Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 27, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'WESTERN GAS PARTNERS LP | ' |
Entity Central Index Key | '0001414475 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Units Outstanding | ' | 119,070,104 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenues | ' | ' | ' | ' | ||||
Total revenues | $326,465 | $273,502 | [1] | $935,866 | $750,670 | [1] | ||
Equity income, net | 19,063 | [2],[3] | 4,520 | [1],[2],[3] | 41,322 | [2],[3],[4] | 11,944 | [1],[2],[3],[4] |
Operating expenses | ' | ' | ' | ' | ||||
Cost of product | 108,393 | [5] | 93,516 | [1],[5] | 318,428 | [5] | 270,059 | [1],[5] |
Operation and maintenance | 53,657 | [5] | 42,757 | [1],[5] | 145,064 | [5] | 121,165 | [1],[5] |
General and administrative | 7,889 | [5] | 7,276 | [1],[5] | 24,304 | [5] | 22,228 | [1],[5] |
Property and other taxes | 6,564 | 6,649 | [1] | 20,718 | 18,520 | [1] | ||
Depreciation, amortization and impairments | 45,651 | 37,615 | [1] | 130,009 | 106,551 | [1] | ||
Total operating expenses | 222,154 | 187,813 | [1] | 638,523 | 538,523 | [1] | ||
Operating income | 123,374 | 90,209 | [1] | 338,665 | 224,091 | [1] | ||
Interest income, net - affiliates | 4,225 | [6] | 4,225 | [1],[6] | 12,675 | [6] | 12,675 | [1],[6] |
Interest expense | -20,878 | -13,018 | [1] | -55,703 | -37,483 | [1] | ||
Other income (expense), net | 97 | 439 | [1] | 788 | 1,612 | [1] | ||
Income before income taxes | 106,818 | 81,855 | [1] | 296,425 | 200,895 | [1] | ||
Income tax (benefit) expense | 278 | -27 | [1] | 276 | 4,192 | [1] | ||
Net income | 106,540 | 81,882 | [1] | 296,149 | 196,703 | [1] | ||
Net income attributable to noncontrolling interest | 3,863 | 3,376 | [1] | 11,005 | 7,467 | [1] | ||
Net income attributable to Western Gas Partners, LP | 102,677 | 78,506 | [1] | 285,144 | 189,236 | [1] | ||
Limited partners' interest in net income: | ' | ' | ' | ' | ||||
Pre-acquisition net (income) loss allocated to Anadarko | 0 | -106 | [1] | 956 | -4,616 | [1] | ||
General partner interest in net (income) loss | -31,058 | [7] | -18,693 | [1],[7] | -83,939 | [7] | -47,733 | [1],[7] |
Limited partners' interest in net income | 71,619 | [7] | 59,707 | [1],[7] | 202,161 | [7] | 136,887 | [1],[7] |
Affiliated Entity [Member] | ' | ' | ' | ' | ||||
Revenues | ' | ' | ' | ' | ||||
Gathering, processing and transportation of natural gas and natural gas liquids | 104,258 | 83,606 | [1] | 288,392 | 218,680 | [1] | ||
Natural gas, natural gas liquids and condensate sales | 138,464 | 129,411 | [1] | 415,715 | 371,077 | [1] | ||
Other, net | 2,778 | 108 | [1] | 4,349 | 1,253 | [1] | ||
Total revenues | 245,500 | [2] | 213,125 | [1],[2] | 708,456 | [2] | 591,010 | [1],[2] |
Operating expenses | ' | ' | ' | ' | ||||
Cost of product | 22,728 | [2] | 33,753 | [2] | 74,592 | [2] | 97,801 | [2] |
Operation and maintenance | 14,556 | [8] | 13,469 | [8] | 42,472 | [8] | 41,021 | [8] |
General and administrative | 6,566 | [9] | 5,867 | [9] | 19,859 | [9] | 17,325 | [9] |
Total operating expenses | 43,850 | 53,089 | 136,923 | 156,147 | ||||
Third Parties [Member] | ' | ' | ' | ' | ||||
Revenues | ' | ' | ' | ' | ||||
Gathering, processing and transportation of natural gas and natural gas liquids | 64,098 | 47,175 | [1] | 182,663 | 124,791 | [1] | ||
Natural gas, natural gas liquids and condensate sales | 11,630 | 11,915 | [1] | 37,471 | 31,539 | [1] | ||
Other, net | 5,237 | 1,287 | [1] | 7,276 | 3,330 | [1] | ||
Total revenues | $80,965 | $60,377 | [1] | $227,410 | $159,660 | [1] | ||
Limited Partner [Member] | Common Units [Member] | ' | ' | ' | ' | ||||
Limited partners' interest in net income: | ' | ' | ' | ' | ||||
Net income per common unit - basic and diluted | $0.60 | $0.53 | [1] | $1.71 | $1.26 | [1] | ||
Weighted average common units outstanding - basic and diluted | 119,068 | 112,143 | [1] | 118,326 | 108,540 | [1] | ||
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||||||
[2] | Represents amounts earned or incurred on and subsequent to the date of acquisition of the Partnership assets, as well as amounts earned or incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | |||||||
[3] | Income earned from equity investments is classified as affiliate. See Note 1. | |||||||
[4] | Income earned on, distributions from and contributions to equity investments are classified as affiliate. See Note 1. | |||||||
[5] | Cost of product includes product purchases from Anadarko (as defined in Note 1) of $22.7 million and $74.6 million for the three and nine months ended September 30, 2014, respectively, and $33.8 million and $97.8 million for the three and nine months ended September 30, 2013, respectively. Operation and maintenance includes charges from Anadarko of $14.6 million and $42.5 million for the three and nine months ended September 30, 2014, respectively, and $13.5 million and $41.0 million for the three and nine months ended September 30, 2013, respectively. General and administrative includes charges from Anadarko of $6.6 million and $19.9 million for the three and nine months ended September 30, 2014, respectively, and $5.9 million and $17.3 million for the three and nine months ended September 30, 2013, respectively. See Note 5. | |||||||
[6] | Represents interest income recognized on the note receivable from Anadarko. | |||||||
[7] | Represents net income earned on and subsequent to the date of acquisition of the Partnership assets (as defined in Note 1). See Note 4. | |||||||
[8] | Represents expenses incurred on and subsequent to the date of the acquisition of the Partnership assets, as well as expenses incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets. | |||||||
[9] | Represents general and administrative expense incurred on and subsequent to the date of the Partnership’s acquisition of the Partnership assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of the Partnership assets by the Partnership. These amounts include equity-based compensation expense allocated to the Partnership by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plans within this Note 5). |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Cost of product | $108,393 | [1] | $93,516 | [1],[2] | $318,428 | [1] | $270,059 | [1],[2] |
Operation and maintenance | 53,657 | [1] | 42,757 | [1],[2] | 145,064 | [1] | 121,165 | [1],[2] |
General and administrative | 7,889 | [1] | 7,276 | [1],[2] | 24,304 | [1] | 22,228 | [1],[2] |
Affiliated Entity [Member] | ' | ' | ' | ' | ||||
Cost of product | 22,728 | [3] | 33,753 | [3] | 74,592 | [3] | 97,801 | [3] |
Operation and maintenance | 14,556 | [4] | 13,469 | [4] | 42,472 | [4] | 41,021 | [4] |
General and administrative | $6,566 | [5] | $5,867 | [5] | $19,859 | [5] | $17,325 | [5] |
[1] | Cost of product includes product purchases from Anadarko (as defined in Note 1) of $22.7 million and $74.6 million for the three and nine months ended September 30, 2014, respectively, and $33.8 million and $97.8 million for the three and nine months ended September 30, 2013, respectively. Operation and maintenance includes charges from Anadarko of $14.6 million and $42.5 million for the three and nine months ended September 30, 2014, respectively, and $13.5 million and $41.0 million for the three and nine months ended September 30, 2013, respectively. General and administrative includes charges from Anadarko of $6.6 million and $19.9 million for the three and nine months ended September 30, 2014, respectively, and $5.9 million and $17.3 million for the three and nine months ended September 30, 2013, respectively. See Note 5. | |||||||
[2] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||||||
[3] | Represents amounts earned or incurred on and subsequent to the date of acquisition of the Partnership assets, as well as amounts earned or incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | |||||||
[4] | Represents expenses incurred on and subsequent to the date of the acquisition of the Partnership assets, as well as expenses incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets. | |||||||
[5] | Represents general and administrative expense incurred on and subsequent to the date of the Partnership’s acquisition of the Partnership assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of the Partnership assets by the Partnership. These amounts include equity-based compensation expense allocated to the Partnership by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plans within this Note 5). |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ' | ' | ||
Cash and cash equivalents | $67,837 | $100,728 | [1] | |
Accounts receivable, net | 126,345 | [2] | 84,060 | [1],[2] |
Other current assets | 6,773 | [3] | 10,022 | [1],[3] |
Total current assets | 200,955 | 194,810 | [1] | |
Note receivable - Anadarko | 260,000 | 260,000 | [1] | |
Property, plant and equipment | ' | ' | ||
Cost | 4,754,279 | 4,239,100 | [1] | |
Less accumulated depreciation | 986,692 | 855,845 | [1] | |
Net property, plant and equipment | 3,767,587 | 3,383,255 | [1] | |
Goodwill | 105,336 | 105,336 | [1] | |
Other intangible assets | 52,561 | 53,606 | [1] | |
Equity investments | 639,191 | 593,400 | [1] | |
Other assets | 28,910 | 27,401 | [1] | |
Total assets | 5,054,540 | 4,617,808 | [1] | |
Current liabilities | ' | ' | ||
Accounts and natural gas imbalance payables | 27,011 | [4] | 39,589 | [1],[4] |
Accrued ad valorem taxes | 21,083 | 13,860 | [1] | |
Income taxes payable | 258 | 0 | [1] | |
Accrued liabilities | 152,878 | [5] | 137,011 | [1],[5] |
Total current liabilities | 201,230 | 190,460 | [1] | |
Long-term debt | 2,082,914 | 1,418,169 | [1] | |
Deferred income taxes | 780 | 37,998 | [1] | |
Asset retirement obligations and other | 85,903 | 79,145 | [1] | |
Total long-term liabilities | 2,169,597 | 1,535,312 | [1] | |
Total liabilities | 2,370,827 | 1,725,772 | [1] | |
Equity and partners' capital | ' | ' | ||
Common units (119,070,104 and 117,322,812 units issued and outstanding at September 30, 2014, and December 31, 2013, respectively) | 2,524,313 | 2,431,193 | [1] | |
General partner units (2,430,007 and 2,394,345 units issued and outstanding at September 30, 2014, and December 31, 2013, respectively) | 89,150 | 78,157 | [1] | |
Net investment by Anadarko | 0 | 312,092 | [1] | |
Total partners' capital | 2,613,463 | 2,821,442 | [1] | |
Noncontrolling interest | 70,250 | 70,594 | [1] | |
Total equity and partners' capital | 2,683,713 | 2,892,036 | [1] | |
Total liabilities, equity and partners' capital | $5,054,540 | $4,617,808 | [1] | |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||
[2] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $87.3 million and $47.9 million as of September 30, 2014, and December 31, 2013, respectively. | |||
[3] | Other current assets includes natural gas imbalance receivables from affiliates of $0.1 million as of September 30, 2014, and December 31, 2013. | |||
[4] | Accounts and natural gas imbalance payables includes amounts payable to affiliates of $0.1 million and $2.3 million as of September 30, 2014, and December 31, 2013, respectively. | |||
[5] | Accrued liabilities includes amounts payable to affiliates of zero and $0.1 million as of September 30, 2014, and December 31, 2013, respectively. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, except Share data, unless otherwise specified | ||||
Common units issued | 119,070,104 | 117,322,812 | ||
Common units outstanding | 119,070,104 | 117,322,812 | ||
General partner units issued | ' | 2,394,345 | ||
General partner units outstanding | 2,430,007 | 2,394,345 | ||
Accounts receivable, net | $126,345 | [1] | $84,060 | [1],[2] |
Other current assets | 6,773 | [3] | 10,022 | [2],[3] |
Accounts and natural gas imbalance payables | 27,011 | [4] | 39,589 | [2],[4] |
Accrued liabilities | 152,878 | [5] | 137,011 | [2],[5] |
Affiliated Entity [Member] | ' | ' | ||
Accounts receivable, net | 87,300 | 47,900 | ||
Other current assets | 100 | 100 | ||
Accounts and natural gas imbalance payables | 100 | 2,300 | ||
Accrued liabilities | $0 | $100 | ||
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $87.3 million and $47.9 million as of September 30, 2014, and December 31, 2013, respectively. | |||
[2] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||
[3] | Other current assets includes natural gas imbalance receivables from affiliates of $0.1 million as of September 30, 2014, and December 31, 2013. | |||
[4] | Accounts and natural gas imbalance payables includes amounts payable to affiliates of $0.1 million and $2.3 million as of September 30, 2014, and December 31, 2013, respectively. | |||
[5] | Accrued liabilities includes amounts payable to affiliates of zero and $0.1 million as of September 30, 2014, and December 31, 2013, respectively. |
Consolidated_Statement_of_Equi
Consolidated Statement of Equity and Partners' Capital (USD $) | Total | Net Investment by Anadarko [Member] | Common Units [Member] | General Partner Units [Member] | Noncontrolling Interest [Member] | |
In Thousands | ||||||
Balance at Dec. 31, 2013 | [1] | $2,892,036 | $312,092 | $2,431,193 | $78,157 | $70,594 |
Net income (loss) | 296,149 | -956 | 202,161 | 83,939 | 11,005 | |
Issuance of common and general partner units, net of offering expenses | 101,741 | ' | 99,274 | 2,467 | ' | |
Distributions to noncontrolling interest owner | -11,349 | ' | ' | ' | -11,349 | |
Distributions to unitholders | -297,013 | ' | -221,677 | -75,336 | ' | |
Acquisitions from affiliates | -356,250 | -372,784 | 16,534 | ' | ' | |
Contributions of equity-based compensation from Anadarko | 2,521 | ' | 2,471 | 50 | ' | |
Net pre-acquisition contributions from Anadarko | [2] | 23,488 | 23,488 | ' | ' | ' |
Net distributions to Anadarko of other assets | -6,398 | ' | -6,271 | -127 | ' | |
Elimination of net deferred tax liabilities | 38,160 | 38,160 | ' | ' | ' | |
Other | 628 | ' | 628 | ' | ' | |
Balance at Sep. 30, 2014 | $2,683,713 | $0 | $2,524,313 | $89,150 | $70,250 | |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||||
[2] | Includes deferred taxes on capitalized interest of $0.3 million associated with the acquisition of the TEFR Interests as of September 30, 2014. |
Consolidated_Statement_of_Equi1
Consolidated Statement of Equity and Partners Capital (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Deferred taxes on capitalized interest | ($38,160) |
Net Investment by Anadarko [Member] | ' |
Deferred taxes on capitalized interest | -38,160 |
Capitalized Interest [Member] | Net Investment by Anadarko [Member] | ' |
Deferred taxes on capitalized interest | $300 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
Cash flows from operating activities | ' | ' | ||
Net income | $296,149 | $196,703 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ||
Depreciation, amortization and impairments | 130,009 | 106,551 | [1] | |
Non-cash equity-based compensation expense | 3,210 | 2,564 | [1] | |
Deferred income taxes | 642 | 29,216 | [1] | |
Debt-related amortization and other items, net | 2,045 | 1,756 | [1] | |
Equity income, net | -41,322 | [2],[3],[4] | -11,944 | [1],[2],[3],[4] |
Distributions from equity investment earnings | 43,061 | [2] | 15,563 | [1],[2] |
Changes in assets and liabilities: | ' | ' | ||
(Increase) decrease in accounts receivable, net | -41,408 | -27,387 | [1] | |
Increase (decrease) in accounts and natural gas imbalance payables and accrued liabilities, net | 9,736 | 6,818 | [1] | |
Change in other items, net | 1,645 | -2,523 | [1] | |
Net cash provided by operating activities | 403,767 | 317,317 | [1] | |
Cash flows from investing activities | ' | ' | ||
Capital expenditures | -492,287 | -469,678 | [1] | |
