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Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues and Other        
Total revenues and other $ 574,695 $ 481,645 $ 1,616,338 $ 1,293,450
Equity income, net – affiliates [1] 21,519 20,294 62,708 56,801
Operating expenses        
Cost of product [2] 239,223 145,643 631,859 326,959
Operation and maintenance [2] 79,536 74,755 229,444 226,141
General and administrative [2] 12,922 12,112 37,595 36,514
Property and other taxes 11,215 10,670 35,433 33,113
Depreciation and amortization 72,539 67,246 216,272 199,646
Impairments 2,159 2,392 170,079 11,313
Total operating expenses 417,594 312,818 1,320,682 833,686
Gain (loss) on divestiture and other, net 72 (6,230) 135,017 (8,769)
Proceeds from business interruption insurance claims 0 13,667 29,882 16,270
Operating income (loss) 178,692 196,558 523,263 524,066
Interest income – affiliates [3] 4,225 4,225 12,675 12,675
Interest expense [4] (36,117) (31,301) (108,447) (76,869)
Other income (expense), net 311 165 1,029 270
Income (loss) before income taxes 147,111 169,647 428,520 460,142
Income tax (benefit) expense 510 472 4,905 7,431
Net income (loss) 146,601 169,175 423,615 452,711
Net income (loss) attributable to noncontrolling interests 50,399 77,778 146,529 190,635
Net income (loss) attributable to Western Gas Equity Partners, LP 96,202 91,397 277,086 262,076
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] 96,202 91,397 277,086 250,750
Affiliates [Member]        
Revenues and Other        
Gathering, processing and transportation 157,303 189,465 484,601 563,916
Natural gas and natural gas liquids sales 185,002 135,847 489,172 336,385
Other 8,822 0 8,822 0
Total revenues and other [1] 351,127 325,312 982,595 900,301
Operating expenses        
Cost of product [1] 22,902 21,254 60,497 67,979
Operation and maintenance [6] 18,110 15,052 53,661 50,688
General and administrative [7] 10,414 9,655 29,637 28,179
Total operating expenses 51,426 45,961 143,795 146,846
Interest expense [8] 0 1,173 (71) 12,097
Third Parties [Member]        
Revenues and Other        
Gathering, processing and transportation 148,884 125,727 428,835 346,416
Natural gas and natural gas liquids sales 74,139 28,189 201,318 43,200
Other 545 2,417 3,590 3,533
Total revenues and other 223,568 156,333 633,743 393,149
Operating expenses        
Interest expense $ (36,117) $ (32,474) $ (108,376) $ (88,966)
Limited Partner [Member]        
Limited partners' interest in net income (loss):        
Net income (loss) per common unit - basic and diluted $ 0.44 $ 0.42 $ 1.27 $ 1.15
Weighted-average common units outstanding - basic and diluted 218,933 218,922 218,931 218,921
[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 $22.9 million and $60.5 million for the three and nine months ended September 30, 2017, respectively, and $21.3 million and $68.0 million for the three and nine months ended September 30, 2016, respectively. Operation and maintenance includes charges from Anadarko of $18.1 million and $53.7 million for the three and nine months ended September 30, 2017, respectively, and $15.1 million and $50.7 million for the three and nine months ended September 30, 2016, respectively. General and administrative includes charges from Anadarko of $10.4 million and $29.6 million for the three and nine months ended September 30, 2017, respectively, and $9.7 million and $28.2 million for the three and nine months ended September 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 nine months ended September 30, 2017, respectively, and $1.2 million and $12.1 million for the three and nine months ended September 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).