Noncontrolling Interests

3 Months Ended

Mar. 31, 2018

Noncontrolling Interest Items [Abstract]

Noncontrolling Interests

15. Noncontrolling Interests

WES is a limited partnership formed by Anadarko to acquire, own, develop, and operate midstream assets. During 2016, WES issued 22 million Series A Preferred units to private investors. Pursuant to an agreement between WES and the holders of the Series A Preferred units, 50% of the Series A Preferred units converted into WES common units on a one-for-one basis on March 1, 2017, and all remaining Series A Preferred units were converted on May 2, 2017.

WES Class C units issued to Anadarko will convert into WES common units on a one-for-one basis on the conversion date, which was extended in February 2017 from December 31, 2017, to March 1, 2020. The Class C units receive quarterly distributions in the form of additional Class C units until the March 1, 2020 conversion date unless WES elects to convert the units to common units earlier or Anadarko elects to extend the conversion date. WES distributed 261 thousand Class C units to Anadarko during the three months ended March 31, 2018, and 886 thousand Class C units to Anadarko during 2017.

WGP is a limited partnership formed by Anadarko to own interests in WES. At March 31, 2018, Anadarko’s ownership interest in WGP consisted of an 81.6% limited partner interest and the entire non-economic general partner interest. The remaining 18.4% limited partner interest in WGP was owned by the public.

At March 31, 2018, WGP’s ownership interest in WES consisted of a 29.7% limited partner interest, the entire 1.5% general partner interest, and all of the WES incentive distribution rights. At March 31, 2018, Anadarko also owned a 9.2% limited partner interest in WES through other subsidiaries’ ownership of common and Class C units. The remaining 59.6% limited partner interest in WES was owned by the public.