Transactions With Affiliates (tables)

3 Months Ended

Mar. 31, 2015

Below is a summary of the fixed price ranges on WES’s outstanding commodity price swap agreements as of March 31, 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 realized gains and losses on commodity price swap agreements:



	Three Months Ended March 31,
thousands	2015			2014
Gains (losses) on commodity price swap agreements related to sales:⁽¹⁾
Natural gas sales	$	10,982		$	(3,667	)
Natural gas liquids sales	44,432			9,455
Total	55,414			5,788
Losses on commodity price swap agreements related to purchases ⁽²⁾	(34,179		)	(19		)
Net gains (losses) on commodity price swap agreements	$	21,235		$	5,769


⁽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.

Related Party Transactions Tables

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



	Three Months Ended March 31,
	2015		2014
thousands	Purchases
Cash consideration	$	1,128	$	4,702
Net carrying value	780		4,745
Partners’ capital adjustment	$	348	$	(43	)

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



	Three Months Ended March 31,
thousands	2015		2014
Revenues ⁽¹⁾	$	258,315	$	222,116
Equity income, net ⁽¹⁾	18,220		9,251
Cost of product ⁽¹⁾	43,912		19,371
Operation and maintenance ⁽²⁾	15,376		12,551
General and administrative ⁽³⁾	7,766		7,482
Operating expenses	67,054		39,404
Interest income ⁽⁴⁾	4,225		4,225
Interest expense ⁽⁵⁾	1,422		—
Distributions to WGP unitholders ⁽⁶⁾	60,434		46,051
Distributions to WES unitholders ⁽⁷⁾	530		269

⁽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. See Adjustments to Previously Issued Financial Statements in Note 1.


⁽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 months ended March 31, 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).


⁽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).