Investments in equity affiliates | -63,267 | -252,308 | [1] | |
Distributions from equity investments in excess of cumulative earnings | 14,387 | [2],[5] | 0 | [1],[2] |
Net cash used in investing activities | -913,372 | -1,432,048 | [1] | |
Cash flows from financing activities | ' | ' | ||
Borrowings, net of debt issuance costs | 1,136,878 | 842,566 | [1] | |
Repayments of debt | -480,000 | -495,000 | [1] | |
Increase (decrease) in outstanding checks | 2,908 | -3,335 | [1] | |
Proceeds from the issuance of common and general partner units, net of offering expenses | 101,502 | 427,848 | [1] | |
Distributions to unitholders | -297,013 | -215,115 | [1] | |
Contributions from noncontrolling interest owner | 0 | 2,247 | [1] | |
Distributions to noncontrolling interest owner | -11,349 | -8,001 | [1] | |
Net contributions from Anadarko | 23,788 | 181,904 | [1] | |
Net cash provided by financing activities | 476,714 | 733,114 | [1] | |
Net increase (decrease) in cash and cash equivalents | -32,891 | -381,617 | [1] | |
Cash and cash equivalents at beginning of period | 100,728 | [1] | 419,981 | [1] |
Cash and cash equivalents at end of period | 67,837 | 38,364 | [1] | |
Supplemental disclosures | ' | ' | ||
Net distributions to Anadarko of other assets | 6,398 | 4,080 | [1] | |
Interest paid, net of capitalized interest | 43,504 | 34,974 | [1] | |
Taxes paid (reimbursements received) | -340 | 0 | [1] | |
Capital lease asset transfer | 4,833 | [6] | 0 | [1],[6] |
Affiliated Entity [Member] | ' | ' | ||
Cash flows from investing activities | ' | ' | ||
Contributions in aid of construction costs from affiliates | 183 | 0 | [1] | |
Acquisitions | -372,393 | -469,884 | [1] | |
Proceeds from the sale of assets | 0 | 82 | [1] | |
Third Parties [Member] | ' | ' | ||
Cash flows from investing activities | ' | ' | ||
Acquisitions | 0 | -240,274 | [1] | |
Proceeds from the sale of assets | $5 | $14 | [1] | |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||
[2] | Income earned on, distributions from and contributions to equity investments are classified as affiliate. See Note 1. | |||
[3] | Income earned from equity investments is classified as affiliate. See Note 1. | |||
[4] | Represents amounts earned or incurred on and subsequent to the date of acquisition of the Partnership assets, as well as amounts earned or incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | |||
[5] | Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, is calculated on an individual investment basis. | |||
[6] | For the nine months ended September 30, 2014, represents transfers of $0.2 million and $4.6 million from other current assets and other long-term assets, respectively, associated with the capital lease components of a processing agreement. See Note 6. |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | |
Capital lease asset transfer | $4,833 | [1] |
Other Current Assets [Member] | ' | |
Capital lease asset transfer | 200 | |
Other Noncurrent Assets [Member] | ' | |
Capital lease asset transfer | $4,600 | |
[1] | For the nine months ended September 30, 2014, represents transfers of $0.2 million and $4.6 million from other current assets and other long-term assets, respectively, associated with the capital lease components of a processing agreement. See Note 6. |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||||||||||
Description of Business and Basis of Presentation | ' | |||||||||||||||||||||||||||||||
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | ||||||||||||||||||||||||||||||||
General. Western Gas Partners, LP is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation in 2007 to own, operate, acquire and develop midstream energy assets. | ||||||||||||||||||||||||||||||||
For purposes of these consolidated financial statements, the “Partnership” refers to Western Gas Partners, LP and its subsidiaries. The Partnership’s general partner, Western Gas Holdings, LLC (the “general partner” or “GP”), is owned by Western Gas Equity Partners, LP (“WGP”), a Delaware master limited partnership formed by Anadarko Petroleum Corporation in September 2012 to own the Partnership’s general partner, as well as a significant limited partner interest in the Partnership (see Western Gas Equity Partners, LP below). Western Gas Equity Holdings, LLC is WGP’s general partner and is a wholly owned subsidiary of Anadarko Petroleum Corporation. “Anadarko” refers to Anadarko Petroleum Corporation and its subsidiaries, excluding the Partnership and the general partner, and “affiliates” refers to subsidiaries of Anadarko, excluding the Partnership, and includes equity interests in Fort Union Gas Gathering, LLC (“Fort Union”), White Cliffs Pipeline, LLC (“White Cliffs”), Rendezvous Gas Services, LLC (“Rendezvous”), Enterprise EF78, LLC (the “Mont Belvieu JV”), Texas Express Pipeline LLC (“TEP”), Texas Express Gathering LLC (“TEG”) and Front Range Pipeline LLC (“FRP”) (see Note 2). The interests in TEP, TEG and FRP are referred to collectively as the “TEFR Interests.” All income earned on, distributions from and contributions to the Partnership’s equity investments are considered to be affiliate transactions. “Equity investment throughput” refers to the Partnership’s 14.81% share of average Fort Union throughput and 22% share of average Rendezvous throughput, but excludes throughput measured in barrels, consisting of the Partnership’s 10% share of average White Cliffs throughput, 25% share of average Mont Belvieu JV throughput, 20% share of average TEP and TEG throughput and 33.33% share of average FRP throughput. The “DJ Basin complex” refers to the Platte Valley system, Wattenberg system, and Lancaster plant, all of which were combined into a single complex in the first quarter of 2014. | ||||||||||||||||||||||||||||||||
The Partnership is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil for Anadarko, as well as for third-party producers and customers. As of September 30, 2014, the Partnership’s assets and investments accounted for under the equity method consisted of the following: | ||||||||||||||||||||||||||||||||
Owned and | Operated | Non-Operated | Equity Interests | |||||||||||||||||||||||||||||
Operated | Interests | Interests | ||||||||||||||||||||||||||||||
Natural gas gathering systems | 13 | 1 | 5 | 2 | ||||||||||||||||||||||||||||
NGL gathering systems | — | — | — | 2 | ||||||||||||||||||||||||||||
Natural gas treating facilities | 8 | — | — | 1 | ||||||||||||||||||||||||||||
Natural gas processing facilities | 9 | 3 | — | 2 | ||||||||||||||||||||||||||||
NGL pipelines | 3 | — | — | 2 | ||||||||||||||||||||||||||||
Natural gas pipelines | 3 | — | — | — | ||||||||||||||||||||||||||||
Oil pipeline | — | — | — | 1 | ||||||||||||||||||||||||||||
These assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), the Mid-Continent (Kansas and Oklahoma), north-central Pennsylvania and Texas. The Partnership completed construction of Train I at the Lancaster processing plant (located in the DJ Basin complex) in Northeast Colorado in April 2014, and is constructing Train II at the same plant with operations expected to commence in the second quarter of 2015. | ||||||||||||||||||||||||||||||||
Western Gas Equity Partners, LP. WGP owns the following types of interests in the Partnership: (i) the 2.0% general partner interest and all of the incentive distribution rights (“IDRs”) in the Partnership, both owned through WGP’s 100% ownership of the Partnership’s general partner and (ii) a significant limited partner interest (see Holdings of Partnership equity in Note 4). WGP has no independent operations or material assets other than its partnership interests in the Partnership. | ||||||||||||||||||||||||||||||||
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) | ||||||||||||||||||||||||||||||||
Basis of presentation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The consolidated financial statements include the accounts of the Partnership and entities in which it holds a controlling financial interest. All significant intercompany transactions have been eliminated. Investments in non-controlled entities over which the Partnership exercises significant influence are accounted for under the equity method. The Partnership proportionately consolidates its 33.75% share of the assets, liabilities, revenues and expenses attributable to the Non-Operated Marcellus Interest and Anadarko-Operated Marcellus Interest (see Note 2) and its 50% share of the assets, liabilities, revenues and expenses attributable to the Newcastle system in the accompanying consolidated financial statements. The 25% membership interest in Chipeta Processing LLC (“Chipeta”) held by a third-party member is reflected within noncontrolling interest in the consolidated financial statements for all periods presented. | ||||||||||||||||||||||||||||||||
In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other methods considered reasonable under the particular circumstances. Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. Effects on the business, financial condition and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information furnished herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements, and certain prior-period amounts have been reclassified to conform to the current-year presentation. | ||||||||||||||||||||||||||||||||
Certain information and note disclosures commonly included in annual financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying consolidated financial statements and notes should be read in conjunction with the Partnership’s 2013 Form 10-K, as filed with the SEC on February 28, 2014, certain sections of which were recast to reflect the results of the TEFR Interests in the Partnership’s Current Report on Form 8-K, as filed with the SEC on August 27, 2014. Management believes that the disclosures made are adequate to make the information not misleading. | ||||||||||||||||||||||||||||||||
Presentation of Partnership assets. The “Partnership assets” refer collectively to the assets owned and interests accounted for under the equity method by the Partnership as of September 30, 2014. Because Anadarko controls the Partnership through its ownership and control of WGP, which owns the Partnership’s general partner, each acquisition of Partnership assets from Anadarko has been considered a transfer of net assets between entities under common control. As such, the Partnership assets acquired from Anadarko were initially recorded at Anadarko’s historic carrying value, which did not correlate to the total acquisition price paid by the Partnership. Further, after an acquisition of Partnership assets from Anadarko, the Partnership may be required to recast its financial statements to include the activities of the Partnership assets as of the date of common control. See Note 2. | ||||||||||||||||||||||||||||||||
For those periods requiring recast, the consolidated financial statements for periods prior to the Partnership’s acquisition of the Partnership assets from Anadarko have been prepared from Anadarko’s historical cost-basis accounts and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned the Partnership assets during the periods reported. Net income attributable to the Partnership assets acquired from Anadarko for periods prior to the Partnership’s acquisition of the Partnership assets is not allocated to the limited partners for purposes of calculating net income per common unit. | ||||||||||||||||||||||||||||||||
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) | ||||||||||||||||||||||||||||||||
Equity investments. The following table presents the activity in the Partnership’s equity investments for the nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||
Equity Investments | ||||||||||||||||||||||||||||||||
thousands | Fort | White | Rendezvous | Mont | TEG | TEP | FRP | Total | ||||||||||||||||||||||||
Union | Cliffs | Belvieu JV | ||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 25,172 | $ | 35,039 | $ | 60,928 | $ | 122,480 | $ | 16,649 | $ | 197,731 | $ | 135,401 | $ | 593,400 | ||||||||||||||||
Investment earnings (loss), net of amortization | 4,811 | 8,385 | 1,180 | 22,872 | 466 | 3,488 | 120 | 41,322 | ||||||||||||||||||||||||
Contributions | — | 10,456 | — | 3,956 | 352 | 6,263 | 40,033 | 61,060 | ||||||||||||||||||||||||
Capitalized interest | — | — | — | — | — | — | 857 | 857 | ||||||||||||||||||||||||
Distributions | (4,619 | ) | (7,949 | ) | (2,636 | ) | (24,423 | ) | (373 | ) | (2,938 | ) | (123 | ) | (43,061 | ) | ||||||||||||||||
Distributions in excess of cumulative earnings (1) | — | (891 | ) | (1,993 | ) | — | (338 | ) | (5,321 | ) | (5,844 | ) | (14,387 | ) | ||||||||||||||||||
Balance at September 30, 2014 | $ | 25,364 | $ | 45,040 | $ | 57,479 | $ | 124,885 | $ | 16,756 | $ | 199,223 | $ | 170,444 | $ | 639,191 | ||||||||||||||||
(1) | Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, is calculated on an individual investment basis. | |||||||||||||||||||||||||||||||
Recently issued accounting standards. Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and industry-specific guidance in Subtopic 932-605, Extractive Activities—Oil and Gas—Revenue Recognition, and requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for annual and interim periods beginning in 2017 and is required to be adopted using one of two retrospective application methods, with no early adoption permitted. The Partnership is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements. | ||||||||||||||||||||||||||||||||
ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, changes the criteria for reporting discontinued operations and requires additional disclosures, both for discontinued operations and for individually significant dispositions and assets classified as held for sale not qualifying as discontinued operations. This ASU is effective for annual and interim periods beginning in 2015, with early adoption permitted for disposals or for assets classified as held for sale that have not been reported in previously issued financial statements. The Partnership early adopted this ASU on a prospective basis beginning with the first quarter of 2014. The adoption did not have a material impact on the Partnership’s consolidated financial statements. | ||||||||||||||||||||||||||||||||
ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset, except in certain circumstances. This ASU is effective for annual and interim periods beginning in 2014. The Partnership adopted this ASU on a prospective basis beginning with the first quarter of 2014. The adoption did not have a material impact on the Partnership’s consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Acquisitions | ' | ||||||||||||||||
2. ACQUISITIONS | |||||||||||||||||
The following table presents the acquisitions completed by the Partnership during 2014 and 2013, and identifies the funding sources for such acquisitions: | |||||||||||||||||
thousands except unit and percent amounts | Acquisition | Percentage | Borrowings | Cash | Common | ||||||||||||
Date | Acquired | On Hand | Units Issued | ||||||||||||||
Non-Operated Marcellus Interest (1) | 3/1/13 | 33.75 | % | $ | 250,000 | $ | 215,500 | 449,129 | |||||||||
Anadarko-Operated Marcellus Interest (2) | 3/8/13 | 33.75 | % | 133,500 | — | — | |||||||||||
Mont Belvieu JV (3) | 6/5/13 | 25 | % | — | 78,129 | — | |||||||||||
OTTCO (4) | 9/3/13 | 100 | % | 27,500 | — | — | |||||||||||
TEFR Interests (5) | 3/3/14 | Various (5) | 350,000 | 6,250 | 308,490 | ||||||||||||
