Transactions With Affiliates (tables)

3 Months Ended

Mar. 31, 2014

Below is a summary of the fixed price ranges on WES’s outstanding commodity price swap agreements as of March 31, 2014:



per barrel except natural gas	2014					2015					2016
Ethane	$	18.36	−	$	30.53	$	18.41	−	$	23.41	$	23.11
Propane	$	40.38	−	$	53.78	$	47.08	−	$	52.99	$	52.90
Isobutane	$	61.24	−	$	75.13	$	62.09	−	$	74.02	$	73.89
Normal butane	$	53.89	−	$	66.83	$	54.62	−	$	65.04	$	64.93
Natural gasoline	$	71.85	−	$	90.89	$	72.88	−	$	81.82	$	81.68
Condensate	$	75.22	−	$	87.30	$	76.47	−	$	81.82	$	81.68
Natural gas (per MMBtu)	$	3.45	−	$	6.20	$	4.66	−	$	5.96	$	4.87

Gains (Losses) on Commodity Price Swap Agreements Table

The following table summarizes realized gains and losses on commodity price swap agreements:



	Three Months Ended March 31,
thousands	2014			2013
Gains (losses) on commodity price swap agreements related to sales:⁽¹⁾
Natural gas sales	$	(3,667	)	$	5,380
Natural gas liquids sales	9,455			21,305
Total	5,788			26,685
Losses on commodity price swap agreements related to purchases ⁽²⁾	(19		)	(19,854		)
Net gains (losses) on commodity price swap agreements	$	5,769		$	6,831


⁽¹⁾	Reported in affiliate natural gas, natural gas liquids and condensate sales in the consolidated statements of income in the period in which the related sale is recorded.


⁽²⁾	Reported in cost of product in the consolidated statements of income in the period in which the related purchase is recorded.

Equipment Purchase and Sale Table

The following table summarizes WES’s purchases from Anadarko of pipe and equipment:



	Three Months Ended March 31,
	2014			2013
thousands	Purchases
Cash consideration	$	4,702		$	221
Net carrying value	4,745			227
Partners’ capital adjustment	$	(43	)	$	(6	)

Related Party Transactions Tables

The following table summarizes affiliate transactions, which include revenue from affiliates, reimbursement of operating expenses and purchases of natural gas:



	Three Months Ended March 31,
thousands	2014		2013
Revenues ⁽¹⁾	$	206,290	$	177,569
Equity income, net	9,251		3,968
Cost of product ⁽¹⁾	16,634		31,929
Operation and maintenance ⁽²⁾	11,099		13,366
General and administrative ⁽³⁾	6,993		6,088
Operating expenses	34,726		51,383
Interest income, net ⁽⁴⁾	4,225		4,225
Distributions to WGP unitholders ⁽⁵⁾	46,051		7,143
Distributions to WES unitholders ⁽⁶⁾	269		—


⁽¹⁾	Represents amounts recognized under gathering, treating or processing agreements, and purchase and sale agreements.


⁽²⁾	Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES.

⁽³⁾

Represents general and administrative expense incurred on and subsequent to the date of WES’s acquisition of WES assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plans within this Note 5) and amounts charged by Anadarko under the WGP omnibus agreement.


⁽⁴⁾	Represents interest income recognized on the note receivable from Anadarko.


⁽⁵⁾	Represents distributions paid under WGP’s partnership agreement (see Note 3 and Note 4).


⁽⁶⁾	Represents distributions paid to other wholly owned subsidiaries of Anadarko under WES’s partnership agreement (see Note 3 and Note 4).