recovering such loss is deemed probable. To the extent that any of the Partnership’s insurance claim receivables are later judged not probable of recovery (e.g., due to new information), such amounts are expensed. The Partnership recognizes gains on involuntary conversions when the amount received from insurance exceeds the net book value of the retired asset(s). In addition, the Partnership does not recognize a gain related to insurance recoveries until all contingencies related to such proceeds have been resolved, that is, a non-refundable cash payment is received from the insurance carrier or the Partnership has a binding settlement agreement with the carrier that clearly states that a non-refundable payment will be made. To the extent that an asset is rebuilt, the associated expenditures are capitalized, as appropriate, in the consolidated balance sheets and presented as capital expenditures in the Partnership’s consolidated statements of cash flows. With respect to business interruption insurance claims, the Partnership recognizes income only when non-refundable cash proceeds are received from insurers, which are presented in the Partnership’s consolidated statements of operations as a component of Operating income (loss). On December 3, 2015, there was an initial fire and secondary explosion at the processing facility within the DBM complex. The majority of the damage from the incident was to the liquid handling facilities and the amine treating units at the inlet of the complex. Train II (with capacity of 100 MMcf/d) sustained the most damage of the processing trains but is expected to be returned to service by the end of 2016. Train III (with capacity of 200 MMcf/d) experienced minimal damage and returned to full service in May 2016. As of June 30, 2016, and December 31, 2015, the consolidated balance sheets include receivables of $44.2 million and $49.0 million, respectively, for a property insurance claim related to the incident at the DBM complex. As of June 30, 2016, the Partnership had received $5.5 million in cash proceeds from insurers related to the incident at the DBM complex, including $2.6 million in proceeds from business interruption insurance claims and $2.9 million in proceeds from property insurance claims. Recently issued accounting standards. The Financial Accounting Standards Board recently issued the following Accounting Standards Updates (“ASUs”): ASU 2016-02, Leases (Topic - 842). This ASU requires the lessees to recognize a lease liability and a right-of-use asset for all leases, including operating leases, with a term greater than 12 months on the balance sheet and disclose key information about their leasing transactions. This ASU is effective for annual and interim periods beginning in 2019. The Partnership is evaluating the impact of the adoption of this ASU on its consolidated financial statements. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) ASU 2015-06, Earnings Per Share (Topic - 260)—Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions. This ASU provides guidance for the presentation of historical earnings per unit for MLPs that apply the two-class method of calculating earnings per unit. When a general partner transfers or “drops down” net assets to an MLP, the transaction is accounted for as a transaction between entities under common control, and the statements of operations are adjusted retrospectively to reflect the transaction. This ASU specifies that the historical earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner, and the previously reported earnings per unit of the limited partners should not change as a result of the dropdown transaction. The ASU also requires additional disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method. The Partnership applies the two-class method of calculating earnings per unit as described above (including the allocation of pre-acquisition net income (loss) to the general partner), and discloses the rights to earnings (losses) noted above. As such, there was no impact to the Partnership’s consolidated financial statements upon adoption of this ASU on January 1, 2016. ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30)—Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30)—Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. These ASUs require capitalized debt issuance costs, except for those related to revolving credit facilities, to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, rather than as an asset. The Partnership adopted these ASUs on January 1, 2016, using a retrospective approach. The adoption resulted in a reclassification that reduced Other assets and Long-term debt by $16.7 million on the Partnership’s consolidated balance sheet at December 31, 2015. See Note 9. ASU 2015-02, Consolidation (Topic 810)—Amendments to the Consolidation Analysis. This ASU amends existing requirements applicable to reporting entities that are required to evaluate consolidation of a legal entity under the variable interest entity (“VIE”) or voting interest entity models. The provisions will affect how limited partnerships and similar entities are assessed for consolidation, including an additional requirement that a limited partnership will be a VIE unless the limited partners have either substantive kick-out or participating rights over the general partner. The Partnership evaluated the impact of the adoption of this ASU on its consolidated financial statements and determined it does not have any entities for which it is the primary beneficiary for accounting and disclosure purposes. As such, the adoption of this ASU on January 1, 2016, did not impact the Partnership’s consolidated financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes current revenue recognition requirements. The codification was amended through additional ASUs and, as amended, requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The Partnership is required to adopt the new standard in the first quarter of 2018 using one of two retrospective application methods. The Partnership is continuing to evaluate the provisions of this ASU and has not determined the impact this standard may have on its consolidated financial statements and related disclosures or decided upon the method of adoption. |
Acquisitions and Divestitures |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures | 2. ACQUISITIONS AND DIVESTITURES The following table presents the acquisitions completed by the Partnership during 2016 and 2015, and identifies the funding sources for such acquisitions:
Springfield acquisition. Because the acquisition of Springfield was a transfer of net assets between entities under common control, the Partnership’s historical financial statements and operational data previously filed with the SEC have been recast in this Form 10-Q to include the results attributable to the Springfield interest as if the Partnership owned Springfield for all periods presented. The consolidated financial statements for periods prior to the Partnership’s acquisition of Springfield have been prepared from Anadarko’s historical cost-basis accounts and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned Springfield during the periods reported. The following table presents the impact of the Springfield interest on Revenues and other and Net income (loss) as presented in the Partnership’s historical consolidated statements of operations:
2. ACQUISITIONS AND DIVESTITURES (CONTINUED) DBJV acquisition - deferred purchase price obligation - Anadarko. The consideration to be paid by the Partnership for the acquisition of DBJV consists of a cash payment to Anadarko due on March 31, 2020. The cash payment will be equal to (a) eight multiplied by the average of the Partnership’s share in the Net Earnings (see definition below) of DBJV for the calendar years 2018 and 2019, less (b) the Partnership’s share of all capital expenditures incurred for DBJV between March 1, 2015, and February 29, 2020. Net Earnings is defined as all revenues less cost of product, operating expenses and property taxes, in each case attributable to DBJV on an accrual basis. As of the acquisition date, the estimated future payment obligation (based on management’s estimate of the Partnership’s share of forecasted Net Earnings and capital expenditures for DBJV) was $282.8 million, which had a net present value of $174.3 million, using a discount rate of 10%. As of June 30, 2016, the Partnership recognized a $241.1 million decrease in the estimated future payment obligation, resulting in a net present value of this obligation of $29.2 million, calculated using a discounted cash flow model with a 10% discount rate. The reduction in the value of the deferred purchase price obligation is primarily due to revisions reflecting a decrease in the Partnership’s estimate of 2018 and 2019 Net Earnings and an increase in the Partnership’s estimate of aggregate capital expenditures to be incurred by DBJV through February 29, 2020. The following table summarizes the financial statement impact of the Deferred purchase price obligation - Anadarko:
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Partnership Distributions |
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Partnership Distributions | 3. PARTNERSHIP DISTRIBUTIONS The partnership agreement requires the Partnership to distribute all of its available cash (as defined in the partnership agreement) to unitholders of record on the applicable record date within 45 days of the end of each quarter. The Board of Directors of the general partner declared the following cash distributions to the Partnership’s common and general partner unitholders for the periods presented:
Class C unit distributions. The Class C units receive quarterly distributions at a rate equivalent to the Partnership’s common units. The distributions are paid in the form of additional Class C units (“PIK Class C units”) until the scheduled conversion date on December 31, 2017 (unless earlier converted), and the Class C units are disregarded with respect to distributions of the Partnership’s available cash until they are converted to common units. The number of additional PIK Class C units to be issued in connection with a distribution payable on the Class C units is determined by dividing the corresponding distribution attributable to the Class C units by the volume-weighted-average price of the Partnership’s common units for the ten days immediately preceding the payment date for the common unit distribution, less a 6% discount. The Partnership records the PIK Class C unit distributions at fair value at the time of issuance. This Level 2 fair value measurement uses the Partnership’s unit price as a significant input in the determination of the fair value. On May 13, 2016, the Partnership distributed 210,562 PIK Class C units to APC Midstream Holdings, LLC (“AMH”), the holder of the Class C units, for the quarterly distribution period ended March 31, 2016, and on February 11, 2016, the Partnership distributed 323,584 PIK Class C units to AMH for the quarterly distribution period ended December 31, 2015. Series A Preferred unit distributions. As further described in Note 4, the Partnership issued Series A Preferred units representing limited partner interests in the Partnership to private investors in March 2016 and April 2016. The Series A Preferred unitholders receive quarterly distributions in cash equal to $0.68 per Series A Preferred unit, subject to certain adjustments. The holders of the Series A Preferred units are entitled to certain rights that are senior to the rights of holders of common and Class C units, such as rights to distributions and rights upon liquidation of the Partnership. No payment or distribution on any junior equity security of the Partnership, including common and Class C units, for any quarter is permitted prior to the payment in full of the Series A Preferred unit distribution (including any outstanding arrearages). For the quarter ended June 30, 2016, the Series A Preferred unitholders will receive an aggregate cash distribution of $14.1 million comprised of a quarterly per unit distribution prorated for the 77-day period 7,892,220 Series A Preferred units were outstanding during the second quarter of 2016 and a full quarterly per unit distribution on 14,030,611 Series A Preferred units. For the quarter ended March 31, 2016, the Series A Preferred unitholders received an aggregate cash distribution of $1.9 million, based on the quarterly per unit distribution prorated for the 18-day period 14,030,611 Series A Preferred units were outstanding during the first quarter of 2016. See Note 4 for further discussion of the Series A Preferred units. |
Equity and Partners' Capital |
