Transactions With Affiliates (tables)

12 Months Ended

Dec. 31, 2013

Below is a summary of the fixed price ranges on WES’s outstanding commodity price swap agreements as of December 31, 2013 excluding the Hilight and Newcastle assets:



per barrel except natural gas	2014					2015					2016
Ethane	$	18.36	−	$	30.53	$	18.41	−	$	23.41	$	23.11
Propane	$	46.47	−	$	53.78	$	47.08	−	$	52.99	$	52.90
Isobutane	$	61.24	−	$	75.13	$	62.09	−	$	74.02	$	73.89
Normal butane	$	53.89	−	$	66.01	$	54.62	−	$	65.04	$	64.93
Natural gasoline	$	71.85	−	$	83.04	$	72.88	−	$	81.82	$	81.68
Condensate	$	75.22	−	$	83.04	$	76.47	−	$	81.82	$	81.68
Natural gas (per MMBtu)	$	4.45	−	$	6.20	$	4.66	−	$	5.96	$	4.87

Below is a summary of the fixed prices or ranges on the WES’s outstanding commodity price swap agreements for the Hilight and Newcastle assets as of December 31, 2013:



per barrel except natural gas	2014
Propane				$	40.38
Normal butane	$	64.73	−	$	66.83
Natural gasoline				$	90.89
Condensate				$	87.30
Natural gas (per MMBtu)				$	3.45

Gains (Losses) on Commodity Price Swap Agreements Table

The following table summarizes realized gains and losses on commodity price swap agreements:



	Year Ended December 31,
thousands	2013			2012			2011
Gains (losses) on commodity price swap agreements related to sales:⁽¹⁾
Natural gas sales	$	21,382		$	37,665		$	33,845
Natural gas liquids sales	102,076			66,260			(36,802		)
Total	123,458			103,925			(2,957		)
Losses on commodity price swap agreements related to purchases ⁽²⁾	(85,294		)	(89,710		)	(27,234		)
Net gains (losses) on commodity price swap agreements	$	38,164		$	14,215		$	(30,191	)


⁽¹⁾	Reported in affiliate natural gas, NGLs and condensate sales in the consolidated statements of income in the period in which the related sale is recorded.


⁽²⁾	Reported in cost of product in the consolidated statements of income in the period in which the related purchase is recorded.

Related Party Transactions Tables

The following table summarizes the amounts WGP reimbursed to Anadarko, separate from, and in addition to, those reimbursed by WES:



	Year Ended December 31,
thousands	2013		2012
General and administrative expenses	$	271	$	13
Public company expenses	2,391		503
Total reimbursement	$	2,662	$	516

The following table summarizes the amounts WES reimbursed to Anadarko:



	Year Ended December 31,
thousands	2013		2012		2011
General and administrative expenses	$	16,882	$	14,904	$	11,754
Public company expenses	7,152		6,830		7,735
Total reimbursement	$	24,034	$	21,734	$	19,489

Summary of affiliate transactions. Transactions with affiliates include revenue from affiliates, reimbursement of operating expenses and purchases of natural gas. The following table summarizes affiliate transactions, including transactions with Anadarko, its affiliates, WGP GP and WES GP:



	Year ended December 31,
thousands	2013		2012		2011
Revenues ⁽¹⁾	$	805,526	$	688,026	$	647,419
Equity income, net	22,948		16,042		11,261
Cost of product ⁽¹⁾	129,045		145,250		83,722
Operation and maintenance ⁽²⁾	56,435		51,237		51,339
General and administrative ⁽³⁾	24,235		92,887		33,305
Operating expenses	209,715		289,374		168,366
Interest income, net ⁽⁴⁾	16,900		16,900		24,106
Interest expense ⁽⁵⁾	—		2,766		4,935
Distributions to WGP unitholders ⁽⁶⁾	124,634		—		—
Distributions to WES unitholders ⁽⁷⁾	755		—		—
Contributions from Anadarko as a Chipeta noncontrolling interest owner ⁽⁸⁾	—		12,588		16,476
Distributions to Anadarko as a Chipeta noncontrolling interest owner ⁽⁸⁾	—		6,528		9,437


⁽¹⁾	Represents amounts 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 WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES.

⁽³⁾

Represents general and administrative expense incurred on and subsequent to the date of WES’s acquisition of WES assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES by Anadarko (see Note 6) and amounts charged by Anadarko under the WGP omnibus agreement.

⁽⁴⁾

Represents interest income recognized on the note receivable from Anadarko. For the year ended December 31, 2011, this line item also includes interest income, net on affiliate balances related to the Non-Operated Marcellus Interest, the MGR assets and the Bison assets for periods prior to the acquisition of such assets. Beginning December 7, 2011, Anadarko discontinued charging interest on intercompany balances. The outstanding affiliate balances on the aforementioned assets prior to their acquisition were entirely settled through an adjustment to net investment by Anadarko.

⁽⁵⁾

For the year ended December 31, 2012, includes interest expense recognized on the WES note payable to Anadarko (see Note 11) and interest imputed on the reimbursement payable to Anadarko for certain expenditures Anadarko incurred in 2011 related to the construction of the Brasada facility and Lancaster plant. WES repaid the WES note payable to Anadarko in June 2012, and repaid the reimbursement payable to Anadarko related to the construction of the Brasada facility and Lancaster plant in the fourth quarter of 2012.


⁽⁶⁾	Represents distributions paid under WGP’s partnership agreement.


⁽⁷⁾	Represents distributions paid under WES’s partnership agreement (see Note 4).


⁽⁸⁾	As described in Note 2, WES acquired the additional Chipeta interest on August 1, 2012, and accounted for the acquisition on a prospective basis. As such, contributions from noncontrolling interest owners and distributions to noncontrolling interest owners subsequent to the acquisition date no longer reflect contributions from or distributions to Anadarko.

Equipment Purchase and Sale

The following table summarizes WES’s purchases from and sales to Anadarko of pipe and equipment:



	Year Ended December 31,
	2013		2012		2011		2013		2012		2011
thousands	Purchases						Sales
Cash consideration	$	11,211	$	24,705	$	3,837	$	85	$	760	$	382
Net carrying value	5,309		8,009		1,998		38		393		316
Partners’ capital adjustment	$	5,902	$	16,696	$	1,839	$	47	$	367	$	66