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Western Gas Announces Marcellus Acquisitions and Fourth-Quarter and Full-Year 2012 Results Provides Outlook for 2013



  Western Gas Announces Marcellus Acquisitions and Fourth-Quarter and
  Full-Year 2012 Results Provides Outlook for 2013

Business Wire

HOUSTON -- February 27, 2013

Western Gas Partners, LP (NYSE: WES) (“WES” or the “Partnership”) today
announced that it has agreed to acquire a 33.75% interest in both the Liberty
and Rome gas gathering systems from Anadarko Petroleum Corporation (NYSE: APC)
for total consideration of $490 million (the “Anadarko Acquisition”). The
Partnership also announced that it has agreed to acquire a 33.75% interest in
the Larry’s Creek, Seely and Warrensville gas gathering systems from an
affiliate of Chesapeake Energy Corporation (NYSE: CHK) for total consideration
of $133.5 million (the “Third-Party Acquisition”). The assets in both the
Anadarko Acquisition and the Third-Party Acquisition serve production from the
Marcellus shale in north-central Pennsylvania and have current total combined
throughput of over 1.2 Bcf/d.

“These immediately accretive Marcellus acquisitions further enhance both our
geographic diversity and our fee-based asset portfolio,” said Chief Operating
Officer, Danny Rea. “We expect that the high quality of the underlying
resources in combination with the large inventory of wells not yet connected
to the systems will provide significant near-term growth.”

The Partnership intends to finance the Anadarko Acquisition with approximately
$220 million of cash on hand, the borrowing of $246 million on its revolving
credit facility and the issuance of 449,129 common units to Anadarko at an
implied price of approximately $54.55 per unit. The transaction will be
immediately accretive to the Partnership, with the acquisition price
representing an approximate 7.6 times multiple of the assets’ forecasted 2013
earnings before interest, taxes, depreciation and amortization (“EBITDA”). The
transaction is expected to close on March 1, 2013.

The Partnership intends to finance the Third-Party Acquisition with borrowings
on its revolving credit facility. The transaction will be immediately
accretive to the Partnership, with the acquisition price representing an
approximate 9.7 times multiple of the assets’ forecasted 2013 EBITDA. The
acquisition is expected to close by March 15, 2013.

The terms of the Anadarko Acquisition were unanimously approved by the board
of directors of the Partnership’s general partner and by the board’s special
committee, which is comprised entirely of independent directors. The special
committee engaged Evercore Partners to act as its financial advisor and
Bracewell & Giuliani LLP to act as its legal advisor.

FOURTH QUARTER AND FULL-YEAR 2012 RESULTS

The Partnership and Western Gas Equity Partners, LP (NYSE: WGP) (“WGP”) today
also announced fourth-quarter and full-year 2012 financial and operating
results.

“WES delivered an 18% distribution growth rate while maintaining healthy
coverages and received its second investment-grade credit rating, and we
successfully launched the initial public offering of WGP,” said President and
Chief Executive Officer, Don Sinclair. “While we believe the challenges in the
NGL markets that we experienced in 2012 will continue in 2013, our
high-quality portfolio, combined with our ability to consistently execute
accretive acquisitions from our sponsor, positions us to deliver consistent
growth.”

WESTERN GAS PARTNERS, LP

Net income (loss) available to limited partners for 2012, which includes
results from the additional 24% interest in Chipeta Processing, LLC
(“Chipeta”) beginning August 1, 2012, totaled $78.9 million, or $0.84 per
common unit (diluted), with full-year 2012 Adjusted EBITDA ^(1) of $327.7
million and full-year 2012 Distributable cash flow ^(1) of $264.4 million.

Net income (loss) available to limited partners for the fourth quarter of 2012
totaled $(26.6) million, or $(0.27) per common unit (diluted), with
fourth-quarter 2012 Adjusted EBITDA ^(1) of $83.3 million and fourth-quarter
2012 Distributable cash flow ^(1) of $67.2 million.