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Equity and Partners' Capital | 4. EQUITY AND PARTNERS’ CAPITAL Equity offerings. Pursuant to the Partnership’s registration statement filed with the SEC in August 2014 authorizing the issuance of up to an aggregate of $500.0 million of common units (“$500.0 million COP”), during the year ended December 31, 2015, the Partnership issued 873,525 common units, at an average price of $66.61, generating proceeds of $57.4 million (net of $0.8 million for the underwriting discount and other offering expenses). Net proceeds were used for general partnership purposes, including funding capital expenditures. Gross proceeds generated during the year ended December 31, 2015, were $58.2 million. Commissions paid during the year ended December 31, 2015, were $0.6 million. The Partnership issued no common units under the $500.0 million COP during the six months ended June 30, 2016. Class C units. In connection with the closing of the DBM acquisition in November 2014, the Partnership issued 10,913,853 Class C units to AMH at a price of $68.72 per unit, generating proceeds of $750.0 million, pursuant to a Unit Purchase Agreement (“UPA”) with Anadarko and AMH. All outstanding Class C units will convert into common units on a one-for-one basis on December 31, 2017, unless the Partnership elects to convert such units earlier or Anadarko extends the conversion date. The Class C units were issued to partially fund the acquisition of DBM, and the UPA contains an optional redemption feature that provides the Partnership the ability to redeem up to $150.0 million of the Class C units within 10 days of the receipt of cash proceeds from an entity that is not an affiliate of the Partnership or AMH, if these cash proceeds were in relation to (i) the assets of DBM, (ii) the equity interests in DBM or (iii) the equity interests in a subsidiary of the Partnership that owns a majority of the outstanding equity interests in DBM. As of June 30, 2016, no such proceeds had been received, and no Class C units had been redeemed. The Class C units were issued at a discount to the then-current market price of the common units into which they are convertible. This discount, totaling $34.8 million, represents a beneficial conversion feature, and at issuance, it was reflected as an increase in common unitholders’ capital and a decrease in Class C unitholder capital to reflect the fair value of the Class C units at issuance. The beneficial conversion feature is considered a non-cash distribution that will be recognized from the date of issuance through the date of conversion, resulting in an increase in Class C unitholder capital and a decrease in common unitholders’ capital as amortized. The beneficial conversion feature is amortized assuming a conversion date of December 31, 2017, using the effective yield method. The impact of the beneficial conversion feature amortization is also included in the calculation of earnings per unit. Series A Preferred units. In connection with the closing of the Springfield acquisition on March 14, 2016, the Partnership issued 14,030,611 Series A Preferred units (the “March 2016 Series A units”) to private investors for a cash purchase price of $32.00 per unit, generating proceeds of $440.0 million (net of fees and expenses, including a 2.0% transaction fee paid to the private investors). In April 2016, the Partnership issued an additional 7,892,220 Series A Preferred units (the “April 2016 Series A units”) pursuant to the full exercise of an option granted in connection with the March 2016 Series A units issuance, generating net proceeds of $246.9 million. The Series A Preferred unitholders may convert the Series A Preferred units into common units on a one-for-one basis at any time after the second anniversary of the issuance date, in whole or in part, subject to certain conversion thresholds. Similarly, the Partnership may convert the Series A Preferred units at any time after the third anniversary of the issuance date, in whole or in part, if the closing price of the Partnership’s common units is greater than $48.00 per common unit for 20 of the 30 preceding trading days, and subject to other certain conversion thresholds. In addition, upon certain events involving a change of control, the Series A Preferred unitholders may elect on an individual basis, subject to certain conditions, to (i) convert their Series A Preferred units to common units at the then applicable conversion rate, (ii) if the Partnership is not the surviving entity (or if the Partnership is the surviving entity, but its common units will cease to be listed), require the Partnership to use commercially reasonable efforts to cause the surviving entity in any such transaction to issue a substantially equivalent security (or convert into common units based on a specified formula, if the Partnership is unable to cause such substantially equivalent securities to be issued), (iii) if the Partnership is the surviving entity, continue to hold their Series A Preferred units, or (iv) require the Partnership to redeem the Series A Preferred units at a price per Series A Preferred unit of $32.32, plus accrued and unpaid distributions to be paid in cash or common units at the discretion of the Partnership. 4. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) The Series A Preferred unitholders will vote on an as-converted basis with the Partnership’s common unitholders and will have certain other class voting rights with respect to any amendment to the partnership agreement that would adversely affect any rights, preferences or privileges of the Series A Preferred unitholders. In connection with the issuance of the Series A Preferred units, the Partnership entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the Series A Preferred unit purchasers relating to the registered resale of the common units representing limited partner interests in the Partnership issuable upon conversion of the Series A Preferred units. Pursuant to the Registration Rights Agreement, the Partnership is required to use its commercially reasonable efforts to file and maintain a registration statement for the resale of the converted Series A Preferred units, with such registration statement to become effective no later than March 2018. The March 2016 Series A units and the April 2016 Series A units were issued at a discount to the then-current market price of the common units into which they are convertible. The discount on the March 2016 Series A units, totaling $21.7 million, represents a beneficial conversion feature, and on the date the Preferred Unit Purchase Agreement was signed (the “commitment date”), it was reflected as an increase in common unitholders’ capital and a decrease in Series A Preferred unitholders’ capital to reflect the fair value of the March 2016 Series A units on the commitment date. The discount on the April 2016 Series A units, totaling $71.7 million, also represents a beneficial conversion feature and on the date the option to purchase additional Series A units was exercised (the “notice date”), it was reflected as an increase in common unitholders’ capital and a decrease in Series A Preferred unitholders’ capital to reflect the fair value of the April 2016 Series A units on the notice date. The beneficial conversion features are considered non-cash distributions that will be recognized from each issuance date through the date of earliest conversion, resulting in an increase in Series A Preferred unitholders’ capital and a decrease in common unitholders’ capital as amortized. The beneficial conversion features are amortized assuming a conversion date of March 14, 2018 for the March 2016 Series A units and a conversion date of April 15, 2018 for the April 2016 Series A units, using the effective yield method. Partnership interests. The Partnership’s common units are listed on the New York Stock Exchange under the symbol “WES.” The following table summarizes the common, Class C, Series A Preferred and general partner units issued during the six months ended June 30, 2016:
4. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) Holdings of Partnership equity. As of June 30, 2016, WGP held 50,132,046 common units, representing a 30.0% limited partner interest in the Partnership, and, through its ownership of the general partner, WGP indirectly held 2,583,068 general partner units, representing a 1.5% general partner interest in the Partnership, and 100% of the IDRs. As of June 30, 2016, other subsidiaries of Anadarko held 2,011,380 common units and 11,946,008 Class C units, representing an aggregate 8.4% limited partner interest in the Partnership. As of June 30, 2016, the public held 78,528,544 common units, representing a 47.0% limited partner interest in the Partnership and private investors held 21,922,831 Series A Preferred units, representing a 13.1% limited partner interest in the Partnership. Net income (loss) per unit for common units. Net income (loss) attributable to Western Gas Partners, LP earned on and subsequent to the date of the acquisition of the Partnership assets, net of distributions on the Series A Preferred units and amortization of the Series A Preferred unit beneficial conversion features (see Series A Preferred units above), is allocated to the general partner, the common unitholders and the Class C unitholder, in accordance with their respective weighted-average ownership percentages (exclusive of the Series A Preferred unit limited partnership interest) and, when applicable, giving effect to incentive distributions allocable to the general partner. The allocable limited partners’ interest in net income (loss) is also net of amortization of the beneficial conversion feature related to the Class C units (see Class C units above) and is allocated between the common and Class C unitholders by applying the provisions of the partnership agreement that govern actual cash distributions and capital account allocations, as if all earnings for the period had been distributed. Net income (loss) attributable to the Partnership assets acquired from Anadarko for periods prior to the Partnership’s acquisition of the Partnership assets is not allocated to the limited partners for purposes of calculating net income (loss) per common unit. Basic net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) attributable to common unitholders by the weighted-average number of common units outstanding during the period. The common units issued in connection with acquisitions and equity offerings are included on a weighted-average basis for periods they were outstanding. The Series A Preferred units are not considered a participating security as they only have distribution rights up to the specified per-unit quarterly distribution and have no rights to the Partnership’s undistributed earnings. Because the Class C units participate in distributions with common units according to a predetermined formula (see Note 3), they are considered a participating security and are included in the computation of earnings per unit pursuant to the two-class method. The Class C unit participation right results in a non-contingent transfer of value each time the Partnership declares a distribution. Diluted net income (loss) per common unit is calculated by dividing the sum of (i) the limited partners’ interest in net income (loss) attributable to common units adjusted for distributions on the Series A Preferred units and a reallocation of the limited partners’ interest in net income (loss) assuming conversion of the Series A Preferred units into common units, and (ii) the limited partners’ interest in net income (loss) allocable to the Class C units as a participating security, by the sum of the weighted-average number of common units outstanding plus the dilutive effect of (i) the weighted-average number of outstanding Class C units and (ii) the weighted-average number of common units outstanding assuming conversion of the Series A Preferred units. 4. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) The following table illustrates the Partnership’s calculation of net income (loss) per unit for common units:
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Transactions with Affiliates |
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Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions with Affiliates | 5. TRANSACTIONS WITH AFFILIATES Affiliate transactions. Revenues from affiliates include amounts earned by the Partnership from services provided to Anadarko as well as from the sale of residue and NGLs to Anadarko. In addition, the Partnership purchases natural gas from an affiliate of Anadarko pursuant to gas purchase agreements. Operation and maintenance expense includes amounts accrued for or paid to affiliates for the operation of the Partnership assets, whether in providing services to affiliates or to third parties, including field labor, measurement and analysis, and other disbursements. A portion of the Partnership’s general and administrative expenses is paid by Anadarko, which results in affiliate transactions pursuant to the reimbursement provisions of the Partnership’s omnibus agreement. Affiliate expenses do not bear a direct relationship to affiliate revenues, and third-party expenses do not bear a direct relationship to third-party revenues. See Note 2 for further information related to contributions of assets to the Partnership by Anadarko. Cash management. Anadarko operates a cash management system whereby excess cash from most of its subsidiaries’ separate bank accounts is generally swept to centralized accounts. Prior to the Partnership’s acquisition of the Partnership assets, third-party sales and purchases related to such assets were received or paid in cash by Anadarko within its centralized cash management system. The outstanding affiliate balances were entirely settled through an adjustment to net investment by Anadarko in connection with the acquisition of the Partnership assets. Subsequent to the acquisition of Partnership assets from Anadarko, transactions related to such assets are cash-settled directly with third parties and with Anadarko affiliates. Chipeta cash settles its transactions directly with third parties and Anadarko, as well as with the other subsidiaries of the Partnership. Note receivable - Anadarko and Deferred purchase price obligation - Anadarko. Concurrently with the closing of the Partnership’s May 2008 initial public offering, the Partnership loaned $260.0 million to Anadarko in exchange for a 30-year note bearing interest at a fixed annual rate of 6.50%, payable quarterly. The fair value of the note receivable from Anadarko was $301.5 million and $252.3 million at June 30, 2016, and December 31, 2015, respectively. The fair value of the note reflects consideration of credit risk and any premium or discount for the differential between the stated interest rate and quarter-end market interest rate, based on quoted market prices of similar debt instruments. Accordingly, the fair value of the note receivable from Anadarko is measured using Level 2 inputs. The consideration to be paid by the Partnership to Anadarko for the March 2015 acquisition of DBJV consists of a cash payment due on March 31, 2020. See Note 2 and Note 9. Commodity price swap agreements. The Partnership has commodity price swap agreements with Anadarko to mitigate exposure to a majority of the commodity price volatility that would otherwise be present as a result of the purchase and sale of natural gas, condensate or NGLs. Notional volumes for each of the commodity price swap agreements are not specifically defined. Instead, the commodity price swap agreements apply to the actual volume of natural gas, condensate and NGLs purchased and sold. The outstanding commodity price swap agreements for the Hugoton system, MGR assets and DJ Basin complex expire in December 2016. The commodity price swap agreements do not satisfy the definition of a derivative financial instrument and, therefore, are not required to be measured at fair value. Below is a summary of the fixed price ranges on all of the Partnership’s outstanding commodity price swap agreements as of June 30, 2016:
5. TRANSACTIONS WITH AFFILIATES (CONTINUED) The following table summarizes gains and losses upon settlement of commodity price swap agreements recognized in the consolidated statements of operations:
DJ Basin complex and Hugoton system swap extensions. On June 25, 2015, the Partnership extended its commodity price swap agreements with Anadarko for the DJ Basin complex from July 1, 2015, through December 31, 2015, and for the Hugoton system from October 1, 2015, through December 31, 2015. The table below summarizes the swap prices for the extension period compared to the forward market prices as of the agreement date, June 25, 2015.
