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Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Revenues and Other        
Total revenues and other $ 385,101 $ 357,521 [1] $ 1,190,082 $ 1,016,151 [1]
Equity income, net [2],[3] 21,976 19,063 [1] 59,137 [4] 41,322 [1],[4]
Operating expenses        
Cost of product [5] 127,721 113,217 [1] 414,378 330,926 [1]
Operation and maintenance [5] 80,633 67,489 [1] 218,640 184,023 [1]
General and administrative [5] 10,059 9,116 [1] 30,848 28,193 [1]
Property and other taxes 8,355 6,793 [1] 25,679 21,343 [1]
Depreciation, amortization and impairments 65,688 47,277 [1] 201,941 134,667 [1]
Total operating expenses 292,456 243,892 [1] 891,486 699,152 [1]
Gain on divestiture, net 77,244 0 77,244 0 [1]
Operating income 191,865 132,692 [1] 434,977 358,321 [1]
Interest income – affiliates [6] 4,225 4,225 [1] 12,675 12,675 [1]
Interest expense [7] (31,773) (20,878) [1] (82,339) (55,703) [1]
Other income (expense), net 96 118 [1] 256 849 [1]
Income before income taxes 164,413 116,157 [1] 365,569 316,142 [1]
Income tax (benefit) expense 1,661 3,891 [1] 4,305 8,199 [1]
Net income 162,752 112,266 [1] 361,264 307,943 [1]
Net income attributable to noncontrolling interests 74,468 45,832 [1] 148,156 128,958 [1]
Net income attributable to Western Gas Equity Partners, LP 88,284 66,434 [1] 213,108 178,985 [1]
Limited partners' interest in net income:        
Pre-acquisition net (income) loss allocated to Anadarko 0 (6,482) [1] (1,742) (13,282) [1]
Limited partners' interest in net income [8] 88,284 59,952 [1] 211,366 165,703 [1]
Affiliates [Member]        
Revenues and Other        
Gathering, processing and transportation of natural gas and natural gas liquids 141,556 124,829 [1] 431,182 340,775 [1]
Natural gas, natural gas liquids and drip condensate sales 105,032 142,025 [1] 345,385 424,207 [1]
Other 870 2,778 [1] 1,172 4,349 [1]
Total revenues and other [3] 247,458 269,632 [1] 777,739 769,331 [1]
Operating expenses        
Cost of product [3] 35,673 27,034 132,663 85,071
Operation and maintenance [9] 17,662 15,583 50,534 44,961
General and administrative [10] 7,875 7,214 23,154 21,786
Total operating expenses 61,210 49,831 206,351 151,818
Interest expense [11] (4,310) 0 (9,922) 0
Third Parties [Member]        
Revenues and Other        
Gathering, processing and transportation of natural gas and natural gas liquids 94,082 70,996 [1] 267,566 201,985 [1]
Natural gas, natural gas liquids and drip condensate sales 41,968 11,647 [1] 141,489 37,533 [1]
Other 1,593 5,246 [1] 3,288 7,302 [1]
Total revenues and other 137,643 87,889 [1] 412,343 246,820 [1]
Operating expenses        
Interest expense $ (27,463) $ (20,878) $ (72,417) $ (55,703)
Limited Partner [Member]        
Limited partners' interest in net income:        
Net income per common unit - basic and diluted $ 0.40 $ 0.27 [1] $ 0.97 $ 0.76 [1]
Weighted-average common units outstanding - basic and diluted 218,914 218,903 [1] 218,912 218,903 [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 $35.7 million and $132.7 million for the three and nine months ended September 30, 2015, respectively, and $27.0 million and $85.1 million for the three and nine months ended September 30, 2014, respectively. Operation and maintenance includes charges from Anadarko of $17.7 million and $50.5 million for the three and nine months ended September 30, 2015, respectively, and $15.6 million and $45.0 million for the three and nine months ended September 30, 2014, respectively. General and administrative includes charges from Anadarko of $7.9 million and $23.2 million for the three and nine months ended September 30, 2015, respectively, and $7.2 million and $21.8 million for the three and nine months ended September 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 $4.3 million and $9.9 million for the three and nine months ended September 30, 2015, respectively, and zero for each of the three and nine months ended September 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 nine months ended September 30, 2015, includes WES’s accretion expense recognized on the Deferred purchase price obligation - Anadarko for the acquisition of DBJV (see Note 2 and Note 9) and for the nine months ended September 30, 2015, includes interest expense recognized on the WGP working capital facility (see Note 9).