The Partnership paid a quarterly distribution of $0.52 per unit for the fourth
quarter of 2012 on February 12, 2013, to unitholders of record at the close of
business on February 1, 2013. This distribution represents a 4% increase over
the prior quarter and an 18% increase over the fourth-quarter 2011
distribution of $0.44 per unit. The full-year 2012 distribution of $1.96 per
unit represents an 18% increase over the full-year 2011 distribution. The
fourth-quarter 2012 Coverage ratio ^(1) was 1.02 times, based on the $0.52 per
unit distribution and including distributions on the 8.9 million common and
general partner units sold to WGP after its initial public offering (“IPO”) in
December 2012.

Total throughput attributable to the Partnership for the fourth quarter of
2012 averaged 2.5 Bcf/d, flat with the prior quarter and 8% above the
fourth quarter of 2011. For the full-year 2012, throughput attributable to the
Partnership averaged 2.4 Bcf/d, 9% above the prior year average. These results
include the net throughput attributable to the Mountain Gas Resources (“MGR”)
and Bison assets acquired from Anadarko for all periods of comparison,
throughput attributable to the Platte Valley system beginning March 2011, and
throughput attributable to the recently acquired 24% interest in Chipeta
beginning August 2012.

Excluding acquisitions, capital expenditures attributable to the Partnership
on a cash basis totaled $154.7 million during the fourth quarter of 2012. Of
this amount, maintenance capital expenditures were approximately $6.2 million,
or 7% of Adjusted EBITDA ^(1). For the full-year 2012, capital expenditures
attributable to the Partnership totaled $423.8 million on a cash basis,
excluding acquisitions and including the capital expenditures associated with
the 24% interest in Chipeta beginning August 1, 2012. Capital expenditures
attributable to the Partnership on an accrual basis and excluding acquisitions
totaled $162.8 million during the fourth quarter of 2012 and $491.0 million
for the full-year 2012.

WESTERN GAS EQUITY PARTNERS, LP

As of December 31, 2012, WGP indirectly owned the 2% general partner interest
and 100% of the incentive distribution rights in WES and 49,296,205 WES common
units. WGP presents its results consolidated with those of WES. WGP closed its
IPO on December 12, 2012, and the results for the periods prior to the IPO are
therefore attributable to subsidiaries of Anadarko.

Net income (loss) available to limited partners for the 20-day period
beginning on the date the IPO closed through December 31, 2012, totaled $(9.8)
million, or $(0.04) per common unit (diluted) for the fourth-quarter and
full-year 2012, based on the number of common units issued in connection with
the IPO.

Net income (loss) attributable to WGP for the fourth-quarter and full-year
2012 totaled $(1.5) million and $34.0 million, respectively. Included in
reported net income (loss) for the fourth-quarter and full-year 2012 is income
tax (benefit) expense attributable to the pre-IPO period. Income generated by
WGP is not subject to federal income tax subsequent to the IPO.

WGP previously paid a prorated quarterly distribution of $0.03587 per unit for
the fourth quarter of 2012 on February 21, 2013, to unitholders of record at
the close of business on February 1, 2013. This distribution was the first
paid by WGP and corresponds to a quarterly distribution of $0.165 per unit, or
$0.66 per unit on an annualized basis. The initial distribution was prorated
for the 20-day period from the date of the closing of WGP’s IPO on December
12, 2012, through the end of the quarter, pursuant to the terms of WGP’s
partnership agreement.

WGP received distributions from WES of $8.0 million attributable to the 20-day
period following its IPO and subsequently paid out $7.9 million in
distributions for the prorated fourth quarter of 2012.

2013 WES OUTLOOK

Based on the current forecast, which includes the effects of the Anadarko
Acquisition and the Third-Party Acquisition, WES’s Adjusted EBITDA ^(1) for
2013 is expected to be between $410 million and $450 million. Total cash basis
capital expenditures excluding acquisitions are expected to be between $550
million and $600 million with maintenance capital expenditures expected to be
between 9% and 12% of Adjusted EBITDA ^(1). The 2013 forecast includes the
completion of the Partnership’s Brasada and Lancaster plants, which will serve
the Eagleford shale and the DJ Basin. WES continues to expect to meet its
previously stated goal of no less than 15% distribution growth in 2013.
Details surrounding the 2013 forecast will be provided during the
Partnership’s earnings conference call.