5. TRANSACTIONS WITH AFFILIATES (CONTINUED) On December 8, 2015, the commodity price swap agreements with Anadarko for the DJ Basin complex and Hugoton system were further extended from January 1, 2016, through December 31, 2016. The table below summarizes the swap prices for the extension period compared to the forward market prices as of the agreement date, December 8, 2015.
Revenues or costs attributable to volumes settled during the respective extension period, at the applicable market price in the above tables, will be recognized in the consolidated statements of operations. The Partnership will also record a capital contribution from Anadarko in the Partnership’s consolidated statement of equity and partners’ capital for the amount by which the swap price exceeds the applicable market price in the above tables. For the six months ended June 30, 2016, the capital contribution from Anadarko was $16.4 million. Gathering and processing agreements. The Partnership has significant gathering and processing arrangements with affiliates of Anadarko on a majority of its systems. The Partnership’s gathering, treating and transportation throughput (excluding equity investment throughput) attributable to natural gas production owned or controlled by Anadarko was 39% and 38% for the three and six months ended June 30, 2016, respectively, and 56% for the three and six months ended June 30, 2015. The Partnership’s processing throughput (excluding equity investment throughput) attributable to natural gas production owned or controlled by Anadarko was 55% and 58% for the three and six months ended June 30, 2016, respectively, and 52% for the three and six months ended June 30, 2015. The Partnership’s gathering, treating and transportation throughput (excluding equity investment throughput) attributable to crude/NGL production owned or controlled by Anadarko was 64% for the three and six months ended June 30, 2016, and 100% for the three and six months ended June 30, 2015. Prior to January 1, 2016, Springfield’s contracts were with a subsidiary of Anadarko who contracted with third parties. Effective January 1, 2016, Springfield’s contracts are with both a subsidiary of Anadarko and third parties directly. Commodity purchase and sale agreements. The Partnership sells a significant amount of its natural gas, condensate and NGLs to Anadarko Energy Services Company (“AESC”), Anadarko’s marketing affiliate. In addition, the Partnership purchases natural gas, condensate and NGLs from AESC pursuant to purchase agreements. The Partnership’s purchase and sale agreements with AESC are generally one-year contracts, subject to annual renewal. 5. TRANSACTIONS WITH AFFILIATES (CONTINUED) Acquisitions from Anadarko. On March 14, 2016, the Partnership acquired Springfield from Anadarko, and on March 2, 2015, the Partnership acquired DBJV from Anadarko. See Note 2 for further information on these acquisitions. WES LTIP. The general partner awards phantom units under the Western Gas Partners, LP 2008 Long-Term Incentive Plan (“WES LTIP”) primarily to its independent directors, but also from time to time to its executive officers and Anadarko employees performing services for the Partnership. The phantom units awarded to the independent directors vest one year from the grant date, while all other awards are subject to graded vesting over a three-year service period. Compensation expense is recognized over the vesting period and was $0.1 million for each of the three months ended June 30, 2016 and 2015, and $0.2 million for each of the six months ended June 30, 2016 and 2015. WGP LTIP and Anadarko Incentive Plans. General and administrative expenses included $1.1 million and $2.4 million for the three and six months ended June 30, 2016, respectively, and $1.0 million and $2.0 million for the three and six months ended June 30, 2015, respectively, of equity-based compensation expense, allocated to the Partnership by Anadarko, for awards granted to the executive officers of the general partner and other employees under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan (“WGP LTIP”) and the Anadarko Petroleum Corporation 2008 and 2012 Omnibus Incentive Compensation Plans (referred to collectively as the “Anadarko Incentive Plans”). Of this amount, $2.1 million is reflected as a contribution to partners’ capital in the Partnership’s consolidated statement of equity and partners’ capital for the six months ended June 30, 2016. Equipment purchases and sales. The following table summarizes the Partnership’s purchases from and sales to Anadarko of pipe and equipment:
5. TRANSACTIONS WITH AFFILIATES (CONTINUED) Summary of affiliate transactions. The following table summarizes material affiliate transactions. See Note 2 for discussion of affiliate acquisitions and related funding.
Concentration of credit risk. Anadarko was the only customer from whom revenues exceeded 10% of the Partnership’s consolidated revenues for all periods presented in the consolidated statements of operations. |
Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | 6. PROPERTY, PLANT AND EQUIPMENT A summary of the historical cost of the Partnership’s property, plant and equipment is as follows:
The cost of property classified as “Assets under construction” is excluded from capitalized costs being depreciated. These amounts represent property that is not yet suitable to be placed into productive service as of the respective balance sheet date. As of June 30, 2016, net property, plant and equipment includes impairments of $8.9 million, primarily due to an impairment of $6.1 million at the Newcastle system. This asset was impaired to its estimated fair value of $3.1 million, using the income approach and Level 3 fair value inputs, due to a reduction in estimated future cash flows caused by the low commodity price environment. Also during this period, the Partnership recognized impairments of $2.4 million, primarily related to the abandonment of compressors at the MIGC system. |
Equity Investments |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investments | 7. EQUITY INVESTMENTS The following table presents the activity in the Partnership’s equity investments for the six months ended June 30, 2016:
During the six months ended June 30, 2016, an impairment loss was recognized by the managing partner of Fort Union. The Partnership’s 14.81% share of the impairment loss was $3.0 million, which was recorded in Equity income, net – affiliates in the consolidated statements of operations. |
Components of Working Capital |
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Components Of Working Capital [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Working Capital | 8. COMPONENTS OF WORKING CAPITAL A summary of accounts receivable, net is as follows:
A summary of other current assets is as follows:
A summary of accrued liabilities is as follows:
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Debt and Interest Expense |
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Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Interest Expense | 9. DEBT AND INTEREST EXPENSE At June 30, 2016, the Partnership’s debt consisted of 5.375% Senior Notes due 2021 (the “2021 Notes”), 4.000% Senior Notes due 2022 (the “2022 Notes”), 2.600% Senior Notes due 2018 (the “2018 Notes”), 5.450% Senior Notes due 2044 (the “2044 Notes”), 3.950% Senior Notes due 2025 (the “2025 Notes”), and borrowings on the RCF. The following table presents the Partnership’s outstanding debt as of June 30, 2016, and December 31, 2015:
Debt activity. The following table presents the debt activity of the Partnership for the six months ended June 30, 2016:
Senior Notes. At June 30, 2016, the Partnership was in compliance with all covenants under the indentures governing its outstanding notes. In July 2016, the Partnership issued $500.0 million aggregate principal amount of 4.650% Senior Notes due 2026 (the “2026 Notes”) which were offered at a price to the public of 99.796% of the face amount. Interest is paid semi-annually on January 1 and July 1 of each year. Proceeds (net of underwriting discount of $3.1 million, original issue discount and debt issuance costs) were used to repay a portion of the amount outstanding under the RCF. Revolving credit facility. The interest rate on the RCF, which matures in February 2019, was 1.77% and 1.49% at June 30, 2016 and 2015, respectively. The facility fee rate was 0.20% at June 30, 2016 and 2015. As of June 30, 2016, the Partnership had $540.0 million of outstanding borrowings, $4.9 million in outstanding letters of credit and $655.1 million available for borrowing under the RCF. At June 30, 2016, the Partnership was in compliance with all covenants under the RCF. In April 2016, the Partnership repaid $250.0 million of outstanding borrowings under the RCF, $246.9 million of which was funded with the proceeds from the issuance of the April 2016 Series A unit issuance (see Note 4). Interest rate agreements. In June 2016, the Partnership entered into a U.S. Treasury rate lock agreement to mitigate the risk of rising interest rates on existing variable-rate debt expected to be refinanced during the third quarter of 2016. The rate lock agreement was not designated as a cash flow hedge and was settled in June 2016 upon the offering of the 2026 Notes that closed in July 2016. The Partnership realized a loss of $0.2 million at settlement, which is included in Other income (expense), net in the Partnership’s consolidated statements of operations. 9. DEBT AND INTEREST EXPENSE (CONTINUED) Interest expense. The following table summarizes the amounts included in interest expense:
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Litigation and legal proceedings. From time to time, the Partnership is involved in legal, tax, regulatory and other proceedings in various forums regarding performance, contracts and other matters that arise in the ordinary course of business. Management is not aware of any such proceeding the final disposition of which could have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows. Other commitments. The Partnership has short-term payment obligations, or commitments, related to its capital spending programs, as well as those of its unconsolidated affiliates. As of June 30, 2016, the Partnership had unconditional payment obligations for services to be rendered or products to be delivered in connection with its capital projects of $38.3 million, the majority of which is expected to be paid in the next twelve months. These commitments relate primarily to the construction of Trains V and VI at the DBM complex and expansion projects at the DBJV system and the DJ Basin complex. Lease commitments. Anadarko, on behalf of the Partnership, has entered into lease agreements for corporate offices, shared field offices and a warehouse supporting the Partnership’s operations, for which Anadarko charges the Partnership rent. The leases for the corporate offices and shared field offices extend through 2017 and 2018, respectively, and the lease for the warehouse extends through February 2017. Rent expense associated with the office, warehouse and equipment leases was $8.4 million and $17.3 million for the three and six months ended June 30, 2016, respectively, and $8.5 million and $16.5 million for the three and six months ended June 30, 2015, respectively. |
Description of Business and Basis of Presentation (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combinations policy | Basis of presentation. The following table outlines the Partnership’s ownership interests and the accounting method of consolidation used in the Partnership’s consolidated financial statements:
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The consolidated financial statements include the accounts of the Partnership and entities in which it holds a controlling financial interest. All significant intercompany transactions have been eliminated. Presentation of Partnership assets. The term “Partnership assets” refers to the assets owned and interests accounted for under the equity method (see Note 7) by the Partnership as of June 30, 2016. Because Anadarko controls the Partnership through its ownership and control of WGP, which owns the Partnership’s entire general partner interest, each acquisition of Partnership assets from Anadarko has been considered a transfer of net assets between entities under common control. As such, the Partnership assets acquired from Anadarko were initially recorded at Anadarko’s historic carrying value, which did not correlate to the total acquisition price paid by the Partnership. Further, after an acquisition of Partnership assets from Anadarko, the Partnership may be required to recast its financial statements to include the activities of such Partnership assets from the date of common control. See Note 2. For those periods requiring recast, the consolidated financial statements for periods prior to the Partnership’s acquisition of the Partnership assets from Anadarko have been prepared from Anadarko’s historical cost-basis accounts and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned the Partnership assets during the periods reported. Net income (loss) attributable to the Partnership assets acquired from Anadarko for periods prior to the Partnership’s acquisition of the Partnership assets is not allocated to the limited partners. |
