HOUSTON--(BUSINESS WIRE)--Western Gas Partners, LP (NYSE: WES) (“WES”) and Western Gas Equity Partners, LP (NYSE: WGP) (“WGP”) today announced second-quarter 2013 financial and operating results.
WESTERN GAS PARTNERS, LP
Net income available to limited partners for the second quarter of 2013, totaled $44.8 million, or $0.41 per common unit (diluted). For the second quarter of 2013, Adjusted EBITDA (1) was $107.6 million and Distributable cash flow (1) was $89.8 million, resulting in a Coverage ratio (1) of 1.13 times for the period.
Total throughput attributable to WES for the second quarter of 2013 averaged 3.1 Bcf/d, which was 8% above the prior quarter and 15% above the second quarter of 2012 (2). Excluding acquisitions, capital expenditures attributable to WES on a cash basis totaled $169.5 million during the second quarter of 2013. Of this amount, maintenance capital expenditures were $6.2 million, or 6% of Adjusted EBITDA (1). Capital expenditures attributable to WES on an accrual basis and excluding acquisitions totaled $135.5 million during the second quarter of 2013.
“Our second quarter fully met our expectations,” said President and Chief Executive Officer, Don Sinclair. “With strong sequential throughput growth in our liquids-rich areas, as well as the Marcellus, the start-up of our Brasada plant in June, and the commencement of our recently-announced capital projects, 2013 is shaping up to be a very exciting year. We continue to maintain the full-year 2013 EBITDA guidance that we released in February, while we will be revising the total capital expenditure guidance to reflect the new projects.”
WES previously declared a quarterly distribution of $0.56 per unit for the second quarter of 2013, representing a 4% increase over the prior quarter and a 17% increase over the second-quarter 2012 distribution of $0.48 per unit. The distribution will be paid on August 12, 2013, to unitholders of record at the close of business on July 31, 2013. The second-quarter 2013 Coverage ratio (1) of 1.13 times is based on the quarterly distribution of $0.56 per unit.
WESTERN GAS EQUITY PARTNERS, LP
As of June 30, 2013, WGP indirectly owned the 2% general partner interest and 100% of the incentive distribution rights in WES and 49,296,205 WES common units. Net income available to limited partners for the second quarter of 2013, totaled $35.5 million, or $0.16 per common unit (diluted).
WGP previously declared a quarterly distribution of $0.1975 per unit for the second quarter of 2013, representing a 10% increase over the distribution from the prior quarter. The distribution will be paid on August 21, 2013, to unitholders of record at the close of business on July 31, 2013. WGP will receive distributions from WES of $44.1 million attributable to the second quarter and will pay out $43.2 million in distributions for the same period.
CONFERENCE CALL TOMORROW AT 11 A.M. CDT
Western Gas Partners and Western Gas Equity Partners will host a joint conference call on Thursday, August 1, 2013, at 11 a.m. Central Daylight Time (12 p.m. Eastern Daylight Time) to discuss second-quarter 2013 results. To participate via telephone, please dial 877.621.4819 and enter participant code 17109076. Please call in 10 minutes prior to the scheduled start time. To access the live audio webcast of the conference call and slide presentation, please visit www.westerngas.com. A replay of the call will also be available on the website for approximately two weeks following the conference call.
Western Gas Partners, LP (“WES”) is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. With midstream assets in East, West and South Texas, the Rocky Mountains, north-central Pennsylvania and the Mid-Continent, WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko and other producers and customers.
Western Gas Equity Partners, LP (“WGP”) is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the 2.0% general partner interest and all of the incentive distribution rights in WES, both owned through WGP’s 100% ownership of WES’s general partner and (ii) a significant limited partner interest in WES.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit www.westerngas.com.
This news release contains forward-looking statements. Western Gas Partners and Western Gas Equity Partners believe that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES’s assets; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; and construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures, as well as other factors described in the “Risk Factors” sections of WES’s and WGP’s most recent Forms 10-K filed with the Securities and Exchange Commission and other public filings and press releases by Western Gas Partners and Western Gas Equity Partners. Western Gas Partners and Western Gas Equity Partners undertake no obligation to publicly update or revise any forward-looking statements.
