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Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Revenues        
Total revenues $ 402,412 $ 345,569 [1] $ 777,506 $ 639,286 [1]
Equity income, net [2],[3] 18,941 13,008 [1] 37,161 [4] 22,259 [1],[4]
Operating expenses        
Cost of product [5] 146,293 120,542 [1] 284,213 214,918 [1]
Operation and maintenance [5] 56,827 55,404 [1] 112,976 99,981 [1]
General and administrative [5] 9,442 9,202 [1] 20,789 19,077 [1]
Property and other taxes 8,801 7,316 [1] 17,324 14,550 [1]
Depreciation, amortization and impairments 65,961 45,305 [1] 136,253 87,390 [1]
Total operating expenses 287,324 237,769 [1] 571,555 435,916 [1]
Operating income 134,029 120,808 [1] 243,112 225,629 [1]
Interest income - affiliates [6] 4,225 4,225 [1] 8,450 8,450 [1]
Interest expense [7] (27,604) (20,864) [1] (50,566) (34,825) [1]
Other income (expense), net 80 235 [1] 160 731 [1]
Income before income taxes 110,730 104,404 [1] 201,156 199,985 [1]
Income tax (benefit) expense (1,816) 2,523 [1] 2,644 4,308 [1]
Net income 112,546 101,881 [1] 198,512 195,677 [1]
Net income attributable to noncontrolling interests 44,751 42,492 [1] 73,688 83,126 [1]
Net income attributable to Western Gas Equity Partners, LP 67,795 59,389 [1] 124,824 112,551 [1]
Limited partners' interest in net income:        
Pre-acquisition net (income) loss allocated to Anadarko 0 (4,135) [1] (1,742) (6,800) [1]
Limited partners' interest in net income [8] 67,795 55,254 [1] 123,082 105,751 [1]
Affiliates [Member]        
Revenues        
Gathering, processing and transportation of natural gas and natural gas liquids 138,644 107,874 [1] 266,953 200,557 [1]
Natural gas, natural gas liquids and drip condensate sales 120,672 157,806 [1] 237,908 279,391 [1]
Other 132 843 [1] 302 1,571 [1]
Total revenues [3] 259,448 266,523 [1] 505,163 481,519 [1]
Operating expenses        
Cost of product [3] 52,139 36,890 94,546 55,246
Operation and maintenance [9] 17,496 16,827 32,872 29,378
General and administrative [10] 7,513 7,090 15,279 14,572
Total operating expenses 77,148 60,807 142,697 99,196
Interest expense [11] (4,190) 0 (5,612) 0
Third Parties [Member]        
Revenues        
Gathering, processing and transportation of natural gas and natural gas liquids 89,592 68,011 [1] 171,127 129,825 [1]
Natural gas, natural gas liquids and drip condensate sales 52,589 9,822 [1] 99,521 25,886 [1]
Other 783 1,213 [1] 1,695 2,056 [1]
Total revenues 142,964 79,046 [1] 272,343 157,767 [1]
Operating expenses        
Interest expense $ (23,414) $ (20,864) $ (44,954) $ (34,825)
Limited Partner [Member]        
Limited partners' interest in net income:        
Net income per common unit - basic and diluted $ 0.31 $ 0.25 [1] $ 0.56 $ 0.48 [1]
Weighted-average common units outstanding - basic and diluted 218,912 218,903 [1] 218,911 218,903 [1]
[1] Financial information has been recast to include the financial position and results attributable to the DBJV system. See Note 1 and Note 2.
[2] Income earned from equity investments is classified as affiliate. See Note 1.
[3] Represents amounts earned or incurred on and subsequent to the date of acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements.
[4] Income earned on, distributions from and contributions to equity investments are classified as affiliate. See Note 1.
[5] Cost of product includes product purchases from Anadarko (as defined in Note 1) of $52.1 million and $94.5 million for the three and six months ended June 30, 2015, respectively, and $36.9 million and $55.2 million for the three and six months ended June 30, 2014, respectively. Operation and maintenance includes charges from Anadarko of $17.5 million and $32.9 million for the three and six months ended June 30, 2015, respectively, and $16.8 million and $29.4 million for the three and six months ended June 30, 2014, respectively. General and administrative includes charges from Anadarko of $7.5 million and $15.3 million for the three and six months ended June 30, 2015, respectively, and $7.1 million and $14.6 million for the three and six months ended June 30, 2014, respectively. See Note 5.
[6] Represents interest income recognized on the note receivable from Anadarko.
[7] Includes affiliate (as defined in Note 1) interest expense of $4.2 million and $5.6 million for the three and six months ended June 30, 2015, respectively, and zero for each of the three and six months ended June 30, 2014. See Note 2 and Note 9.
[8] Represents net income earned on and subsequent to the date of acquisition of WES assets (as defined in Note 1). See Note 4.
[9] 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.
[10] 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 WES and WGP 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.
[11] For the three and six months ended June 30, 2015, includes interest expense recognized on the WGP working capital facility (see Note 9) and WES’s accretion expense recognized on the Deferred purchase price obligation - Anadarko for the acquisition of DBJV (see Note 2 and Note 9).