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Use of estimates policy | In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other methods considered reasonable. Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. Effects on the business, financial condition and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information furnished herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements, and certain prior-period amounts have been reclassified to conform to the current-year presentation. |
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Recently issued accounting standards policy | Recently issued accounting standards. The Financial Accounting Standards Board recently issued the following Accounting Standards Updates (“ASUs”): ASU 2016-02, Leases (Topic - 842). This ASU requires the lessees to recognize a lease liability and a right-of-use asset for all leases, including operating leases, with a term greater than 12 months on the balance sheet and disclose key information about their leasing transactions. This ASU is effective for annual and interim periods beginning in 2019. The Partnership is evaluating the impact of the adoption of this ASU on its consolidated financial statements. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) ASU 2015-06, Earnings Per Share (Topic - 260)—Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions. This ASU provides guidance for the presentation of historical earnings per unit for MLPs that apply the two-class method of calculating earnings per unit. When a general partner transfers or “drops down” net assets to an MLP, the transaction is accounted for as a transaction between entities under common control, and the statements of operations are adjusted retrospectively to reflect the transaction. This ASU specifies that the historical earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner, and the previously reported earnings per unit of the limited partners should not change as a result of the dropdown transaction. The ASU also requires additional disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method. The Partnership applies the two-class method of calculating earnings per unit as described above (including the allocation of pre-acquisition net income (loss) to the general partner), and discloses the rights to earnings (losses) noted above. As such, there was no impact to the Partnership’s consolidated financial statements upon adoption of this ASU on January 1, 2016. ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30)—Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30)—Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. These ASUs require capitalized debt issuance costs, except for those related to revolving credit facilities, to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, rather than as an asset. The Partnership adopted these ASUs on January 1, 2016, using a retrospective approach. The adoption resulted in a reclassification that reduced Other assets and Long-term debt by $16.7 million on the Partnership’s consolidated balance sheet at December 31, 2015. See Note 9. ASU 2015-02, Consolidation (Topic 810)—Amendments to the Consolidation Analysis. This ASU amends existing requirements applicable to reporting entities that are required to evaluate consolidation of a legal entity under the variable interest entity (“VIE”) or voting interest entity models. The provisions will affect how limited partnerships and similar entities are assessed for consolidation, including an additional requirement that a limited partnership will be a VIE unless the limited partners have either substantive kick-out or participating rights over the general partner. The Partnership evaluated the impact of the adoption of this ASU on its consolidated financial statements and determined it does not have any entities for which it is the primary beneficiary for accounting and disclosure purposes. As such, the adoption of this ASU on January 1, 2016, did not impact the Partnership’s consolidated financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes current revenue recognition requirements. The codification was amended through additional ASUs and, as amended, requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The Partnership is required to adopt the new standard in the first quarter of 2018 using one of two retrospective application methods. The Partnership is continuing to evaluate the provisions of this ASU and has not determined the impact this standard may have on its consolidated financial statements and related disclosures or decided upon the method of adoption. |
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Net income (loss) per common unit policy | Net income (loss) per unit for common units. Net income (loss) attributable to Western Gas Partners, LP earned on and subsequent to the date of the acquisition of the Partnership assets, net of distributions on the Series A Preferred units and amortization of the Series A Preferred unit beneficial conversion features (see Series A Preferred units above), is allocated to the general partner, the common unitholders and the Class C unitholder, in accordance with their respective weighted-average ownership percentages (exclusive of the Series A Preferred unit limited partnership interest) and, when applicable, giving effect to incentive distributions allocable to the general partner. The allocable limited partners’ interest in net income (loss) is also net of amortization of the beneficial conversion feature related to the Class C units (see Class C units above) and is allocated between the common and Class C unitholders by applying the provisions of the partnership agreement that govern actual cash distributions and capital account allocations, as if all earnings for the period had been distributed. Net income (loss) attributable to the Partnership assets acquired from Anadarko for periods prior to the Partnership’s acquisition of the Partnership assets is not allocated to the limited partners for purposes of calculating net income (loss) per common unit. Basic net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) attributable to common unitholders by the weighted-average number of common units outstanding during the period. The common units issued in connection with acquisitions and equity offerings are included on a weighted-average basis for periods they were outstanding. The Series A Preferred units are not considered a participating security as they only have distribution rights up to the specified per-unit quarterly distribution and have no rights to the Partnership’s undistributed earnings. Because the Class C units participate in distributions with common units according to a predetermined formula (see Note 3), they are considered a participating security and are included in the computation of earnings per unit pursuant to the two-class method. The Class C unit participation right results in a non-contingent transfer of value each time the Partnership declares a distribution. Diluted net income (loss) per common unit is calculated by dividing the sum of (i) the limited partners’ interest in net income (loss) attributable to common units adjusted for distributions on the Series A Preferred units and a reallocation of the limited partners’ interest in net income (loss) assuming conversion of the Series A Preferred units into common units, and (ii) the limited partners’ interest in net income (loss) allocable to the Class C units as a participating security, by the sum of the weighted-average number of common units outstanding plus the dilutive effect of (i) the weighted-average number of outstanding Class C units and (ii) the weighted-average number of common units outstanding assuming conversion of the Series A Preferred units. |
Description of Business and Basis of Presentation (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Investments Table | As of June 30, 2016, the Partnership’s assets and investments accounted for under the equity method consisted of the following:
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Ownership Interest and Method of Consolidation Table | The following table outlines the Partnership’s ownership interests and the accounting method of consolidation used in the Partnership’s consolidated financial statements:
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Acquisitions and Divestitures (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions Table | The following table presents the acquisitions completed by the Partnership during 2016 and 2015, and identifies the funding sources for such acquisitions:
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Impact to Historical Consolidated Statements of Income Table | The following table presents the impact of the Springfield interest on Revenues and other and Net income (loss) as presented in the Partnership’s historical consolidated statements of operations:
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Impact of Deferred Purchase Price Obligation Table | The following table summarizes the financial statement impact of the Deferred purchase price obligation - Anadarko:
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Partnership Distributions (Tables) |
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Distributions Made to Members or Limited Partners [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Distributions Table | The Board of Directors of the general partner declared the following cash distributions to the Partnership’s common and general partner unitholders for the periods presented:
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Equity and Partners' Capital (Tables) |
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Partners' Capital Notes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership Interests Table | The following table summarizes the common, Class C, Series A Preferred and general partner units issued during the six months ended June 30, 2016:
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Calculation of Net Income (Loss) Per Unit Table | The following table illustrates the Partnership’s calculation of net income (loss) per unit for common units:
|
Transactions with Affiliates (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity Price Swap Agreements Table | Below is a summary of the fixed price ranges on all of the Partnership’s outstanding commodity price swap agreements as of June 30, 2016:
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Gains (Losses) on Commodity Price Swap Agreements Table | The following table summarizes gains and losses upon settlement of commodity price swap agreements recognized in the consolidated statements of operations:
|
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Commodity Price Swap Agreements Extensions Tables | The table below summarizes the swap prices for the extension period compared to the forward market prices as of the agreement date, June 25, 2015.
5. TRANSACTIONS WITH AFFILIATES (CONTINUED) On December 8, 2015, the commodity price swap agreements with Anadarko for the DJ Basin complex and Hugoton system were further extended from January 1, 2016, through December 31, 2016. The table below summarizes the swap prices for the extension period compared to the forward market prices as of the agreement date, December 8, 2015.
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Related Party Transactions Tables | Equipment purchases and sales. The following table summarizes the Partnership’s purchases from and sales to Anadarko of pipe and equipment:
5. TRANSACTIONS WITH AFFILIATES (CONTINUED) Summary of affiliate transactions. The following table summarizes material affiliate transactions. See Note 2 for discussion of affiliate acquisitions and related funding.