| (1) | Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio. | |
| (2) | These results include the net throughput attributable to the 33.75% interest in certain third-party operated Marcellus gathering assets acquired from Anadarko (the “Non-Operated Marcellus Interest”) for all periods of comparison, throughput attributable to the additional Chipeta interest beginning in August 2012, and throughput attributable to the 33.75% interest in certain Anadarko-operated Marcellus gathering assets acquired from a third-party (the “Anadarko-Operated Marcellus Interest”) beginning in March 2013. |
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of the Partnership’s Distributable cash flow (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP) and Adjusted EBITDA (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP) and net cash provided by operating activities (GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that the Partnership’s Distributable cash flow, Adjusted EBITDA and Coverage ratio are widely accepted financial indicators of the Partnership’s financial performance compared to other publicly traded partnerships and are useful in assessing the Partnership’s ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA and Coverage ratio, as defined by the Partnership, may not be comparable to similarly titled measures used by other companies. Therefore, the Partnership’s Distributable cash flow, Adjusted EBITDA and Coverage ratio should be considered in conjunction with net income and other applicable performance measures, such as operating income or cash flows from operating activities.
Distributable Cash Flow
The Partnership defines Distributable cash flow as Adjusted EBITDA, plus interest income, less net cash paid for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, and income taxes.
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| thousands except Coverage ratio |
|
2013 |
|
|
2012 (1) |
|
2013 |
|
2012 (1) |
|||||||
|
Reconciliation of Net income attributable to Western Gas
Partners, LP |
||||||||||||||||
|
Net income attributable to Western Gas Partners, LP |
$ | 60,200 | $ | 43,309 | $ | 110,857 | $ | 96,960 | ||||||||
| Add: | ||||||||||||||||
| Distributions from equity investees | 6,026 | 5,578 | 11,032 | 10,019 | ||||||||||||
| Non-cash equity-based compensation expense | 824 | 2,924 | 1,701 | 6,990 | ||||||||||||
| Interest expense, net (non-cash settled) |
- |
82 |
- |
163 | ||||||||||||
| Income tax expense | 137 | 5,079 | 4,373 | 9,508 | ||||||||||||
| Depreciation, amortization and impairments (2) | 35,857 | 27,084 | 67,681 | 53,496 | ||||||||||||
| Other expense (2) |
- |
1,665 |
- |
1,665 | ||||||||||||
| Less: | ||||||||||||||||
| Equity income, net | 3,724 | 3,335 | 7,704 | 6,948 | ||||||||||||
| Cash paid for maintenance capital expenditures (2) (4) | 6,174 | 9,150 | 12,206 | 15,465 | ||||||||||||
| Capitalized interest | 3,260 | 946 | 6,441 | 1,603 | ||||||||||||
| Cash paid for income taxes |
- |
- |
- |
72 | ||||||||||||
|
Other income (2) (3) |
103 |
- |
380 | 62 | ||||||||||||
| Distributable cash flow | $ | 89,783 | $ | 72,290 | $ | 168,913 | $ | 154,651 | ||||||||
| Distributions declared (5) | ||||||||||||||||
| Limited partners | $ | 62,794 | $ | 119,553 | ||||||||||||
| General partner | 16,521 | 29,905 | ||||||||||||||
| Total | $ | 79,315 | $ | 149,458 | ||||||||||||
| Coverage ratio | 1.13 | x | 1.13 | x | ||||||||||||
| (1) | Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest. | |
| (2) | Includes the Partnership’s 51% share for the three and six months ended June 30, 2012, and its 75% share for the three and six months ended June 30, 2013, of depreciation, amortization and impairments; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta. | |
| (3) | Excludes income of $0.4 million and $0.8 million for each of the three and six months ended June 30, 2013 and 2012, respectively, related to a component of a gas processing agreement accounted for as a capital lease. | |
| (4) | Net of a prior period adjustment reclassifying $0.7 million from capital expenditures to operating expenses for the three and six months ended June 30, 2012. | |
| (5) | Reflects distributions of $0.56 and $1.10 per unit declared for the three and six months ended June 30, 2013, respectively. |
Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures, continued
Adjusted EBITDA
The Partnership defines Adjusted EBITDA as net income attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation, amortization and impairments, and other expense, less income from equity investments, interest income, income tax benefit, and other income.
