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Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Cost of product [1] $ 203,277 $ 104,849 $ 392,636 $ 181,316
Operation and maintenance [1] 76,148 75,173 149,908 151,386
General and administrative [1] 11,197 11,887 24,673 24,402
Interest expense [2] (36,297) (13,429) (72,330) (45,568)
Affiliates [Member]        
Cost of product [3] 21,607 22,145 37,595 46,725
Operation and maintenance [4] 18,462 17,661 35,551 35,636
General and administrative [5] 9,489 9,374 19,223 18,524
Interest expense [6] $ 0 $ 15,461 $ (71) $ 10,924
[1] 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.
[2] 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.
[3] 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.
[4] 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.
[5] 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.
[6] Includes amounts related to WES’s Deferred purchase price obligation - Anadarko (see Note 2 and Note 9).