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Property, Plant and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Table | A summary of the historical cost of the Partnership’s property, plant and equipment is as follows:
|
Equity Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Investments Table | The following table presents the activity in the Partnership’s equity investments for the six months ended June 30, 2016:
|
Components of Working Capital (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Working Capital [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net Table | A summary of accounts receivable, net is as follows:
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Other Current Assets Table | A summary of other current assets is as follows:
|
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Accrued Liabilities Table | A summary of accrued liabilities is as follows:
|
Debt and Interest Expense (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Outstanding and Debt Activity Tables | The following table presents the Partnership’s outstanding debt as of June 30, 2016, and December 31, 2015:
Debt activity. The following table presents the debt activity of the Partnership for the six months ended June 30, 2016:
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Interest Expense Table | The following table summarizes the amounts included in interest expense:
|
Description of Business and Basis of Presentation - Asset Table (Details) |
Jun. 30, 2016
unit
|
---|---|
Operated [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 12 |
Operated [Member] | Treating Facilities [Member] | |
Assets [Line Items] | |
Assets, number of units | 13 |
Operated [Member] | Natural Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 19 |
Operated [Member] | Natural Gas Liquids Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 2 |
Operated [Member] | Natural Gas Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 5 |
Operated Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 4 |
Operated Interests [Member] | Treating Facilities [Member] | |
Assets [Line Items] | |
Assets, number of units | 12 |
Operated Interests [Member] | Natural Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 5 |
Operated Interests [Member] | Oil Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 1 |
Non-Operated Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 5 |
Equity Interests [Member] | Gathering Systems [Member] | |
Assets [Line Items] | |
Assets, number of units | 2 |
Equity Interests [Member] | Treating Facilities [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Equity Interests [Member] | Natural Gas Processing Plants/Trains [Member] | |
Assets [Line Items] | |
Assets, number of units | 2 |
Equity Interests [Member] | Natural Gas Liquids Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 3 |
Equity Interests [Member] | Oil Pipelines [Member] | |
Assets [Line Items] | |
Assets, number of units | 1 |
Description of Business and Basis of Presentation - Ownership Interest and Method of Consolidation Table (Details) |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | ||||||||
Chipeta Processing Limited Liability Company [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Ownership interest by noncontrolling interest owner | 25.00% | |||||||
Equity Investments [Member] | White Cliffs [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 10.00% | [1] | ||||||
Equity Investments [Member] | Rendezvous [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 22.00% | [1] | ||||||
Equity Investments [Member] | Mont Belvieu JV [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 25.00% | [1] | ||||||
Equity Investments [Member] | Texas Express Pipeline LLC [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 20.00% | [1] | ||||||
Equity Investments [Member] | Texas Express Gathering LLC [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 20.00% | [1] | ||||||
Equity Investments [Member] | Front Range Pipeline LLC [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 33.33% | [1] | ||||||
Proportionate Consolidation [Member] | Non-Operated Marcellus Interest [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 33.75% | [2] | ||||||
Proportionate Consolidation [Member] | Anadarko-Operated Marcellus Interest [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 33.75% | [2] | ||||||
Proportionate Consolidation [Member] | Newcastle [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 50.00% | [2] | ||||||
Proportionate Consolidation [Member] | Delaware Basin JV Gathering LLC [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 50.00% | [2] | ||||||
Proportionate Consolidation [Member] | Springfield Pipeline LLC [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 50.10% | [2] | ||||||
Full Consolidation [Member] | Chipeta Processing Limited Liability Company [Member] | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Percentage ownership interest | 75.00% | [3] | ||||||
|
Description of Business and Basis of Presentation - Additional Information (Details) $ in Thousands |
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
Mcf / d
|
Jun. 30, 2015
USD ($)
|
[1] |
Dec. 31, 2015
USD ($)
|
||||||
Proceeds from property insurance claims | $ 2,944 | $ 0 | |||||||
Other assets | 13,481 | $ 13,001 | [2] | ||||||
Long-term debt | 2,932,004 | 2,690,651 | [2] | ||||||
New Accounting Standard Adjustment [Member] | Accounting Standards Update 2015-03 And 2015-15 [Member] | |||||||||
Other assets | (16,700) | ||||||||
Long-term debt | (16,700) | ||||||||
Delaware Basin Midstream Complex [Member] | |||||||||
Property insurance claim receivable | 44,200 | $ 49,000 | |||||||
Proceeds from insurance claims, total | 5,500 | ||||||||
Proceeds from business interruption claims | 2,600 | ||||||||
Proceeds from property insurance claims | $ 2,900 | ||||||||
Delaware Basin Midstream Complex [Member] | Train II [Member] | |||||||||
Plant capacity | Mcf / d | 100,000 | ||||||||
Delaware Basin Midstream Complex [Member] | Train III [Member] | |||||||||
Plant capacity | Mcf / d | 200,000 | ||||||||
|
Acquisitions and Divestitures - Acquisitions Table (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 14, 2016 |
Mar. 02, 2015 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Deferred purchase price obligation - Anadarko, present value | [1] | $ 29,150 | $ 188,674 | [2] | ||||||||||||
Units issued | 534,146 | |||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Borrowings | $ 530,000 | |||||||||||||||
Delaware Basin JV Gathering LLC [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percentage acquired | [3] | 100.00% | ||||||||||||||
Delaware Basin JV Gathering LLC [Member] | Delaware Basin JV Gathering System [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percentage acquired | 50.00% | |||||||||||||||
Delaware Basin JV Gathering LLC [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | Affiliates [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Deferred purchase price obligation - Anadarko, present value | $ 174,276 | [3] | 29,150 | $ 193,211 | $ 188,674 | |||||||||||
Deferred purchase price obligation - Anadarko, future value | $ 282,807 | $ 41,666 | ||||||||||||||
Springfield Pipeline LLC [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percentage acquired | [4] | 100.00% | ||||||||||||||
Acquisition price | $ 750,000 | |||||||||||||||
Springfield Pipeline LLC [Member] | Anadarko [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Cash payment for acquisition | $ 712,500 | |||||||||||||||
Springfield Pipeline LLC [Member] | Common Units [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Units issued | [4] | 2,089,602 | ||||||||||||||
Springfield Pipeline LLC [Member] | Common Units [Member] | Anadarko [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Units issued | 1,253,761 | |||||||||||||||
Springfield Pipeline LLC [Member] | Common Units [Member] | Western Gas Equity Partners, LP [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Units issued | 835,841 | |||||||||||||||
Springfield Pipeline LLC [Member] | Series A Preferred Units [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Units issued | [4] | 14,030,611 | ||||||||||||||
Springfield Pipeline LLC [Member] | Springfield System [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Percentage acquired | 50.10% | |||||||||||||||
Springfield Pipeline LLC [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Borrowings | [4] | $ 247,500 | ||||||||||||||
|
Acquisitions and Divestitures - Impact to Historical Consolidated Statements of Income Table (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Revenues and other | $ 428,664 | $ 465,993 | [1] | $ 811,805 | $ 902,999 | [1] | ||
Net income (loss) | $ 167,325 | 135,159 | [1] | $ 286,408 | (18,108) | [1] | ||
Springfield Pipeline LLC [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Revenues and other | 49,438 | 98,051 | ||||||
Net income (loss) | 18,719 | 42,016 | ||||||
Springfield Pipeline LLC [Member] | Eliminations [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Revenues and other | (17) | (33) | ||||||
Net income (loss) | 0 | 0 | ||||||
Partnership Historical [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Revenues and other | 416,572 | 804,981 | ||||||
Net income (loss) | $ 116,440 | $ (60,124) | ||||||
|
Acquisitions and Divestitures - Impact of the Deferred Purchase Price Obligation - Anadarko Table (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
Mar. 02, 2015 |
||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||
Deferred purchase price obligation - Anadarko, present value | [1] | $ 29,150 | $ 29,150 | $ 188,674 | [2] | |||||||||||||||||||||
Affiliates [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | ||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||
Accretion expense | [3] | (15,461) | $ 4,190 | (10,924) | $ 5,610 | |||||||||||||||||||||
Affiliates [Member] | Delaware Basin JV Gathering LLC [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | ||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||
Deferred purchase price obligation - Anadarko, present value | 29,150 | $ 193,211 | 29,150 | 188,674 | $ 174,276 | [4] | ||||||||||||||||||||
Accretion expense | (15,461) | [5] | $ 4,537 | [6] | (10,924) | $ 5,600 | $ 14,398 | [6] | ||||||||||||||||||
Revision to Deferred purchase price obligation – Anadarko | [7] | (148,600) | ||||||||||||||||||||||||
Deferred purchase price obligation - Anadarko, future value | $ 41,666 | $ 41,666 | $ 282,807 | |||||||||||||||||||||||
|
Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 02, 2015 |
|||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Deferred purchase price obligation - Anadarko, present value | [1] | $ 29,150 | $ 188,674 | [2] | ||||||||
Delaware Basin JV Gathering LLC [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | Affiliates [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Deferred purchase price obligation - Anadarko, future value | 41,666 | $ 282,807 | ||||||||||
Deferred purchase price obligation - Anadarko, present value | $ 29,150 | $ 193,211 | $ 188,674 | $ 174,276 | [3] | |||||||
Discount rate percentage | 10.00% | |||||||||||
Deferred purchase price obligation to Anadarko - future value change | $ 241,100 | |||||||||||
|
Partnership Distributions - Cash Distributions Table (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
[1] | Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
|||
Distributions Made to Members or Limited Partners [Abstract] | |||||||||
Total quarterly distribution per unit | $ 0.830 | $ 0.815 | $ 0.800 | $ 0.775 | $ 0.750 | $ 0.725 | |||
Total quarterly cash distribution | $ 162,827 | $ 158,905 | $ 152,588 | $ 146,160 | $ 139,736 | $ 133,203 | |||
|