(1) | The Partnership acquired Anadarko’s 33.75% interest (non-operated) in the Liberty and Rome gas gathering systems, serving production from the Marcellus shale in north-central Pennsylvania. The interest acquired is referred to as the “Non-Operated Marcellus Interest.” In connection with the issuance of the common units, the Partnership’s general partner purchased 9,166 general partner units for consideration of $0.5 million to maintain its 2.0% general partner interest in the Partnership. | ||||||||||||||||
(2) | The Partnership acquired a 33.75% interest in each of the Larry’s Creek, Seely and Warrensville gas gathering systems, which are operated by Anadarko and serve production from the Marcellus shale in north-central Pennsylvania, from a third party. The interest acquired is referred to as the “Anadarko-Operated Marcellus Interest.” During the third quarter of 2013, the Partnership recorded a $1.1 million decrease in the assets acquired and liabilities assumed in the acquisition, representing the final purchase price allocation. | ||||||||||||||||
(3) | The Partnership acquired a 25% interest in the Mont Belvieu JV, an entity formed to design, construct, and own two fractionation trains located in Mont Belvieu, Texas, from a third party. The interest acquired is accounted for under the equity method of accounting. | ||||||||||||||||
(4) | The Partnership acquired Overland Trail Transmission, LLC (“OTTCO”), a Delaware limited liability company, from a third party. OTTCO owns and operates an intrastate pipeline that connects the Partnership’s Red Desert and Granger complexes in southwestern Wyoming. | ||||||||||||||||
(5) | The Partnership acquired a 20% interest in each of TEG and TEP and a 33.33% interest in FRP from Anadarko. These assets gather and transport NGLs primarily from the Anadarko and Denver-Julesburg Basins. The interests in these entities are accounted for under the equity method of accounting. In connection with the issuance of the common units, the Partnership’s general partner purchased 6,296 general partner units for consideration of $0.4 million to maintain its 2.0% general partner interest in the Partnership. | ||||||||||||||||
TEFR Interests acquisition. Because the acquisition of the TEFR Interests was a transfer of net assets between entities under common control, the Partnership’s historical financial statements previously filed with the SEC have been recast in this Form 10-Q to include the results attributable to the TEFR Interests for all periods presented. The consolidated financial statements for periods prior to the Partnership’s acquisition of the TEFR Interests have been prepared from Anadarko’s historical cost-basis accounts and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned the TEFR Interests during the periods reported. | |||||||||||||||||
2. ACQUISITIONS (CONTINUED) | |||||||||||||||||
The following table presents the impact of the TEFR Interests on revenues, equity income (loss), net and net income (loss) as presented in the Partnership’s historical consolidated statements of income: | |||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||
thousands | Partnership Historical | TEFR Interests | Combined | ||||||||||||||
Revenues | $ | 273,502 | $ | — | $ | 273,502 | |||||||||||
Equity income (loss), net | 4,499 | 21 | 4,520 | ||||||||||||||
Net income (loss) | 81,776 | 106 | 81,882 | ||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||
thousands | Partnership Historical | TEFR Interests | Combined | ||||||||||||||
Revenues | $ | 750,670 | $ | — | $ | 750,670 | |||||||||||
Equity income (loss), net | 12,204 | (260 | ) | 11,944 | |||||||||||||
Net income (loss) | 196,724 | (21 | ) | 196,703 | |||||||||||||
Partnership_Distributions
Partnership Distributions | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Distributions Made to Members or Limited Partners [Abstract] | ' | |||||||||||
Partnership Distributions | ' | |||||||||||
3. PARTNERSHIP DISTRIBUTIONS | ||||||||||||
The partnership agreement of Western Gas Partners, LP requires the Partnership to distribute all of its available cash (as defined in the partnership agreement) to unitholders of record on the applicable record date within 45 days of the end of each quarter. The board of directors of the general partner declared the following cash distributions to the Partnership’s unitholders for the periods presented: | ||||||||||||
thousands except per-unit amounts | Total Quarterly | Total Quarterly | Date of | |||||||||
Quarters Ended | Distribution | Cash Distribution | Distribution | |||||||||
per Unit | ||||||||||||
2013 | ||||||||||||
31-Mar | $ | 0.54 | $ | 70,143 | May 2013 | |||||||
30-Jun | 0.56 | 79,315 | Aug-13 | |||||||||
30-Sep | 0.58 | 83,986 | Nov-13 | |||||||||
2014 | ||||||||||||
31-Mar | $ | 0.625 | $ | 98,749 | May 2014 | |||||||
30-Jun | 0.65 | 105,655 | Aug-14 | |||||||||
September 30 (1) | 0.675 | 111,609 | Nov-14 | |||||||||
(1) | On October 20, 2014, the board of directors of the Partnership’s general partner declared a cash distribution to the Partnership’s unitholders of $0.675 per unit, or $111.6 million in aggregate, including incentive distributions. The cash distribution is payable on November 13, 2014, to unitholders of record at the close of business on October 31, 2014. |
Equity_and_Partners_Capital
Equity and Partners' Capital | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Partners' Capital Notes [Abstract] | ' | |||||||||||||||||
Equity and Partners' Capital | ' | |||||||||||||||||
4. EQUITY AND PARTNERS’ CAPITAL | ||||||||||||||||||
Equity offerings. The Partnership completed the following public offerings of its common units during 2014 and 2013: | ||||||||||||||||||
thousands except unit | Common | GP Units | Price Per | Underwriting | Net | |||||||||||||
and per-unit amounts | Units Issued | Issued (1) | Unit | Discount and | Proceeds | |||||||||||||
Other Offering | ||||||||||||||||||
Expenses | ||||||||||||||||||
May 2013 equity offering (2) | 7,015,000 | 143,163 | $ | 61.18 | $ | 13,203 | $ | 424,733 | ||||||||||
December 2013 equity offering (3) | 4,800,000 | 97,959 | 61.51 | 9,447 | 291,827 | |||||||||||||
Continuous Offering Program - 2013 (4) | 685,735 | 13,996 | 60.84 | 965 | 41,603 | |||||||||||||
Continuous Offering Program - 2014 (5) | 1,133,384 | 23,132 | 73.48 | 1,726 | 83,257 | |||||||||||||
(1) | Represents general partner units issued to the general partner in exchange for the general partner’s proportionate capital contribution to maintain its 2.0% general partner interest in the Partnership. | |||||||||||||||||
(2) | Includes the issuance of 915,000 common units pursuant to the full exercise of the underwriters’ over-allotment option granted in connection with the May 2013 equity offering. | |||||||||||||||||
(3) | Includes the issuance of 300,000 common units on January 3, 2014, pursuant to the partial exercise of the underwriters’ over-allotment option granted in connection with the December 2013 equity offering. Net proceeds from this partial exercise (including the general partner’s proportionate capital contribution) were $18.1 million. | |||||||||||||||||
(4) | Represents common and general partner units issued during the year ended December 31, 2013, pursuant to the Partnership’s registration statement filed with the SEC in August 2012 authorizing the issuance of up to an aggregate of $125.0 million of common units (the “Continuous Offering Program”). Gross proceeds generated (including the general partner’s proportionate capital contributions) during the year ended December 31, 2013, were $42.6 million. The price per unit in the table above represents an average price for all issuances under the Continuous Offering Program during 2013. | |||||||||||||||||
(5) | Represents common and general partner units issued during the nine months ended September 30, 2014, under the Continuous Offering Program. Gross proceeds generated (including the general partner’s proportionate capital contributions) were $85.0 million. The price per unit in the table above represents an average price for all issuances under the Continuous Offering Program during the nine months ended September 30, 2014. As of September 30, 2014, the Partnership had used all the capacity to issue common units under this registration statement. | |||||||||||||||||
Common and general partner units. The Partnership’s common units are listed on the New York Stock Exchange under the symbol “WES.” | ||||||||||||||||||
The following table summarizes common and general partner units issued during the nine months ended September 30, 2014: | ||||||||||||||||||
Common | General | Total | ||||||||||||||||
Units | Partner Units | |||||||||||||||||
Balance at December 31, 2013 | 117,322,812 | 2,394,345 | 119,717,157 | |||||||||||||||
December 2013 equity offering | 300,000 | 6,122 | 306,122 | |||||||||||||||
Long-Term Incentive Plan awards | 5,418 | 112 | 5,530 | |||||||||||||||
TEFR Interests acquisition | 308,490 | 6,296 | 314,786 | |||||||||||||||
Continuous Offering Program | 1,133,384 | 23,132 | 1,156,516 | |||||||||||||||
Balance at September 30, 2014 | 119,070,104 | 2,430,007 | 121,500,111 | |||||||||||||||
Holdings of Partnership equity. As of September 30, 2014, WGP held 49,296,205 common units, representing a 40.6% limited partner interest in the Partnership, and, through its ownership of the general partner, WGP indirectly held 2,430,007 general partner units, representing a 2.0% general partner interest in the Partnership, and 100% of the Partnership’s IDRs. As of September 30, 2014, other subsidiaries of Anadarko held 757,619 common units, representing a 0.6% limited partner interest in the Partnership. As of September 30, 2014, the public held 69,016,280 common units, representing a 56.8% limited partner interest in the Partnership. | ||||||||||||||||||
4. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) | ||||||||||||||||||
The Partnership’s net income earned on and subsequent to the date of the acquisition of the Partnership assets (as defined in Note 1) is allocated to the general partner and the limited partners consistent with actual cash distributions, including incentive distributions allocable to the general partner. Undistributed earnings (net income in excess of distributions) or undistributed losses (available cash in excess of net income) are then allocated to the general partner and the limited partners in accordance with their respective ownership percentages. | ||||||||||||||||||
Basic and diluted net income per common unit are calculated by dividing the limited partners’ interest in net income by the weighted average number of common units outstanding during the period. The common units issued in connection with acquisitions and equity offerings are included on a weighted-average basis for periods during which they were outstanding. |
Transactions_With_Affiliates
Transactions With Affiliates | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | ' | ||||||||||||||||||||
Transactions with Affiliates | ' | ||||||||||||||||||||
5. TRANSACTIONS WITH AFFILIATES | |||||||||||||||||||||
Affiliate transactions. Revenues from affiliates include amounts earned by the Partnership from services provided to Anadarko as well as from the sale of residue, condensate and NGLs to Anadarko. In addition, the Partnership purchases natural gas from an affiliate of Anadarko pursuant to gas purchase agreements. Operating and maintenance expense includes amounts accrued for or paid to affiliates for the operation of the Partnership assets, whether in providing services to affiliates or to third parties, including field labor, measurement and analysis, and other disbursements. A portion of the Partnership’s general and administrative expenses is paid by Anadarko, which results in affiliate transactions pursuant to the reimbursement provisions of the Partnership’s omnibus agreement. Affiliate expenses do not bear a direct relationship to affiliate revenues, and third-party expenses do not bear a direct relationship to third-party revenues. See Note 1 for further information related to contributions of assets to the Partnership by Anadarko. | |||||||||||||||||||||
Cash management. Anadarko operates a cash management system whereby excess cash from most of its subsidiaries’ separate bank accounts is generally swept to centralized accounts. Prior to the Partnership’s acquisition of the Partnership assets, third-party sales and purchases related to such assets were received or paid in cash by Anadarko within its centralized cash management system. Anadarko charged or credited the Partnership interest at a variable rate on outstanding affiliate balances for the periods these balances remained outstanding. The outstanding affiliate balances were entirely settled through an adjustment to net investment by Anadarko in connection with the acquisition of the Partnership assets. Subsequent to the acquisition of Partnership assets from Anadarko, transactions related to such assets are cash-settled directly with third parties and with Anadarko affiliates, and affiliate-based interest expense on current intercompany balances is not charged. Chipeta cash settles its transactions directly with third parties and Anadarko, as well as with the other subsidiaries of the Partnership. | |||||||||||||||||||||
Note receivable from Anadarko. Concurrently with the closing of the Partnership’s May 2008 initial public offering, the Partnership loaned $260.0 million to Anadarko in exchange for a 30-year note bearing interest at a fixed annual rate of 6.50%, payable quarterly. The fair value of the note receivable from Anadarko was $322.3 million and $296.7 million at September 30, 2014, and December 31, 2013, respectively. The fair value of the note reflects consideration of credit risk and any premium or discount for the differential between the stated interest rate and quarter-end market interest rate, based on quoted market prices of similar debt instruments. Accordingly, the fair value of the note receivable from Anadarko is measured using Level 2 inputs. | |||||||||||||||||||||
Commodity price swap agreements. The Partnership has commodity price swap agreements with Anadarko to mitigate exposure to commodity price volatility that would otherwise be present as a result of the purchase and sale of natural gas, condensate or NGLs. Notional volumes for each of the commodity price swap agreements are not specifically defined; instead, the commodity price swap agreements apply to the actual volume of natural gas, condensate and NGLs purchased and sold at the Granger, Hilight, Hugoton, Newcastle and MGR assets, as well as the DJ Basin complex, with various expiration dates through December 2016. In December 2013, the Partnership extended the commodity price swap agreements for the Hilight and Newcastle assets through December 2014. The commodity price swap agreements do not satisfy the definition of a derivative financial instrument and, therefore, are not required to be measured at fair value. | |||||||||||||||||||||
5. TRANSACTIONS WITH AFFILIATES (CONTINUED) | |||||||||||||||||||||
Below is a summary of the fixed price ranges on the Partnership’s outstanding commodity price swap agreements as of September 30, 2014: | |||||||||||||||||||||
per barrel except natural gas | 2014 | 2015 | 2016 | ||||||||||||||||||
Ethane | $ | 18.36 | − | $ | 30.53 | $ | 18.41 | − | $ | 23.41 | $ | 23.11 | |||||||||
Propane | 40.38 | − | 53.78 | 47.08 | − | 52.99 | 52.9 | ||||||||||||||
Isobutane | 61.24 | − | 75.13 | 62.09 | − | 74.02 | 73.89 | ||||||||||||||
Normal butane | 53.89 | − | 66.83 | 54.62 | − | 65.04 | 64.93 | ||||||||||||||
Natural gasoline | 71.85 | − | 90.89 | 72.88 | − | 81.82 | 81.68 | ||||||||||||||
