Exhibit

Net income (loss) available to limited partners for the second quarter of 2018 totaled $(51.5) million, or $(0.32) per common unit (diluted), with second-quarter 2018 Adjusted EBITDA⁽¹⁾ of $271.7 million and second-quarter 2018 Distributable cash flow⁽¹⁾ of $221.8 million. These results were impacted by the following amounts associated with the shutdown of two legacy gathering systems with less than 8 MMcf/d of throughput that had reached the end of their useful life: (i) an accrual of $10.9 million related to estimated future costs recorded as a reduction in affiliate product sales and (ii) $127.2 million recorded as impairment expense associated with reducing the net book value of the systems and additional asset retirement obligation. Adjusted EBITDA⁽¹⁾ includes the impact of the $10.9 million accrual.

“Since we initially provided our 2018 guidance last fall, we have been discussing our expectation of a volumetric and cash flow ramp in the second half of this year. I’m pleased to say that it has begun,” said Chief Executive Officer, Benjamin Fink. “Anadarko has successfully brought two Regional Oil Treating facilities online, one late in the second quarter and one earlier this month, and the Delaware Basin generated strong volumetric growth in the second quarter, which should accelerate throughout the remainder of the year. Furthermore, we remain on track to bring both the Mentone I and II trains online late in the third and fourth quarters.”

Total throughput attributable to WES for natural gas assets for the second quarter of 2018 averaged 3.8 Bcf/d, which was 5% above the prior quarter and 9% above the second quarter of 2017. Total throughput for crude oil, NGL and produced water assets for the second quarter of 2018 averaged 343 MBbls/d, which was 33% above the prior quarter and 88% above the second quarter of 2017. These increases were primarily driven by the continued growth behind our DBM water systems and our acquisition of a 20% interest in Whitethorn (which owns the Midland-to-Sealy pipeline and related storage facilities) in June.

WES and WGP will host a joint conference call on Wednesday, August 1, 2018, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss second-quarter 2018 results. Individuals who would like to participate should dial 877-883-0383 (Domestic) or 412-902-6506 (International) approximately 15 minutes before the scheduled conference call time, and enter participant access code 7387060. To access the live audio webcast of the conference call, please visit the investor relations section of the Partnership’s website at www.westerngas.com. A replay of the conference call will also be available on the website for two weeks following the call.

Western Gas Partners, LP (“WES”) is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to acquire, own, develop and operate midstream assets. With midstream assets located in the Rocky Mountains, North-central Pennsylvania, Texas and New Mexico, WES is engaged in the business of gathering, compressing, treating, processing and transporting natural gas; gathering, stabilizing and transporting condensate, natural gas liquids and crude oil; and gathering and disposing of produced water for Anadarko, as well as for third-party producers and customers. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs and condensate on behalf of itself and as agent for its customers under certain of its contracts.

This news release contains forward-looking statements. WES and WGP’s management believes that their 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 supply of, demand for, and price of oil, natural gas, NGLs and related products or services; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the “Risk Factors” sections of WES’s and WGP’s most recent Forms 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in their other public filings and press releases. Western Gas Partners, LP and Western Gas Equity Partners, LP undertake no obligation to publicly update or revise any forward-looking statements.

Below are reconciliations of (i) net income (loss) attributable to Western Gas Partners, LP (GAAP) to WES’s Distributable cash flow (non-GAAP), (ii) net income (loss) attributable to Western Gas Partners, LP (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDA attributable to Western Gas Partners, LP (“Adjusted EBITDA”) (non-GAAP), and (iii) operating income (loss) (GAAP) to Adjusted gross margin attributable to Western Gas Partners, LP (“Adjusted gross margin”) (non-GAAP), as required under Regulation G of the Securities Exchange Act of 1934. Management believes that WES’s Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio are widely accepted financial indicators of WES’s financial performance compared to other publicly traded partnerships and are useful in assessing its ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies. Therefore, WES’s Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio should be considered in conjunction with net income (loss) attributable to Western Gas Partners, LP and other applicable performance measures, such as operating income (loss) or cash flows from operating activities.