Partnership Distributions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2016 |
|
Distribution Made to Limited Partner [Line Items] | ||||
Partnership agreement day requirement of distribution of available cash | 45 days | |||
Class C Units [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Discount rate percentage | 6.00% | |||
PIK Class C units | 210,562 | 323,584 | ||
Units outstanding | 11,946,008 | 11,411,862 | 11,946,008 | |
Series A Preferred Units [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Series A Preferred units quarterly distribution per unit | $ 0.68 | |||
Series A Preferred units quarterly cash distribution | $ 14.1 | $ 1.9 | ||
Number of days in prorated period | 77 days | 18 days | ||
Units outstanding | 21,922,831 | 14,030,611 | 0 | 21,922,831 |
Series A Preferred Units [Member] | Option on Securities [Member] | ||||
Distribution Made to Limited Partner [Line Items] | ||||
Units outstanding | 7,892,220 | 7,892,220 |
Equity and Partners' Capital - Partnership Interests Table (Details) - shares |
1 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 14, 2016 |
Apr. 30, 2016 |
Jun. 30, 2016 |
||||
Capital Unit [Line Items] | ||||||
Balance | 142,571,895 | |||||
Units issued | 534,146 | |||||
Long-Term Incentive Plan award vestings | 5,403 | |||||
Balance | 167,123,877 | |||||
Option on Securities [Member] | Private Investor [Member] | ||||||
Capital Unit [Line Items] | ||||||
Units issued | 7,892,220 | |||||
Springfield Pipeline LLC [Member] | ||||||
Capital Unit [Line Items] | ||||||
Acquisition | 16,120,213 | |||||
Common Units [Member] | ||||||
Capital Unit [Line Items] | ||||||
Balance | 128,576,965 | |||||
Long-Term Incentive Plan award vestings | 5,403 | |||||
Balance | 130,671,970 | |||||
Common Units [Member] | Springfield Pipeline LLC [Member] | ||||||
Capital Unit [Line Items] | ||||||
Units issued | [1] | 2,089,602 | ||||
Acquisition | 2,089,602 | |||||
Class C Units [Member] | ||||||
Capital Unit [Line Items] | ||||||
Balance | 11,411,862 | |||||
Units issued | 534,146 | |||||
Balance | 11,946,008 | |||||
Series A Preferred Units [Member] | ||||||
Capital Unit [Line Items] | ||||||
Balance | 0 | |||||
Balance | 21,922,831 | |||||
Series A Preferred Units [Member] | Private Investor [Member] | ||||||
Capital Unit [Line Items] | ||||||
Units issued | 14,030,611 | |||||
Series A Preferred Units [Member] | Option on Securities [Member] | Private Investor [Member] | ||||||
Capital Unit [Line Items] | ||||||
Units issued | 7,892,220 | 7,892,220 | ||||
Series A Preferred Units [Member] | Springfield Pipeline LLC [Member] | ||||||
Capital Unit [Line Items] | ||||||
Units issued | [1] | 14,030,611 | ||||
Acquisition | 14,030,611 | |||||
General Partner [Member] | ||||||
Capital Unit [Line Items] | ||||||
Balance | 2,583,068 | |||||
Balance | 2,583,068 | |||||
|
Equity and Partners' Capital - Calculation of Net Income (Loss) Per Unit Table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||||||||||||
Earnings Per Unit [Line Items] | |||||||||||||||||
Net income (loss) attributable to Western Gas Partners, LP | $ 164,521 | $ 132,343 | [1] | $ 280,581 | $ (24,150) | [1] | |||||||||||
Pre-acquisition net (income) loss allocated to Anadarko | 0 | (18,719) | [1] | (11,326) | (43,758) | [1] | |||||||||||
General partner interest in net (income) loss | [2] | $ (58,381) | $ (45,971) | [1] | $ (113,781) | $ (83,148) | [1] | ||||||||||
Net income (loss) per common unit – basic and diluted | [3],[4] | $ 0.55 | $ 0.46 | [1] | $ 0.86 | $ (1.14) | [1] | ||||||||||
Series A Preferred Units [Member] | |||||||||||||||||
Earnings Per Unit [Line Items] | |||||||||||||||||
Limited partners’ interest in net income (loss) | [2],[5] | $ 23,121 | $ 0 | [1] | $ 25,450 | $ 0 | [1] | ||||||||||
Anti-dilutive units excluded from computation of earnings per unit | 20,709 | 0 | 11,742 | 0 | |||||||||||||
Common and Class C Units [Member] | |||||||||||||||||
Earnings Per Unit [Line Items] | |||||||||||||||||
Limited partners’ interest in net income (loss) | [2] | $ 83,019 | $ 67,653 | [1] | $ 130,024 | $ (151,056) | [1] | ||||||||||
Common Units [Member] | |||||||||||||||||
Earnings Per Unit [Line Items] | |||||||||||||||||
Limited partners’ interest in net income (loss) | [5] | $ 71,622 | $ 59,119 | $ 111,184 | $ (146,139) | ||||||||||||
Weighted-average common units outstanding - basic and diluted | 130,669 | 128,481 | 129,830 | 128,111 | |||||||||||||
Class C Units [Member] | |||||||||||||||||
Earnings Per Unit [Line Items] | |||||||||||||||||
Limited partners’ interest in net income (loss) | [5] | $ 11,397 | $ 8,534 | $ 18,840 | $ (4,917) | ||||||||||||
Anti-dilutive units excluded from computation of earnings per unit | 11,849 | 11,023 | 11,719 | 10,981 | |||||||||||||
|
Equity and Partners' Capital - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 14, 2016 |
Apr. 30, 2016 |
Nov. 30, 2014 |
Jun. 30, 2016 |
Jun. 30, 2015 |
[1] | Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2016 |
Aug. 31, 2014 |
|||
Schedule Of Investments [Line Items] | ||||||||||||
Units issued | 534,146 | |||||||||||
Beneficial conversion feature | $ 0 | |||||||||||
General partner units owned | 2,583,068 | 2,583,068 | ||||||||||
Private Investor [Member] | Option on Securities [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Units issued | 7,892,220 | |||||||||||
Western Gas Equity Partners, LP [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
General partner units owned | 2,583,068 | |||||||||||
General partner's interest | 1.50% | |||||||||||
Class C Units [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Units issued | 534,146 | |||||||||||
Price per unit | $ 68.72 | |||||||||||
Proceeds from the issuance of units | $ 750,000 | |||||||||||
Beneficial conversion feature | $ 34,800 | |||||||||||
Limited partner units owned | 11,946,008 | 11,411,862 | ||||||||||
Class C Units [Member] | Other Subsidiaries Of Anadarko [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Units issued | 10,913,853 | |||||||||||
Limited partner units owned | 11,946,008 | |||||||||||
Class C Units [Member] | Maximum [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Redeemable option on units | $ 150,000 | |||||||||||
Series A Preferred Units [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Price per unit | $ 32.00 | |||||||||||
Proceeds from the issuance of units | $ 440,000 | $ 686,940 | $ 0 | |||||||||
Beneficial conversion feature | $ 21,700 | |||||||||||
Transaction fee | 2.00% | |||||||||||
Series A Preferred units, units issued upon conversion | 1 | |||||||||||
Minimum common unit closing price for conversion | $ 48.00 | |||||||||||
Limited partner units owned | 21,922,831 | 0 | 14,030,611 | |||||||||
Series A Preferred Units [Member] | Option on Securities [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Proceeds from the issuance of units | $ 246,900 | |||||||||||
Beneficial conversion feature | $ 71,700 | |||||||||||
Limited partner units owned | 7,892,220 | |||||||||||
Series A Preferred Units [Member] | Private Investor [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Units issued | 14,030,611 | |||||||||||
Limited partner units owned | 21,922,831 | |||||||||||
Limited partner ownership interest | 13.10% | |||||||||||
Series A Preferred Units [Member] | Private Investor [Member] | Option on Securities [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Units issued | 7,892,220 | 7,892,220 | ||||||||||
Series A Preferred Units [Member] | Change In Control [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Redemption price per unit | $ 32.32 | |||||||||||
Common Units [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Limited partner units owned | 130,671,970 | 128,576,965 | ||||||||||
Common Units [Member] | Western Gas Equity Partners, LP [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Limited partner units owned | 50,132,046 | |||||||||||
Limited partner ownership interest | 30.00% | |||||||||||
Common Units [Member] | Other Subsidiaries Of Anadarko [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Limited partner units owned | 2,011,380 | |||||||||||
Common Units [Member] | Public [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Limited partner units owned | 78,528,544 | |||||||||||
Limited partner ownership interest | 47.00% | |||||||||||
Incentive Distribution Rights [Member] | Western Gas Equity Partners, LP [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
General partner's interest | 100.00% | |||||||||||
Common and Class C Units [Member] | Other Subsidiaries Of Anadarko [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Limited partner ownership interest | 8.40% | |||||||||||
500 Million COP [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Maximum aggregate principal of common units | $ 500,000 | |||||||||||
Average price per unit | $ 66.61 | |||||||||||
Net proceeds | $ 57,400 | |||||||||||
Underwriting discount and other offering expenses | 800 | |||||||||||
Gross proceeds | 58,200 | |||||||||||
Commissions paid | $ 600 | |||||||||||
500 Million COP [Member] | Common Units [Member] | ||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||
Common units issued | 0 | 873,525 | ||||||||||
|
Transactions with Affiliates - Commodity Price Swap Agreements Table (Details) - Year 2016 [Member] |
Jun. 30, 2016
$ / MMBTU
$ / bbl
|
---|---|
Ethane [Member] | Minimum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 18.41 |
Ethane [Member] | Maximum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 23.11 |
Propane [Member] | Minimum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 47.08 |
Propane [Member] | Maximum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 52.90 |
Isobutane [Member] | Minimum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 62.09 |
Isobutane [Member] | Maximum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 73.89 |
Normal butane [Member] | Minimum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 54.62 |
Normal butane [Member] | Maximum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 64.93 |
Natural gasoline [Member] | Minimum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 72.88 |
Natural gasoline [Member] | Maximum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 81.68 |
Condensate [Member] | Minimum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 76.47 |
Condensate [Member] | Maximum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | 81.68 |
Natural gas (per MMBtu) [Member] | Minimum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | $ / MMBTU | 4.87 |
Natural gas (per MMBtu) [Member] | Maximum [Member] | |
Commodity Price Risk Swap [Line Items] | |
Commodity swap fixed price | $ / MMBTU | 5.96 |
Transactions with Affiliates - Gains (Losses) on Commodity Price Swap Agreements Table (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||||
Gains (losses) on commodity price swap agreements related to sales and purchases | |||||||||
Gains (losses) on commodity price swap agreements | $ 8,769 | $ 18,921 | $ 17,009 | $ 40,156 | |||||
Sales [Member] | |||||||||
Gains (losses) on commodity price swap agreements related to sales and purchases | |||||||||
Gains (losses) on commodity price swap agreements | [1] | 25,682 | 60,641 | 52,793 | 116,055 | ||||
Sales [Member] | Natural Gas [Member] | |||||||||
Gains (losses) on commodity price swap agreements related to sales and purchases | |||||||||
Gains (losses) on commodity price swap agreements | [1] | 5,202 | 22,344 | 12,243 | 33,326 | ||||
Sales [Member] | Natural Gas Liquids [Member] | |||||||||
Gains (losses) on commodity price swap agreements related to sales and purchases | |||||||||
Gains (losses) on commodity price swap agreements | [1] | 20,480 | 38,297 | 40,550 | 82,729 | ||||
Purchases [Member] | |||||||||