Condensate | 75.22 | − | 87.3 | 76.47 | − | 81.82 | 81.68 | ||||||||||||||
Natural gas (per MMBtu) | 3.45 | − | 6.2 | 4.66 | − | 5.96 | 4.87 | ||||||||||||||
The following table summarizes realized gains and losses on commodity price swap agreements: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Gains (losses) on commodity price swap agreements related to sales: (1) | |||||||||||||||||||||
Natural gas sales | $ | 3,179 | $ | 6,923 | $ | 1,525 | $ | 14,707 | |||||||||||||
Natural gas liquids sales | 22,737 | 27,541 | 66,746 | 83,049 | |||||||||||||||||
Total | 25,916 | 34,464 | 68,271 | 97,756 | |||||||||||||||||
Losses on commodity price swap agreements related to purchases (2) | (19,533 | ) | (23,902 | ) | (38,081 | ) | (66,613 | ) | |||||||||||||
Net gains (losses) on commodity price swap agreements | $ | 6,383 | $ | 10,562 | $ | 30,190 | $ | 31,143 | |||||||||||||
(1) | Reported in affiliate natural gas, natural gas liquids and condensate sales in the consolidated statements of income in the period in which the related sale is recorded. | ||||||||||||||||||||
(2) | Reported in cost of product in the consolidated statements of income in the period in which the related purchase is recorded. | ||||||||||||||||||||
Gas gathering and processing agreements. The Partnership has significant gas gathering and processing arrangements with affiliates of Anadarko on a majority of its systems. The Partnership’s gathering, transportation and treating throughput (excluding equity investment throughput and throughput measured in barrels) attributable to natural gas production owned or controlled by Anadarko was 47% and 53% for the three months ended September 30, 2014 and 2013, respectively, and 48% and 55% for the nine months ended September 30, 2014 and 2013, respectively. The Partnership’s processing throughput (excluding equity investment throughput and throughput measured in barrels) attributable to natural gas production owned or controlled by Anadarko was 58% and 60% for the three months ended September 30, 2014 and 2013, respectively, and 58% and 59% for the nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||
Equipment purchases and sales. The following table summarizes the Partnership’s purchases from and sales to Anadarko of pipe and equipment: | |||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
thousands | Purchases | Sales | |||||||||||||||||||
Cash consideration | $ | 16,143 | $ | 6,167 | $ | — | $ | 82 | |||||||||||||
Net carrying value | 9,745 | 2,039 | — | 34 | |||||||||||||||||
Partners’ capital adjustment | $ | 6,398 | $ | 4,128 | $ | — | $ | 48 | |||||||||||||
5. TRANSACTIONS WITH AFFILIATES (CONTINUED) | |||||||||||||||||||||
WES LTIP. The general partner awards phantom units under the Western Gas Partners, LP 2008 Long-Term Incentive Plan (“WES LTIP”) primarily to its independent directors and its Chief Executive Officer. The phantom units awarded to the independent directors vest one year from the grant date, while all other awards are subject to graded vesting over a three-year service period. Compensation expense is recognized over the vesting period and was $0.2 million and $0.5 million for the three and nine months ended September 30, 2014, respectively, and $0.1 million and $0.4 million for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||||||
WGP LTIP and Anadarko Incentive Plans. The Partnership’s general and administrative expenses included $0.9 million and $2.7 million for the three and nine months ended September 30, 2014, respectively, and $0.8 million and $2.2 million for the three and nine months ended September 30, 2013, respectively, of equity-based compensation expense, allocated to the Partnership by Anadarko, for awards granted to the executive officers of the general partner and other employees under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan (“WGP LTIP”) and Anadarko Incentive Plans. For the nine months ended September 30, 2014, $2.5 million of allocated equity-based compensation expense is reflected as a contribution to partners’ capital in the Partnership’s consolidated statement of equity and partners’ capital. | |||||||||||||||||||||
Summary of affiliate transactions. The following table summarizes affiliate transactions, which include revenue from affiliates, reimbursement of operating expenses and purchases of natural gas: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenues (1) | $ | 245,500 | $ | 213,125 | $ | 708,456 | $ | 591,010 | |||||||||||||
Equity income, net (1) | 19,063 | 4,520 | 41,322 | 11,944 | |||||||||||||||||
Cost of product (1) | 22,728 | 33,753 | 74,592 | 97,801 | |||||||||||||||||
Operation and maintenance (2) | 14,556 | 13,469 | 42,472 | 41,021 | |||||||||||||||||
General and administrative (3) | 6,566 | 5,867 | 19,859 | 17,325 | |||||||||||||||||
Operating expenses | 43,850 | 53,089 | 136,923 | 156,147 | |||||||||||||||||
Interest income, net (4) | 4,225 | 4,225 | 12,675 | 12,675 | |||||||||||||||||
Distributions to unitholders (5) | 60,794 | 44,378 | 169,001 | 121,493 | |||||||||||||||||
(1) | Represents amounts earned or incurred on and subsequent to the date of acquisition of the Partnership assets, as well as amounts earned or incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets, 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 the Partnership assets, as well as expenses incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets. | ||||||||||||||||||||
(3) | Represents general and administrative expense incurred on and subsequent to the date of the Partnership’s acquisition of the Partnership assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of the Partnership assets by the Partnership. These amounts include equity-based compensation expense allocated to the Partnership by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plans within this Note 5). | ||||||||||||||||||||
(4) | Represents interest income recognized on the note receivable from Anadarko. | ||||||||||||||||||||
(5) | Represents distributions paid under the partnership agreement (see Note 3 and Note 4). | ||||||||||||||||||||
Concentration of credit risk. Anadarko was the only customer from whom revenues exceeded 10% of the Partnership’s consolidated revenues for all periods presented in the consolidated statements of income. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property, Plant and Equipment | ' | ||||||||||
6. PROPERTY, PLANT AND EQUIPMENT | |||||||||||
A summary of the historical cost of the Partnership’s property, plant and equipment is as follows: | |||||||||||
thousands | Estimated Useful Life | 30-Sep-14 | December 31, 2013 | ||||||||
Land | n/a | $ | 2,584 | $ | 2,584 | ||||||
Gathering systems | 3 to 47 years | 4,244,640 | 3,673,008 | ||||||||
Pipelines and equipment | 15 to 45 years | 145,851 | 146,008 | ||||||||
Assets under construction | n/a | 345,799 | 405,633 | ||||||||
Other | 3 to 40 years | 15,405 | 11,867 | ||||||||
Total property, plant and equipment | 4,754,279 | 4,239,100 | |||||||||
Accumulated depreciation | 986,692 | 855,845 | |||||||||
Net property, plant and equipment | $ | 3,767,587 | $ | 3,383,255 | |||||||
The cost of property classified as “Assets under construction” is excluded from capitalized costs being depreciated. These amounts represent property that is not yet suitable to be placed into productive service as of the respective balance sheet date. | |||||||||||
At December 31, 2013, other long-term assets includes $4.6 million of unguaranteed residual value related to the capital lease component of a processing agreement assumed in connection with the acquisition of the Granger straddle plant as a part of the Mountain Gas Resources, LLC acquisition in January 2012. This agreement, in which the Partnership was the lessor, was replaced effective April 1, 2014, with a gas conditioning agreement that does not satisfy criteria required for lease classification. As such, during the second quarter of 2014, the Partnership reclassified the $4.6 million capital lease asset from other long-term assets to property, plant and equipment and commenced depreciation. | |||||||||||
During the three and nine months ended September 30, 2014, the Partnership recognized impairments of $0.4 million and $0.7 million, respectively, related to the cancellation of various capital projects by the third-party operator of the Non-Operated Marcellus Interest. During the three months ended September 30, 2014, the Partnership also recognized an impairment of $0.5 million related to a compressor no longer in service at the Hilight system. During the first quarter of 2014, the Partnership recognized a $1.2 million impairment primarily related to a non-operational plant in the Powder River Basin that was impaired to its estimated fair value of $2.4 million, using Level 3 fair-value inputs. |
Components_of_Working_Capital
Components of Working Capital | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Components Of Working Capital [Abstract] | ' | ||||||||
Components of Working Capital | ' | ||||||||
7. COMPONENTS OF WORKING CAPITAL | |||||||||
A summary of other current assets is as follows: | |||||||||
thousands | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Natural gas liquids inventory | $ | 2,022 | $ | 2,584 | |||||
Natural gas imbalance receivables | 1,181 | 3,605 | |||||||
Prepaid insurance | 2,521 | 2,123 | |||||||
Other | 1,049 | 1,710 | |||||||
Total other current assets | $ | 6,773 | $ | 10,022 | |||||
7. COMPONENTS OF WORKING CAPITAL (CONTINUED) | |||||||||
A summary of accrued liabilities is as follows: | |||||||||
thousands | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Accrued capital expenditures | $ | 92,559 | $ | 94,750 | |||||
Accrued plant purchases | 30,563 | 21,396 | |||||||
Accrued interest expense | 28,525 | 18,119 | |||||||
Short-term asset retirement obligations | 483 | 1,966 | |||||||
Short-term remediation and reclamation obligations | 562 | 562 | |||||||
Other | 186 | 218 | |||||||
Total accrued liabilities | $ | 152,878 | $ | 137,011 | |||||
Debt_and_Interest_Expense
Debt and Interest Expense | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Debt Instruments [Abstract] | ' | ||||||||||||||||||||||||
Debt and Interest Expense | ' | ||||||||||||||||||||||||
8. DEBT AND INTEREST EXPENSE | |||||||||||||||||||||||||
At September 30, 2014, the Partnership’s debt consisted of 5.375% Senior Notes due 2021 (the “2021 Notes”), 4.000% Senior Notes due 2022 (the “2022 Notes”), 2.600% Senior Notes due 2018 (the “2018 Notes”), 5.450% Senior Notes due 2044 (the “2044 Notes”), and the senior unsecured revolving credit facility (“RCF”). The two tranches of the 2022 Notes, issued in June and October 2012, were issued under the same indenture and are considered a single class of securities. The two tranches of the 2018 Notes, issued in August 2013 and March 2014, were issued under the same indenture and are considered a single class of securities. | |||||||||||||||||||||||||
The following table presents the Partnership’s outstanding debt as of September 30, 2014, and December 31, 2013: | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
thousands | Principal | Carrying | Fair | Principal | Carrying | Fair | |||||||||||||||||||
Value | Value (1) | Value | Value (1) | ||||||||||||||||||||||
5.375% Senior Notes due 2021 | $ | 500,000 | $ | 495,576 | $ | 557,828 | $ | 500,000 | $ | 495,173 | $ | 533,615 | |||||||||||||
4.000% Senior Notes due 2022 | 670,000 | 673,017 | 690,811 | 670,000 | 673,278 | 641,237 | |||||||||||||||||||
Revolving credit facility | 170,000 | 170,000 | 170,000 | — | — | — | |||||||||||||||||||
2.600% Senior Notes due 2018 | 350,000 | 350,506 | 355,311 | 250,000 | 249,718 | 247,988 | |||||||||||||||||||
5.450% Senior Notes due 2044 | 400,000 | 393,815 | 437,573 | — | — | — | |||||||||||||||||||
Total debt outstanding | $ | 2,090,000 | $ | 2,082,914 | $ | 2,211,523 | $ | 1,420,000 | $ | 1,418,169 | $ | 1,422,840 | |||||||||||||
(1) | Fair value is measured using Level 2 inputs. | ||||||||||||||||||||||||
Debt activity. The following table presents the debt activity of the Partnership for the nine months ended September 30, 2014: | |||||||||||||||||||||||||
thousands | Carrying Value | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,418,169 | |||||||||||||||||||||||
Revolving credit facility borrowings | 650,000 | ||||||||||||||||||||||||
Issuance of 5.450% Senior Notes due 2044 | 400,000 | ||||||||||||||||||||||||
Issuance of 2.600% Senior Notes due 2018 | 100,000 | ||||||||||||||||||||||||
Repayments of revolving credit facility | (480,000 | ) | |||||||||||||||||||||||
Other | (5,255 | ) | |||||||||||||||||||||||
Balance at September 30, 2014 | $ | 2,082,914 | |||||||||||||||||||||||
8. DEBT AND INTEREST EXPENSE (CONTINUED) | |||||||||||||||||||||||||
Senior Notes. The 2044 Notes issued in March 2014 were offered at a price to the public of 98.443% of the face amount. Including the effects of the issuance and underwriting discounts, the effective interest rate of the 2044 Notes is 5.633%. Interest is paid semi-annually on April 1 and October 1 of each year. Proceeds (net of underwriting discount of $3.5 million, original issue discount and debt issuance costs) were used to repay amounts then outstanding under the Partnership’s RCF and for general partnership purposes. | |||||||||||||||||||||||||
The 2018 Notes issued in March 2014 were offered at a price to the public of 100.857% of the face amount. Including the effects of the issuance premium for the March 2014 offering, the issuance discount for the August 2013 offering of 2018 Notes and underwriting discounts, the effective interest rate of the 2018 Notes is 2.743%. Interest is paid semi-annually on February 15 and August 15 of each year. Proceeds (net of underwriting discount of $0.6 million, original issue premium and debt issuance costs) were used to repay amounts then outstanding under the Partnership’s RCF and for general partnership purposes. | |||||||||||||||||||||||||
At September 30, 2014, the Partnership was in compliance with all covenants under the indentures governing the 2021 Notes, 2022 Notes, 2018 Notes, and 2044 Notes. | |||||||||||||||||||||||||
Revolving credit facility. In February 2014, the Partnership entered into an amended and restated $1.2 billion senior unsecured RCF, which is expandable to a maximum of $1.5 billion, replacing an $800.0 million credit facility, which was originally entered into in March 2011. Subsequent to February 2014, the Partnership borrowed $350.0 million under the RCF to fund the acquisition of the TEFR Interests (see Note 2). The RCF matures in February 2019 and bears interest at London Interbank Offered Rate (“LIBOR”), plus applicable margins ranging from 0.975% to 1.45%, or an alternate base rate equal to the greatest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.5%, or (c) LIBOR plus 1%, in each case plus applicable margins currently ranging from zero to 0.45%, based upon the Partnership’s senior unsecured debt rating. The interest rate on the RCF was 1.46% at September 30, 2014. At December 31, 2013, the interest rate on the previous credit facility was 1.67%. The Partnership is required to pay a quarterly facility fee currently ranging from 0.15% to 0.30% of the commitment amount (whether used or unused), based upon the Partnership’s senior unsecured debt rating. The facility fee rate was 0.20% and 0.25% at September 30, 2014, and December 31, 2013, respectively. | |||||||||||||||||||||||||
As of September 30, 2014, the Partnership had $170.0 million of outstanding borrowings, $12.8 million in outstanding letters of credit and $1.0 billion available for borrowing under the RCF. At September 30, 2014, the Partnership was in compliance with all covenants under the RCF. See Note 10. | |||||||||||||||||||||||||
