Transactions With Affiliates (tables)

9 Months Ended

Sep. 30, 2014

Below is a summary of the fixed price ranges on WES’s outstanding commodity price swap agreements as of September 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 September 30,						Nine Months Ended September 30,
thousands	2014			2013			2014			2013
Gains (losses) on commodity price swap agreements related to sales:⁽¹⁾
Natural gas sales	$	3,179		$	6,923		$	1,525		$	14,707
Natural gas liquids sales	22,737			27,541			66,746			83,049
Total	25,916			34,464			68,271			97,756
Losses on commodity price swap agreements related to purchases ⁽²⁾	(19,533		)	(23,902		)	(38,081		)	(66,613		)
Net gains (losses) on commodity price swap agreements	$	6,383		$	10,562		$	30,190		$	31,143


⁽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:



	Nine Months Ended September 30,
	2014		2013		2014		2013
thousands	Purchases				Sales
Cash consideration	$	16,143	$	6,167	$	—	$	82
Net carrying value	9,745		2,039		—		34
Partners’ capital adjustment	$	6,398	$	4,128	$	—	$	48

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



	Three Months Ended September 30,				Nine Months Ended September 30,
thousands	2014		2013		2014		2013
Revenues ⁽¹⁾	$	245,500	$	213,125	$	708,456	$	591,010
Equity income, net	19,063		4,520		41,322		11,944
Cost of product ⁽¹⁾	22,728		33,753		74,592		97,801
Operation and maintenance ⁽²⁾	14,556		13,469		42,472		41,021
General and administrative ⁽³⁾	6,765		6,090		20,402		17,981
Operating expenses	44,049		53,312		137,466		156,803
Interest income, net ⁽⁴⁾	4,225		4,225		12,675		12,675
Distributions to WGP unitholders ⁽⁵⁾	52,456		39,329		148,291		82,068
Distributions to WES unitholders ⁽⁶⁾	492		252		1,235		495


⁽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).