Gains (losses) on commodity price swap agreements related to sales and purchases | |||||||||
Gains (losses) on commodity price swap agreements | [2] | $ (16,913) | $ (41,720) | $ (35,784) | $ (75,899) | ||||
|
Transactions with Affiliates - Commodity Price Swap Agreements Extensions Tables (Details) |
Dec. 08, 2015
$ / MMBTU
$ / bbl
|
Jun. 25, 2015
$ / MMBTU
$ / bbl
|
|||||
---|---|---|---|---|---|---|---|
Year 2015 [Member] | DJ Basin Complex [Member] | Ethane [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 18.41 | ||||||
Commodity market price | [1] | 1.96 | |||||
Year 2015 [Member] | DJ Basin Complex [Member] | Propane [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 47.08 | ||||||
Commodity market price | [1] | 13.10 | |||||
Year 2015 [Member] | DJ Basin Complex [Member] | Isobutane [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 62.09 | ||||||
Commodity market price | [1] | 19.75 | |||||
Year 2015 [Member] | DJ Basin Complex [Member] | Normal butane [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 54.62 | ||||||
Commodity market price | [1] | 18.99 | |||||
Year 2015 [Member] | DJ Basin Complex [Member] | Natural gasoline [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 72.88 | ||||||
Commodity market price | [1] | 52.59 | |||||
Year 2015 [Member] | DJ Basin Complex [Member] | Condensate [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 76.47 | ||||||
Commodity market price | [1] | 52.59 | |||||
Year 2015 [Member] | DJ Basin Complex [Member] | Natural gas (per MMBtu) [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | $ / MMBTU | 5.96 | ||||||
Commodity market price | $ / MMBTU | [1] | 2.75 | |||||
Year 2015 [Member] | Hugoton System [Member] | Condensate [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 78.61 | ||||||
Commodity market price | [1] | 32.56 | |||||
Year 2015 [Member] | Hugoton System [Member] | Natural gas (per MMBtu) [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | $ / MMBTU | 5.50 | ||||||
Commodity market price | $ / MMBTU | [1] | 2.74 | |||||
Year 2016 [Member] | DJ Basin Complex [Member] | Ethane [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 18.41 | ||||||
Commodity market price | [2] | 0.60 | |||||
Year 2016 [Member] | DJ Basin Complex [Member] | Propane [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 47.08 | ||||||
Commodity market price | [2] | 10.98 | |||||
Year 2016 [Member] | DJ Basin Complex [Member] | Isobutane [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 62.09 | ||||||
Commodity market price | [2] | 17.23 | |||||
Year 2016 [Member] | DJ Basin Complex [Member] | Normal butane [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 54.62 | ||||||
Commodity market price | [2] | 16.86 | |||||
Year 2016 [Member] | DJ Basin Complex [Member] | Natural gasoline [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 72.88 | ||||||
Commodity market price | [2] | 26.15 | |||||
Year 2016 [Member] | DJ Basin Complex [Member] | Condensate [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 76.47 | ||||||
Commodity market price | [2] | 34.65 | |||||
Year 2016 [Member] | DJ Basin Complex [Member] | Natural gas (per MMBtu) [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | $ / MMBTU | 5.96 | ||||||
Commodity market price | $ / MMBTU | [2] | 2.11 | |||||
Year 2016 [Member] | Hugoton System [Member] | Condensate [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | 78.61 | ||||||
Commodity market price | [2] | 18.81 | |||||
Year 2016 [Member] | Hugoton System [Member] | Natural gas (per MMBtu) [Member] | |||||||
Commodity Price Risk Swap [Line Items] | |||||||
Commodity swap fixed price | $ / MMBTU | 5.50 | ||||||
Commodity market price | $ / MMBTU | [2] | 2.12 | |||||
|
Transactions with Affiliates - Equipment Purchases and Sales Table (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
||||
Related Party Transaction [Line Items] | |||||
Partners’ capital adjustment | $ 354 | $ 4,540 | [1] | ||
Affiliates [Member] | Purchases [Member] | |||||
Related Party Transaction [Line Items] | |||||
Cash consideration - purchases | 2,699 | 9,056 | |||
Net carrying value | 2,328 | 4,182 | |||
Partners’ capital adjustment | 371 | 4,874 | |||
Affiliates [Member] | Sales [Member] | |||||
Related Party Transaction [Line Items] | |||||
Cash consideration - sales | 613 | 700 | |||
Net carrying value | 596 | 366 | |||
Partners’ capital adjustment | $ (17) | $ (334) | |||
|
Transactions with Affiliates - Summary of Affiliate Transactions Table (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 14, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||
Revenues and other | $ 428,664 | $ 465,993 | [1] | $ 811,805 | $ 902,999 | [1] | |||||||||||||||||||||||||||
Equity income, net – affiliates | [2] | 19,693 | 18,941 | [1] | 36,507 | 37,161 | [1] | ||||||||||||||||||||||||||
Cost of product | [3] | 104,849 | 147,216 | [1] | 181,316 | 286,624 | [1] | ||||||||||||||||||||||||||
Operation and maintenance | [3] | 75,173 | 77,837 | [1] | 151,386 | 154,022 | [1] | ||||||||||||||||||||||||||
General and administrative | [3] | 10,883 | 9,408 | [1] | 22,160 | 20,489 | [1] | ||||||||||||||||||||||||||
Operating expenses | 272,691 | 314,221 | [1] | 518,611 | 891,774 | [1] | |||||||||||||||||||||||||||
Interest income | [4] | 4,225 | 4,225 | [1] | 8,450 | 8,450 | [1] | ||||||||||||||||||||||||||
Interest expense | [5] | 12,883 | 27,604 | [1] | 44,919 | 50,564 | [1] | ||||||||||||||||||||||||||
Proceeds from the issuance of common units, net of offering expenses | 25,000 | 57,376 | [1] | ||||||||||||||||||||||||||||||
Distributions to unitholders | [6] | 313,380 | 259,247 | [1] | |||||||||||||||||||||||||||||
Above-market component of swap extensions with Anadarko | 9,552 | 0 | $ 16,365 | [6] | 0 | [1],[6] | |||||||||||||||||||||||||||
Units issued | 534,146 | ||||||||||||||||||||||||||||||||
Springfield Pipeline LLC [Member] | |||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||
Revenues and other | 49,438 | 98,051 | |||||||||||||||||||||||||||||||
Springfield Pipeline LLC [Member] | Common Units [Member] | |||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||
Units issued | [7] | 2,089,602 | |||||||||||||||||||||||||||||||
Affiliates [Member] | |||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||
Revenues and other | [2] | 302,405 | 321,411 | [1] | $ 574,989 | 628,339 | [1] | ||||||||||||||||||||||||||
Cost of product | [2] | 22,145 | 53,062 | 46,725 | 96,957 | ||||||||||||||||||||||||||||
Operation and maintenance | [8] | 17,661 | 19,854 | 35,636 | 36,671 | ||||||||||||||||||||||||||||
General and administrative | [9] | 9,169 | 8,060 | 18,121 | 16,195 | ||||||||||||||||||||||||||||
Operating expenses | 48,975 | 80,976 | 100,482 | 149,823 | |||||||||||||||||||||||||||||
Interest expense | [10] | (15,461) | 4,190 | (10,924) | 5,610 | ||||||||||||||||||||||||||||
Proceeds from the issuance of common units, net of offering expenses | [11] | 0 | 0 | 25,000 | 0 | ||||||||||||||||||||||||||||
Distributions to unitholders | [12] | $ 94,909 | $ 76,353 | $ 184,678 | $ 148,048 | ||||||||||||||||||||||||||||
Western Gas Equity Partners, LP [Member] | Springfield Pipeline LLC [Member] | Common Units [Member] | |||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||
Units issued | 835,841 | ||||||||||||||||||||||||||||||||
|
Transactions with Affiliates - Additional Information (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
May 31, 2008 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
||||||
Related Party Transaction [Line Items] | |||||||||||
Note receivable - Anadarko | $ 260,000,000 | $ 260,000,000 | $ 260,000,000 | [1] | |||||||
Above-market component of swap extensions with Anadarko | [2] | 16,365,000 | |||||||||
Contributions of equity-based compensation from Anadarko | $ 2,053,000 | ||||||||||
Western Gas Partners Long Term Incentive Plan [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Units vesting period | 3 years | ||||||||||
Equity-based compensation expense | 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | |||||||
Western Gas Equity Partners Long Term Incentive Plan [Member] | Anadarko Incentive Plans [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Equity-based compensation expense | $ 1,100,000 | $ 1,000,000 | 2,400,000 | $ 2,000,000 | |||||||
Contributions of equity-based compensation from Anadarko | $ 2,100,000 | ||||||||||
Natural Gas [Member] | Gathering, Treating and Transportation [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Affiliate throughput percent | 39.00% | 56.00% | 38.00% | 56.00% | |||||||
Natural Gas [Member] | Processing [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Affiliate throughput percent | 55.00% | 52.00% | 58.00% | 52.00% | |||||||
Crude Oil and NGL [Member] | Gathering, Treating and Transportation [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Affiliate throughput percent | 64.00% | 100.00% | 64.00% | 100.00% | |||||||
Affiliates [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Note receivable - Anadarko | $ 260,000,000 | ||||||||||
Note receivable, due date | May 14, 2038 | ||||||||||
Fixed annual rate for note receivable bearing interest | 6.50% | ||||||||||
Affiliates [Member] | Level 2 Inputs [Member] | Market Approach Valuation Technique [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Fair value of the note receivable | $ 301,500,000 | $ 301,500,000 | $ 252,300,000 | ||||||||
Independent Director [Member] | Western Gas Partners Long Term Incentive Plan [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Units vesting period | 1 year | ||||||||||
|
Property, Plant and Equipment - Historical Cost Table (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 6,818,174 | $ 6,556,778 | [1] | ||
Accumulated depreciation | 1,816,030 | 1,697,999 | [1] | ||
Net property, plant and equipment | 5,002,144 | 4,858,779 | [1] | ||
Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | 3,946 | 3,744 | |||
Gathering Systems [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 6,409,489 | 6,061,004 | |||
Gathering Systems [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 3 years | ||||
Gathering Systems [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 47 years | ||||
Pipelines and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 135,319 | 136,290 | |||
Pipelines and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 15 years | ||||
Pipelines and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 45 years | ||||
Assets Under Construction [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 239,617 | 329,887 | |||
Other [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment | $ 29,803 | $ 25,853 | |||
Other [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 3 years | ||||
Other [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 40 years | ||||
|
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
[1] | Jun. 30, 2016 |
Jun. 30, 2015 |
[1] | |||
Property, Plant and Equipment [Line Items] | ||||||||
Impairments | $ 2,403 | $ 1,620 | $ 8,921 | $ 274,244 | ||||
Newcastle System [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairments | 6,100 | |||||||
Newcastle System [Member] | Fair Value Measurements Nonrecurring [Member] | Level 3 Inputs [Member] | Income Approach Valuation Technique [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Estimated fair value | $ 3,100 | 3,100 | ||||||
Equipment [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Impairments | $ 2,400 | |||||||
|
Equity Investments - Equity Investments Table (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
[3] | Jun. 30, 2016 |
Jun. 30, 2015 |
[3] | |||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Balance | [1] | $ 618,887 | ||||||||||||||