The 2021 Notes, 2022 Notes, 2018 Notes, 2044 Notes and obligations under the RCF are recourse to the Partnership’s general partner. The Partnership’s general partner is indemnified by a wholly owned subsidiary of Anadarko, Western Gas Resources, Inc. (“WGRI”), against any claims made against the general partner under the 2022 Notes, 2021 Notes, and/or the RCF. | |||||||||||||||||||||||||
In connection with the acquisitions of the Non-Operated Marcellus Interest, the Anadarko-Operated Marcellus Interest, and the TEFR Interests, the Partnership’s general partner and other wholly owned subsidiaries of Anadarko entered into indemnification agreements, whereby such subsidiaries agreed to indemnify the Partnership’s general partner for any recourse liability it may have for RCF borrowings, or other debt financing, attributable to the acquisitions of the Non-Operated Marcellus Interest, the Anadarko-Operated Marcellus Interest, and the TEFR Interests. These indemnification agreements apply to the 2044 Notes, 2018 Notes, and/or RCF borrowings outstanding related to the aforementioned acquisitions. | |||||||||||||||||||||||||
The Partnership’s general partner, the other indemnifying subsidiaries of Anadarko and WGRI also amended and restated the indemnity agreements between them to (i) conform language among all the indemnification agreements and (ii) reduce the amount for which WGRI would indemnify the Partnership’s general partner by an amount equal to any amounts payable to the Partnership’s general partner under the indemnification agreements related to the acquisitions of the Non-Operated Marcellus Interest, the Anadarko-Operated Marcellus Interest, and the TEFR Interests. | |||||||||||||||||||||||||
8. DEBT AND INTEREST EXPENSE (CONTINUED) | |||||||||||||||||||||||||
Interest expense. The following table summarizes the amounts included in interest expense: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Interest expense on long-term debt | $ | 21,671 | $ | 14,994 | $ | 59,251 | $ | 43,783 | |||||||||||||||||
Amortization of debt issuance costs and commitment fees | 1,107 | 1,135 | 3,799 | 3,252 | |||||||||||||||||||||
Capitalized interest | (1,900 | ) | (3,111 | ) | (7,347 | ) | (9,552 | ) | |||||||||||||||||
Interest expense | $ | 20,878 | $ | 13,018 | $ | 55,703 | $ | 37,483 | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
9. COMMITMENTS AND CONTINGENCIES | |
Litigation and legal proceedings. In March 2011, DCP Midstream, LP (“DCP”) filed a lawsuit against Anadarko and others, including a Partnership subsidiary, Kerr-McGee Gathering, LLC, in Weld County District Court (the “Court”) in Colorado, alleging that Anadarko diverted gas from DCP’s gathering and processing facilities in breach of certain dedication agreements. In addition to various claims against Anadarko, DCP is claiming unjust enrichment and other damages against Kerr-McGee Gathering, LLC, the entity that holds the Wattenberg assets (located in the DJ Basin complex). Anadarko countersued DCP asserting that DCP has not properly allocated values and charges to Anadarko for the gas that DCP gathers and/or processes, and seeks a judgment that DCP has no valid gathering or processing rights to much of the gas production it is claiming, in addition to other claims. | |
In July 2011, the Court denied the defendants’ motion to dismiss without ruling on the merits. In August 2014, the judge scheduled a jury trial for July 2015. In preparation for trial, the parties amended their pleadings in October 2014 and are engaged in discovery and motion practice. Management does not believe the outcome of this proceeding will have a material effect on the Partnership’s financial condition, results of operations or cash flows. The Partnership intends to vigorously defend this litigation. Furthermore, without regard to the merit of DCP’s claims, management believes that the Partnership has adequate contractual indemnities covering the claims against it in this lawsuit. | |
In addition, from time to time, the Partnership is involved in legal, tax, regulatory and other proceedings in various forums regarding performance, contracts and other matters that arise in the ordinary course of business. Management is not aware of any such proceeding for which a final disposition could have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows. | |
Other commitments. The Partnership has short-term payment obligations, or commitments, related to its capital spending programs, as well as those of its unconsolidated affiliates. As of September 30, 2014, the Partnership had unconditional payment obligations for services to be rendered or products to be delivered in connection with its capital projects of $70.5 million, the majority of which is expected to be paid in the next twelve months. These commitments relate primarily to projects at the DJ Basin complex, which include the continued construction of a second train and compressor expansions. | |
Lease commitments. Anadarko, on behalf of the Partnership, has entered into lease agreements for corporate offices, shared field offices and a warehouse supporting the Partnership’s operations. The leases for the corporate offices and shared field offices extend through 2017 and 2018, respectively, and the lease for the warehouse extends through February 2015 and includes an early termination clause. | |
Rent expense associated with the office, warehouse and equipment leases was $0.7 million and $2.2 million for the three and nine months ended September 30, 2014, respectively, and $0.6 million and $2.0 million for the three and nine months ended September 30, 2013, respectively. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
10. SUBSEQUENT EVENT | |
On October 28, 2014, the Partnership announced its entry into an Agreement and Plan of Merger by and among the Partnership, Maguire Midstream, LLC, Nuevo Midstream, LLC (“Nuevo”) and the other parties thereto, pursuant to which the Partnership will acquire Nuevo for $1.5 billion in cash, subject to adjustment. Nuevo’s assets currently include a cryogenic processing complex, gas gathering system and related facilities and equipment. The assets serve production from Reeves, Loving and Culberson Counties, Texas and Eddy and Lea Counties, New Mexico. | |
The Partnership expects to fund this acquisition with (i) cash on hand, (ii) borrowings under the RCF and (iii) the issuance of $750.0 million of Class C units to Anadarko. The Class C units will receive distributions in the form of additional Class C units until the end of 2017 (unless earlier converted), and will be disregarded with respect to calculating the Partnership’s cash distributions until they are converted to common units. The Class C units will convert into common units on a one-for-one basis on December 31, 2017, unless the Partnership elects to convert such units earlier or Anadarko extends the conversion date. | |
Pursuant to the terms of a joint venture agreement between Anadarko and a third party, the Partnership has offered the third party the right to acquire a 50% interest in Nuevo. The third party is required to respond to the Partnership’s offer within thirty days of receiving notice, and will have an additional thirty days to fund its share of the purchase price if it accepts the offer. The Partnership is prepared to purchase 100% of Nuevo if the third party does not participate. The Partnership expects the acquisition will close in the fourth quarter of 2014 subject to regulatory approval and customary closing conditions. |
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business combinations policy | ' |
Presentation of Partnership assets. The “Partnership assets” refer collectively to the assets owned and interests accounted for under the equity method by the Partnership as of September 30, 2014. Because Anadarko controls the Partnership through its ownership and control of WGP, which owns the Partnership’s general partner, each acquisition of Partnership assets from Anadarko has been considered a transfer of net assets between entities under common control. As such, the Partnership assets acquired from Anadarko were initially recorded at Anadarko’s historic carrying value, which did not correlate to the total acquisition price paid by the Partnership. Further, after an acquisition of Partnership assets from Anadarko, the Partnership may be required to recast its financial statements to include the activities of the Partnership assets as of the date of common control. See Note 2. | |
For those periods requiring recast, the consolidated financial statements for periods prior to the Partnership’s acquisition of the Partnership assets from Anadarko have been prepared from Anadarko’s historical cost-basis accounts and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned the Partnership assets during the periods reported. Net income attributable to the Partnership assets acquired from Anadarko for periods prior to the Partnership’s acquisition of the Partnership assets is not allocated to the limited partners for purposes of calculating net income per common unit. | |
TEFR Interests acquisition. Because the acquisition of the TEFR Interests was a transfer of net assets between entities under common control, the Partnership’s historical financial statements previously filed with the SEC have been recast in this Form 10-Q to include the results attributable to the TEFR Interests for all periods presented. The consolidated financial statements for periods prior to the Partnership’s acquisition of the TEFR Interests have been prepared from Anadarko’s historical cost-basis accounts and may not necessarily be indicative of the actual results of operations that would have occurred if the Partnership had owned the TEFR Interests during the periods reported. | |
Net income per common unit policy | ' |
The Partnership’s net income earned on and subsequent to the date of the acquisition of the Partnership assets (as defined in Note 1) is allocated to the general partner and the limited partners consistent with actual cash distributions, including incentive distributions allocable to the general partner. Undistributed earnings (net income in excess of distributions) or undistributed losses (available cash in excess of net income) are then allocated to the general partner and the limited partners in accordance with their respective ownership percentages. | |
Fair value policy | ' |
Note receivable from Anadarko. Concurrently with the closing of the Partnership’s May 2008 initial public offering, the Partnership loaned $260.0 million to Anadarko in exchange for a 30-year note bearing interest at a fixed annual rate of 6.50%, payable quarterly. The fair value of the note receivable from Anadarko was $322.3 million and $296.7 million at September 30, 2014, and December 31, 2013, respectively. The fair value of the note reflects consideration of credit risk and any premium or discount for the differential between the stated interest rate and quarter-end market interest rate, based on quoted market prices of similar debt instruments. Accordingly, the fair value of the note receivable from Anadarko is measured using Level 2 inputs. | |
During the first quarter of 2014, the Partnership recognized a $1.2 million impairment primarily related to a non-operational plant in the Powder River Basin that was impaired to its estimated fair value of $2.4 million, using Level 3 fair-value inputs. | |
Use of estimates policy | ' |
In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other methods considered reasonable under the particular circumstances. Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. Effects on the business, financial condition and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information furnished herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements, and certain prior-period amounts have been reclassified to conform to the current-year presentation. |
Description_of_Business_and_Ba2
Description of Business and Basis of Presentation (tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||
Assets Table | ' | |||||||||||||||||||||||||||||||
As of September 30, 2014, the Partnership’s assets and investments accounted for under the equity method consisted of the following: | ||||||||||||||||||||||||||||||||
Owned and | Operated | Non-Operated | Equity Interests | |||||||||||||||||||||||||||||
Operated | Interests | Interests | ||||||||||||||||||||||||||||||
Natural gas gathering systems | 13 | 1 | 5 | 2 | ||||||||||||||||||||||||||||
NGL gathering systems | — | — | — | 2 | ||||||||||||||||||||||||||||
Natural gas treating facilities | 8 | — | — | 1 | ||||||||||||||||||||||||||||
Natural gas processing facilities | 9 | 3 | — | 2 | ||||||||||||||||||||||||||||
NGL pipelines | 3 | — | — | 2 | ||||||||||||||||||||||||||||
Natural gas pipelines | 3 | — | — | — | ||||||||||||||||||||||||||||
Oil pipeline | — | — | — | 1 | ||||||||||||||||||||||||||||
Equity Investments Table | ' | |||||||||||||||||||||||||||||||
The following table presents the activity in the Partnership’s equity investments for the nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||
Equity Investments | ||||||||||||||||||||||||||||||||
thousands | Fort | White | Rendezvous | Mont | TEG | TEP | FRP | Total | ||||||||||||||||||||||||
Union | Cliffs | Belvieu JV | ||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 25,172 | $ | 35,039 | $ | 60,928 | $ | 122,480 | $ | 16,649 | $ | 197,731 | $ | 135,401 | $ | 593,400 | ||||||||||||||||
Investment earnings (loss), net of amortization | 4,811 | 8,385 | 1,180 | 22,872 | 466 | 3,488 | 120 | 41,322 | ||||||||||||||||||||||||
Contributions | — | 10,456 | — | 3,956 | 352 | 6,263 | 40,033 | 61,060 | ||||||||||||||||||||||||
Capitalized interest | — | — | — | — | — | — | 857 | 857 | ||||||||||||||||||||||||
Distributions | (4,619 | ) | (7,949 | ) | (2,636 | ) | (24,423 | ) | (373 | ) | (2,938 | ) | (123 | ) | (43,061 | ) | ||||||||||||||||
Distributions in excess of cumulative earnings (1) | — | (891 | ) | (1,993 | ) | — | (338 | ) | (5,321 | ) | (5,844 | ) | (14,387 | ) | ||||||||||||||||||
Balance at September 30, 2014 | $ | 25,364 | $ | 45,040 | $ | 57,479 | $ | 124,885 | $ | 16,756 | $ | 199,223 | $ | 170,444 | $ | 639,191 | ||||||||||||||||
(1) | Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, is calculated on an individual investment basis. |
Acquisitions_tables
Acquisitions (tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Acquisitions Table | ' | ||||||||||||||||
The following table presents the acquisitions completed by the Partnership during 2014 and 2013, and identifies the funding sources for such acquisitions: | |||||||||||||||||
thousands except unit and percent amounts | Acquisition | Percentage | Borrowings | Cash | Common | ||||||||||||
Date | Acquired | On Hand | Units Issued | ||||||||||||||
Non-Operated Marcellus Interest (1) | 3/1/13 | 33.75 | % | $ | 250,000 | $ | 215,500 | 449,129 | |||||||||
Anadarko-Operated Marcellus Interest (2) | 3/8/13 | 33.75 | % | 133,500 | — | — | |||||||||||
Mont Belvieu JV (3) | 6/5/13 | 25 | % | — | 78,129 | — | |||||||||||
OTTCO (4) | 9/3/13 | 100 | % | 27,500 | — | — | |||||||||||
TEFR Interests (5) | 3/3/14 | Various (5) | 350,000 | 6,250 | 308,490 | ||||||||||||