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||
| thousands |
2013 |
2012 (1) |
2013 |
2012 (1) |
|||||||||||||||
|
Reconciliation of Net income attributable to |
|||||||||||||||||||
| Net income attributable to Western Gas Partners, LP | $ | 60,200 | $ | 43,309 | $ | 110,857 | $ | 96,960 | |||||||||||
| Add: | |||||||||||||||||||
| Distributions from equity investees | 6,026 | 5,578 | 11,032 | 10,019 | |||||||||||||||
| Non-cash equity-based compensation expense | 824 | 2,924 | 1,701 | 6,990 | |||||||||||||||
| Interest expense | 12,654 | 9,560 | 24,465 | 19,141 | |||||||||||||||
| Income tax expense | 137 | 5,079 | 4,373 | 9,508 | |||||||||||||||
| Depreciation, amortization and impairments (2) | 35,857 | 27,084 | 67,681 | 53,496 | |||||||||||||||
| Other expense (2) |
- |
1,665 |
- |
1,665 | |||||||||||||||
| Less: | |||||||||||||||||||
| Equity income, net | 3,724 | 3,335 | 7,704 | 6,948 | |||||||||||||||
| Interest income, net – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | |||||||||||||||
|
Other income (2) (3) |
103 |
- |
380 | 62 | |||||||||||||||
| Adjusted EBITDA | $ | 107,646 | $ | 87,639 | $ | 203,575 | $ | 182,319 | |||||||||||
|
Reconciliation of Adjusted EBITDA |
|||||||||||||||||||
| Adjusted EBITDA attributable to Western Gas Partners, LP | $ | 107,646 | $ | 87,639 | $ | 203,575 | $ | 182,319 | |||||||||||
| Adjusted EBITDA attributable to noncontrolling interests | 2,499 | 4,945 | 5,345 | 9,843 | |||||||||||||||
| Interest income (expense), net | (8,429 | ) | (5,335 | ) | (16,015 | ) | (10,691 | ) | |||||||||||
| Non-cash equity based compensation expense | 54 | (2,004 | ) | (19 | ) | (5,156 | ) | ||||||||||||
| Debt-related amortization and other items, net | 566 | 519 | 1,126 | 1,030 | |||||||||||||||
| Current income tax expense | (32 | ) | (1,452 | ) | (3,144 | ) | 6,331 | ||||||||||||
| Other income (expense), net (3) | 103 | (1,663 | ) | 381 | (1,601 | ) | |||||||||||||
|
Distributions from equity investees less than |
(2,302 | ) | (2,243 | ) | (3,328 | ) | (3,071 | ) | |||||||||||
| Changes in operating working capital: | |||||||||||||||||||
| Accounts receivable and natural gas imbalance receivable | (47,875 | ) | (20,241 | ) | (27,121 | ) | 12,586 | ||||||||||||
| Accounts payable, accrued liabilities and natural gas imbalance payable | (20,951 | ) | 3,717 | 336 | (9,948 | ) | |||||||||||||
| Other | 3,779 | 3,583 | 3,877 | 4,544 | |||||||||||||||
| Net cash provided by operating activities | $ | 35,058 | $ | 67,465 | $ | 165,013 | $ | 186,186 | |||||||||||
| Cash flow information of Western Gas Partners, LP | |||||||||||||||||||
| Net cash provided by operating activities | $ | 165,013 | $ | 186,186 | |||||||||||||||
| Net cash used in investing activities | $ | (1,049,490 | ) | $ | (658,549 | ) | |||||||||||||
| Net cash provided by financing activities | $ | 538,676 | $ | 503,856 | |||||||||||||||
| (1) | Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest. | |
| (2) | Includes the Partnership’s 51% share for the three and six months ended June 30, 2012, and its 75% share for the three and six months ended June 30, 2013, of depreciation, amortization and impairments; other expense; and other income attributable to Chipeta. | |
| (3) | Excludes income of $0.4 million and $0.8 million for each of the three and six months ended June 30, 2013 and 2012, respectively, related to a component of a gas processing agreement accounted for as a capital lease. |
| Western Gas Partners, LP | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||
| thousands except unit and per-unit amounts | 2013 |
2012 (1) |
2013 |
2012 (1) |
|||||||||||||||
| Revenues | |||||||||||||||||||
| Gathering, processing and transportation of | |||||||||||||||||||
| natural gas and natural gas liquids | $ | 109,800 | $ | 93,444 | $ | 212,690 | $ | 185,033 | |||||||||||
