Transactions with Affiliates (Tables)

12 Months Ended

Dec. 31, 2016

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:



	Year Ended December 31,
thousands	2016			2015			2014
Gains (losses) on commodity price swap agreements related to sales: ⁽¹⁾
Natural gas sales	$	11,116		$	45,978		$	9,494
Natural gas liquids sales	59,918			145,258			113,866
Total	71,034			191,236			123,360
Losses on commodity price swap agreements related to purchases ⁽²⁾	(42,577		)	(124,944		)	(68,492		)
Net gains (losses) on commodity price swap agreements	$	28,457		$	66,292		$	54,868


⁽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 tables below summarize the swap prices for the extension periods compared to the forward market prices as of the various agreement dates.



	DJ Basin Complex
per barrel except natural gas	2015 - 2017 Swap Prices		2015 Market Prices⁽¹⁾		2016 Market Prices ⁽¹⁾		2017 Market Prices ⁽¹⁾
Ethane	$	18.41	$	1.96	$	0.60	$	5.09
Propane	47.08		13.10		10.98		18.85
Isobutane	62.09		19.75		17.23		26.83
Normal butane	54.62		18.99		16.86		26.20
Natural gasoline	72.88		52.59		26.15		41.84
Condensate	76.47		52.59		34.65		45.40
Natural gas (per MMBtu)	5.96		2.75		2.11		3.05



	Hugoton System ⁽²⁾
per barrel except natural gas	2015 - 2016 Swap Prices		2015 Market Prices⁽¹⁾		2016 Market Prices ⁽¹⁾
Condensate	$	78.61	$	32.56	$	18.81
Natural gas (per MMBtu)	5.50		2.74		2.12

5. TRANSACTIONS WITH AFFILIATES (CONTINUED)



	MGR Assets
per barrel except natural gas	2015 Swap Prices		2016 - 2017 Swap Prices		2017 Market Prices ⁽¹⁾
Ethane	$	23.41	$	23.11	$	4.08
Propane	52.99		52.90		19.24
Isobutane	74.02		73.89		25.79
Normal butane	65.04		64.93		25.16
Natural gasoline	81.82		81.68		45.01
Condensate	81.82		81.68		53.55
Natural gas (per MMBtu)	4.66		4.87		3.05


⁽¹⁾	Represents the New York Mercantile Exchange forward strip price as of June 25, 2015, December 8, 2015 and December 1, 2016, for the 2015 Market Prices, 2016 Market Prices and 2017 Market Prices, respectively, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs.


⁽²⁾	The Hugoton system was sold in October 2016. See Note 2.

LTIP Award Activity Tables

The following table summarizes WGP LTIP award activity for WGP GP independent directors and executive officers for the years ended December 31, 2016, 2015 and 2014:



	2016				2015				2014
	Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units
Phantom units outstanding at beginning of year	$	47.20	12,537		$	43.10	22,236		$	39.19	36,238
Vested	47.20		(12,537	)	44.44		(13,317	)	37.32		(18,400	)
Granted	39.78		5,658		62.21		3,618		51.19		4,398
Phantom units outstanding at end of year	39.78		5,658		47.20		12,537		43.10		22,236

Related Party Transactions Tables

The following table summarizes the amounts WGP reimbursed to Anadarko, separate from, and in addition to, those reimbursed by WES:



	Year Ended December 31,
thousands	2016		2015		2014
General and administrative expenses	$	258	$	256	$	254
Public company expenses	2,449		1,997		1,986
Total reimbursement	$	2,707	$	2,253	$	2,240

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



	Year Ended December 31,
	2016			2015			2014			2016			2015			2014
thousands	Purchases									Sales
Cash consideration	$	3,965		$	10,903		$	22,943		$	623		$	925		$	402
Net carrying value	(3,366		)	(6,318		)	(12,210		)	(605		)	(972		)	(375		)
Partners’ capital adjustment	$	599		$	4,585		$	10,733		$	18		$	(47	)	$	27

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



	Year ended December 31,
thousands	2016			2015		2014
Revenues and other ⁽¹⁾	$	1,228,232		$	1,220,639	$	1,203,974
Equity income, net – affiliates ⁽¹⁾	78,717			71,251		57,836
Cost of product ⁽¹⁾	80,455			167,354		127,930
Operation and maintenance ⁽²⁾	72,330			77,061		71,386
General and administrative ⁽³⁾	38,873			34,703		32,055
Operating expenses	191,658			279,118		231,371
Interest income ⁽⁴⁾	16,900			16,900		16,900
Interest expense ⁽⁵⁾	(7,747		)	14,400		3
Distributions to WGP unitholders ⁽⁶⁾	315,505			269,029		204,615
Distributions to WES unitholders ⁽⁷⁾	5,614			2,235		1,747
Above-market component of swap extensions with Anadarko	45,820			18,449		—


⁽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 years ended December 31, 2016 and 2015, includes amounts related to WES’s Deferred purchase price obligation - Anadarko (see Note 2 and Note 12) and for the years ended December 31, 2015 and 2014, includes interest expense recognized on the WGP WCF (see Note 12).


⁽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).

Western Gas Partners, LP [Member]

LTIP Award Activity Tables

The following table summarizes WES LTIP award activity for the years ended December 31, 2016, 2015 and 2014:



	2016				2015				2014
	Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units
Phantom units outstanding at beginning of year	$	68.78	5,477		$	60.74	9,522		$	49.47	16,844
Vested	68.78		(5,477	)	60.69		(9,257	)	49.55		(13,122	)
Granted	49.30		7,304		69.10		5,212		68.14		5,800
Phantom units outstanding at end of year	49.30		7,304		68.78		5,477		60.74		9,522

Related Party Transactions Tables

The following table summarizes the amounts WES reimbursed to Anadarko:



	Year Ended December 31,
thousands	2016		2015		2014
General and administrative expenses	$	29,360	$	22,896	$	20,249
Public company expenses	8,410		8,950		8,006
Total reimbursement	$	37,770	$	31,846	$	28,255