Transactions with Affiliates (Tables)

12 Months Ended

Dec. 31, 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:



	Year Ended December 31,
thousands	2017			2016			2015
Gains (losses) on commodity price swap agreements related to sales: ⁽¹⁾
Natural gas sales	$	19,924		$	11,116		$	45,978
Natural gas liquids sales	(21,722		)	59,918			145,258
Total	(1,798		)	71,034			191,236
Gains (losses) on commodity price swap agreements related to purchases ⁽²⁾	2,446			(42,577		)	(124,944		)
Net gains (losses) on commodity price swap agreements	$	648		$	28,457		$	66,292


⁽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 for the extension periods compared to the forward market prices as of the various agreement dates.



	DJ Basin Complex
per barrel except natural gas	2015 - 2018 Swap Prices		2015 Market Prices ⁽¹⁾		2016 Market Prices⁽¹⁾		2017 Market Prices ⁽¹⁾		2018 Market Prices ⁽¹⁾
Ethane	$	18.41	$	1.96	$	0.60	$	5.09	$	5.41
Propane	47.08		13.10		10.98		18.85		28.72
Isobutane	62.09		19.75		17.23		26.83		32.92
Normal butane	54.62		18.99		16.86		26.20		32.71
Natural gasoline	72.88		52.59		26.15		41.84		48.04
Condensate	76.47		52.59		34.65		45.40		49.36
Natural gas (per MMBtu)	5.96		2.75		2.11		3.05		2.21

5. TRANSACTIONS WITH AFFILIATES (CONTINUED)



	Hugoton System ⁽²⁾
per barrel except natural gas	2015 - 2016 Swap Prices		2015 Market Prices ⁽¹⁾		2016 Market Prices ⁽¹⁾
Condensate	$	78.61	$	32.56	$	18.81
Natural gas (per MMBtu)	5.50		2.74		2.12



	MGR Assets
per barrel except natural gas	2015 Swap Prices		2016 - 2018 Swap Prices		2017 Market Prices ⁽¹⁾		2018 Market Prices ⁽¹⁾
Ethane	$	23.41	$	23.11	$	4.08	$	2.52
Propane	52.99		52.90		19.24		25.83
Isobutane	74.02		73.89		25.79		30.03
Normal butane	65.04		64.93		25.16		29.82
Natural gasoline	81.82		81.68		45.01		47.25
Condensate	81.82		81.68		53.55		56.76
Natural gas (per MMBtu)	4.66		4.87		3.05		2.21


⁽¹⁾	Represents the New York Mercantile Exchange forward strip price as of June 25, 2015, December 8, 2015, December 1, 2016, and December 20, 2017, for the 2015 Market Prices, 2016 Market Prices, 2017 Market Prices, and 2018 Market Prices, respectively, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs.


⁽²⁾	The Hugoton system was sold in October 2016. See Note 2.

Related Party Transactions Tables

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



	Year Ended December 31,
	2017			2016			2015			2017		2016			2015
thousands	Purchases									Sales
Cash consideration	$	3,910		$	3,965		$	10,903		$	—	$	623		$	925
Net carrying value	(5,283		)	(3,366		)	(6,318		)	—		(605		)	(972		)
Partners’ capital adjustment	$	(1,373	)	$	599		$	4,585		$	—	$	18		$	(47	)

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



	Year ended December 31,
thousands	2017			2016			2015
Revenues and other ⁽¹⁾	$	1,365,318		$	1,228,232		$	1,220,639
Equity income, net – affiliates ⁽¹⁾	85,194			78,717			71,251
Cost of product ⁽¹⁾	86,010			80,455			167,354
Operation and maintenance ⁽²⁾	72,489			72,330			77,061
General and administrative ⁽³⁾	39,940			38,873			34,703
Operating expenses	198,439			191,658			279,118
Interest income ⁽⁴⁾	16,900			16,900			16,900
Interest expense ⁽⁵⁾	71			(7,747		)	14,400
Settlement of the Deferred purchase price obligation – Anadarko ⁽⁶⁾	(37,346		)	—			—
Distributions to WGP unitholders ⁽⁷⁾	360,523			315,505			269,029
Distributions to WES unitholders ⁽⁸⁾	7,100			5,614			2,235
Above-market component of swap agreements with Anadarko	58,551			45,820			18,449


⁽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 the 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 Plans 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 the Deferred purchase price obligation - Anadarko (see Note 2 and Note 12) and for the year ended December 31, 2015, includes interest expense recognized on the WGP WCF (see Note 12).


⁽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).

The following table summarizes the amounts WGP reimbursed to Anadarko, separate from, and in addition to, those reimbursed by WES:



	Year Ended December 31,
thousands	2017		2016		2015
General and administrative expenses	$	263	$	258	$	256
Public company expenses	1,821		2,449		1,997
Total reimbursement	$	2,084	$	2,707	$	2,253

LTIP Award Activity Tables

The following table summarizes WGP LTIP award activity for WGP GP independent directors and executive officers for the years ended December 31, 2017, 2016 and 2015:



	2017				2016				2015
	Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units
Phantom units outstanding at beginning of year	$	39.78	5,658		$	47.20	12,537		$	43.10	22,236
Vested	39.78		(5,658	)	47.20		(12,537	)	44.44		(13,317	)
Granted	43.39		5,763		39.78		5,658		62.21		3,618
Phantom units outstanding at end of year	43.39		5,763		39.78		5,658		47.20		12,537

Western Gas Partners, LP [Member]

Related Party Transactions Tables

The following table summarizes the amounts WES reimbursed to Anadarko:



	Year Ended December 31,
thousands	2017		2016		2015
General and administrative expenses	$	31,733	$	29,360	$	22,896
Public company expenses	9,379		8,410		8,950
Total reimbursement	$	41,112	$	37,770	$	31,846

LTIP Award Activity Tables

The following table summarizes WES LTIP award activity for the years ended December 31, 2017, 2016 and 2015:



	2017				2016				2015
	Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units		Weighted-Average Grant-Date Fair Value		Units
Phantom units outstanding at beginning of year	$	49.30	7,304		$	68.78	5,477		$	60.74	9,522
Vested	49.30		(7,304	)	68.78		(5,477	)	60.69		(9,257	)
Granted	55.73		7,180		49.30		7,304		69.10		5,212
Phantom units outstanding at end of year	55.73		7,180		49.30		7,304		68.78		5,477