| Natural gas, natural gas liquids and | |||||||||||||||||||
| condensate sales | 139,561 | 122,226 | 261,290 | 250,712 | |||||||||||||||
| Equity income and other, net | 5,765 | 4,640 | 10,893 | 9,241 | |||||||||||||||
| Total revenues | 255,126 | 220,310 | 484,873 | 444,986 | |||||||||||||||
| Operating expenses | |||||||||||||||||||
| Cost of product | 93,460 | 82,456 | 176,543 | 165,612 | |||||||||||||||
| Operation and maintenance | 41,669 | 35,690 | 78,408 | 67,811 | |||||||||||||||
| General and administrative | 7,288 | 10,310 | 14,952 | 20,584 | |||||||||||||||
| Property and other taxes | 6,086 | 4,833 | 11,871 | 9,670 | |||||||||||||||
| Depreciation, amortization and impairments | 36,496 | 27,741 | 68,936 | 54,808 | |||||||||||||||
| Total operating expenses | 184,999 | 161,030 | 350,710 | 318,485 | |||||||||||||||
| Operating income | 70,127 | 59,280 | 134,163 | 126,501 | |||||||||||||||
| Interest income, net – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | |||||||||||||||
| Interest expense | (12,654 | ) | (9,560 | ) | (24,465 | ) | (19,141 | ) | |||||||||||
| Other income (expense), net | 499 | (1,267 | ) | 1,173 | (809 | ) | |||||||||||||
| Income before income taxes | 62,197 | 52,678 | 119,321 | 115,001 | |||||||||||||||
| Income tax expense | 137 | 5,079 | 4,373 | 9,508 | |||||||||||||||
| Net income | 62,060 | 47,599 | 114,948 | 105,493 | |||||||||||||||
| Net income attributable to noncontrolling interests | 1,860 | 4,290 | 4,091 | 8,533 | |||||||||||||||
| Net income attributable to | |||||||||||||||||||
| Western Gas Partners, LP | $ | 60,200 | $ | 43,309 | $ | 110,857 | $ | 96,960 | |||||||||||
| Limited partners' interest in net income: | |||||||||||||||||||
| Net income attributable to | |||||||||||||||||||
| Western Gas Partners, LP | $ | 60,200 | $ | 43,309 | $ | 110,857 | $ | 96,960 | |||||||||||
| Pre-acquisition net (income) loss allocated to Anadarko | 764 | (7,032 | ) | (4,637 | ) | (12,520 | ) | ||||||||||||
| General partner interest in net (income) loss | (16,154 | ) | (6,127 | ) | (29,040 | ) | (10,466 | ) | |||||||||||
| Limited partners' interest in net income | $ | 44,810 | $ | 30,150 | $ | 77,180 | $ | 73,974 | |||||||||||
| Net income per common unit – basic and diluted | $ | 0.41 | $ | 0.33 | $ | 0.72 | $ | 0.81 | |||||||||||
| Weighted average common units | |||||||||||||||||||
| outstanding – basic and diluted | 108,736 | 91,272 | 106,784 | 90,981 | |||||||||||||||
| (1) | Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest. |
| Western Gas Partners, LP | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| thousands except number of units | 2013 |
2012 (1) |
||||||
| Current assets | $ | 157,285 | $ | 477,212 | ||||
| Note receivable – Anadarko | 260,000 | 260,000 | ||||||
| Net property, plant and equipment | 3,094,026 | 2,717,956 | ||||||
| Other assets | 397,963 | 294,754 | ||||||
| Total assets | $ | 3,909,274 | $ | 3,749,922 | ||||
| Current liabilities | $ | 146,311 | $ | 185,306 | ||||
| Long-term debt | 1,418,362 | 1,168,278 | ||||||
| Asset retirement obligations and other | 76,679 | 115,902 | ||||||
| Total liabilities | $ | 1,641,352 | $ | 1,469,486 | ||||
| Equity and partners’ capital | ||||||||
| Common units (112,131,561 and 104,660,553 units issued and outstanding at | ||||||||
| June 30, 2013, and December 31, 2012, respectively) | $ | 2,130,279 | $ | 1,957,066 | ||||
| General partner units (2,288,399 and 2,135,930 units issued and outstanding at | ||||||||
| June 30, 2013, and December 31, 2012, respectively) | 66,457 | 52,752 | ||||||
| Net investment by Anadarko |
- |
199,960 | ||||||
| Noncontrolling interests | 71,186 | 70,658 | ||||||
| Total liabilities, equity and partners' capital | $ | 3,909,274 | $ | 3,749,922 | ||||
| (1) | Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest. |