2013 WGP OUTLOOK

Based on the previously announced expectation of no less than 15% distribution
growth at WES, WGP expects that its 2013 distribution growth will be no less
than 33%.

CONFERENCE CALL TOMORROW AT 11 A.M. CST

Western Gas Partners and Western Gas Equity Partners will host a joint
conference call on Thursday, February 28, 2013, at 11 a.m. Central Standard
Time (12 p.m. Eastern Standard Time) to discuss fourth-quarter and full-year
2012 results and the outlook for 2013. To participate via telephone, please
dial 877.621.4819 and enter participant code 88744809. 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 and the Mid-Continent, the Partnership 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 limited partnership
formed by Anadarko to own three types of interests in WES: (i) the 2.0%
general partner interest, through WGP’s 100% ownership of WES’s general
partner; (ii) all of the incentive distribution rights in WES; and (iii) 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 most recent Form 10-K and WGP’s Form S-1
registration statement 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.

     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 (loss) attributable to Western Gas Partners, LP
(GAAP) and Adjusted EBITDA (non-GAAP) to net income (loss) 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 performance measures (as applicable), such as operating income
(loss) 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      Year Ended
                                 December 31,            December 31,
thousands except Coverage ratio  2012         2011       2012        2011
Reconciliation of Net income
(loss) attributable to Western
Gas Partners, LP
to Distributable cash flow and
calculation of the Coverage
ratio
Net income (loss) attributable
to
     Western Gas Partners, LP    $ (16,971)   $ 40,014   $ 106,986   $ 174,243
Add:
     Distributions from equity     5,057        4,011      20,660      15,999
     investees
     Non-cash equity-based         57,101       7,519      73,508      13,754
     compensation expense ^(1)
     Interest expense, net         82           —          326         —
     (non-cash settled)
     Income tax expense            559          3,454      1,258       19,018
     Depreciation, amortization    35,418       32,869     114,932     109,151
     and impairments ^(2)
     Other expense ^(2)            —            —          1,665       3,683
Less:
     Equity income, net            5,359        3,579      16,111      11,261
     Cash paid for maintenance
     capital expenditures ^(2)     6,187        7,709      31,730      28,293
     (3)
     Capitalized interest          2,369        286        6,196       420
     Cash paid for income taxes    —            —          495         190
     Other income ^ (2) (4)        181          288        368         2,049
     Interest income, net          —            5,343      —           11,660
     (non-cash settled)
Distributable cash flow          $ 67,150     $ 70,662   $ 264,435   $ 281,975
                                                                        
Distributions declared ^ (5)
     Limited partners            $ 54,424                $ 190,123
     General partner               11,233                  30,358   
     Total                       $ 65,657                $ 220,481  
Coverage ratio                     1.02     x              1.20    x

^(1) Includes $56.2 million and $69.8 million of equity-based compensation
associated with the Western Gas Holdings, LLC Equity Incentive Plan, as
amended and restated, paid and contributed by Anadarko during the three months
and year ended December 31, 2012, respectively.

^(2) Includes the Partnership’s 51% share prior to August 1, 2012, and 75%
share after August 1, 2012, of depreciation, amortization and impairments;
other expense; cash paid for maintenance capital expenditures; and other
income attributable to Chipeta.

^(3) Net of a prior period adjustment reclassifying approximately $0.7 million
from capital expenditures to operating expenses for the year ended December
31, 2012.

^(4) Excludes income of $0.4 million and $0.6 million for the three months
ended December 31, 2012 and 2011, respectively, and $1.6 million for each of
the years ended December 31, 2012 and 2011, related to a component of a gas
processing agreement accounted for as a capital lease.

^(5) Reflects distributions of $0.52 and $1.96 per unit declared for the three
months and year ended December 31, 2012, respectively.

    Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures,
                                  continued

Adjusted EBITDA

The Partnership defines Adjusted EBITDA as net income (loss) attributable to
Western Gas Partners, LP, plus distributions from equity investees, non-cash
equity-based compensation expense, expense in excess of the expense
reimbursement cap provided in the omnibus agreement (which cap is no longer
effective), 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       Year Ended
                          December 31,             December 31,
thousands                 2012         2011        2012            2011
Reconciliation of Net
income (loss)
attributable to
Western Gas Partners,
LP to Adjusted EBITDA
Net income (loss)
attributable to Western   $ (16,971)   $ 40,014    $ 106,986       $ 174,243
Gas Partners, LP
Add:
  Distributions from        5,057        4,011       20,660          15,999
  equity investees
  Non-cash equity-based
  compensation expense      57,101       7,519       73,508          13,754
  ^(1)
  Interest expense          11,942       8,607       42,060          30,345
  Income tax expense        559          3,454       1,258           19,018
  Depreciation,
  amortization and          35,418       32,869      114,932         109,151
  impairments ^(2)
  Other expense ^(2)        —            —           1,665           3,683
Less:
  Equity income, net        5,359        3,579       16,111          11,261
  Interest income, net      4,225        9,568       16,900          28,560
  – affiliates
  Other income ^ (2)        181          288         368             2,049
  (3)
Adjusted EBITDA           $ 83,341     $ 83,039    $ 327,690       $ 324,323
                                                                      
Reconciliation of
Adjusted EBITDA to
  Net cash provided by
  operating activities
Adjusted EBITDA
attributable to Western   $ 83,341     $ 83,039    $ 327,690       $ 324,323
Gas Partners, LP
  Adjusted EBITDA
  attributable to           3,505        5,057       17,214          16,850
  noncontrolling
  interests
  Interest income           (7,717)      961         (25,160)        (1,785)
  (expense), net
  Non-cash equity based
  compensation expense      (56,153)     (6,723)     (69,791)        (10,264)
  ^ (1)
  Debt-related
  amortization and          591          510         2,319           3,110
  other items, net
  Current income tax        (368)        (5,532)     (553)           (16,414)
  expense
  Other income              183          291         (1,292)         (1,628)
  (expense), net ^(3)
  Distributions from
  equity investees less
  than
     (in excess of)         302          (432)       (4,549)         (4,738)
     equity income, net
  Changes in operating
  working capital:
     Accounts
     receivable and
     natural gas            (16,524)     6,003       (14,219)        (13,260)
     imbalance
     receivable
     Accounts payable,
     accrued
     liabilities and
     natural gas            (60,110)     1,387       11,622          29,625
     imbalance payable
     Other                  1,290        (791)       3,392           1,352
Net cash provided by
(used in) operating       $ (51,660)   $ 83,770    $ 246,673       $ 327,171
activities
                                                                      
Cash flow information
of Western Gas
Partners, LP
Net cash provided by                               $ 246,673       $ 327,171
operating activities
Net cash used in                                   $ (1,071,127)   $ (472,951)
investing activities
Net cash provided by                               $ 1,017,876     $ 345,265
financing activities

^(1) Includes $56.2 million and $69.8 million of equity-based compensation
associated with the Western Gas Holdings, LLC Equity Incentive Plan, as
amended and restated, paid and contributed by Anadarko during the three months
and year ended December 31, 2012, respectively.

^(2) Includes the Partnership’s 51% share prior to August 1, 2012, and 75%
share after August 1, 2012, of depreciation, amortization and impairments;
other expense; and other income attributable to Chipeta.

^(3) Excludes income of $0.4 million and $0.6 million for the three months
ended December 31, 2012 and 2011, respectively, and $1.6 million for each of
the years ended December 31, 2012 and 2011, 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       Year Ended
                              December 31,             December 31,
thousands except per-unit     2012         2011        2012         2011
amounts
                                                                       
