Guarantor Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2014

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2014

($ in thousands)

			Guarantor			Non-Guarantor
	Parent		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	-	$	8		$	36,667		$	-		$	36,675
Accounts receivable		-		153,556			28,383			-			181,939
Prepaid expenses		-		12,201			181			-			12,382
Other current assets		-		11,339			973			-			12,312
Total current assets		-		177,104			66,204			-			243,308

Property, plant and equipment
Gathering systems		-		5,457,491			949,057			-			6,406,548
Other fixed assets		-		361,800			133			-			361,933
Less: Accumulated depreciation		-		(975,412	)		(23,807	)		-			(999,219	)
Total property, plant and equipment, net		-		4,843,879			925,383			-			5,769,262
Investments in unconsolidated affiliates		3,225,723		2,642,277			-			(3,764,470	)		2,103,530
Intangible customer relationships, net		-		360,502			-			-			360,502
Intercompany receivable from parent		4,408,660		7,563			118			(4,416,341	)		-
Deferred loan costs, net		52,017		12,044			-			-			64,061

Total assets	$	7,686,400	$	8,043,369		$	991,705		$	(8,180,811	)	$	8,540,663


Current liabilities
Accounts payable	$	-	$	34,236		$	29,413		$	-		$	63,649
Accrued liabilities		-		215,753			56,802			-			272,555
Intercompany payable to parent		-		-			7,681			(7,681	)		-
Total current liabilities		-		249,989			93,896			(7,681	)		336,204

Long-term liabilities
Long-term debt		3,655,397		150,000			-			-			3,805,397
Intercompany payable to parent		-		4,408,660			-			(4,408,660	)		-
Other liabilities		-		8,997			272			-			9,269
Total long-term liabilities		3,655,397		4,567,657			272			(4,408,660	)		3,814,666

Partners' capital
Total partners' capital attributable to Access Midstream Partners, L.P.		4,031,003		3,225,723			897,537			(4,123,260	)		4,031,003
Noncontrolling interest		-		-			-			358,790			358,790
Total partners' capital		4,031,003		3,225,723			897,537			(3,764,470	)		4,389,793
Total liabilities and partners' capital	$	7,686,400	$	8,043,369		$	991,705		$	(8,180,811	)	$	8,540,663

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2013

($ in thousands)

			Guarantor			Non-Guarantor
	Parent		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	-	$	400		$	16,829		$	-		$	17,229
Accounts receivable		-		202,007			20,402			-			222,409
Prepaid expenses		-		10,182			-			-			10,182
Other current assets		-		7,569			542			-			8,111
Total current assets		-		220,158			37,773			-			257,931

Property, plant and equipment
Gathering systems		-		5,295,771			679,169			-			5,974,940
Other fixed assets		-		175,397			14			-			175,411
Less: Accumulated depreciation		-		(845,892	)		(13,659	)		-			(859,551	)
Total property, plant and equipment, net		-		4,625,276			665,524			-			5,290,800
Investments in unconsolidated affiliates		3,076,205		2,315,988			-			(3,455,590	)		1,936,603
Intangible customer relationships, net		-		372,391			-			-			372,391
Intercompany receivable from parent		3,882,291		3,105			20,330			(3,905,726	)		-
Deferred loan costs, net		46,140		13,581			-			-			59,721

Total assets	$	7,004,636	$	7,550,499		$	723,627		$	(7,361,316	)	$	7,917,446


Current liabilities
Accounts payable	$	-	$	36,638		$	882		$	-		$	37,520
Accrued liabilities		-		203,099			65,853			-			268,952
Intercompany payable to parent		-		-			23,435			(23,435	)		-
Total current liabilities		-		239,737			90,170			(23,435	)		306,472

Long-term liabilities
Long-term debt		2,905,730		343,500			-			-			3,249,230
Intercompany payable to parent		-		3,882,290			-			(3,882,290	)		-
Other liabilities		-		8,767			187			-			8,954
Total long-term liabilities		2,905,730		4,234,557			187			(3,882,290	)		3,258,184