Investment earnings (loss), net of amortization | [2] | $ 19,693 | $ 18,941 | 36,507 | $ 37,161 | |||||||||||
Contributions | (139) | 6,770 | ||||||||||||||
Distributions | (38,519) | (39,034) | ||||||||||||||
Distributions in excess of cumulative earnings | (10,611) | [4] | $ (8,538) | |||||||||||||
Balance | 606,125 | 606,125 | ||||||||||||||
Fort Union [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Balance | 17,122 | |||||||||||||||
Investment earnings (loss), net of amortization | (1,360) | |||||||||||||||
Contributions | 0 | |||||||||||||||
Distributions | 0 | |||||||||||||||
Distributions in excess of cumulative earnings | [4] | (3,354) | ||||||||||||||
Balance | 12,408 | 12,408 | ||||||||||||||
White Cliffs [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Balance | 50,439 | |||||||||||||||
Investment earnings (loss), net of amortization | 7,164 | |||||||||||||||
Contributions | 441 | |||||||||||||||
Distributions | (6,873) | |||||||||||||||
Distributions in excess of cumulative earnings | [4] | (2,100) | ||||||||||||||
Balance | 49,071 | 49,071 | ||||||||||||||
Rendezvous [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Balance | 50,913 | |||||||||||||||
Investment earnings (loss), net of amortization | 949 | |||||||||||||||
Contributions | 0 | |||||||||||||||
Distributions | (1,364) | |||||||||||||||
Distributions in excess of cumulative earnings | [4] | (1,541) | ||||||||||||||
Balance | 48,957 | 48,957 | ||||||||||||||
Mont Belvieu JV [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Balance | 117,089 | |||||||||||||||
Investment earnings (loss), net of amortization | 12,686 | |||||||||||||||
Contributions | 0 | |||||||||||||||
Distributions | (12,303) | |||||||||||||||
Distributions in excess of cumulative earnings | [4] | (172) | ||||||||||||||
Balance | 117,300 | 117,300 | ||||||||||||||
Texas Express Gathering LLC [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Balance | 16,283 | |||||||||||||||
Investment earnings (loss), net of amortization | 343 | |||||||||||||||
Contributions | 0 | |||||||||||||||
Distributions | (354) | |||||||||||||||
Distributions in excess of cumulative earnings | [4] | (188) | ||||||||||||||
Balance | 16,084 | 16,084 | ||||||||||||||
Texas Express Pipeline LLC [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Balance | 194,803 | |||||||||||||||
Investment earnings (loss), net of amortization | 7,766 | |||||||||||||||
Contributions | (580) | |||||||||||||||
Distributions | (7,892) | |||||||||||||||
Distributions in excess of cumulative earnings | [4] | (2,918) | ||||||||||||||
Balance | 191,179 | 191,179 | ||||||||||||||
Front Range Pipeline LLC [Member] | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Balance | 172,238 | |||||||||||||||
Investment earnings (loss), net of amortization | 8,959 | |||||||||||||||
Contributions | 0 | |||||||||||||||
Distributions | (9,733) | |||||||||||||||
Distributions in excess of cumulative earnings | [4] | (338) | ||||||||||||||
Balance | $ 171,126 | $ 171,126 | ||||||||||||||
|
Equity Investments - Additional Information (Details) - Fort Union [Member] $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2016
USD ($)
| ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity investment impairment loss | $ 3.0 | |||
Equity Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage ownership interest | 14.81% | [1] | ||
|
Components of Working Capital - Accounts Receivable, Net Table (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
|||||
---|---|---|---|---|---|---|---|
Receivables [Abstract] | |||||||
Trade receivables, net | $ 177,507 | $ 143,557 | |||||
Other receivables, net | 44,288 | 49,772 | |||||
Total accounts receivable, net | [1] | $ 221,795 | $ 193,329 | [2] | |||
|
Components of Working Capital - Other Current Assets Table (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Other Current Assets [Line Items] | |||||
Natural gas liquids inventory | $ 4,032 | $ 2,403 | |||
Imbalance receivables | 1,359 | 2,122 | |||
Prepaid insurance | 300 | 2,296 | |||
Other | 0 | 1,034 | |||
Total other current assets | $ 5,691 | $ 7,855 | [1] | ||
|
Components of Working Capital - Accrued Liabilities Table (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Accrued Liabilities [Line Items] | |||||
Accrued interest expense | $ 26,200 | $ 26,194 | |||
Short-term asset retirement obligations | 2,713 | 3,677 | |||
Short-term remediation and reclamation obligations | 1,136 | 1,136 | |||
Income taxes payable | 1,127 | 770 | |||
Total accrued liabilities | 130,018 | 119,019 | [1] | ||
Accrued Capital Expenditures [Member] | |||||
Accrued Liabilities [Line Items] | |||||
Other accrued liabilities | 70,725 | 61,454 | |||
Accrued Plant Purchases [Member] | |||||
Accrued Liabilities [Line Items] | |||||
Other accrued liabilities | 27,149 | 16,425 | |||
Other Accrued Liabilities [Member] | |||||
Accrued Liabilities [Line Items] | |||||
Other accrued liabilities | $ 968 | $ 9,363 | |||
|
Debt and Interest Expense - Debt Outstanding Table (Details) - USD ($) |
Jun. 30, 2016 |
Dec. 31, 2015 |
||||||
---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||||
Total long-term debt principal | $ 2,960,000,000 | $ 2,720,000,000 | ||||||
Carrying value | 2,932,004,000 | 2,690,651,000 | [1] | |||||
Market Approach Valuation Technique [Member] | Level 2 Inputs [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value | [2] | 2,940,187,000 | 2,492,466,000 | |||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 540,000,000 | 300,000,000 | ||||||
Carrying value | 540,000,000 | 300,000,000 | ||||||
Revolving Credit Facility [Member] | Market Approach Valuation Technique [Member] | Level 2 Inputs [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value | [2] | 540,000,000 | 300,000,000 | |||||
Senior Notes [Member] | 5.375% Senior Notes due 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 500,000,000 | 500,000,000 | ||||||
Carrying value | 494,215,000 | 493,711,000 | ||||||
Senior Notes [Member] | 5.375% Senior Notes due 2021 [Member] | Market Approach Valuation Technique [Member] | Level 2 Inputs [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value | [2] | 529,064,000 | 513,645,000 | |||||
Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 670,000,000 | 670,000,000 | ||||||
Carrying value | 668,532,000 | 668,432,000 | ||||||
Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | Market Approach Valuation Technique [Member] | Level 2 Inputs [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value | [2] | 658,273,000 | 595,744,000 | |||||
Senior Notes [Member] | 2.600% Senior Notes due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 350,000,000 | 350,000,000 | ||||||
Carrying value | 348,946,000 | 348,706,000 | ||||||
Senior Notes [Member] | 2.600% Senior Notes due 2018 [Member] | Market Approach Valuation Technique [Member] | Level 2 Inputs [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value | [2] | 348,908,000 | 339,293,000 | |||||
Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 400,000,000 | 400,000,000 | ||||||
Carrying value | 389,783,000 | 389,707,000 | ||||||
Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | Market Approach Valuation Technique [Member] | Level 2 Inputs [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value | [2] | 384,252,000 | 321,499,000 | |||||
Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | 500,000,000 | 500,000,000 | ||||||
Carrying value | 490,528,000 | 490,095,000 | ||||||
Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | Market Approach Valuation Technique [Member] | Level 2 Inputs [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fair value | [2] | $ 479,690,000 | $ 422,285,000 | |||||
|
Debt and Interest Expense - Debt Activity Table (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2016 |
Jun. 30, 2016 |
|||
Debt Instrument [Line Items] | ||||
Beginning balance | [1] | $ 2,690,651 | ||
Other | 1,353 | |||
Ending balance | 2,932,004 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Beginning balance | 300,000 | |||
RCF Borrowings | 530,000 | |||
Repayments of RCF borrowings | $ (250,000) | (290,000) | ||
Ending balance | $ 540,000 | |||
|
Debt and Interest Expense - Interest Expense Table (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest expense | [1] | $ 12,883 | $ 27,604 | [2] | $ 44,919 | $ 50,564 | [2] | ||||||||
Third Parties [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | 28,281 | 24,733 | 56,099 | 48,075 | |||||||||||
Amortization of debt issuance costs and commitment fees | 1,545 | 1,374 | 3,075 | 2,666 | |||||||||||
Capitalized interest | (1,482) | (2,693) | (3,331) | (5,787) | |||||||||||
Interest expense | 28,344 | 23,414 | 55,843 | 44,954 | |||||||||||
Affiliates [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Interest expense | [3] | (15,461) | 4,190 | (10,924) | 5,610 | ||||||||||
Affiliates [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Deferred purchase price obligation - Anadarko | [4] | $ (15,461) | $ 4,190 | $ (10,924) | $ 5,610 | ||||||||||
|
Debt and Interest Expense - Additional Information (Details) - USD ($) |
1 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jul. 12, 2016 |
Mar. 14, 2016 |
Apr. 30, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
||||
Treasury Lock [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Realized loss on terminated U.S. Treasury rate lock agreement | $ 200,000 | ||||||||
Series A Preferred Units [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from the issuance of units | $ 440,000,000 | 686,940,000 | $ 0 | [1] | |||||
Series A Preferred Units [Member] | Option on Securities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from the issuance of units | $ 246,900,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal | $ 540,000,000 | $ 300,000,000 | |||||||
Facility, interest rate at period end | 1.77% | 1.49% | |||||||
Facility, fee rate | 0.20% | 0.20% | |||||||
Facility, outstanding borrowings | $ 540,000,000 | ||||||||
Outstanding letters of credit | 4,900,000 | ||||||||
Facility, available borrowing capacity | $ 655,100,000 | ||||||||
Facility, expiration date | Feb. 26, 2019 | ||||||||
Repayments of RCF borrowings | $ (250,000,000) | $ (290,000,000) | |||||||
Senior Notes [Member] | 5.375% Senior Notes due 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate | 5.375% | ||||||||
Debt instrument, maturity date | Jun. 01, 2021 | ||||||||
Principal | $ 500,000,000 | 500,000,000 | |||||||
Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate | 4.00% | ||||||||
Debt instrument, maturity date | Jul. 01, 2022 | ||||||||
Principal | $ 670,000,000 | 670,000,000 | |||||||
Senior Notes [Member] | 2.600% Senior Notes due 2018 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate | 2.60% | ||||||||
Debt instrument, maturity date | Aug. 15, 2018 | ||||||||
Principal | $ 350,000,000 | 350,000,000 | |||||||
Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate | 5.45% | ||||||||
Debt instrument, maturity date | Apr. 01, 2044 | ||||||||
Principal | $ 400,000,000 | 400,000,000 | |||||||
Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate | 3.95% | ||||||||
Debt instrument, maturity date | Jun. 01, 2025 | ||||||||
Principal | $ 500,000,000 | $ 500,000,000 | |||||||
Senior Notes [Member] | 4.650% Senior Notes due 2026 [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed interest rate | 4.65% | ||||||||
Debt instrument, maturity date | Jul. 01, 2026 | ||||||||
Principal | $ 500,000,000.0 | ||||||||
Offering percent | 99.796% | ||||||||
Underwriting discount | $ 3,100,000 | ||||||||
|
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Committed capital | $ 38.3 | $ 38.3 | ||
Rent expense associated with office, warehouse and equipment leases | $ 8.4 | $ 8.5 | $ 17.3 | $ 16.5 |
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