| Western Gas Partners, LP | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (Unaudited) | |||||||||
| Six Months Ended | |||||||||
| June 30, | |||||||||
| thousands | 2013 |
2012 (1) |
|||||||
| Cash flows from operating activities | |||||||||
| Net income | $ | 114,948 | $ | 105,493 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation, amortization and impairments | 68,936 | 54,808 | |||||||
| Change in other items, net | (18,871 | ) | 25,885 | ||||||
| Net cash provided by operating activities | $ | 165,013 | $ | 186,186 | |||||
| Cash flows from investing activities | |||||||||
| Capital expenditures | $ | (339,756 | ) | $ | (193,053 | ) | |||
| Acquisitions from affiliates | (466,936 | ) | (465,507 | ) | |||||
| Acquisitions from third parties | (224,747 | ) |
- |
||||||
| Investments in equity affiliates | (17,751 | ) |
- |
||||||
| Proceeds from sale of assets to affiliates | 82 | 11 | |||||||
| Other | (382 | ) |
- |
||||||
| Net cash used in investing activities | $ | (1,049,490 | ) | $ | (658,549 | ) | |||
| Cash flows from financing activities | |||||||||
| Borrowings, net of debt issuance costs | $ | 494,948 | $ | 886,369 | |||||
| Repayments of debt | (245,000 | ) | (549,000 | ) | |||||
| Increase (decrease) in outstanding checks | (1,809 | ) | (1,010 | ) | |||||
| Proceeds from issuance of common and general partner units, | |||||||||
| net of offering expenses | 425,386 | 216,574 | |||||||
| Distributions to unitholders | (135,801 | ) | (89,080 | ) | |||||
| Contributions from noncontrolling interest owners | 1,097 | 21,315 | |||||||
| Distributions to noncontrolling interest owners | (4,660 | ) | (10,339 | ) | |||||
| Net contributions from (distributions to) Anadarko | 4,515 | 29,027 | |||||||
| Net cash provided by financing activities | $ | 538,676 | $ | 503,856 | |||||
| Net increase (decrease) in cash and cash equivalents | $ | (345,801 | ) | $ | 31,493 | ||||
| Cash and cash equivalents at beginning of period | 419,981 | 226,559 | |||||||
| Cash and cash equivalents at end of period | $ | 74,180 | $ | 258,052 | |||||
| (1) | Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest. |
| Western Gas Partners, LP | |||||||||||||||||
| OPERATING STATISTICS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| MMcf/d except per-unit amounts | 2013 |
2012 (1) |
2013 |
2012 (1) |
|||||||||||||
| Throughput | |||||||||||||||||
| Gathering, treating and transportation (2) | 1,765 | 1,611 | 1,696 | 1,608 | |||||||||||||
| Processing (3) | 1,330 | 1,170 | 1,282 | 1,160 | |||||||||||||
| Equity investment (4) | 211 | 234 | 206 | 235 | |||||||||||||
| Total throughput (5) | 3,306 | 3,015 | 3,184 | 3,003 | |||||||||||||
| Throughput attributable to noncontrolling interests | 167 | 290 | 161 | 280 | |||||||||||||
| Total throughput attributable to | |||||||||||||||||
| Western Gas Partners, LP | 3,139 | 2,725 | 3,023 | 2,723 | |||||||||||||
| Gross margin per Mcf attributable to | |||||||||||||||||
| Western Gas Partners, LP (6) | $ | 0.55 | $ | 0.53 | $ | 0.55 | $ | 0.54 | |||||||||
| (1) | Throughput has been recast to include volumes attributable to the Non-Operated Marcellus Interest. | |
| (2) | Excludes average NGL pipeline volumes of 19 MBbls/d and 20 MBbls/d for the three and six months ended June 30, 2013, respectively, and 26 MBbls/d for both the three and six months ended June 30, 2012. Includes 100% of Wattenberg system volumes for all periods presented, and throughput beginning March 2013 attributable to the Anadarko-Operated Marcellus Interest. | |
| (3) | Consists of 100% of Chipeta, Hilight and Platte Valley system volumes, 100% of the Granger and Red Desert complex volumes, and 50% of Newcastle volumes. | |
| (4) | Represents our 14.81% share of Fort Union and 22% share of Rendezvous gross volumes, and excludes our 10% share of average White Cliffs pipeline volumes consisting of 7 MBbls/d for both the three and six months ended June 30, 2013 and 6 MBbls/d for both the three and six months ended June 30, 2012. | |
