Transactions with Affiliates (Tables)

6 Months Ended

Jun. 30, 2015

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



	Three Months Ended June 30,						Six Months Ended June 30,
thousands	2015			2014			2015			2014
Gains (losses) on commodity price swap agreements related to sales:⁽¹⁾
Natural gas sales	$	22,344		$	2,013		$	33,326		$	(1,654	)
Natural gas liquids sales	38,297			34,554			82,729			44,009
Total	60,641			36,567			116,055			42,355
Losses on commodity price swap agreements related to purchases ⁽²⁾	(41,720		)	(18,529		)	(75,899		)	(18,548		)
Net gains (losses) on commodity price swap agreements	$	18,921		$	18,038		$	40,156		$	23,807


⁽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 for pipe and equipment:



	Six Months Ended June 30,
	2015		2014			2015		2014
thousands	Purchases					Sales
Cash consideration	$	9,968	$	4,702		$	700	$	—
Net carrying value	4,908		4,745			366		—
Partners’ capital adjustment	$	5,060	$	(43	)	$	334	$	—

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



	Three Months Ended June 30,				Six Months Ended June 30,
thousands	2015		2014		2015		2014
Revenues ⁽¹⁾	$	271,966	$	277,583	$	530,281	$	499,699
Equity income, net ⁽¹⁾	18,941		13,008		37,161		22,259
Cost of product ⁽¹⁾	53,078		38,666		96,990		58,037
Operation and maintenance ⁽²⁾	17,496		16,827		32,872		29,378
General and administrative ⁽³⁾	7,513		7,090		15,279		14,572
Operating expenses	78,087		62,583		145,141		101,987
Interest income ⁽⁴⁾	4,225		4,225		8,450		8,450
Interest expense ⁽⁵⁾	4,190		—		5,612		—
Distributions to WGP unitholders ⁽⁶⁾	66,235		49,784		126,669		95,835
Distributions to WES unitholders ⁽⁷⁾	550		474		1,080		743

⁽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 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).


⁽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).