Transactions with Affiliates (Tables)

6 Months Ended

Jun. 30, 2017

Gains (Losses) on Commodity Price Swap Agreements Table

The following table summarizes gains and losses upon settlement of WES’s commodity price swap agreements recognized in the consolidated statements of operations:



	Three Months Ended June 30,						Six Months Ended June 30,
thousands	2017			2016			2017			2016
Gains (losses) on commodity price swap agreements related to sales: ⁽¹⁾
Natural gas sales	$	4,656		$	5,202		$	5,738		$	12,243
Natural gas liquids sales	1,837			20,480			(2,470		)	40,550
Total	6,493			25,682			3,268			52,793
Gains (losses) on commodity price swap agreements related to purchases ⁽²⁾	(5,507		)	(16,913		)	(2,811		)	(35,784		)
Net gains (losses) on commodity price swap agreements	$	986		$	8,769		$	457		$	17,009


⁽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 Tables

The tables below summarize the swap prices compared to the forward market prices:



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


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

5. TRANSACTIONS WITH AFFILIATES (CONTINUED)



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


⁽¹⁾	Represents the NYMEX forward strip price as of December 1, 2016, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs.

Related Party Transactions Tables

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



	Six Months Ended June 30,
	2017			2016			2017		2016
thousands	Purchases						Sales
Cash consideration	$	3,910		$	2,699		$	—	$	613
Net carrying value	(4,286		)	(2,328		)	—		(596		)
Partners’ capital adjustment	$	(376	)	$	371		$	—	$	17

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



	Three Months Ended June 30,						Six Months Ended June 30,
thousands	2017			2016			2017			2016
Revenues and other ⁽¹⁾	$	316,313		$	302,405		$	631,468		$	574,989
Equity income, net – affiliates ⁽¹⁾	21,728			19,693			41,189			36,507
Cost of product ⁽¹⁾	21,607			22,145			37,595			46,725
Operation and maintenance ⁽²⁾	18,462			17,661			35,551			35,636
General and administrative ⁽³⁾	9,489			9,374			19,223			18,524
Operating expenses	49,558			49,180			92,369			100,885
Interest income ⁽⁴⁾	4,225			4,225			8,450			8,450
Interest expense ⁽⁵⁾	—			(15,461		)	71			(10,924		)
Settlement of the Deferred purchase price obligation – Anadarko ⁽⁶⁾	(37,346		)	—			(37,346		)	—
Distributions to WGP unitholders ⁽⁷⁾	87,731			80,973			170,328			158,125
Distributions to WES unitholders ⁽⁸⁾	1,760			1,639			3,490			2,245
Above-market component of swap agreements with Anadarko	16,373			9,552			28,670			16,365


⁽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⁾	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 Plan within this Note 5) and amounts charged by Anadarko under the WGP and WES omnibus agreements.


⁽⁴⁾	Represents interest income recognized on the note receivable from Anadarko.


⁽⁵⁾	Includes amounts related to WES’s Deferred purchase price obligation - Anadarko (see Note 2 and Note 9).


⁽⁶⁾	Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation - Anadarko (see Note 2).


⁽⁷⁾	Represents distributions paid under WGP’s partnership agreement (see Note 3 and Note 4).


⁽⁸⁾	Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 3 and Note 4).