(1) | The Partnership acquired Anadarko’s 33.75% interest (non-operated) in the Liberty and Rome gas gathering systems, serving production from the Marcellus shale in north-central Pennsylvania. The interest acquired is referred to as the “Non-Operated Marcellus Interest.” In connection with the issuance of the common units, the Partnership’s general partner purchased 9,166 general partner units for consideration of $0.5 million to maintain its 2.0% general partner interest in the Partnership. | ||||||||||||||||
(2) | The Partnership acquired a 33.75% interest in each of the Larry’s Creek, Seely and Warrensville gas gathering systems, which are operated by Anadarko and serve production from the Marcellus shale in north-central Pennsylvania, from a third party. The interest acquired is referred to as the “Anadarko-Operated Marcellus Interest.” During the third quarter of 2013, the Partnership recorded a $1.1 million decrease in the assets acquired and liabilities assumed in the acquisition, representing the final purchase price allocation. | ||||||||||||||||
(3) | The Partnership acquired a 25% interest in the Mont Belvieu JV, an entity formed to design, construct, and own two fractionation trains located in Mont Belvieu, Texas, from a third party. The interest acquired is accounted for under the equity method of accounting. | ||||||||||||||||
(4) | The Partnership acquired Overland Trail Transmission, LLC (“OTTCO”), a Delaware limited liability company, from a third party. OTTCO owns and operates an intrastate pipeline that connects the Partnership’s Red Desert and Granger complexes in southwestern Wyoming. | ||||||||||||||||
(5) | The Partnership acquired a 20% interest in each of TEG and TEP and a 33.33% interest in FRP from Anadarko. These assets gather and transport NGLs primarily from the Anadarko and Denver-Julesburg Basins. The interests in these entities are accounted for under the equity method of accounting. In connection with the issuance of the common units, the Partnership’s general partner purchased 6,296 general partner units for consideration of $0.4 million to maintain its 2.0% general partner interest in the Partnership. | ||||||||||||||||
Impact to Historical Consolidated Statement of Income Table | ' | ||||||||||||||||
The following table presents the impact of the TEFR Interests on revenues, equity income (loss), net and net income (loss) as presented in the Partnership’s historical consolidated statements of income: | |||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||
thousands | Partnership Historical | TEFR Interests | Combined | ||||||||||||||
Revenues | $ | 273,502 | $ | — | $ | 273,502 | |||||||||||
Equity income (loss), net | 4,499 | 21 | 4,520 | ||||||||||||||
Net income (loss) | 81,776 | 106 | 81,882 | ||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||
thousands | Partnership Historical | TEFR Interests | Combined | ||||||||||||||
Revenues | $ | 750,670 | $ | — | $ | 750,670 | |||||||||||
Equity income (loss), net | 12,204 | (260 | ) | 11,944 | |||||||||||||
Net income (loss) | 196,724 | (21 | ) | 196,703 | |||||||||||||
Partnership_Distributions_tabl
Partnership Distributions (tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Distributions Made to Members or Limited Partners [Abstract] | ' | |||||||||||
Cash Distributions Table | ' | |||||||||||
The board of directors of the general partner declared the following cash distributions to the Partnership’s unitholders for the periods presented: | ||||||||||||
thousands except per-unit amounts | Total Quarterly | Total Quarterly | Date of | |||||||||
Quarters Ended | Distribution | Cash Distribution | Distribution | |||||||||
per Unit | ||||||||||||
2013 | ||||||||||||
31-Mar | $ | 0.54 | $ | 70,143 | May 2013 | |||||||
30-Jun | 0.56 | 79,315 | Aug-13 | |||||||||
30-Sep | 0.58 | 83,986 | Nov-13 | |||||||||
2014 | ||||||||||||
31-Mar | $ | 0.625 | $ | 98,749 | May 2014 | |||||||
30-Jun | 0.65 | 105,655 | Aug-14 | |||||||||
September 30 (1) | 0.675 | 111,609 | Nov-14 | |||||||||
(1) | On October 20, 2014, the board of directors of the Partnership’s general partner declared a cash distribution to the Partnership’s unitholders of $0.675 per unit, or $111.6 million in aggregate, including incentive distributions. The cash distribution is payable on November 13, 2014, to unitholders of record at the close of business on October 31, 2014. |
Equity_and_Partners_Capital_ta
Equity and Partners' Capital (tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Partners' Capital Notes [Abstract] | ' | |||||||||||||||||
Equity Offerings Table | ' | |||||||||||||||||
The Partnership completed the following public offerings of its common units during 2014 and 2013: | ||||||||||||||||||
thousands except unit | Common | GP Units | Price Per | Underwriting | Net | |||||||||||||
and per-unit amounts | Units Issued | Issued (1) | Unit | Discount and | Proceeds | |||||||||||||
Other Offering | ||||||||||||||||||
Expenses | ||||||||||||||||||
May 2013 equity offering (2) | 7,015,000 | 143,163 | $ | 61.18 | $ | 13,203 | $ | 424,733 | ||||||||||
December 2013 equity offering (3) | 4,800,000 | 97,959 | 61.51 | 9,447 | 291,827 | |||||||||||||
Continuous Offering Program - 2013 (4) | 685,735 | 13,996 | 60.84 | 965 | 41,603 | |||||||||||||
Continuous Offering Program - 2014 (5) | 1,133,384 | 23,132 | 73.48 | 1,726 | 83,257 | |||||||||||||
(1) | Represents general partner units issued to the general partner in exchange for the general partner’s proportionate capital contribution to maintain its 2.0% general partner interest in the Partnership. | |||||||||||||||||
(2) | Includes the issuance of 915,000 common units pursuant to the full exercise of the underwriters’ over-allotment option granted in connection with the May 2013 equity offering. | |||||||||||||||||
(3) | Includes the issuance of 300,000 common units on January 3, 2014, pursuant to the partial exercise of the underwriters’ over-allotment option granted in connection with the December 2013 equity offering. Net proceeds from this partial exercise (including the general partner’s proportionate capital contribution) were $18.1 million. | |||||||||||||||||
(4) | Represents common and general partner units issued during the year ended December 31, 2013, pursuant to the Partnership’s registration statement filed with the SEC in August 2012 authorizing the issuance of up to an aggregate of $125.0 million of common units (the “Continuous Offering Program”). Gross proceeds generated (including the general partner’s proportionate capital contributions) during the year ended December 31, 2013, were $42.6 million. The price per unit in the table above represents an average price for all issuances under the Continuous Offering Program during 2013. | |||||||||||||||||
(5) | Represents common and general partner units issued during the nine months ended September 30, 2014, under the Continuous Offering Program. Gross proceeds generated (including the general partner’s proportionate capital contributions) were $85.0 million. The price per unit in the table above represents an average price for all issuances under the Continuous Offering Program during the nine months ended September 30, 2014. As of September 30, 2014, the Partnership had used all the capacity to issue common units under this registration statement. | |||||||||||||||||
Limited Partner and General Partner Units Table | ' | |||||||||||||||||
The following table summarizes common and general partner units issued during the nine months ended September 30, 2014: | ||||||||||||||||||
Common | General | Total | ||||||||||||||||
Units | Partner Units | |||||||||||||||||
Balance at December 31, 2013 | 117,322,812 | 2,394,345 | 119,717,157 | |||||||||||||||
December 2013 equity offering | 300,000 | 6,122 | 306,122 | |||||||||||||||
Long-Term Incentive Plan awards | 5,418 | 112 | 5,530 | |||||||||||||||
TEFR Interests acquisition | 308,490 | 6,296 | 314,786 | |||||||||||||||
Continuous Offering Program | 1,133,384 | 23,132 | 1,156,516 | |||||||||||||||
Balance at September 30, 2014 | 119,070,104 | 2,430,007 | 121,500,111 | |||||||||||||||
Transactions_With_Affiliates_t
Transactions With Affiliates (tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | ' | ||||||||||||||||||||
Commodity Price Swap Agreements Table | ' | ||||||||||||||||||||
Below is a summary of the fixed price ranges on the Partnership’s outstanding commodity price swap agreements as of September 30, 2014: | |||||||||||||||||||||
per barrel except natural gas | 2014 | 2015 | 2016 | ||||||||||||||||||
Ethane | $ | 18.36 | − | $ | 30.53 | $ | 18.41 | − | $ | 23.41 | $ | 23.11 | |||||||||
Propane | 40.38 | − | 53.78 | 47.08 | − | 52.99 | 52.9 | ||||||||||||||
Isobutane | 61.24 | − | 75.13 | 62.09 | − | 74.02 | 73.89 | ||||||||||||||
Normal butane | 53.89 | − | 66.83 | 54.62 | − | 65.04 | 64.93 | ||||||||||||||
Natural gasoline | 71.85 | − | 90.89 | 72.88 | − | 81.82 | 81.68 | ||||||||||||||
Condensate | 75.22 | − | 87.3 | 76.47 | − | 81.82 | 81.68 | ||||||||||||||
Natural gas (per MMBtu) | 3.45 | − | 6.2 | 4.66 | − | 5.96 | 4.87 | ||||||||||||||
Gains (Losses) on Commodity Price Swap Agreements Table | ' | ||||||||||||||||||||
The following table summarizes realized gains and losses on commodity price swap agreements: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Gains (losses) on commodity price swap agreements related to sales: (1) | |||||||||||||||||||||
Natural gas sales | $ | 3,179 | $ | 6,923 | $ | 1,525 | $ | 14,707 | |||||||||||||
Natural gas liquids sales | 22,737 | 27,541 | 66,746 | 83,049 | |||||||||||||||||
Total | 25,916 | 34,464 | 68,271 | 97,756 | |||||||||||||||||
Losses on commodity price swap agreements related to purchases (2) | (19,533 | ) | (23,902 | ) | (38,081 | ) | (66,613 | ) | |||||||||||||
Net gains (losses) on commodity price swap agreements | $ | 6,383 | $ | 10,562 | $ | 30,190 | $ | 31,143 | |||||||||||||
(1) | Reported in affiliate natural gas, natural gas liquids and condensate sales in the consolidated statements of income in the period in which the related sale is recorded. | ||||||||||||||||||||
(2) | Reported in cost of product in the consolidated statements of income in the period in which the related purchase is recorded. | ||||||||||||||||||||
Related Party Transactions Tables | ' | ||||||||||||||||||||
The following table summarizes the Partnership’s purchases from and sales to Anadarko of pipe and equipment: | |||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
thousands | Purchases | Sales | |||||||||||||||||||
Cash consideration | $ | 16,143 | $ | 6,167 | $ | — | $ | 82 | |||||||||||||
Net carrying value | 9,745 | 2,039 | — | 34 | |||||||||||||||||
Partners’ capital adjustment | $ | 6,398 | $ | 4,128 | $ | — | $ | 48 | |||||||||||||
The following table summarizes affiliate transactions, which include revenue from affiliates, reimbursement of operating expenses and purchases of natural gas: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenues (1) | $ | 245,500 | $ | 213,125 | $ | 708,456 | $ | 591,010 | |||||||||||||
Equity income, net | 19,063 | 4,520 | 41,322 | 11,944 | |||||||||||||||||
Cost of product (1) | 22,728 | 33,753 | 74,592 | 97,801 | |||||||||||||||||
Operation and maintenance (2) | 14,556 | 13,469 | 42,472 | 41,021 | |||||||||||||||||
General and administrative (3) | 6,566 | 5,867 | 19,859 | 17,325 | |||||||||||||||||
Operating expenses | 43,850 | 53,089 | 136,923 | 156,147 | |||||||||||||||||
Interest income, net (4) | 4,225 | 4,225 | 12,675 | 12,675 | |||||||||||||||||
Distributions to unitholders (5) | 60,794 | 44,378 | 169,001 | 121,493 | |||||||||||||||||
(1) | Represents amounts 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 the Partnership assets, as well as expenses incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets by the Partnership. | ||||||||||||||||||||
(3) | Represents general and administrative expense incurred on and subsequent to the date of the Partnership’s acquisition of the Partnership assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of the Partnership assets by the Partnership. These amounts include equity-based compensation expense allocated to the Partnership by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plans within this Note 5). | ||||||||||||||||||||
(4) | Represents interest income recognized on the note receivable from Anadarko. | ||||||||||||||||||||
(5) | Represents distributions paid under the partnership agreement (see Note 3 and Note 4). |
Property_Plant_and_Equipment_t
Property, Plant and Equipment (table) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||||
Property, Plant and Equipment Table | ' | ||||||||||
A summary of the historical cost of the Partnership’s property, plant and equipment is as follows: | |||||||||||
thousands | Estimated Useful Life | 30-Sep-14 | December 31, 2013 | ||||||||
Land | n/a | $ | 2,584 | $ | 2,584 | ||||||
Gathering systems | 3 to 47 years | 4,244,640 | 3,673,008 | ||||||||
Pipelines and equipment | 15 to 45 years | 145,851 | 146,008 | ||||||||
Assets under construction | n/a | 345,799 | 405,633 | ||||||||
Other | 3 to 40 years | 15,405 | 11,867 | ||||||||
Total property, plant and equipment | 4,754,279 | 4,239,100 | |||||||||
Accumulated depreciation | 986,692 | 855,845 | |||||||||
Net property, plant and equipment | $ | 3,767,587 | $ | 3,383,255 | |||||||
Components_of_Working_Capital_
Components of Working Capital (tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Components Of Working Capital [Abstract] | ' | ||||||||
Other Current Assets Table | ' | ||||||||
A summary of other current assets is as follows: | |||||||||
thousands | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Natural gas liquids inventory | $ | 2,022 | $ | 2,584 | |||||
Natural gas imbalance receivables | 1,181 | 3,605 | |||||||
Prepaid insurance | 2,521 | 2,123 | |||||||
Other | 1,049 | 1,710 | |||||||
Total other current assets | $ | 6,773 | $ | 10,022 | |||||
Accrued Liabilities Table | ' | ||||||||
A summary of accrued liabilities is as follows: | |||||||||
thousands | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Accrued capital expenditures | $ | 92,559 | $ | 94,750 | |||||
Accrued plant purchases | 30,563 | 21,396 | |||||||
Accrued interest expense | 28,525 | 18,119 | |||||||
Short-term asset retirement obligations | 483 | 1,966 | |||||||
Short-term remediation and reclamation obligations | 562 | 562 | |||||||
Other | 186 | 218 | |||||||
Total accrued liabilities | $ | 152,878 | $ | 137,011 | |||||
Debt_and_Interest_Expense_tabl
Debt and Interest Expense (tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Debt Instruments [Abstract] | ' | ||||||||||||||||||||||||
Debt Outstanding and Debt Activity Tables | ' | ||||||||||||||||||||||||
The following table presents the Partnership’s outstanding debt as of September 30, 2014, and December 31, 2013: | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
thousands | Principal | Carrying | Fair | Principal | Carrying | Fair | |||||||||||||||||||
Value | Value (1) | Value | Value (1) | ||||||||||||||||||||||
5.375% Senior Notes due 2021 | $ | 500,000 | $ | 495,576 | $ | 557,828 | $ | 500,000 | $ | 495,173 | $ | 533,615 | |||||||||||||
4.000% Senior Notes due 2022 | 670,000 | 673,017 | 690,811 | 670,000 | 673,278 | 641,237 | |||||||||||||||||||
Revolving credit facility | 170,000 | 170,000 | 170,000 | — | — | — | |||||||||||||||||||
2.600% Senior Notes due 2018 | 350,000 | 350,506 | 355,311 | 250,000 | 249,718 | 247,988 | |||||||||||||||||||
5.450% Senior Notes due 2044 | 400,000 | 393,815 | 437,573 | — | — | — | |||||||||||||||||||
Total debt outstanding | $ | 2,090,000 | $ | 2,082,914 | $ | 2,211,523 | $ | 1,420,000 | $ | 1,418,169 | $ | 1,422,840 | |||||||||||||
(1) | Fair value is measured using Level 2 inputs. | ||||||||||||||||||||||||