Partners' capital
Total partners' capital attributable to Access Midstream Partners, L.P.		4,098,906		3,076,205			633,270			(3,709,475	)		4,098,906
Noncontrolling interest		-					-			253,884			253,884
Total partners' capital		4,098,906		3,076,205			633,270			(3,455,591	)		4,352,790
Total liabilities and partners' capital	$	7,004,636	$	7,550,499		$	723,627		$	(7,361,316	)	$	7,917,446

Condensed Consolidating Statement of Operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2014

($ in thousands)

				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries		Eliminations			Consolidated

Revenues	$	-		$	253,458		$	39,476	$	-		$	292,934

Operating expenses
Operating expenses		-			80,031			17,492		-			97,523
Depreciation and amortization expense		-			84,452			5,524		-			89,976
General and administrative expense		-			35,354			1,903		-			37,257
Other operating (income) expense		-			(350	)		33		-			(317	)
Total operating expenses		-			199,487			24,952		-			224,439
Operating income		-			53,971			14,524		-			68,495

Other income (expense)
Income from unconsolidated affiliates		110,357			57,630			-		(119,924	)		48,063
Interest expense		(42,903	)		-			-		-			(42,903	)
Other income		-			141			57		-			198
Income before income tax expense		67,454			111,742			14,581		(119,924	)		73,853
Income tax expense		-			1,385			-		-			1,385
Net income		67,454			110,357			14,581		(119,924	)		72,468
Net income attributable to noncontrolling interests		-			-			-		5,014			5,014
Net income attributable to Access Midstream Partners, L.P.	$	67,454		$	110,357		$	14,581	$	(124,938	)	$	67,454

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED JUNE 30, 2013

($ in thousands)

				Guarantor		Non-Guarantor
	Parent			Subsidiaries		Subsidiaries		Eliminations			Consolidated

Revenues	$	-		$	237,670	$	9,572	$	-		$	247,242

Operating expenses
Operating expenses		-			79,912		2,932		-			82,844
Depreciation and amortization expense		-			69,541		2,328		-			71,869
General and administrative expense		-			24,542		547		-			25,089
Other operating expense		-			1,892		-		-			1,892
Total operating expenses		-			175,887		5,807		-			181,694
Operating income		-			61,783		3,765		-			65,548

Other income (expense)
Income from unconsolidated affiliates		96,953			36,319		-		(99,527	)		33,745
Interest expense		(27,740	)		-		8		-			(27,732	)
Other income		-			111		15		-			126
Income before income tax expense		69,213			98,213		3,788		(99,527	)		71,687
Income tax expense		-			1,260		-		-			1,260
Net income		69,213			96,953		3,788		(99,527	)		70,427
Net income attributable to noncontrolling interests		-			-		-		1,214			1,214
Net income attributable to Access Midstream Partners, L.P.	$	69,213		$	96,953	$	3,788	$	(100,741	)	$	69,213

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2014

($ in thousands)

				Guarantor		Non-Guarantor
	Parent			Subsidiaries		Subsidiaries			Eliminations			Consolidated

Revenues	$	-		$	499,450	$	70,562		$	-		$	570,012

Operating expenses
Operating expenses		-			160,210		30,226			-			190,436
Depreciation and amortization expense		-			165,322		10,198			-			175,520
General and administrative expense		-			67,880		3,557			-			71,437
Other operating (income) expense		-			1,528		(40	)		-			1,488
Total operating expenses		-			394,940		43,941			-			438,881
Operating income		-			104,510		26,621			-			131,131

Other income (expense)
Income from unconsolidated affiliates		210,008			108,154		-			(227,221	)		90,941
Interest expense		(81,476	)		-		-			-			(81,476	)
Other income		-			533		57			-			590
Income before income tax expense		128,532			213,197		26,678			(227,221	)		141,186
Income tax expense		-			3,189		-			-			3,189
Net income		128,532			210,008		26,678			(227,221	)		137,997
Net income attributable to noncontrolling interests		-			-		-			9,465			9,465
Net income attributable to Access Midstream Partners, L.P.	$	128,532		$	210,008	$	26,678		$	(236,686	)	$	128,532

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2013

($ in thousands)

				Guarantor		Non-Guarantor
	Parent			Subsidiaries		Subsidiaries		Eliminations			Consolidated