WES defines Distributable cash flow as Adjusted EBITDA, plus interest income and the net settlement amounts from the sale and/or purchase of natural gas, condensate and NGLs under WES’s commodity price swap agreements to the extent such amounts are not recognized as Adjusted EBITDA, less Service revenues – fee based recognized in Adjusted EBITDA (less than) in excess of customer billings, net cash paid (or to be paid) for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, Series A Preferred unit distributions and income taxes.



	Three Months Ended June 30,						Six Months Ended June 30,
thousands except Coverage ratio	2018				2017		2018				2017
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	$	32,708			$	173,451	$	182,071			$	275,340
Add:
Distributions from equity investments	31,947				28,856		60,901				51,423
Non-cash equity-based compensation expense	1,852				975		4,004				2,221
Non-cash settled interest expense, net ⁽¹⁾	—				—		—				71
Income tax (benefit) expense	282				843		1,784				4,395
Depreciation and amortization ⁽²⁾	78,066				73,352		154,182				142,401
Impairments	127,243				3,178		127,391				167,920
Above-market component of swap agreements with Anadarko	13,839				16,373		28,121				28,670
Other expense ⁽²⁾	8				95		151				140
Less:
Recognized Service revenues – fee based (less than) in excess of customer billings	(3,367		)		—		(3,861		)		—
Gain (loss) on divestiture and other, net	170				15,458		286				134,945
Equity income, net – affiliates	39,218				21,728		59,642				41,189
Cash paid for maintenance capital expenditures ⁽²⁾	20,891				11,402		37,325				22,524
Capitalized interest	6,011				1,060		10,065				1,876
Cash paid for (reimbursement of) income taxes	—				—		(87		)		189
Series A Preferred unit distributions	—				—		—				7,453
Other income⁽²⁾	1,223				250		2,000				677
Distributable cash flow	$	221,799			$	247,225	$	453,235			$	463,728
Distributions declared⁽³⁾
Limited partners – common units	$	144,979					$	287,662
General partner	80,712						159,162
Total	$	225,691					$	446,824
Coverage ratio	0.98			x			1.01			x

WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investments, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation and amortization, impairments, and other expense (including lower of cost or market inventory adjustments recorded in cost of product), less gain (loss) on divestiture and other, net, income from equity investments, interest income, income tax benefit, and other income.



	Three Months Ended June 30,						Six Months Ended June 30,
thousands	2018			2017			2018			2017
Reconciliation of Net income (loss) attributable to Western Gas Partners, LP to Adjusted EBITDA attributable to Western Gas Partners, LP
Net income (loss) attributable to Western Gas Partners, LP	$	32,708		$	173,451		$	182,071		$	275,340
Add:
Distributions from equity investments	31,947			28,856			60,901			51,423
Non-cash equity-based compensation expense	1,852			975			4,004			2,221
Interest expense	44,389			35,746			83,672			71,250
Income tax expense	282			843			1,784			4,395
Depreciation and amortization⁽¹⁾	78,066			73,352			154,182			142,401
Impairments	127,243			3,178			127,391			167,920
Other expense ⁽¹⁾	8			95			151			140
Less:
Gain (loss) on divestiture and other, net	170			15,458			286			134,945
Equity income, net – affiliates	39,218			21,728			59,642			41,189
Interest income – affiliates	4,225			4,225			8,450			8,450
Other income⁽¹⁾	1,223			250			2,000			677
Adjusted EBITDA attributable to Western Gas Partners, LP	$	271,659		$	274,835		$	543,778		$	529,829
Reconciliation of Net cash provided by operating activities to Adjusted EBITDA attributable to Western Gas Partners, LP
Net cash provided by operating activities	$	273,315		$	240,536		$	514,911		$	433,152
Interest (income) expense, net	40,164			31,521			75,222			62,800
Uncontributed cash-based compensation awards	398			(209		)	987			(172		)
Accretion and amortization of long-term obligations, net	(1,248		)	(1,038		)	(2,626		)	(2,139		)
Current income tax (benefit) expense	90			204			261			628
Other (income) expense, net	(1,229		)	(253		)	(2,011		)	(683		)
Distributions from equity investments in excess of cumulative earnings – affiliates	4,492			5,768			12,505			9,221
Changes in assets and liabilities:
Accounts receivable, net	(21,639		)	(10,876		)	7,009			(9,363		)
Accounts and imbalance payables and accrued liabilities, net	(13,498		)	12,035			(40,573		)	41,975
Other items, net	(5,655		)	(131		)	(14,670		)	(116		)
Adjusted EBITDA attributable to noncontrolling interest	(3,531		)	(2,722		)	(7,237		)	(5,474		)
Adjusted EBITDA attributable to Western Gas Partners, LP	$	271,659		$	274,835		$	543,778		$	529,829
Cash flow information of Western Gas Partners, LP
Net cash provided by operating activities							$	514,911		$	433,152
Net cash used in investing activities							(826,653		)	(363,131		)
Net cash provided by (used in) financing activities							286,163			(239,749		)



