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Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Revenues and Other        
Revenues and other $ 507,762 $ 574,695 $ 1,432,483 $ 1,616,338
Equity income, net – affiliates [1] 43,110 21,519 102,752 62,708
Operating expenses        
Cost of product [2] 105,966 239,223 303,518 631,859
Operation and maintenance [2] 111,359 79,536 300,266 229,444
General and administrative [2] 15,158 12,922 44,853 37,595
Property and other taxes 10,954 11,215 35,090 35,433
Depreciation and amortization 82,553 72,539 238,187 216,272
Impairments 25,317 2,159 152,708 170,079
Total operating expenses 351,307 417,594 1,074,622 1,320,682
Gain (loss) on divestiture and other, net [3] 65 72 351 [4] 135,017 [4]
Proceeds from business interruption insurance claims 0 0 0 29,882
Operating income (loss) 199,630 178,692 460,964 523,263
Interest income – affiliates [5] 4,225 4,225 12,675 12,675
Interest expense (48,316) (36,117) (133,359) (108,447)
Other income (expense), net 655 311 2,749 1,029
Income (loss) before income taxes 156,194 147,111 343,029 428,520
Income tax (benefit) expense 1,517 510 3,301 4,905
Net income (loss) 154,677 146,601 339,728 423,615
Net income (loss) attributable to noncontrolling interests 47,203 50,399 63,669 146,529
Net income (loss) attributable to Western Gas Equity Partners, LP 107,474 96,202 276,059 277,086
Service Revenues - Fee Based [Member]        
Revenues and Other        
Revenues and other 409,106   1,146,099  
Service Revenues - Product Based [Member]        
Revenues and Other        
Revenues and other 22,735   67,433  
Product Sales [Member]        
Revenues and Other        
Revenues and other 75,150   217,738  
Affiliates [Member]        
Revenues and Other        
Revenues and other [1] 274,514 351,127 766,179 982,595
Operating expenses        
Cost of product [1] 46,971 22,902 131,428 60,497
Operation and maintenance [6] 25,145 18,110 68,830 53,661
General and administrative [7] 11,780 10,414 35,000 29,637
Total operating expenses 83,896 51,426 235,258 143,795
Interest expense [8] 0 0 0 (71)
Affiliates [Member] | Service Revenues - Fee Based [Member]        
Revenues and Other        
Revenues and other 204,090 157,303 582,579 484,601
Affiliates [Member] | Service Revenues - Product Based [Member]        
Revenues and Other        
Revenues and other 701 0 1,228 0
Affiliates [Member] | Product Sales [Member]        
Revenues and Other        
Revenues and other 69,723 185,002 182,372 489,172
Affiliates [Member] | Other [Member]        
Revenues and Other        
Revenues and other 0 8,822 0 8,822
Third Parties [Member]        
Revenues and Other        
Revenues and other 233,248 223,568 666,304 633,743
Operating expenses        
Interest expense (48,316) (36,117) (133,359) (108,376)
Third Parties [Member] | Service Revenues - Fee Based [Member]        
Revenues and Other        
Revenues and other 205,016 148,884 563,520 428,835
Third Parties [Member] | Service Revenues - Product Based [Member]        
Revenues and Other        
Revenues and other 22,034 0 66,205 0
Third Parties [Member] | Product Sales [Member]        
Revenues and Other        
Revenues and other 5,427 74,139 35,366 201,318
Third Parties [Member] | Other [Member]        
Revenues and Other        
Revenues and other $ 771 $ 545 $ 1,213 $ 3,590
Limited Partner [Member]        
Limited partners' interest in net income (loss):        
Net income (loss) per common unit - basic and diluted $ 0.49 $ 0.44 $ 1.26 $ 1.27
Weighted-average common units outstanding - basic and diluted 218,938 218,933 218,935 218,931
[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 affiliates (as defined in Note 1) of $47.0 million and $131.4 million for the three and nine months ended September 30, 2018, respectively, and $22.9 million and $60.5 million for the three and nine months ended September 30, 2017, respectively. Operation and maintenance includes charges from affiliates of $25.1 million and $68.8 million for the three and nine months ended September 30, 2018, respectively, and $18.1 million and $53.7 million for the three and nine months ended September 30, 2017, respectively. General and administrative includes charges from affiliates of $11.8 million and $35.0 million for the three and nine months ended September 30, 2018, respectively, and $10.4 million and $29.6 million for the three and nine months ended September 30, 2017, respectively. See Note 6.
[3] Includes losses related to an incident at the DBM complex for the nine months ended September 30, 2017. See Note 1.
[4] Includes losses related to an incident at the DBM complex for the nine months ended September 30, 2017. See Note 1.
[5] Represents interest income recognized on the note receivable from Anadarko.
[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 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 Anadarko Incentive Plan within this Note 6) and amounts charged by Anadarko under the WGP and WES omnibus agreements.
[8] Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 10).