Transactions With Affiliates (tables)

6 Months Ended

Jun. 30, 2014

Below is a summary of the fixed price ranges on WES’s outstanding commodity price swap agreements as of June 30, 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 June 30,						Six Months Ended June 30,
thousands	2014			2013			2014			2013
Gains (losses) on commodity price swap agreements related to sales:⁽¹⁾
Natural gas sales	$	2,013		$	2,404		$	(1,654	)	$	7,784
Natural gas liquids sales	34,554			34,203			44,009			55,508
Total	36,567			36,607			42,355			63,292
Losses on commodity price swap agreements related to purchases ⁽²⁾	(18,529		)	(22,857		)	(18,548		)	(42,711		)
Net gains (losses) on commodity price swap agreements	$	18,038		$	13,750		$	23,807		$	20,581


⁽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.

Related Party Transactions Tables

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



	Six Months Ended June 30,
	2014			2013		2014		2013
thousands	Purchases					Sales
Cash consideration	$	4,702		$	1,436	$	—	$	82
Net carrying value	4,745			773		—		34
Partners’ capital adjustment	$	(43	)	$	663	$	—	$	48

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



	Three Months Ended June 30,				Six Months Ended June 30,
thousands	2014		2013		2014		2013
Revenues ⁽¹⁾	$	256,666	$	200,316	$	462,956	$	377,885
Equity income, net	13,008		3,456		22,259		7,424
Cost of product ⁽¹⁾	35,230		32,119		51,864		64,048
Operation and maintenance ⁽²⁾	16,817		14,186		27,916		27,552
General and administrative ⁽³⁾	6,644		5,803		13,637		11,891
Operating expenses	58,691		52,108		93,417		103,491
Interest income, net ⁽⁴⁾	4,225		4,225		8,450		8,450
Distributions to WGP unitholders ⁽⁵⁾	49,784		35,596		95,835		42,739
Distributions to WES unitholders ⁽⁶⁾	474		243		743		243


⁽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).