Description of Business and Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2018

As of March 31, 2018, WES’s assets and investments consisted of the following:



	Owned and Operated	Operated Interests	Non-Operated Interests	Equity Interests
Gathering systems ⁽¹⁾	12	3	3	2
Treating facilities	19	3	—	3
Natural gas processing plants/trains	20	4	—	2
NGL pipelines	2	—	—	3
Natural gas pipelines	5	—	—	—
Oil pipelines	—	1	—	1


⁽¹⁾	Includes the DBM water systems.

Ownership Interests and Method of Consolidation Table

The following table outlines WES’s ownership interests and the accounting method of consolidation used in WES’s consolidated financial statements for entities not wholly owned:



	Percentage Interest
Equity investments ⁽¹⁾
Fort Union	14.81	%
White Cliffs	10	%
Rendezvous	22	%
Mont Belvieu JV	25	%
TEP	20	%
TEG	20	%
FRP	33.33	%
Proportionate consolidation ⁽²⁾
Marcellus Interest systems	33.75	%
Newcastle system	50	%
Springfield system	50.1	%
Full consolidation
Chipeta ⁽³⁾	75	%


⁽¹⁾	Investments in non-controlled entities over which WES exercises significant influence are accounted for under the equity method. “Equity investment throughput” refers to WES’s share of average throughput for these investments.


⁽²⁾	WGP proportionately consolidates WES’s associated share of the assets, liabilities, revenues and expenses attributable to these assets.


⁽³⁾	The 25% interest in Chipeta Processing LLC (“Chipeta”) held by a third-party member is reflected within noncontrolling interests in the consolidated financial statements, in addition to the noncontrolling interests noted below.

Impact of New Accounting Pronouncement Tables

The following tables summarize the impact of adopting Topic 606 on the impacted line items within the consolidated statement of operations and the consolidated balance sheet. The differences between revenue as reported following Topic 606 and revenue as it would have been reported under Topic 605 are due to the changes described above.



	Three Months Ended March 31, 2018
thousands	As Reported		Without Adoption of Topic 606		Effect of Change Increase/(Decrease)
Revenues
Service revenues – fee based	$	338,419	$	342,338	$	(3,919	)
Service revenues – product based	22,593		—		22,593
Product sales	75,937		292,291		(216,354		)
Expenses
Cost of product	77,799		274,966		(197,167		)
Operation and maintenance	88,279		88,139		140
Depreciation and amortization	76,842		76,153		689
Income tax (benefit) expense	1,502		1,509		(7		)
Net income (loss) attributable to noncontrolling interests	49,483		80,448		(30,965		)
Net income (loss) attributable to Western Gas Equity Partners, LP	101,005		71,375		29,630



	March 31, 2018
thousands	As Reported		Without Adoption of Topic 606		Effect of Change Increase/(Decrease)
Assets
Other current assets	$	23,256	$	17,418	$	5,838
Net property, plant and equipment	6,063,547		5,977,144		86,403
Other assets	14,525		14,303		222
Liabilities
Accrued liabilities	79,122		74,414		4,708
Deferred income taxes	8,592		8,746		(154		)
Other liabilities	128,757		2,553		126,204
Equity and partners’ capital
Total equity and partners’ capital	3,849,095		3,887,390		(38,295		)