Acquisitions and Divestitures (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment [Abstract]

The following table presents the acquisitions completed by WES during 2017, 2016 and 2015, 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
DBJV system ⁽¹⁾	03/02/2015	50	%	$	—	$	—	—	—
Springfield system ⁽²⁾	03/14/2016	50.1	%	247,500		—		2,089,602	14,030,611
DBJV system ⁽³⁾	03/17/2017	50	%	—		155,000		—	—

⁽¹⁾

WES acquired Delaware Basin JV Gathering LLC (“DBJV”) from Anadarko. At the time of acquisition, DBJV owned a 50% interest in a gathering system and related facilities (the “DBJV system”) located in the Delaware Basin in Loving, Ward, Winkler and Reeves Counties, Texas. At the acquisition date, WES estimated the future payment would be $282.8 million, the estimated net present value of which was $174.3 million. For further information, see DBJV acquisition—deferred purchase price obligation - Anadarko below.

⁽²⁾

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. 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 12.


⁽³⁾	WES acquired the Additional DBJV System Interest from a third party. See Property exchange below.

Impact of Deferred Purchase Price Obligation - Anadarko 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, 2015	$	188,674		$	282,807
Accretion revision ⁽²⁾	(7,747		)
Revision to Deferred purchase price obligation – Anadarko ⁽³⁾	(139,487		)
Balance at December 31, 2016	41,440			56,455
Accretion expense⁽⁴⁾	71
Revision to Deferred purchase price obligation – Anadarko ⁽³⁾	(4,165		)
Settlement of the Deferred purchase price obligation – Anadarko	(37,346		)
Balance at December 31, 2017	$	—		$	—


⁽¹⁾	Calculated using Level 3 inputs.


⁽²⁾	Financing-related accretion revisions were recorded in Interest expense in the consolidated statements of operations.


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


⁽⁴⁾	Accretion expense was recorded as a charge to Interest expense in the consolidated statements of operations.