Revenues
Gathering, processing and
transportation of
      natural gas and         $ 85,334     $ 78,897    $ 321,183    $ 301,329
      natural gas liquids
Natural gas, natural gas
liquids and
      condensate sales          121,521      130,583     508,339      502,383
Equity income and other,        5,982        5,717       19,918       19,553
net
Total revenues                  212,837      215,197     849,440      823,265
Operating expenses
Cost of product                 81,360       86,606      336,079      327,371
Operation and maintenance       34,303       31,245      131,344      119,104
General and administrative      62,833       14,484      97,066       39,114
Property and other taxes        4,690        3,277       19,688       16,579
Depreciation, amortization      35,991       33,491      117,261      111,904
and impairments
Total operating expenses        219,177      169,103     701,438      614,072
Operating income (loss)         (6,340)      46,094      148,002      209,193
Interest income, net –          4,225        9,568       16,900       28,560
affiliates
Interest expense                (11,942)     (8,607)     (42,060)     (30,345)
Other income (expense), net     579          851         292          (44)
Income (loss) before income     (13,478)     47,906      123,134      207,364
taxes
Income tax expense              559          3,454       1,258        19,018
Net income (loss)               (14,037)     44,452      121,876      188,346
Net income attributable to      2,934        4,438       14,890       14,103
noncontrolling interests
Net income (loss)
attributable to
      Western Gas Partners,   $ (16,971)   $ 40,014    $ 106,986    $ 174,243
      LP
Limited partners' interest
in net income (loss):
Net income (loss)
attributable to
      Western Gas Partners,   $ (16,971)   $ 40,014    $ 106,986    $ 174,243
      LP
Pre-acquisition net
(income) loss allocated to      —            (5,587)     —            (34,084)
Anadarko
General partner interest in     (9,581)      (2,915)     (28,089)     (8,599)
net (income) loss
Limited partners' interest    $ (26,552)   $ 31,512    $ 78,897     $ 131,560
in net income (loss)
                                                                       
Net income (loss) per unit
– basic and diluted
      Common units            $ (0.27)     $ 0.35      $ 0.84       $ 1.64
      Subordinated units ^    $ —          $ —         $ —          $ 1.28
      (1)
Weighted average units
outstanding – basic and
diluted
      Common units              97,832       90,141      93,936       67,333
      Subordinated units ^      —            —           —            16,431
      (1)

^(1) All subordinated units were converted to common units on a one-for-one
basis on August 15, 2011. For purposes of calculating net income per common
and subordinated unit, the conversion of the subordinated units is deemed to
have occurred on July 1, 2011.

Western Gas Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                                 
                                                   December 31,   December 31,
thousands except number of units                   2012           2011
                                                                      
Current assets                                     $  465,333     $  256,448
Note receivable – Anadarko                            260,000        260,000
Net property, plant and equipment                     2,473,375      2,052,224
Other assets                                          277,354        268,954
Total assets                                       $  3,476,062   $  2,837,626
                                                                      
Current liabilities                                $  157,258     $  76,596
Long-term debt                                        1,168,278      669,178
Asset retirement obligations and other                70,050         174,546
Total liabilities                                  $  1,395,586   $  920,320
                                                                      
Equity and partners’ capital
Common units (104,660,553 and 90,140,999 units
issued and outstanding at                          $  1,957,066   $  1,495,253
December 31, 2012 and 2011, respectively)
General partner units (2,135,930 and 1,839,613
units issued and outstanding at                       52,752         31,729
December 31, 2012 and 2011, respectively)
Net investment by Anadarko                            —              269,600
Noncontrolling interests                              70,658         120,724
Total liabilities, equity and partners' capital    $  3,476,062   $  2,837,626

Western Gas Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                                                  
                                                   Year Ended
                                                   December 31,
thousands                                            2012            2011
                                                    
Cash flows from operating activities
Net income                                         $ 121,876       $ 188,346
Adjustments to reconcile net income to net cash
provided by operating activities:
           Depreciation, amortization and            117,261         111,904
           impairments
           Change in other items, net                7,536           26,921
Net cash provided by operating activities          $ 246,673       $ 327,171
                                                                      
Cash flows from investing activities
Capital expenditures                               $ (459,306)     $ (142,946)
Acquisitions from affiliates                         (611,719)       (28,837)
Acquisitions from third parties                      —               (301,957)
Investments in equity affiliates                     (862)           (93)
Proceeds from sale of assets to affiliates           760             382
Proceeds from sale of assets to third parties        —               500
Net cash used in investing activities              $ (1,071,127)   $ (472,951)
                                                                      