	Three Months Ended June 30,				Six Months Ended June 30,
thousands	2018		2017		2018		2017
Reconciliation of Operating income (loss) to Adjusted gross margin attributable to Western Gas Partners, LP
Operating income (loss)	$	74,736	$	207,608	$	262,862	$	346,000
Add:
Distributions from equity investments	31,947		28,856		60,901		51,423
Operation and maintenance	100,628		76,148		188,907		149,908
General and administrative	14,035		10,585		28,167		23,244
Property and other taxes	11,754		11,924		24,136		24,218
Depreciation and amortization	78,792		74,031		155,634		143,733
Impairments	127,243		3,178		127,391		167,920
Less:
Gain (loss) on divestiture and other, net	170		15,458		286		134,945
Proceeds from business interruption insurance claims	—		24,115		—		29,882
Equity income, net – affiliates	39,218		21,728		59,642		41,189
Reimbursed electricity-related charges recorded as revenues	17,231		14,046		32,684		28,015
Adjusted gross margin attributable to noncontrolling interest	4,223		3,435		8,547		7,311
Adjusted gross margin attributable to Western Gas Partners, LP	$	378,293	$	333,548	$	746,839	$	665,104
Adjusted gross margin attributable to Western Gas Partners, LP for natural gas assets	$	329,653	$	297,778	$	655,525	$	599,283
Adjusted gross margin for crude oil, NGL and produced water assets	48,640		35,770		91,314		65,821



