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Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues and Other        
Total revenues and other $ 481,645 $ 432,515 [1] $ 1,293,450 $ 1,335,514 [1]
Equity income, net – affiliates [2] 20,294 21,976 [1] 56,801 59,137 [1]
Operating expenses        
Cost of product [3] 145,643 127,704 [1] 326,959 414,328 [1]
Operation and maintenance [3] 74,755 88,722 [1] 226,141 242,744 [1]
General and administrative [3] 12,112 10,884 [1] 36,514 32,983 [1]
Property and other taxes 10,670 9,054 [1] 33,113 27,946 [1]
Depreciation and amortization 67,246 67,367 [1] 199,646 204,896 [1]
Impairments 2,392 2,335 [1] 11,313 276,579 [1]
Total operating expenses 312,818 306,066 [1] 833,686 1,199,476 [1]
Gain (loss) on divestiture and other, net (6,230) 77,254 [1] (8,769) 77,248 [1]
Proceeds from business interruption insurance claims 13,667 0 [1] 16,270 0 [1]
Operating income (loss) 196,558 225,679 [1] 524,066 272,423 [1]
Interest income – affiliates [4] 4,225 4,225 [1] 12,675 12,675 [1]
Interest expense [5] (31,301) (31,773) [1] (76,869) (82,339) [1]
Other income (expense), net 165 96 [1] 270 256 [1]
Income (loss) before income taxes 169,647 198,227 [1] 460,142 203,015 [1]
Income tax (benefit) expense 472 12,644 [1] 7,431 37,160 [1]
Net income (loss) 169,175 185,583 [1] 452,711 165,855 [1]
Net income (loss) attributable to noncontrolling interests 77,778 76,364 [1] 190,635 (14,643) [1]
Net income (loss) attributable to Western Gas Equity Partners, LP 91,397 109,219 [1] 262,076 180,498 [1]
Limited partners' interest in net income (loss):        
Pre-acquisition net (income) loss allocated to Anadarko 0 (19,848) [1] (11,326) (63,606) [1]
Limited partners' interest in net income (loss) [6] 91,397 89,371 [1] 250,750 116,892 [1]
Affiliates [Member]        
Revenues and Other        
Gathering, processing and transportation 189,465 188,947 [1] 563,916 576,631 [1]
Natural gas and natural gas liquids sales 135,847 105,032 [1] 336,385 345,385 [1]
Other 0 870 [1] 0 1,172 [1]
Total revenues and other [2] 325,312 294,849 [1] 900,301 923,188 [1]
Operating expenses        
Cost of product [2] 21,254 35,656 67,979 132,613
Operation and maintenance [7] 15,052 19,394 50,688 56,065
General and administrative [8] 9,655 8,700 28,179 25,289
Total operating expenses 45,961 63,750 146,846 213,967
Interest expense [9] 1,173 (4,310) 12,097 (9,922)
Third Parties [Member]        
Revenues and Other        
Gathering, processing and transportation 125,727 94,082 [1] 346,416 267,566 [1]
Natural gas and natural gas liquids sales 28,189 41,968 [1] 43,200 141,489 [1]
Other 2,417 1,616 [1] 3,533 3,271 [1]
Total revenues and other 156,333 137,666 [1] 393,149 412,326 [1]
Operating expenses        
Interest expense $ (32,474) $ (27,463) $ (88,966) $ (72,417)
Limited Partner [Member]        
Limited partners' interest in net income (loss):        
Net income (loss) per common unit - basic and diluted $ 0.42 $ 0.41 [1] $ 1.15 $ 0.53 [1]
Weighted-average common units outstanding - basic and diluted 218,922 218,914 [1] 218,921 218,912 [1]
[1] Financial information has been recast to include the financial position and results attributable to the Springfield interest. See Note 1 and Note 2.
[2] 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.
[3] Cost of product includes product purchases from Anadarko (as defined in Note 1) of $21.3 million and $68.0 million for the three and nine months ended September 30, 2016, respectively, and $35.7 million and $132.6 million for the three and nine months ended September 30, 2015, respectively. Operation and maintenance includes charges from Anadarko of $15.1 million and $50.7 million for the three and nine months ended September 30, 2016, respectively, and $19.4 million and $56.1 million for the three and nine months ended September 30, 2015, respectively. General and administrative includes charges from Anadarko of $9.7 million and $28.2 million for the three and nine months ended September 30, 2016, respectively, and $8.7 million and $25.3 million for the three and nine months ended September 30, 2015, respectively. See Note 5.
[4] Represents interest income recognized on the note receivable from Anadarko.
[5] Includes affiliate (as defined in Note 1) amounts of $1.2 million and $12.1 million for the three and nine months ended September 30, 2016, respectively, and $(4.3) million and $(9.9) million for the three and nine months ended September 30, 2015, respectively. See Note 2 and Note 9.
[6] Represents net income (loss) earned on and subsequent to the date of acquisition of WES assets (as defined in Note 1). See Note 4.
[7] 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.
[8] 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.
[9] For the three and nine months ended September 30, 2016, includes WES’s accretion revisions to the Deferred purchase price obligation - Anadarko (see Note 2 and Note 9) and for the nine months ended September 30, 2015, includes interest expense recognized on the WGP WCF (see Note 9).