Transactions with Affiliates (Tables)

9 Months Ended

Sep. 30, 2015

Below is a summary of the fixed price ranges on all of WES’s outstanding commodity price swap agreements as of September 30, 2015:



per barrel except natural gas	2015				2016
Ethane	$	18.41	−	23.41	$	23.11
Propane	47.08		−	52.99	52.90
Isobutane	62.09		−	74.02	73.89
Normal butane	54.62		−	65.04	64.93
Natural gasoline	72.88		−	81.82	81.68
Condensate	76.47		−	81.82	81.68
Natural gas (per MMBtu)	4.66		−	5.96	4.87

Gains (Losses) on Commodity Price Swap Agreements Table

The following table summarizes gains and losses upon settlement of commodity price swap agreements recognized in the consolidated statements of income:



	Three Months Ended September 30,						Nine Months Ended September 30,
thousands	2015			2014			2015			2014
Gains (losses) on commodity price swap agreements related to sales:⁽¹⁾
Natural gas sales	$	5,774		$	3,179		$	39,100		$	1,525
Natural gas liquids sales	33,746			22,737			116,475			66,746
Total	39,520			25,916			155,575			68,271
Losses on commodity price swap agreements related to purchases ⁽²⁾	(23,998		)	(19,533		)	(99,897		)	(38,081		)
Net gains (losses) on commodity price swap agreements	$	15,522		$	6,383		$	55,678		$	30,190


⁽¹⁾	Reported in affiliate natural gas, natural gas liquids and drip 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.

Commodity Price Swap Agreements Extensions Table

The table below summarizes the swap prices compared to the forward market prices on the date the commodity price swap extensions were executed.



	DJ Basin Complex				Hugoton System
per barrel except natural gas	2015 Swap Prices		Market Prices⁽¹⁾		2015 Swap Prices		Market Prices⁽¹⁾
Ethane	$	18.41	$	1.96	—		—
Propane	47.08		13.10		—		—
Isobutane	62.09		19.75		—		—
Normal butane	54.62		18.99		—		—
Natural gasoline	72.88		52.59		—		—
Condensate	76.47		52.59		$	78.61	$	32.56
Natural gas (per MMBtu)	5.96		2.75		5.50		2.74


⁽¹⁾	Represents the New York Mercantile Exchange forward strip price as of June 25, 2015, adjusted for location, basis and, in the case of NGLs, transportation and fractionation costs.

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,
	2015		2014		2015		2014
thousands	Purchases				Sales
Cash consideration	$	12,131	$	16,143	$	700	$	—
Net carrying value	7,411		9,745		366		—
Partners’ capital adjustment	$	4,720	$	6,398	$	334	$	—

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	2015		2014		2015		2014
Revenues and other ⁽¹⁾	$	247,458	$	269,632	$	777,739	$	769,331
Equity income, net ⁽¹⁾	21,976		19,063		59,137		41,322
Cost of product ⁽¹⁾	35,673		27,034		132,663		85,071
Operation and maintenance ⁽²⁾	17,662		15,583		50,534		44,961
General and administrative ⁽³⁾	7,875		7,214		23,154		21,786
Operating expenses	61,210		49,831		206,351		151,818
Interest income ⁽⁴⁾	4,225		4,225		12,675		12,675
Interest expense ⁽⁵⁾	4,310		—		9,922		—
Distributions to WGP unitholders ⁽⁶⁾	69,508		52,456		196,177		148,291
Distributions to WES unitholders ⁽⁷⁾	568		492		1,648		1,235


⁽¹⁾	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.


⁽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 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.


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


⁽⁵⁾	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).


⁽⁶⁾	Represents distributions paid under WGP’s partnership agreement (see Note 3 and Note 4).


⁽⁷⁾	Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 3 and Note 4).