Transactions with Affiliates (Tables)

6 Months Ended

Jun. 30, 2016

Below is a summary of the fixed price ranges on all of WES’s outstanding commodity price swap agreements as of June 30, 2016:



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

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 operations:



	Three Months Ended June 30,						Six Months Ended June 30,
thousands	2016			2015			2016			2015
Gains (losses) on commodity price swap agreements related to sales: ⁽¹⁾
Natural gas sales	$	5,202		$	22,344		$	12,243		$	33,326
Natural gas liquids sales	20,480			38,297			40,550			82,729
Total	25,682			60,641			52,793			116,055
Losses on commodity price swap agreements related to purchases ⁽²⁾	(16,913		)	(41,720		)	(35,784		)	(75,899		)
Net gains (losses) on commodity price swap agreements	$	8,769		$	18,921		$	17,009		$	40,156


⁽¹⁾	Reported in affiliate Natural gas and natural gas liquids sales in the consolidated statements of operations in the period in which the related sale is recorded.


⁽²⁾	Reported in Cost of product in the consolidated statements of operations in the period in which the related purchase is recorded.

Commodity Price Swap Agreements Extensions Tables

The table below summarizes the swap prices for the extension period compared to the forward market prices as of the agreement date, June 25, 2015.



	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 (“NYMEX”) forward strip price as of June 25, 2015, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs.

On December 8, 2015, the commodity price swap agreements with Anadarko for the DJ Basin complex and Hugoton system were further extended from January 1, 2016, through December 31, 2016. The table below summarizes the swap prices for the extension period compared to the forward market prices as of the agreement date, December 8, 2015.



	DJ Basin Complex				Hugoton System
per barrel except natural gas	2016 Swap Prices		Market Prices⁽¹⁾		2016 Swap Prices		Market Prices⁽¹⁾
Ethane	$	18.41	$	0.60	—		—
Propane	47.08		10.98		—		—
Isobutane	62.09		17.23		—		—
Normal butane	54.62		16.86		—		—
Natural gasoline	72.88		26.15		—		—
Condensate	76.47		34.65		$	78.61	$	18.81
Natural gas (per MMBtu)	5.96		2.11		5.50		2.12


⁽¹⁾	Represents the NYMEX forward strip price as of December 8, 2015, adjusted for product specification, 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:



	Six Months Ended June 30,
	2016		2015		2016		2015
thousands	Purchases				Sales
Cash consideration	$	2,699	$	9,056	$	613	$	700
Net carrying value	2,328		4,182		596		366
Partners’ capital adjustment	$	371	$	4,874	$	17	$	334

Summary of affiliate transactions. The following table summarizes material affiliate transactions. See Note 2 for discussion of affiliate acquisitions and related funding.



	Three Months Ended June 30,					Six Months Ended June 30,
thousands	2016			2015		2016			2015
Revenues and other ⁽¹⁾	$	302,405		$	321,411	$	574,989		$	628,339
Equity income, net – affiliates ⁽¹⁾	19,693			18,941		36,507			37,161
Cost of product ⁽¹⁾	22,145			53,062		46,725			96,957
Operation and maintenance ⁽²⁾	17,661			19,854		35,636			36,671
General and administrative ⁽³⁾	9,374			8,254		18,524			16,589
Operating expenses	49,180			81,170		100,885			150,217
Interest income ⁽⁴⁾	4,225			4,225		8,450			8,450
Interest expense ⁽⁵⁾	(15,461		)	4,190		(10,924		)	5,612
Distributions to WGP unitholders ⁽⁶⁾	80,973			66,235		158,125			126,669
Distributions to WES unitholders ⁽⁷⁾	1,639			550		2,245			1,080
Above-market component of swap extensions with Anadarko	9,552			—		16,365			—


⁽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 six months ended June 30, 2016, includes WES’s accretion revisions to the Deferred purchase price obligation - Anadarko (see Note 2 and Note 9) and for the three and six months ended June 30, 2015, includes interest expense recognized on the WGP WCF (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).