Revenues	$	-		$	467,240	$	16,961	$	-		$	484,201

Operating expenses
Operating expenses		-			160,513		5,094		-			165,607
Depreciation and amortization expense		-			134,373		4,146		-			138,519
General and administrative expense		-			48,120		703		-			48,823
Other operating expense		-			1,983		-		-			1,983
Total operating expenses		-			344,989		9,943		-			354,932
Operating income		-			122,251		7,018		-			129,269

Other income (expense)
Income from unconsolidated affiliates		183,557			63,426		-		(188,230	)		58,753
Interest expense		(54,806	)		-		12		-			(54,794	)
Other income		-			380		15		-			395
Income before income tax expense		128,751			186,057		7,045		(188,230	)		133,623
Income tax expense		-			2,500		-		-			2,500
Net income		128,751			183,557		7,045		(188,230	)		131,123
Net income attributable to noncontrolling interests		-			-		-		2,372			2,372
Net income attributable to Access Midstream Partners, L.P.	$	128,751		$	183,557	$	7,045	$	(190,602	)	$	128,751

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2014

($ in thousands)

				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated

Cash flows from operating activities	$	-		$	405,796		$	56,965		$	-	$	462,761

Cash flows from investing activities
Additions to property, plant and equipment		-			(246,455	)		(274,715	)		-		(521,170	)
Purchase of compression assets		-			(159,210	)		-			-		(159,210	)
Investments in unconsolidated affiliates		-			(220,378	)		-			-		(220,378	)
Proceeds from sale of assets		-			14,296			-			-		14,296
Net cash used in investing activities		-			(611,747	)		(274,715	)		-		(886,462	)

Cash flows from financing activities
Proceeds from long-term borrowings		-			1,053,471			-			-		1,053,471
Payments on long-term debt borrowings		-			(1,246,971	)		-			-		(1,246,971	)
Proceeds from issuance of common units		52,155			-			-			-		52,155
Proceeds from issuance of senior notes		750,000			-			-			-		750,000
Distributions to unitholders		(252,145	)		-			-			-		(252,145	)
Capital contributions from noncontrolling interests		-			-			95,441			-		95,441
Payments on capital lease obligations		-			(1,983	)		-			-		(1,983	)
Debt issuance costs		(8,777	)		-			-			-		(8,777	)
Other		1,956			-			-			-		1,956
Intercompany advances, net		(543,189	)		401,042			142,147			-		-
Net cash provided by financing activities		-			205,559			237,588			-		443,147

Net increase in cash and cash equivalents		-			(392	)		19,838			-		19,446
Cash and cash equivalents, beginning of period		-			400			16,829			-		17,229
Cash and cash equivalents, end of period	$	-		$	8		$	36,667		$	-	$	36,675

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2013

($ in thousands)

				Guarantor			Non-Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations		Consolidated

Cash flows from operating activities	$	-		$	206,739		$	10,841		$	-	$	217,580

Cash flows from investing activities
Additions to property, plant and equipment		-			(356,868	)		(188,726	)		-		(545,594	)
Investments in unconsolidated affiliates		-			(263,710	)		-			-		(263,710	)
Proceeds from sale of assets		-			31,696			-			-		31,696
Net cash used in investing activities		-			(588,882	)		(188,726	)		-		(777,608	)

Cash flows from financing activities
Proceeds from long-term borrowings		-			875,500			-			-		875,500
Payments on long-term debt borrowings		-			(659,300	)		-			-		(659,300	)
Proceeds from issuance of common units		399,922			-			-			-		399,922
Proceeds from issuance of senior notes		-			-			-			-		-
Distributions to unitholders		(177,430	)		-			-			-		(177,430	)
Capital contributions from noncontrolling interests		-			-			71,414			-		71,414
Payments on capital lease obligations		-			-			-			-		-
Debt issuance costs		(660	)		(4,717	)		-			-		(5,377	)
Other		8,328			-			-			-		8,328
Intercompany advances, net		(230,160	)		107,444			122,716			-		-
Net cash provided by financing activities		-			318,927			194,130			-		513,057

Net increase in cash and cash equivalents		-			(63,216	)		16,245			-		(46,971	)
Cash and cash equivalents, beginning of period		-			63,216			1,778			-		64,994
Cash and cash equivalents, end of period	$	-		$	-		$	18,023		$	-	$	18,023