Noncontrolling Interests

12 Months Ended

Dec. 31, 2017

Noncontrolling Interest Items [Abstract]

Noncontrolling Interests

23. Noncontrolling Interests

WES is a limited partnership formed by Anadarko to acquire, own, develop, and operate midstream assets. During 2016, WES issued 22 million Series A Preferred units to private investors for net proceeds of $687 million, and issued 1.3 million common units to the Company. Proceeds from these issuances were primarily used to acquire interests in Springfield Pipeline LLC from the Company. Pursuant to an agreement between WES and the holders of the Series A Preferred units, 50% of the Series A Preferred units converted into WES common units on a one-for-one basis on March 1, 2017, and the remaining Series A Preferred units converted on May 2, 2017.

WES Class C units issued to Anadarko will convert into WES common units on a one-for-one basis on the conversion date, which was extended in February 2017 from December 31, 2017, to March 1, 2020. The Class C units receive quarterly distributions in the form of additional Class C units until the March 1, 2020 conversion date unless WES elects to convert the units to common units earlier or Anadarko elects to extend the conversion date. WES distributed 886 thousand Class C units to Anadarko during 2017, 946 thousand Class C units during 2016, and 498 thousand Class C units during 2015. WES issued approximately 874 thousand common units to the public and raised net proceeds of $57 million in 2015.

WGP is a limited partnership formed by Anadarko to own interests in WES. Anadarko sold 12.5 million WGP common units to the public for net proceeds of $476 million in 2016, and 2.3 million WGP common units to the public for net proceeds of $130 million in 2015. In June 2015, Anadarko issued 9.2 million TEUs, which include an equity component that may be settled in WGP common units. For additional disclosure of the TEU effect on noncontrolling interests, see Note 11—Tangible Equity Units. At December 31, 2017, Anadarko’s ownership interest in WGP consisted of an 81.6% limited partner interest and the entire non-economic general partner interest. The remaining 18.4% limited partner interest in WGP was owned by the public.

At December 31, 2017, WGP’s ownership interest in WES consisted of a 29.8% limited partner interest, the entire 1.5% general partner interest, and all of the WES incentive distribution rights. At December 31, 2017, Anadarko also owned a 9.1% limited partner interest in WES through other subsidiaries’ ownership of common and Class C units. The remaining 59.6% limited partner interest in WES was owned by the public.