Transactions with Affiliates (Tables)
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12 Months Ended |
Dec. 31, 2015 |
Related Party Transaction [Line Items] |
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Commodity Price Swap Agreements Table |
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 |
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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 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 |
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| | (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. |
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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. | | | | | | | | | | | | | | | | | | | | 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 |
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| | (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 |
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| | (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. |
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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 |
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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 |
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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 |
| | — |
| | — |
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| | (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). |
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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 |
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Western Gas Partners, LP [Member] |
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Related Party Transaction [Line Items] |
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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 |
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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 |
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