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Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Revenues and Other        
Total revenues and other $ 525,450 $ 428,664 $ 1,041,643 $ 811,805
Equity income, net – affiliates [1] 21,728 19,693 41,189 36,507
Operating expenses        
Cost of product [2] 203,277 104,849 392,636 181,316
Operation and maintenance [2] 76,148 75,173 149,908 151,386
General and administrative [2] 11,197 11,887 24,673 24,402
Property and other taxes 11,924 12,093 24,218 22,443
Depreciation and amortization 74,031 67,305 143,733 132,400
Impairments 3,178 2,403 167,920 8,921
Total operating expenses 379,755 273,710 903,088 520,868
Gain (loss) on divestiture and other, net 15,458 (1,907) 134,945 (2,539)
Proceeds from business interruption insurance claims 24,115 2,603 29,882 2,603
Operating income (loss) 206,996 175,343 344,571 327,508
Interest income – affiliates [3] 4,225 4,225 8,450 8,450
Interest expense [4] (36,297) (13,429) (72,330) (45,568)
Other income (expense), net 272 (36) 718 105
Income (loss) before income taxes 175,196 166,103 281,409 290,495
Income tax (benefit) expense 843 326 4,395 6,959
Net income (loss) 174,353 165,777 277,014 283,536
Net income (loss) attributable to noncontrolling interests 69,409 76,914 96,130 112,857
Net income (loss) attributable to Western Gas Equity Partners, LP 104,944 88,863 180,884 170,679
Limited partners' interest in net income (loss):        
Pre-acquisition net (income) loss allocated to Anadarko 0 0 0 (11,326)
Limited partners' interest in net income (loss) [5] 104,944 88,863 180,884 159,353
Affiliates [Member]        
Revenues and Other        
Gathering, processing and transportation 154,984 186,733 327,298 374,451
Natural gas and natural gas liquids sales 161,329 115,672 304,170 200,538
Total revenues and other [1] 316,313 302,405 631,468 574,989
Operating expenses        
Cost of product [1] 21,607 22,145 37,595 46,725
Operation and maintenance [6] 18,462 17,661 35,551 35,636
General and administrative [7] 9,489 9,374 19,223 18,524
Total operating expenses 49,558 49,180 92,369 100,885
Interest expense [8] 0 15,461 (71) 10,924
Third Parties [Member]        
Revenues and Other        
Gathering, processing and transportation 144,451 114,403 279,951 220,689
Natural gas and natural gas liquids sales 63,495 11,321 127,179 15,011
Other 1,191 535 3,045 1,116
Total revenues and other 209,137 126,259 410,175 236,816
Operating expenses        
Interest expense $ (36,297) $ (28,890) $ (72,259) $ (56,492)
Limited Partner [Member]        
Limited partners' interest in net income (loss):        
Net income (loss) per common unit - basic and diluted $ 0.48 $ 0.41 $ 0.83 $ 0.73
Weighted-average common units outstanding - basic and diluted 218,931 218,921 218,930 218,920
[1] Represents amounts earned or incurred on and subsequent to the date of the 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] Cost of product includes product purchases from Anadarko (as defined in Note 1) of $21.6 million and $37.6 million for the three and six months ended June 30, 2017, respectively, and $22.1 million and $46.7 million for the three and six months ended June 30, 2016, respectively. Operation and maintenance includes charges from Anadarko of $18.5 million and $35.6 million for the three and six months ended June 30, 2017, respectively, and $17.7 million and $35.6 million for the three and six months ended June 30, 2016, respectively. General and administrative includes charges from Anadarko of $9.5 million and $19.2 million for the three and six months ended June 30, 2017, respectively, and $9.4 million and $18.5 million for the three and six months ended June 30, 2016, respectively. See Note 5.
[3] Represents interest income recognized on the note receivable from Anadarko.
[4] Includes affiliate (as defined in Note 1) amounts of zero and $(0.1) million for the three and six months ended June 30, 2017, respectively, and $15.5 million and $10.9 million for the three and six months ended June 30, 2016, respectively. See Note 2 and Note 9.
[5] Represents net income (loss) earned on and subsequent to the date of acquisition of WES assets (as defined in Note 1). See Note 4.
[6] 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.
[7] 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 Plan within this Note 5) and amounts charged by Anadarko under the WGP and WES omnibus agreements.
[8] Includes amounts related to WES’s Deferred purchase price obligation - Anadarko (see Note 2 and Note 9).