	Three Months Ended June 30,						Six Months Ended June 30,
thousands except per-unit amounts	2018			2017			2018			2017
Revenues and other
Service revenues – fee based	$	359,544		$	299,435		$	697,963		$	607,249
Service revenues – product based	22,105			—			44,698			—
Product sales	54,077			224,824			130,014			431,349
Other	223			1,191			442			3,045
Total revenues and other	435,949			525,450			873,117			1,041,643
Equity income, net – affiliates	39,218			21,728			59,642			41,189
Operating expenses
Cost of product	68,149			203,277			145,948			392,636
Operation and maintenance	100,628			76,148			188,907			149,908
General and administrative	14,035			10,585			28,167			23,244
Property and other taxes	11,754			11,924			24,136			24,218
Depreciation and amortization	78,792			74,031			155,634			143,733
Impairments	127,243			3,178			127,391			167,920
Total operating expenses	400,601			379,143			670,183			901,659
Gain (loss) on divestiture and other, net	170			15,458			286			134,945
Proceeds from business interruption insurance claims	—			24,115			—			29,882
Operating income (loss)	74,736			207,608			262,862			346,000
Interest income – affiliates	4,225			4,225			8,450			8,450
Interest expense	(44,389		)	(35,746		)	(83,672		)	(71,250		)
Other income (expense), net	1,229			253			2,011			683
Income (loss) before income taxes	35,801			176,340			189,651			283,883
Income tax (benefit) expense	282			843			1,784			4,395
Net income (loss)	35,519			175,497			187,867			279,488
Net income attributable to noncontrolling interest	2,811			2,046			5,796			4,148
Net income (loss) attributable to Western Gas Partners, LP	$	32,708		$	173,451		$	182,071		$	275,340
Limited partners’ interest in net income (loss):
Net income (loss) attributable to Western Gas Partners, LP	$	32,708		$	173,451		$	182,071		$	275,340
Series A Preferred units interest in net (income) loss	—			(14,199		)	—			(42,373		)
General partner interest in net (income) loss	(84,176		)	(76,365		)	(167,615		)	(144,527		)
Common and Class C limited partners’ interest in net income (loss)	$	(51,468	)	$	82,887		$	14,456		$	88,440
Net income (loss) per common unit – basic and diluted	$	(0.32	)	$	0.49		$	0.06		$	0.53
Weighted-average common units outstanding – basic and diluted	152,604			148,864			152,603			141,696



thousands except number of units	June 30, 2018		December 31, 2017
Current assets	$	247,138	$	254,062
Note receivable – Anadarko	260,000		260,000
Net property, plant and equipment	6,213,574		5,730,891
Other assets	1,945,898		1,769,397
Total assets	$	8,666,610	$	8,014,350
Current liabilities	$	489,117	$	424,333
Long-term debt	4,177,353		3,464,712
Asset retirement obligations	151,412		143,394
Other liabilities	147,246		10,900
Total liabilities	4,965,128		4,043,339
Equity and partners’ capital
Common units (152,609,285 and 152,602,105 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively)	2,666,799		2,950,010
Class C units (13,778,265 and 13,243,883 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively)	781,057		780,040
General partner units (2,583,068 units issued and outstanding at June 30, 2018, and December 31, 2017)	191,564		179,232
Noncontrolling interest	62,062		61,729
Total liabilities, equity and partners’ capital	$	8,666,610	$	8,014,350



	Six Months Ended June 30,
thousands	2018			2017
Cash flows from operating activities
Net income (loss)	$	187,867		$	279,488
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:
Depreciation and amortization	155,634			143,733
Impairments	127,391			167,920
(Gain) loss on divestiture and other, net	(286		)	(134,945		)
Change in other items, net	44,305			(23,044		)
Net cash provided by operating activities	$	514,911		$	433,152
Cash flows from investing activities
Capital expenditures	$	(650,096	)	$	(260,480	)
Contributions in aid of construction costs from affiliates	—			1,343
Acquisitions from affiliates	—			(3,910		)
Acquisitions from third parties	(161,858		)	(155,287		)
Investments in equity affiliates	(27,490		)	(287		)
Distributions from equity investments in excess of cumulative earnings – affiliates	12,505			9,221
Proceeds from the sale of assets to third parties	286			23,292
Proceeds from property insurance claims	—			22,977
Net cash used in investing activities	$	(826,653	)	$	(363,131	)
Cash flows from financing activities
Borrowings, net of debt issuance costs	$	1,337,539		$	159,989
Repayments of debt	(630,000		)	—
Settlement of the Deferred purchase price obligation – Anadarko	—			(37,346		)
Increase (decrease) in outstanding checks	(5,357		)	(2,763		)
Proceeds from the issuance of common units, net of offering expenses	—			(183		)
Distributions to unitholders	(437,719		)	(381,771		)
Distributions to noncontrolling interest owner	(6,421		)	(6,375		)
Net contributions from (distributions to) Anadarko	—			30
Above-market component of swap agreements with Anadarko	28,121			28,670
Net cash provided by (used in) financing activities	$	286,163		$	(239,749	)
Net increase (decrease) in cash and cash equivalents	$	(25,579	)	$	(169,728	)
Cash and cash equivalents at beginning of period	78,814			357,925
Cash and cash equivalents at end of period	$	53,235		$	188,197



