Transactions with Affiliates (Tables)

9 Months Ended

Sep. 30, 2016

Below is a summary of the fixed price ranges on all of WES’s outstanding commodity price swap agreements as of September 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 September 30,						Nine Months Ended September 30,
thousands	2016			2015			2016			2015
Gains (losses) on commodity price swap agreements related to sales: ⁽¹⁾
Natural gas sales	$	719		$	5,774		$	12,962		$	39,100
Natural gas liquids sales	15,939			33,746			56,489			116,475
Total	16,658			39,520			69,451			155,575
Losses on commodity price swap agreements related to purchases ⁽²⁾	(9,248		)	(23,998		)	(45,032		)	(99,897		)
Net gains (losses) on commodity price swap agreements	$	7,410		$	15,522		$	24,419		$	55,678


⁽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

Equipment purchases and sales. The following table summarizes WES’s purchases from and sales to Anadarko of pipe and equipment:



	Nine Months Ended September 30,
	2016			2015			2016			2015
thousands	Purchases						Sales
Cash consideration	$	3,965		$	10,369		$	623		$	700
Net carrying value	(3,366		)	(5,785		)	(605		)	(366		)
Partners’ capital adjustment	$	599		$	4,584		$	18		$	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 September 30,					Nine Months Ended September 30,
thousands	2016			2015		2016			2015
Revenues and other ⁽¹⁾	$	325,312		$	294,849	$	900,301		$	923,188
Equity income, net – affiliates ⁽¹⁾	20,294			21,976		56,801			59,137
Cost of product ⁽¹⁾	21,254			35,656		67,979			132,613
Operation and maintenance ⁽²⁾	15,052			19,394		50,688			56,065
General and administrative ⁽³⁾	9,655			8,700		28,179			25,289
Operating expenses	45,961			63,750		146,846			213,967
Interest income ⁽⁴⁾	4,225			4,225		12,675			12,675
Interest expense ⁽⁵⁾	(1,173		)	4,310		(12,097		)	9,922
Distributions to WGP unitholders ⁽⁶⁾	77,462			69,508		235,587			196,177
Distributions to WES unitholders ⁽⁷⁾	1,670			568		3,915			1,648
Above-market component of swap extensions with Anadarko	18,417			7,916		34,782			7,916


⁽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 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).


⁽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).