Transactions with Affiliates (Tables)

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
thousands	2017			2016			2017			2016
Gains (losses) on commodity price swap agreements related to sales: ⁽¹⁾
Natural gas sales	$	6,284		$	719		$	12,022		$	12,962
Natural gas liquids sales	(7,210		)	15,939			(9,680		)	56,489
Total	(926		)	16,658			2,342			69,451
Gains (losses) on commodity price swap agreements related to purchases ⁽²⁾	(117		)	(9,248		)	(2,928		)	(45,032		)
Net gains (losses) on commodity price swap agreements	$	(1,043	)	$	7,410		$	(586	)	$	24,419


⁽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:



	Nine Months Ended September 30,
	2017			2016			2017		2016
thousands	Purchases						Sales
Cash consideration	$	3,910		$	3,965		$	—	$	623
Net carrying value	(5,283		)	(3,366		)	—		(605		)
Partners’ capital adjustment	$	(1,373	)	$	599		$	—	$	18

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



	Three Months Ended September 30,					Nine Months Ended September 30,
thousands	2017		2016			2017			2016
Revenues and other ⁽¹⁾	$	351,127	$	325,312		$	982,595		$	900,301
Equity income, net – affiliates ⁽¹⁾	21,519		20,294			62,708			56,801
Cost of product ⁽¹⁾	22,902		21,254			60,497			67,979
Operation and maintenance ⁽²⁾	18,110		15,052			53,661			50,688
General and administrative ⁽³⁾	10,414		9,655			29,637			28,179
Operating expenses	51,426		45,961			143,795			146,846
Interest income ⁽⁴⁾	4,225		4,225			12,675			12,675
Interest expense ⁽⁵⁾	—		(1,173		)	71			(12,097		)
Settlement of the Deferred purchase price obligation – Anadarko ⁽⁶⁾	—		—			(37,346		)	—
Distributions to WGP unitholders ⁽⁷⁾	94,205		77,462			264,533			235,587
Distributions to WES unitholders ⁽⁸⁾	1,790		1,670			5,280			3,915
Above-market component of swap agreements with Anadarko	18,049		18,417			46,719			34,782


⁽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).