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Throughput for natural gas assets (MMcf/d)
Gathering, treating and transportation	887		866		852		1,155
Processing	2,860		2,555		2,808		2,498
Equity investment ⁽¹⁾	141		158		146		160
Total throughput for natural gas assets	3,888		3,579		3,806		3,813
Throughput attributable to noncontrolling interest for natural gas assets	94		107		95		108
Total throughput attributable to Western Gas Partners, LP for natural gas assets	3,794		3,472		3,711		3,705
Throughput for crude oil, NGL and produced water assets (MBbls/d)
Gathering, treating, transportation and disposal	145		50		134		47
Equity investment ⁽²⁾	198		132		167		129
Total throughput for crude oil, NGL and produced water assets	343		182		301		176
Adjusted gross margin per Mcf attributable to Western Gas Partners, LP for natural gas assets ⁽³⁾	$	0.95	$	0.94	$	0.98	$	0.89
Adjusted gross margin per Bbl for crude oil, NGL and produced water assets ⁽⁴⁾	1.56		2.15		1.68		2.07



thousands except per-unit amount and Coverage ratio	Three Months Ended June 30, 2018
Distributions declared by Western Gas Partners, LP:
General partner interest	$	3,756
Incentive distribution rights	76,956
Common units held by WGP	47,625
Less:
Public company general and administrative expense	696
Interest expense	309
Cash available for distribution	$	127,332
Declared distribution per common unit	$	0.58250
Distributions declared by Western Gas Equity Partners, LP	$	127,531
Coverage ratio	1.00		x



	Three Months Ended June 30,						Six Months Ended June 30,
thousands except per-unit amounts	2018			2017			2018			2017
Revenues and other
Service revenues – fee based	$	359,544		$	299,435		$	697,963		$	607,249
Service revenues – product based	22,105			—			44,698			—
Product sales	54,077			224,824			130,014			431,349
Other	223			1,191			442			3,045
Total revenues and other	435,949			525,450			873,117			1,041,643
Equity income, net – affiliates	39,218			21,728			59,642			41,189
Operating expenses
Cost of product	68,149			203,277			145,948			392,636
Operation and maintenance	100,628			76,148			188,907			149,908
General and administrative	14,731			11,197			29,695			24,673
Property and other taxes	11,754			11,924			24,136			24,218
Depreciation and amortization	78,792			74,031			155,634			143,733
Impairments	127,243			3,178			127,391			167,920
Total operating expenses	401,297			379,755			671,711			903,088
Gain (loss) on divestiture and other, net	170			15,458			286			134,945
Proceeds from business interruption insurance claims	—			24,115			—			29,882
Operating income (loss)	74,040			206,996			261,334			344,571
Interest income – affiliates	4,225			4,225			8,450			8,450
Interest expense	(44,697		)	(36,297		)	(85,043		)	(72,330		)
Other income (expense), net	1,277			272			2,094			718
Income (loss) before income taxes	34,845			175,196			186,835			281,409
Income tax (benefit) expense	282			843			1,784			4,395
Net income (loss)	34,563			174,353			185,051			277,014
Net income (loss) attributable to noncontrolling interests	(33,017		)	69,409			16,466			96,130
Net income (loss) attributable to Western Gas Equity Partners, LP	$	67,580		$	104,944		$	168,585		$	180,884
Net income (loss) per common unit – basic and diluted	$	0.31		$	0.48		$	0.77		$	0.83
Weighted-average common units outstanding – basic and diluted	218,934			218,931			218,934			218,930



