Transactions with Affiliates (Tables)

12 Months Ended

Dec. 31, 2015

Below is a summary of the fixed price ranges on all of WES’s outstanding commodity price swap agreements as of December 31, 2015:



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

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 income:



	Year Ended December 31,
thousands	2015			2014			2013
Gains (losses) on commodity price swap agreements related to sales:⁽¹⁾
Natural gas sales	$	45,978		$	9,494		$	21,382
Natural gas liquids sales	145,258			113,866			102,076
Total	191,236			123,360			123,458
Losses on commodity price swap agreements related to purchases ⁽²⁾	(124,944		)	(68,492		)	(85,294		)
Net gains (losses) on commodity price swap agreements	$	66,292		$	54,868		$	38,164


⁽¹⁾	Reported in affiliate natural gas, natural gas liquids and drip 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.

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.



	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.

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.



	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.

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	2015		2014		2013
General and administrative expenses	$	256	$	254	$	271
Public company expenses	1,997		1,986		2,391
Total reimbursement	$	2,253	$	2,240	$	2,662

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



	Year Ended December 31,
	2015		2014		2013		2015			2014		2013
thousands	Purchases						Sales
Cash consideration	$	10,903	$	22,943	$	11,211	$	925		$	402	$	85
Net carrying value	6,318		12,210		5,309		972			375		38
Partners’ capital adjustment	$	4,585	$	10,733	$	5,902	$	(47	)	$	27	$	47

The following table summarizes affiliate transactions, which include revenue from affiliates, reimbursement of operating expenses and purchases of natural gas:



	Year ended December 31,
thousands	2015		2014		2013
Revenues and other ⁽¹⁾	$	1,220,639	$	1,203,974	$	957,912
Equity income, net ⁽¹⁾	71,251		57,836		22,948
Cost of product ⁽¹⁾	167,354		127,930		136,696
Operation and maintenance ⁽²⁾	77,061		71,386		67,308
General and administrative ⁽³⁾	34,703		32,055		29,249
Operating expenses	279,118		231,371		233,253
Interest income ⁽⁴⁾	16,900		16,900		16,900
Interest expense ⁽⁵⁾	14,400		3		—
Distributions to WGP unitholders ⁽⁶⁾	269,029		204,615		124,633
Distributions to WES unitholders ⁽⁷⁾	2,235		1,747		755
Above-market component of swap extensions with Anadarko	18,449		—		—


⁽¹⁾	Represents amounts earned or incurred on and subsequent to the date of acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, 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 and WGP by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plans within this Note 5) and amounts charged by Anadarko under the WGP omnibus agreement.


⁽⁴⁾	Represents interest income recognized on the note receivable from Anadarko.


⁽⁵⁾	For the year ended December 31, 2015, includes WES’s accretion expense recognized on the Deferred purchase price obligation - Anadarko for the acquisition of DBJV (see Note 2 and Note 12) and for the years ended December 31, 2015 and 2014, includes interest expense recognized on the WGP WCF (see Note 12).


⁽⁶⁾	Represents distributions paid under WGP’s partnership agreement (see Note 3 and Note 4).


⁽⁷⁾	Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 3 and Note 4).

LTIP Award Activity Tables

The following table summarizes WGP LTIP award activity for WGP GP independent directors and executive officers for the years ended December 31, 2015, 2014 and 2013:



	2015				2014				2013
	Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units
Phantom units outstanding at beginning of year	$	43.10	22,236		$	39.19	36,238		$	—	—
Vested	44.44		(13,317	)	37.32		(18,400	)	—		—
Granted	62.21		3,618		51.19		4,398		39.19		36,238
Phantom units outstanding at end of year	47.20		12,537		43.10		22,236		39.19		36,238

Western Gas Partners, LP [Member]

Related Party Transactions Tables

The following table summarizes the amounts WES reimbursed to Anadarko:



	Year Ended December 31,
thousands	2015		2014		2013
General and administrative expenses	$	22,896	$	20,249	$	16,882
Public company expenses	8,950		8,006		7,152
Total reimbursement	$	31,846	$	28,255	$	24,034

LTIP Award Activity Tables

The following table summarizes WES LTIP award activity for the years ended December 31, 2015, 2014 and 2013:



	2015				2014				2013
	Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units
Phantom units outstanding at beginning of year	$	60.74	9,522		$	49.47	16,844		$	41.77	25,619
Vested	60.69		(9,257	)	49.55		(13,122	)	41.28		(14,695	)
Granted	69.10		5,212		68.14		5,800		62.49		5,920
Phantom units outstanding at end of year	68.78		5,477		60.74		9,522		49.47		16,844