Cash flows from financing activities
Borrowings, net of debt issuance costs             $ 1,041,648     $ 1,055,939
Repayments of debt                                   (549,000)       (869,000)
Proceeds from issuance of common and general
partner units,                                       625,877         335,317
net of offering expenses
Distributions to unitholders                         (197,850)       (140,118)
Contributions from noncontrolling interest           29,108          33,637
owners
Distributions to noncontrolling interest owners      (17,303)        (17,478)
Net contributions from (distributions to)            85,396          (53,032)
Anadarko
Net cash provided by financing activities          $ 1,017,876     $ 345,265
                                                                      
Net increase (decrease) in cash and cash           $ 193,422       $ 199,485
equivalents
Cash and cash equivalents at beginning of period     226,559         27,074
Cash and cash equivalents at end of period         $ 419,981       $ 226,559

Western Gas Partners, LP
OPERATING STATISTICS
(Unaudited)
                                                                      
                                        Three Months Ended   Year Ended
                                        December 31,         December 31,
MMcf/d except per-unit amounts          2012       2011      2012      2011
                                                                          
Throughput
     Gathering, treating and               1,187     1,304     1,238     1,321
     transportation ^ (1)
     Processing ^(2)                       1,201     1,025     1,187     962
     Equity investment ^ (3)               232       218       235       198
           Total throughput ^(4)           2,620     2,547     2,660     2,481
Throughput attributable to                 151       255       228       242
noncontrolling interests
           Total throughput
           attributable to                 2,469     2,292     2,432     2,239
           Western Gas Partners, LP
Gross margin per Mcf attributable to    $  0.56    $ 0.58    $ 0.55    $ 0.58
Western Gas Partners, LP ^(5)

^(1) Excludes average NGL pipeline volumes of 24 MBbls/d and 26 MBbls/d for
the three months ended December 31, 2012 and 2011, respectively, and 25
MBbls/d and 24 MBbls/d for the years ended December 31, 2012 and 2011,
respectively. Includes 100% of Wattenberg system volumes for all periods
presented.

^(2) Consists of 100% of Chipeta and Hilight system volumes, 100% of the
Granger and Red Desert complex volumes, 50% of Newcastle system volumes, and
throughput beginning March 2011 attributable to the Platte Valley system.

^(3) 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 and 4 MBbls/d for the three months ended
December 31, 2012 and 2011, respectively, and 6 MBbls/d and 4 MBbls/d for the
years ended December 31, 2012 and 2011, respectively.

^(4) Includes affiliate, third-party and equity-investment volumes.

^(5) 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                            December 31, 2012
Distributions declared by Western Gas Partners, LP:
  General partner interest                                  $      1,313
  Incentive distribution rights                                    9,921
  Common units held by WGP                                         25,634
Less:
  Public company general and administrative expense                516
  Distributions received attributable to the pre-IPO period        28,500
  and other
Cash available for distribution                             $      7,852
                                                                    
Declared distribution per common unit ^ (1)                 $      0.03587
                                                                    
Distributions declared by Western Gas Equity Partners, LP   $      7,852

^(1) Represents a prorated quarterly distribution of $0.165.

Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                                                                   
                              Three Months Ended       Year Ended
                              December 31,             December 31,
thousands except per-unit     2012         2011        2012         2011
amounts
                                                                       
Revenues
Gathering, processing and
transportation of natural     $ 85,334     $ 78,897    $ 321,183    $ 301,329
gas and
natural gas liquids
Natural gas, natural gas
liquids
and condensate sales            121,521      130,583     508,339      502,383

