Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

14.  SUBSEQUENT EVENTS

On February 24, 2016, WES announced that it agreed to acquire Anadarko’s 100% interest in Springfield Pipeline LLC (“Springfield”) for $750.0 million. Springfield’s sole asset is a 50.1% interest in the Springfield oil and gas gathering system (the “Springfield system”), which consists of oil and gas gathering lines located in Dimmit, La Salle, Maverick and Webb Counties in South Texas. WES intends to finance the acquisition, which is expected to close by March 15, 2016, subject to obtaining necessary regulatory approvals, through the issuance of $449.0 million in aggregate amount of 8.5% perpetual convertible preferred units to private investors at a price of $32.00 per unit, the issuance of 1,253,761 and 835,841 of WES common units at a price of $29.91 per common unit to Anadarko and WGP, respectively, and the borrowing of $247.5 million on the WES RCF. The convertible preferred units issuance includes an over-allotment feature that may result in the issuance of up to an additional $252.6 million in aggregate amount of such convertible preferred units within 30 days following the closing of the initial issuance, the net proceeds of which would be used to pay down WES RCF borrowings. Net proceeds from the issuance of the convertible preferred units will be $440.0 million. Additionally, the convertible preferred units are expected to pay a distribution of $2.72 per year and, subject to certain limitations and adjustments, become convertible into WES common units on a one-for-one basis on the second anniversary of the issuance of such convertible preferred units. WGP will fund its WES unit purchase by drawing on a secured revolving credit facility that will close on or before the closing date of the Springfield acquisition.