| (5) | Includes affiliate, third-party and equity-investment volumes. | |
| (6) | Average for period. Calculated as gross margin, excluding the noncontrolling interest owners’ proportionate share of revenues and cost of product, divided by total throughput attributable to the Partnership (excluding throughput measured in barrels). Calculation includes gross margin attributable to our NGL pipelines and income attributable to our investments in Fort Union, White Cliffs and Rendezvous and volumes attributable to our investments in Fort Union and Rendezvous. |
| Western Gas Equity Partners, LP | ||||
| CALCULATION OF CASH AVAILABLE FOR DISTRIBUTION | ||||
| (Unaudited) | ||||
| Three Months Ended | ||||
| thousands except per-unit amount and Coverage ratio | June 30, 2013 | |||
| Distributions declared by Western Gas Partners, LP: | ||||
| General partner interest | $ | 1,586 | ||
| Incentive distribution rights | 14,935 | |||
| Common units held by WGP | 27,606 | |||
| Less: | ||||
| Public company general and administrative expense | 839 | |||
| Cash available for distribution | $ | 43,288 | ||
| Declared distribution per common unit | $ | 0.1975 | ||
| Distributions declared by Western Gas Equity Partners, LP | $ | 43,232 | ||
| Coverage ratio | 1.00 | x | ||
| Western Gas Equity Partners, LP | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||
| thousands except unit and per-unit amounts | 2013 |
2012 (1) |
2013 |
2012 (1) |
|||||||||||||||
| Revenues | |||||||||||||||||||
| Gathering, processing and transportation of | |||||||||||||||||||
| natural gas and natural gas liquids | $ | 109,800 | $ | 93,444 | $ | 212,690 | $ | 185,033 | |||||||||||
| Natural gas, natural gas liquids and | |||||||||||||||||||
| condensate sales | 139,561 | 122,226 | 261,290 | 250,712 | |||||||||||||||
| Equity income and other, net | 5,765 | 4,640 | 10,893 | 9,241 | |||||||||||||||
| Total revenues | 255,126 | 220,310 | 484,873 | 444,986 | |||||||||||||||
| Operating expenses | |||||||||||||||||||
| Cost of product | 93,460 | 82,456 | 176,543 | 165,612 | |||||||||||||||
| Operation and maintenance | 41,669 | 35,690 | 78,408 | 67,811 | |||||||||||||||
| General and administrative | 8,209 | 10,310 | 17,138 | 20,584 | |||||||||||||||
| Property and other taxes | 6,086 | 4,833 | 11,871 | 9,670 | |||||||||||||||
| Depreciation, amortization and impairments | 36,496 | 27,741 | 68,936 | 54,808 | |||||||||||||||
| Total operating expenses | 185,920 | 161,030 | 352,896 | 318,485 | |||||||||||||||
| Operating income | 69,206 | 59,280 | 131,977 | 126,501 | |||||||||||||||
| Interest income, net – affiliates | 4,225 | 4,225 | 8,450 | 8,450 | |||||||||||||||
| Interest expense | (12,654 | ) | (9,560 | ) | (24,465 | ) | (19,141 | ) | |||||||||||
| Other income (expense), net | 493 | (1,267 | ) | 1,220 | (809 | ) | |||||||||||||
| Income before income taxes | 61,270 | 52,678 | 117,182 | 115,001 | |||||||||||||||
| Income tax expense | 137 | 12,929 | 4,373 | 29,624 | |||||||||||||||
| Net income | 61,133 | 39,749 | 112,809 | 85,377 | |||||||||||||||
| Net income attributable to noncontrolling interests | 26,422 | 21,079 | 45,783 | 49,653 | |||||||||||||||
| Net income attributable to | |||||||||||||||||||
| Western Gas Equity Partners, LP | $ | 34,711 | $ | 18,670 | $ | 67,026 | $ | 35,724 | |||||||||||
| Limited partners' interest in net income: (2) | |||||||||||||||||||
| Net income attributable to | |||||||||||||||||||
| Western Gas Equity Partners, LP | $ | 34,711 | $ | 67,026 | |||||||||||||||
| Pre-acquisition net (income) loss allocated to Anadarko | 764 | (4,637 | ) | ||||||||||||||||
| Limited partners' interest in net income | $ | 35,475 | $ | 62,389 | |||||||||||||||