thousands except number of units	June 30, 2018		December 31, 2017
Current assets	$	249,357	$	255,210
Note receivable – Anadarko	260,000		260,000
Net property, plant and equipment	6,213,574		5,730,891
Other assets	1,945,898		1,770,210
Total assets	$	8,668,829	$	8,016,311
Current liabilities	$	517,163	$	424,426
Long-term debt	4,177,353		3,492,712
Asset retirement obligations	151,412		143,394
Other liabilities	147,246		10,900
Total liabilities	4,993,174		4,071,432
Equity and partners’ capital
Common units (218,937,797 and 218,933,141 units issued and outstanding at June 30, 2018, and December 31, 2017, respectively)	994,418		1,061,125
Noncontrolling interests	2,681,237		2,883,754
Total liabilities, equity and partners’ capital	$	8,668,829	$	8,016,311



	Six Months Ended June 30,
thousands	2018			2017
Cash flows from operating activities
Net income (loss)	$	185,051		$	277,014
Adjustments to reconcile net income (loss) to net cash provided by operating activities and changes in assets and liabilities:
Depreciation and amortization	155,634			143,733
Impairments	127,391			167,920
(Gain) loss on divestiture and other, net	(286		)	(134,945		)
Change in other items, net	45,457			(22,364		)
Net cash provided by operating activities	$	513,247		$	431,358
Cash flows from investing activities
Capital expenditures	$	(650,096	)	$	(260,480	)
Contributions in aid of construction costs from affiliates	—			1,343
Acquisitions from affiliates	—			(3,910		)
Acquisitions from third parties	(161,858		)	(155,287		)
Investments in equity affiliates	(27,490		)	(287		)
Distributions from equity investments in excess of cumulative earnings – affiliates	12,505			9,221
Proceeds from the sale of assets to third parties	286			23,292
Proceeds from property insurance claims	—			22,977
Net cash used in investing activities	$	(826,653	)	$	(363,131	)
Cash flows from financing activities
Borrowings, net of debt issuance costs	$	1,337,531		$	159,989
Repayments of debt	(630,000		)	—
Settlement of the Deferred purchase price obligation – Anadarko	—			(37,346		)
Increase (decrease) in outstanding checks	(5,357		)	(2,763		)
Proceeds from the issuance of WES common units, net of offering expenses	—			(183		)
Distributions to WGP unitholders	(244,658		)	(208,803		)
Distributions to Chipeta noncontrolling interest owner	(6,421		)	(6,375		)
Distributions to noncontrolling interest owners of WES	(190,081		)	(171,689		)
Net contributions from (distributions to) Anadarko	—			30
Above-market component of swap agreements with Anadarko	28,121			28,670
Net cash provided by (used in) financing activities	$	289,135		$	(238,470	)
Net increase (decrease) in cash and cash equivalents	$	(24,271	)	$	(170,243	)
Cash and cash equivalents at beginning of period	79,588			359,072
Cash and cash equivalents at end of period	$	55,317		$	188,829



⁽¹⁾ Please see the tables at the end of this release for a reconciliation of GAAP to non-GAAP measures and calculation of the Coverage ratio.


⁽¹⁾	Includes amounts related to the Deferred purchase price obligation - Anadarko.


⁽²⁾	Includes WES’s 75% share of depreciation and amortization; other expense; cash paid for maintenance capital expenditures; and other income attributable to Chipeta.


⁽³⁾	Reflects cash distributions of $0.950 and $1.885 per unit declared for the three and six months ended June 30, 2018, respectively.


⁽¹⁾	Represents WES’s 14.81% share of average Fort Union throughput and 22% share of average Rendezvous throughput.


⁽²⁾	Represents WES’s 10% share of average White Cliffs throughput, WES’s 25% share of average Mont Belvieu JV throughput, WES’s 20% share of average TEG and TEP throughput, WES’s 33.33% share of average FRP throughput and WES’s 20% share of average Whitethorn throughput.