Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

The following table presents the acquisitions completed by WES during 2016 and 2015, and identifies the funding sources for such acquisitions:



thousands except unit and percent amounts	Acquisition Date	Percentage Acquired		Deferred Purchase Price Obligation - Anadarko		Borrowings		WES Common Units Issued	WES’s Series A Preferred Units
DBJV ⁽¹⁾	03/02/2015	100	%	$	174,276	$	—	—	—
Springfield ⁽²⁾	03/14/2016	100	%	—		247,500		2,089,602	14,030,611

⁽¹⁾

WES acquired Delaware Basin JV Gathering LLC (“DBJV”) from Anadarko. DBJV owns a 50% interest in a gathering system and related facilities, such interest being referred to in this report as the “DBJV system”. The DBJV gathering system and related facilities are located in the Delaware Basin in Loving, Ward, Winkler and Reeves Counties, Texas. WES will make a cash payment on March 31, 2020, to Anadarko as consideration for the acquisition of DBJV. WES currently estimates the future payment will be $282.8 million, the net present value of which was $174.3 million as of the acquisition date. See DBJV acquisition—deferred purchase price obligation - Anadarko below.

⁽²⁾

WES acquired Springfield Pipeline LLC (“Springfield”) from Anadarko for $750.0 million, consisting of $712.5 million in cash and the issuance of 1,253,761 of WES common units. Springfield owns a 50.1% interest in an oil gathering system and a gas gathering system, such interest being referred to in this report as the “Springfield system.” The Springfield oil and gas gathering systems are located in Dimmit, La Salle, Maverick and Webb Counties in South Texas. WES financed the cash portion of the acquisition through: (i) borrowings of $247.5 million on the WES RCF, (ii) the issuance of 835,841 of WES common units to WGP and (iii) the issuance of WES Series A Preferred units noted above to private investors (the “initial issuance”). See Note 4 for further information regarding the WES Series A Preferred units, including the full exercise of an option granted in connection with the initial issuance. WGP financed the purchase of the WES common units by borrowing $25.0 million on the WGP RCF. See Note 9.

Impact to Historical Consolidated Statements of Income Table

The following table presents the impact of the Springfield system on Revenues and other, Equity income, net and Net income (loss) as presented in WGP’s historical consolidated statements of income:



	Three Months Ended March 31, 2015
thousands	WGP Historical			Springfield System		Eliminations			Combined
Revenues and other	$	388,409		$	48,614	$	(17	)	$	437,006
Equity income, net	18,220			—		—			18,220
Net income (loss)	(177,392		)	23,297		—			(154,095		)