| Net income per common unit – basic and diluted (2) | $ | 0.16 | $ | 0.29 | |||||||||||||||
| Weighted average number of | |||||||||||||||||||
| common units outstanding – basic and diluted (2) | 218,896 | 218,896 | |||||||||||||||||
| (1) | Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest. | |
| (2) | Amounts not applicable prior to WGP’s IPO on December 12, 2012. |
| Western Gas Equity Partners, LP | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| thousands except number of units | 2013 |
2012 (1) |
||||||
| Current assets | $ | 175,792 | $ | 478,104 | ||||
| Note receivable – Anadarko | 260,000 | 260,000 | ||||||
| Net property, plant and equipment | 3,094,026 | 2,717,956 | ||||||
| Other assets | 397,963 | 294,754 | ||||||
| Total assets | $ | 3,927,781 | $ | 3,750,814 | ||||
| Current liabilities | $ | 146,504 | $ | 186,255 | ||||
| Long-term debt | 1,418,362 | 1,168,278 | ||||||
| Asset retirement obligations and other | 76,679 | 115,902 | ||||||
| Total liabilities | $ | 1,641,545 | $ | 1,470,435 | ||||
| Equity and partners’ capital | ||||||||
| Common units (218,895,515 issued and outstanding at | ||||||||
| June 30, 2013, and December 31, 2012) | $ | 834,798 | $ | 912,376 | ||||
| Net investment by Anadarko |
- |
199,960 | ||||||
| Noncontrolling interests | 1,451,438 | 1,168,043 | ||||||
| Total liabilities, equity and partners' capital | $ | 3,927,781 | $ | 3,750,814 | ||||
| (1) | Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest. |
| Western Gas Equity Partners, LP | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (Unaudited) | |||||||||
| Six Months Ended | |||||||||
| June 30, | |||||||||
| thousands | 2013 |
2012 (1) |
|||||||
| Cash flows from operating activities | |||||||||
| Net income | $ | 112,809 | $ | 85,377 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation, amortization and impairments | 68,936 | 54,808 | |||||||
| Change in other items, net | (19,333 | ) | 4,640 | ||||||
| Net cash provided by operating activities | $ | 162,412 | $ | 144,825 | |||||
| Cash flows from investing activities | |||||||||
| Capital expenditures | $ | (339,756 | ) | $ | (193,053 | ) | |||
| Acquisitions from affiliates | (466,936 | ) | (465,507 | ) | |||||
| Acquisitions from third parties | (224,747 | ) |
- |
||||||
| Investments in equity affiliates | (17,751 | ) |
- |
||||||
| Proceeds from sale of assets to affiliates | 82 | 11 | |||||||
| Other | (382 | ) |
- |
||||||
| Net cash used in investing activities | $ | (1,049,490 | ) | $ | (658,549 | ) | |||
| Cash flows from financing activities | |||||||||
| Borrowings, net of debt issuance costs | $ | 494,948 | $ | 886,369 | |||||
| Repayments of debt | (245,000 | ) | (549,000 | ) | |||||
| Increase (decrease) in outstanding checks | (1,809 | ) | (1,010 | ) | |||||
| Proceeds from issuance of WES common units, net of offering expenses | 416,119 | 212,096 | |||||||
| Offering expenses from issuance of WGP common units | (2,367 | ) |
- |
||||||
| Contributions received from Chipeta noncontrolling interest owners (including Anadarko) | 1,097 | 21,315 | |||||||
| Distributions to Chipeta noncontrolling interest owners (including Anadarko) | (4,660 | ) | (10,339 | ) | |||||
| Distributions to WES common unitholders | (58,929 | ) | (45,317 | ) | |||||
| Distributions to WGP unitholders | (46,980 | ) |
- |
||||||
| Net contributions from (distributions to) Anadarko | 4,515 | 31,103 | |||||||
| Net cash provided by financing activities | $ | 556,934 | $ | 545,217 | |||||
| Net increase (decrease) in cash and cash equivalents | $ | (330,144 | ) | $ | 31,493 | ||||
| Cash and cash equivalents at beginning of period | 422,556 | 226,559 | |||||||
| Cash and cash equivalents at end of period | $ | 92,412 | $ | 258,052 | |||||
| (1) | Financial information has been recast to include results attributable to the Non-Operated Marcellus Interest. |