 
Equity income and other,        5,982        5,717       19,918       19,553
net
Total revenues                  212,837      215,197     849,440      823,265
Operating expenses
Cost of product                 81,360       86,606      336,079      327,371
Operation and maintenance       34,303       31,245      131,344      119,104
General and administrative      63,349       14,484      97,582       39,114
Property and other taxes        4,690        3,277       19,688       16,579
Depreciation, amortization      35,991       33,491      117,261      111,904
and impairments
Total operating expenses        219,693      169,103     701,954      614,072
Operating income (loss)         (6,856)      46,094      147,486      209,193
Interest income, net –          4,225        9,568       16,900       28,560
affiliates
Interest expense                (11,942)     (8,607)     (42,060)     (30,345)
Other income (expense), net     579          851         292          (44)
Income (loss) before income     (13,994)     47,906      122,618      207,364
taxes
Income tax (benefit)            (450)        9,664       29,452       45,664
expense
Net income (loss)               (13,544)     38,242      93,166       161,700
Net income (loss)
attributable to                 (12,077)     22,041      59,181       86,057
noncontrolling interests
Net income (loss)
attributable to               $ (1,467)    $ 16,201    $ 33,985     $ 75,643
Western Gas Equity
Partners, LP
Limited partners' interest
in net income (loss): ^ (1)
Net income (loss)
attributable to               $ (1,467)                $ 33,985
Western Gas Equity
Partners, LP
Results attributable to the     (8,347)                  (43,799)      
pre-IPO period ^ (2)
Limited partners' interest    $ (9,814)                $ (9,814)
in net income (loss)
                                                                       
Net income (loss) per
common unit – basic and       $ (0.04)                 $ (0.04)
diluted ^ (1)
                                                                       
                                                                       
Weighted average number of
       common units
       outstanding – basic      218,896                  218,896       
       and diluted ^ (1)

^(1) Amounts not applicable prior to WGP’s IPO on December 12, 2012.

^(2) Includes financial results prior to WGP’s IPO on December 12, 2012.

Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                                 
                                                   December 31,   December 31,
thousands except number of units                   2012           2011
                                                                      
Current assets                                     $  466,225     $  256,448
Note receivable – Anadarko                            260,000        260,000
Net property, plant and equipment                     2,473,375      2,052,224
Other assets                                          277,354        268,954
Total assets                                       $  3,476,954   $  2,837,626
                                                                      
Current liabilities                                $  158,207     $  112,222
Long-term debt                                        1,168,278      669,178
Asset retirement obligations and other                70,050         589,272
Total liabilities                                  $  1,396,535   $  1,370,672
                                                                      
Equity and partners’ capital
Common units (218,895,515 issued and outstanding   $  912,376     $  —
at December 31, 2012)
Net investment by Anadarko                            —              528,873
Noncontrolling interests                              1,168,043      938,081
Total liabilities, equity and partners' capital    $  3,476,954   $  2,837,626

Western Gas Equity Partners, LP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                                                  
                                                   Year Ended
                                                   December 31,
thousands                                            2012            2011
                                                    
Cash flows from operating activities
Net income                                         $ 93,166        $ 161,700
Adjustments to reconcile net income to net cash
provided by operating activities:
           Depreciation, amortization and            117,261         111,904
           impairments
           Change in other items, net                (24,320)        (382)
Net cash provided by operating activities          $ 186,107       $ 273,222
                                                                      
Cash flows from investing activities
Capital expenditures                               $ (459,306)     $ (142,946)
Acquisitions from affiliates                         (611,719)       (28,837)
Acquisitions from third parties                      —               (301,957)
Investments in equity affiliates                     (862)           (93)
Other                                                760             882
Net cash used in investing activities              $ (1,071,127)   $ (472,951)
                                                                      
Cash flows from financing activities
Borrowings, net of debt issuance costs             $ 1,041,648     $ 1,055,939
Repayments of debt                                   (549,000)       (869,000)
Proceeds from issuance of WES common units, net      211,932         328,345
of offering expenses
Proceeds from issuance of WGP common units, net      410,579         —
of offering expenses
Contributions received from Chipeta
noncontrolling interest owners (including            29,108          33,637
Anadarko)
Distributions to Chipeta noncontrolling interest     (17,303)        (17,478)
owners (including Anadarko)
Distributions to WES noncontrolling interest         (99,570)        (72,079)
owners
Net contributions from (distributions to)            53,623          (60,150)
Anadarko
Net cash provided by financing activities          $ 1,081,017     $ 399,214
                                                                      
Net increase (decrease) in cash and cash           $ 195,997       $ 199,485
equivalents
Cash and cash equivalents at beginning of period     226,559         27,074
Cash and cash equivalents at end of period         $ 422,556       $ 226,559

^(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.

Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20130227006600/en/

Multimedia
Available:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50579378&lang=en

Contact:

Western Gas
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
832.636.6010
benjamin.fink@westerngas.com
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