Debt activity. The following table presents the debt activity of the Partnership for the nine months ended September 30, 2014: | |||||||||||||||||||||||||
thousands | Carrying Value | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,418,169 | |||||||||||||||||||||||
Revolving credit facility borrowings | 650,000 | ||||||||||||||||||||||||
Issuance of 5.450% Senior Notes due 2044 | 400,000 | ||||||||||||||||||||||||
Issuance of 2.600% Senior Notes due 2018 | 100,000 | ||||||||||||||||||||||||
Repayments of revolving credit facility | (480,000 | ) | |||||||||||||||||||||||
Other | (5,255 | ) | |||||||||||||||||||||||
Balance at September 30, 2014 | $ | 2,082,914 | |||||||||||||||||||||||
Interest Expense Table | ' | ||||||||||||||||||||||||
The following table summarizes the amounts included in interest expense: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
thousands | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Interest expense on long-term debt | $ | 21,671 | $ | 14,994 | $ | 59,251 | $ | 43,783 | |||||||||||||||||
Amortization of debt issuance costs and commitment fees | 1,107 | 1,135 | 3,799 | 3,252 | |||||||||||||||||||||
Capitalized interest | (1,900 | ) | (3,111 | ) | (7,347 | ) | (9,552 | ) | |||||||||||||||||
Interest expense | $ | 20,878 | $ | 13,018 | $ | 55,703 | $ | 37,483 | |||||||||||||||||
Description_of_Business_and_Ba3
Description of Business and Basis of Presentation - Asset Table (details) | Sep. 30, 2014 |
unit | |
Operated [Member] | Natural Gas Gathering Systems [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 13 |
Operated [Member] | Natural Gas Treating Facilities [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 8 |
Operated [Member] | Natural Gas Processing Facilities [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 9 |
Operated [Member] | Natural Gas Liquids Pipelines [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 3 |
Operated [Member] | Natural Gas Pipelines [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 3 |
Operated Interests [Member] | Natural Gas Gathering Systems [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 1 |
Operated Interests [Member] | Natural Gas Processing Facilities [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 3 |
Non-Operated Interests [Member] | Natural Gas Gathering Systems [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 5 |
Equity Interests [Member] | Natural Gas Gathering Systems [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 2 |
Equity Interests [Member] | Natural Gas Liquids Gathering Systems [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 2 |
Equity Interests [Member] | Natural Gas Treating Facilities [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 1 |
Equity Interests [Member] | Natural Gas Processing Facilities [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 2 |
Equity Interests [Member] | Natural Gas Liquids Pipelines [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 2 |
Equity Interests [Member] | Oil pipeline [Member] | ' |
Assets [Line Items] | ' |
Assets, number of units | 1 |
Description_of_Business_and_Ba4
Description of Business and Basis of Presentation - Equity Investments Table (details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Balance | ' | ' | $593,400 | [1] | ' | |||
Investment earnings (loss), net of amortization | 19,063 | [2],[3] | 4,520 | [1],[2],[3] | 41,322 | [2],[3],[4] | 11,944 | [1],[2],[3],[4] |
Contributions | ' | ' | 63,267 | 252,308 | [1] | |||
Capitalized interest | ' | ' | 857 | ' | ||||
Distributions | ' | ' | -43,061 | [4] | -15,563 | [1],[4] | ||
Distributions in excess of cumulative earnings | ' | ' | -14,387 | [4],[5] | 0 | [1],[4] | ||
Balance | 639,191 | ' | 639,191 | ' | ||||
Fort Union [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Balance | ' | ' | 25,172 | ' | ||||
Investment earnings (loss), net of amortization | ' | ' | 4,811 | ' | ||||
Contributions | ' | ' | 0 | ' | ||||
Capitalized interest | ' | ' | 0 | ' | ||||
Distributions | ' | ' | -4,619 | ' | ||||
Distributions in excess of cumulative earnings | ' | ' | 0 | [5] | ' | |||
Balance | 25,364 | ' | 25,364 | ' | ||||
White Cliffs [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Balance | ' | ' | 35,039 | ' | ||||
Investment earnings (loss), net of amortization | ' | ' | 8,385 | ' | ||||
Contributions | ' | ' | 10,456 | ' | ||||
Capitalized interest | ' | ' | 0 | ' | ||||
Distributions | ' | ' | -7,949 | ' | ||||
Distributions in excess of cumulative earnings | ' | ' | -891 | [5] | ' | |||
Balance | 45,040 | ' | 45,040 | ' | ||||
Rendezvous [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Balance | ' | ' | 60,928 | ' | ||||
Investment earnings (loss), net of amortization | ' | ' | 1,180 | ' | ||||
Contributions | ' | ' | 0 | ' | ||||
Capitalized interest | ' | ' | 0 | ' | ||||
Distributions | ' | ' | -2,636 | ' | ||||
Distributions in excess of cumulative earnings | ' | ' | -1,993 | [5] | ' | |||
Balance | 57,479 | ' | 57,479 | ' | ||||
Mont Belvieu Joint Venture [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Balance | ' | ' | 122,480 | ' | ||||
Investment earnings (loss), net of amortization | ' | ' | 22,872 | ' | ||||
Contributions | ' | ' | 3,956 | ' | ||||
Capitalized interest | ' | ' | 0 | ' | ||||
Distributions | ' | ' | -24,423 | ' | ||||
Distributions in excess of cumulative earnings | ' | ' | 0 | [5] | ' | |||
Balance | 124,885 | ' | 124,885 | ' | ||||
Texas Express Gathering Limited Liability Company [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Balance | ' | ' | 16,649 | ' | ||||
Investment earnings (loss), net of amortization | ' | ' | 466 | ' | ||||
Contributions | ' | ' | 352 | ' | ||||
Capitalized interest | ' | ' | 0 | ' | ||||
Distributions | ' | ' | -373 | ' | ||||
Distributions in excess of cumulative earnings | ' | ' | -338 | [5] | ' | |||
Balance | 16,756 | ' | 16,756 | ' | ||||
Texas Express Pipeline Limited Liability Company [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Balance | ' | ' | 197,731 | ' | ||||
Investment earnings (loss), net of amortization | ' | ' | 3,488 | ' | ||||
Contributions | ' | ' | 6,263 | ' | ||||
Capitalized interest | ' | ' | 0 | ' | ||||
Distributions | ' | ' | -2,938 | ' | ||||
Distributions in excess of cumulative earnings | ' | ' | -5,321 | [5] | ' | |||
Balance | 199,223 | ' | 199,223 | ' | ||||
Front Range Pipeline Limited Liability Company [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Balance | ' | ' | 135,401 | ' | ||||
Investment earnings (loss), net of amortization | ' | ' | 120 | ' | ||||
Contributions | ' | ' | 40,033 | ' | ||||
Capitalized interest | ' | ' | 857 | ' | ||||
Distributions | ' | ' | -123 | ' | ||||
Distributions in excess of cumulative earnings | ' | ' | -5,844 | [5] | ' | |||
Balance | 170,444 | ' | 170,444 | ' | ||||
Equity Investments [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Contributions | ' | ' | $61,060 | ' | ||||
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||||||
[2] | Income earned from equity investments is classified as affiliate. See Note 1. | |||||||
[3] | Represents amounts earned or incurred on and subsequent to the date of acquisition of the Partnership assets, as well as amounts earned or incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | |||||||
[4] | Income earned on, distributions from and contributions to equity investments are classified as affiliate. See Note 1. | |||||||
[5] | Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, is calculated on an individual investment basis. |
Description_of_Business_and_Ba5
Description of Business and Basis of Presentation - Additional Information (details) | 9 Months Ended |
Sep. 30, 2014 | |
General partner's interest | 2.00% |
Western Gas Equity Partners [Member] | ' |
General partner's interest | 2.00% |
Ownership interest | 100.00% |
Incentive Distribution Rights [Member] | Western Gas Equity Partners [Member] | ' |
General partner's interest | 100.00% |
Fort Union [Member] | ' |
Equity investment ownership | 14.81% |
Rendezvous [Member] | ' |
Equity investment ownership | 22.00% |
White Cliffs [Member] | ' |
Equity investment ownership | 10.00% |
Mont Belvieu Joint Venture [Member] | ' |
Equity investment ownership | 25.00% |
Texas Express Pipeline Limited Liability Company [Member] | ' |
Equity investment ownership | 20.00% |
Texas Express Gathering Limited Liability Company [Member] | ' |
Equity investment ownership | 20.00% |
Front Range Pipeline Limited Liability Company [Member] | ' |
Equity investment ownership | 33.33% |
Non-Operated Marcellus Interest [Member] | ' |
Ownership interest | 33.75% |
Anadarko-Operated Marcellus Interest [Member] | ' |
Ownership interest | 33.75% |
Newcastle [Member] | ' |
Ownership interest | 50.00% |
Chipeta Processing Limited Liability Company [Member] | ' |
Ownership interest by noncontrolling owner | 25.00% |
Acquisitions_Acquisitions_Tabl
Acquisitions - Acquisitions Table (details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 01, 2013 | Mar. 01, 2013 | Mar. 08, 2013 | Mar. 08, 2013 | Jun. 05, 2013 | Jun. 05, 2013 | Jun. 05, 2013 | Sep. 03, 2013 | Mar. 03, 2014 | Mar. 03, 2014 | Mar. 03, 2014 | Mar. 03, 2014 | Mar. 03, 2014 | Mar. 01, 2013 | Mar. 03, 2014 | ||||||||||
Non-Operated Marcellus Interest [Member] | Non-Operated Marcellus Interest [Member] | Anadarko-Operated Marcellus Interest [Member] | Anadarko-Operated Marcellus Interest [Member] | Mont Belvieu Joint Venture [Member] | Mont Belvieu Joint Venture [Member] | Mont Belvieu Joint Venture [Member] | Overland Trail Transmission Limited Liability Company [Member] | Texas Express And Front Range [Member] | Texas Express And Front Range [Member] | Texas Express Gathering Limited Liability Company [Member] | Texas Express Pipeline Limited Liability Company [Member] | Front Range Pipeline Limited Liability Company [Member] | Common Units [Member] | Common Units [Member] | |||||||||||||
Fractionator [Member] | Non-Operated Marcellus Interest [Member] | Texas Express And Front Range [Member] | |||||||||||||||||||||||||
unit | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Percentage acquired | ' | ' | ' | 33.75% | [1] | ' | 33.75% | [2] | ' | ' | ' | ' | 100.00% | [3] | ' | ' | ' | ' | ' | ' | ' | ||||||
Equity investment ownership | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | [4] | ' | ' | ' | ' | 20.00% | 20.00% | 33.33% | ' | ' | ||||||||
Borrowings | $1,136,878,000 | $842,566,000 | [5] | ' | $250,000,000 | [1] | ' | $133,500,000 | [2] | ' | ' | ' | ' | $27,500,000 | [3] | $350,000,000 | [6] | ' | ' | ' | ' | ' | ' | ||||
Cash on hand | ' | ' | ' | 215,500,000 | [1] | ' | ' | ' | 78,129,000 | [4] | ' | ' | ' | 6,250,000 | [6] | ' | ' | ' | ' | ' | ' | ||||||
Units issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 449,129 | [1] | 308,490 | [6] | |||||||
Table Text Block Supplement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
General partner units issued | ' | ' | 2,394,345 | ' | 9,166 | ' | ' | ' | ' | ' | ' | ' | 6,296 | ' | ' | ' | ' | ' | |||||||||
Proceeds from the issuance of common and general partner units, net of offering expenses | 101,502,000 | 427,848,000 | [5] | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ||||||||
General partner's interest | 2.00% | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Purchase price adjustment | ' | ' | ' | ' | ' | ' | $1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Assets, number of units | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
[1] | The Partnership acquired Anadarko’s 33.75% interest (non-operated) in the Liberty and Rome gas gathering systems, serving production from the Marcellus shale in north-central Pennsylvania. The interest acquired is referred to as the “Non-Operated Marcellus Interest.†In connection with the issuance of the common units, the Partnership’s general partner purchased 9,166 general partner units for consideration of $0.5 million to maintain its 2.0% general partner interest in the Partnership. | ||||||||||||||||||||||||||
[2] | The Partnership acquired a 33.75% interest in each of the Larry’s Creek, Seely and Warrensville gas gathering systems, which are operated by Anadarko and serve production from the Marcellus shale in north-central Pennsylvania, from a third party. The interest acquired is referred to as the “Anadarko-Operated Marcellus Interest.†During the third quarter of 2013, the Partnership recorded a $1.1 million decrease in the assets acquired and liabilities assumed in the acquisition, representing the final purchase price allocation. | ||||||||||||||||||||||||||
[3] | The Partnership acquired Overland Trail Transmission, LLC (“OTTCOâ€), a Delaware limited liability company, from a third party. OTTCO owns and operates an intrastate pipeline that connects the Partnership’s Red Desert and Granger complexes in southwestern Wyoming. | ||||||||||||||||||||||||||
[4] | The Partnership acquired a 25% interest in the Mont Belvieu JV, an entity formed to design, construct, and own two fractionation trains located in Mont Belvieu, Texas, from a third party. The interest acquired is accounted for under the equity method of accounting. | ||||||||||||||||||||||||||
[5] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | ||||||||||||||||||||||||||
[6] | The Partnership acquired a 20% interest in each of TEG and TEP and a 33.33% interest in FRP from Anadarko. These assets gather and transport NGLs primarily from the Anadarko and Denver-Julesburg Basins. The interests in these entities are accounted for under the equity method of accounting. In connection with the issuance of the common units, the Partnership’s general partner purchased 6,296 general partner units for consideration of $0.4 million to maintain its 2.0% general partner interest in the Partnership. |
Acquisitions_Impact_to_Histori
Acquisitions - Impact to Historical Consolidated Statement of Income Table (details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenues | $326,465 | $273,502 | [1] | $935,866 | $750,670 | [1] | ||
Equity income, net | 19,063 | [2],[3] | 4,520 | [1],[2],[3] | 41,322 | [2],[3],[4] | 11,944 | [1],[2],[3],[4] |
Net income (loss) | 106,540 | 81,882 | [1] | 296,149 | 196,703 | [1] | ||
Texas Express And Front Range [Member] | ' | ' | ' | ' | ||||
Revenues | ' | 0 | ' | 0 | ||||
Equity income, net | ' | 21 | ' | -260 | ||||
Net income (loss) | ' | 106 | ' | -21 | ||||
Partnership Historical [Member] | ' | ' | ' | ' | ||||
Revenues | ' | 273,502 | ' | 750,670 | ||||
Equity income, net | ' | 4,499 | ' | 12,204 | ||||
Net income (loss) | ' | $81,776 | ' | $196,724 | ||||
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||||||
[2] | Income earned from equity investments is classified as affiliate. See Note 1. | |||||||
[3] | Represents amounts earned or incurred on and subsequent to the date of acquisition of the Partnership assets, as well as amounts earned or incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | |||||||
[4] | Income earned on, distributions from and contributions to equity investments are classified as affiliate. See Note 1. |
Partnership_Distributions_Cash
Partnership Distributions - Cash Distributions Table (details) (USD $) | 3 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | |
Distributions Made to Members or Limited Partners [Abstract] | ' | ' | ' | ' | ' | ' | |
Total quarterly distribution per unit | $0.68 | [1] | $0.65 | $0.63 | $0.58 | $0.56 | $0.54 |
Total quarterly cash distribution | $111,609 | [1] | $105,655 | $98,749 | $83,986 | $79,315 | $70,143 |
[1] | On October 20, 2014, the board of directors of the Partnership’s general partner declared a cash distribution to the Partnership’s unitholders of $0.675 per unit, or $111.6 million in aggregate, including incentive distributions. The cash distribution is payable on November 13, 2014, to unitholders of record at the close of business on October 31, 2014. |
