Acquisitions and Divestitures (Tables)

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

The following table presents the acquisitions completed by WES during 2017 and 2016, and identifies the funding sources for such acquisitions:



thousands except unit and percent amounts	Acquisition Date	Percentage Acquired		Borrowings		Cash On Hand		WES Common Units Issued	WES Series A Preferred Units Issued
Springfield system ⁽¹⁾	03/14/2016	50.1	%	$	247,500	$	—	2,089,602	14,030,611
DBJV system ⁽²⁾	03/17/2017	50	%	—		155,000		—	—

⁽¹⁾

WES acquired Springfield Pipeline LLC (“Springfield”) from Anadarko for $750.0 million, consisting of $712.5 million in cash and the issuance of 1,253,761 of WES common units. Springfield owns a 50.1% interest in an oil gathering system and a gas gathering system, such interest being referred to in this report as the “Springfield interest.” The Springfield oil and gas gathering systems (collectively, the “Springfield system”) are located in Dimmit, La Salle, Maverick and Webb Counties in South Texas. WES financed the cash portion of the acquisition through: (i) borrowings of $247.5 million on the WES RCF, (ii) the issuance of 835,841 of WES common units to WGP and (iii) the issuance of WES Series A Preferred units to private investors. See Note 4 for further information regarding WES’s Series A Preferred units. WGP financed the purchase of the WES common units by borrowing $25.0 million under the WGP RCF. See Note 9.


⁽²⁾	WES acquired the Additional DBJV System Interest from a third party. See Property exchange below.

Impact of Deferred Purchase Price Obligation Table

The following table summarizes the financial statement impact of the Deferred purchase price obligation - Anadarko:



	Deferred purchase price obligation - Anadarko			Estimated future payment obligation ⁽¹⁾
Balance at December 31, 2016	$	41,440		$	56,455
Accretion expense⁽²⁾	71
Revision to Deferred purchase price obligation – Anadarko ⁽³⁾	(4,165		)
Balance at March 31, 2017	37,346			49,694
Settlement of the Deferred purchase price obligation – Anadarko	(37,346		)
Balance at June 30, 2017	$	—		$	—


⁽¹⁾	Calculated using Level 3 inputs.


⁽²⁾	Accretion expense was recorded as a charge to Interest expense in the consolidated statements of operations.


⁽³⁾	Recorded as revisions within Common units in the consolidated balance sheet and consolidated statement of equity and partners’ capital.