Partnership_Distributions_Addi
Partnership Distributions - Additional Information (details) | 9 Months Ended |
Sep. 30, 2014 | |
Distributions Made to Members or Limited Partners [Abstract] | ' |
Partnership agreement day requirement of distribution of available cash | '45 days |
Equity_and_Partners_Capital_Eq
Equity and Partners' Capital - Equity Offerings Table (details) (USD $) | 1 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | 31-May-13 | Sep. 30, 2014 | Jan. 03, 2014 | Dec. 31, 2013 | 31-May-13 | Jan. 03, 2014 | 31-May-13 | Dec. 31, 2013 | 31-May-13 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||
Option On Securities [Member] | Common Units [Member] | Common Units [Member] | Common Units [Member] | Common Units [Member] | General Partner [Member] | General Partner [Member] | Continuous Offering Program [Member] | Continuous Offering Program [Member] | Continuous Offering Program [Member] | Continuous Offering Program [Member] | Continuous Offering Program [Member] | Continuous Offering Program [Member] | Continuous Offering Program [Member] | ||||||||||||||||
Option On Securities [Member] | Option On Securities [Member] | Common Units [Member] | Common Units [Member] | General Partner [Member] | General Partner [Member] | ||||||||||||||||||||||||
Capital Unit [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Common units issued | ' | ' | ' | ' | 4,800,000 | [1] | 7,015,000 | [2] | 300,000 | 915,000 | ' | ' | ' | ' | ' | 1,133,384 | [3] | 685,735 | [4] | ' | ' | ||||||||
General partner units issued | ' | ' | ' | ' | ' | ' | ' | ' | 97,959 | [1],[5] | 143,163 | [2],[5] | 1,156,516 | ' | ' | ' | ' | 23,132 | [3],[5] | 13,996 | [4],[5] | ||||||||
Price per unit | $61.51 | [1] | $61.18 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Average price per unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $73.48 | [3] | $60.84 | [4] | ' | ' | ' | ' | ' | ||||||||||
Underwriting discount and other offering expenses | $9,447,000 | [1] | $13,203,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | $1,726,000 | [3] | $965,000 | [4] | ' | ' | ' | ' | ' | ||||||||
Net proceeds | 291,827,000 | [1] | 424,733,000 | [2] | ' | 18,100,000 | ' | ' | ' | ' | ' | ' | 83,257,000 | [3] | 41,603,000 | [4] | ' | ' | ' | ' | ' | ||||||||
Table Text Block Supplement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
General partner's interest | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Maximum aggregate principal of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | ' | ' | ' | ' | ||||||||||||
Gross proceeds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $85,000,000 | $42,600,000 | ' | ' | ' | ' | ' | ||||||||||||
[1] | Includes the issuance of 300,000 common units on January 3, 2014, pursuant to the partial exercise of the underwriters’ over-allotment option granted in connection with the December 2013 equity offering. Net proceeds from this partial exercise (including the general partner’s proportionate capital contribution) were $18.1 million. | ||||||||||||||||||||||||||||
[2] | Includes the issuance of 915,000 common units pursuant to the full exercise of the underwriters’ over-allotment option granted in connection with the May 2013 equity offering. | ||||||||||||||||||||||||||||
[3] | Represents common and general partner units issued during the nine months ended September 30, 2014, under the Continuous Offering Program. Gross proceeds generated (including the general partner’s proportionate capital contributions) were $85.0 million. The price per unit in the table above represents an average price for all issuances under the Continuous Offering Program during the nine months ended September 30, 2014. As of September 30, 2014, the Partnership had used all the capacity to issue common units under this registration statement. | ||||||||||||||||||||||||||||
[4] | Represents common and general partner units issued during the year ended December 31, 2013, pursuant to the Partnership’s registration statement filed with the SEC in August 2012 authorizing the issuance of up to an aggregate of $125.0 million of common units (the “Continuous Offering Programâ€). Gross proceeds generated (including the general partner’s proportionate capital contributions) during the year ended December 31, 2013, were $42.6 million. The price per unit in the table above represents an average price for all issuances under the Continuous Offering Program during 2013. | ||||||||||||||||||||||||||||
[5] | Represents general partner units issued to the general partner in exchange for the general partner’s proportionate capital contribution to maintain its 2.0% general partner interest in the Partnership. |
Equity_and_Partners_Capital_Li
Equity and Partners' Capital - Limited Partner and General Partner Units (details) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-13 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |||||||||
December 2013 Equity Offering [Member] | Texas Express And Front Range [Member] | Continuous Offering Program [Member] | Common Units [Member] | Common Units [Member] | Common Units [Member] | Common Units [Member] | Common Units [Member] | Common Units [Member] | Common Units [Member] | General Partner [Member] | General Partner [Member] | General Partner [Member] | General Partner [Member] | General Partner [Member] | General Partner [Member] | General Partner [Member] | ||||||||||
December 2013 Equity Offering [Member] | Texas Express And Front Range [Member] | Continuous Offering Program [Member] | Continuous Offering Program [Member] | December 2013 Equity Offering [Member] | Texas Express And Front Range [Member] | Continuous Offering Program [Member] | Continuous Offering Program [Member] | |||||||||||||||||||
Capital Unit [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance | 119,717,157 | ' | ' | ' | ' | ' | 117,322,812 | ' | ' | ' | ' | ' | ' | 2,394,345 | ' | ' | ' | ' | ||||||||
Common units issued | ' | ' | ' | ' | 4,800,000 | [1] | 7,015,000 | [2] | ' | 300,000 | ' | 1,133,384 | [3] | 685,735 | [4] | ' | ' | ' | ' | ' | ' | ' | ||||
Offering | ' | 306,122 | ' | 1,156,516 | ' | ' | ' | ' | ' | ' | ' | 97,959 | [1],[5] | 143,163 | [2],[5] | ' | 6,122 | ' | 23,132 | [3],[5] | 13,996 | [4],[5] | ||||
Long-term incentive plan awards | 5,530 | ' | ' | ' | ' | ' | 5,418 | ' | ' | ' | ' | ' | ' | 112 | ' | ' | ' | ' | ||||||||
Acquisition | ' | ' | 314,786 | ' | ' | ' | ' | ' | 308,490 | ' | ' | ' | ' | ' | ' | 6,296 | ' | ' | ||||||||
Balance | 121,500,111 | ' | ' | ' | 117,322,812 | ' | 119,070,104 | ' | ' | ' | ' | 2,394,345 | ' | 2,430,007 | ' | ' | ' | ' | ||||||||
[1] | Includes the issuance of 300,000 common units on January 3, 2014, pursuant to the partial exercise of the underwriters’ over-allotment option granted in connection with the December 2013 equity offering. Net proceeds from this partial exercise (including the general partner’s proportionate capital contribution) were $18.1 million. | |||||||||||||||||||||||||
[2] | Includes the issuance of 915,000 common units pursuant to the full exercise of the underwriters’ over-allotment option granted in connection with the May 2013 equity offering. | |||||||||||||||||||||||||
[3] | Represents common and general partner units issued during the nine months ended September 30, 2014, under the Continuous Offering Program. Gross proceeds generated (including the general partner’s proportionate capital contributions) were $85.0 million. The price per unit in the table above represents an average price for all issuances under the Continuous Offering Program during the nine months ended September 30, 2014. As of September 30, 2014, the Partnership had used all the capacity to issue common units under this registration statement. | |||||||||||||||||||||||||
[4] | Represents common and general partner units issued during the year ended December 31, 2013, pursuant to the Partnership’s registration statement filed with the SEC in August 2012 authorizing the issuance of up to an aggregate of $125.0 million of common units (the “Continuous Offering Programâ€). Gross proceeds generated (including the general partner’s proportionate capital contributions) during the year ended December 31, 2013, were $42.6 million. The price per unit in the table above represents an average price for all issuances under the Continuous Offering Program during 2013. | |||||||||||||||||||||||||
[5] | Represents general partner units issued to the general partner in exchange for the general partner’s proportionate capital contribution to maintain its 2.0% general partner interest in the Partnership. |
Equity_and_Partners_Capital_Ad
Equity and Partners' Capital - Additional Information (details) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Schedule Of Investments [Line Items] | ' | ' |
Common units owned | 119,070,104 | 117,322,812 |
General partner units owned | 2,430,007 | 2,394,345 |
General partner's interest | 2.00% | ' |
Western Gas Equity Partners [Member] | ' | ' |
Schedule Of Investments [Line Items] | ' | ' |
Common units owned | 49,296,205 | ' |
Ownership interest | 40.60% | ' |
General partner units owned | 2,430,007 | ' |
General partner's interest | 2.00% | ' |
Other Subsidiaries Of Anadarko [Member] | ' | ' |
Schedule Of Investments [Line Items] | ' | ' |
Common units owned | 757,619 | ' |
Ownership interest | 0.60% | ' |
Public [Member] | ' | ' |
Schedule Of Investments [Line Items] | ' | ' |
Common units owned | 69,016,280 | ' |
Ownership interest | 56.80% | ' |
Incentive Distribution Rights [Member] | Western Gas Equity Partners [Member] | ' | ' |
Schedule Of Investments [Line Items] | ' | ' |
General partner's interest | 100.00% | ' |
Transactions_With_Affiliates_C
Transactions With Affiliates - Commodity Price Per Unit Table (details) | Sep. 30, 2014 |
Ethane [Member] | Year 2016 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 23.11 |
Ethane [Member] | Minimum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 18.36 |
Ethane [Member] | Minimum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 18.41 |
Ethane [Member] | Maximum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 30.53 |
Ethane [Member] | Maximum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 23.41 |
Propane [Member] | Year 2016 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 52.9 |
Propane [Member] | Minimum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 40.38 |
Propane [Member] | Minimum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 47.08 |
Propane [Member] | Maximum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 53.78 |
Propane [Member] | Maximum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 52.99 |
Isobutane [Member] | Year 2016 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 73.89 |
Isobutane [Member] | Minimum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 61.24 |
Isobutane [Member] | Minimum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 62.09 |
Isobutane [Member] | Maximum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 75.13 |
Isobutane [Member] | Maximum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 74.02 |
Normal Butane [Member] | Year 2016 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 64.93 |
Normal Butane [Member] | Minimum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 53.89 |
Normal Butane [Member] | Minimum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 54.62 |
Normal Butane [Member] | Maximum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 66.83 |
Normal Butane [Member] | Maximum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 65.04 |
Natural Gasoline [Member] | Year 2016 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 81.68 |
Natural Gasoline [Member] | Minimum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 71.85 |
Natural Gasoline [Member] | Minimum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 72.88 |
Natural Gasoline [Member] | Maximum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 90.89 |
Natural Gasoline [Member] | Maximum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 81.82 |
Condensate [Member] | Year 2016 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 81.68 |
Condensate [Member] | Minimum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 75.22 |
Condensate [Member] | Minimum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 76.47 |
Condensate [Member] | Maximum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 87.3 |
Condensate [Member] | Maximum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 81.82 |
Natural Gas (per MMbtu) [Member] | Year 2016 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 4.87 |
Natural Gas (per MMbtu) [Member] | Minimum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 3.45 |
Natural Gas (per MMbtu) [Member] | Minimum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 4.66 |
Natural Gas (per MMbtu) [Member] | Maximum [Member] | Year 2014 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 6.2 |
Natural Gas (per MMbtu) [Member] | Maximum [Member] | Year 2015 [Member] | ' |
Commodity Price Risk Swap [Line Items] | ' |
Commodity Swap Fixed Price | 5.96 |
Transactions_With_Affiliates_G
Transactions With Affiliates - Gains Losses Commodity Price Swap Table (details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Gains (losses) on commodity price swap | ' | ' | ' | ' | ||||
Net gains (losses) on commodity price swap agreements | $6,383 | $10,562 | $30,190 | $31,143 | ||||
Sales [Member] | ' | ' | ' | ' | ||||
Gains (losses) on commodity price swap | ' | ' | ' | ' | ||||
Net gains (losses) on commodity price swap agreements | 25,916 | [1] | 34,464 | [1] | 68,271 | [1] | 97,756 | [1] |
Sales [Member] | Natural Gas [Member] | ' | ' | ' | ' | ||||
Gains (losses) on commodity price swap | ' | ' | ' | ' | ||||
Net gains (losses) on commodity price swap agreements | 3,179 | [1] | 6,923 | [1] | 1,525 | [1] | 14,707 | [1] |
Sales [Member] | Natural Gas Liquids [Member] | ' | ' | ' | ' | ||||
Gains (losses) on commodity price swap | ' | ' | ' | ' | ||||
Net gains (losses) on commodity price swap agreements | 22,737 | [1] | 27,541 | [1] | 66,746 | [1] | 83,049 | [1] |
Cost of Sales [Member] | ' | ' | ' | ' | ||||
Gains (losses) on commodity price swap | ' | ' | ' | ' | ||||
Net gains (losses) on commodity price swap agreements | ($19,533) | [2] | ($23,902) | [2] | ($38,081) | [2] | ($66,613) | [2] |
[1] | Reported in affiliate natural gas, natural gas liquids and condensate sales in the consolidated statements of income in the period in which the related sale is recorded. | |||||||
[2] | Reported in cost of product in the consolidated statements of income in the period in which the related purchase is recorded. |
Transactions_With_Affiliates_E
Transactions With Affiliates - Equipment Purchases and Sales Table (details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Related Party Transaction [Line Items] | ' | ' | |
Partners' capital adjustment | $6,398 | $4,080 | [1] |
Affiliated Entity [Member] | Purchases [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Consideration given for equipment | 16,143 | 6,167 | |
Net carrying value | 9,745 | 2,039 | |
Partners' capital adjustment | 6,398 | 4,128 | |
Affiliated Entity [Member] | Sales [Member] | ' | ' | |
Related Party Transaction [Line Items] | ' | ' | |
Consideration received for equipment | 0 | 82 | |
Net carrying value | 0 | 34 | |
Partners' capital adjustment | $0 | $48 | |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. |
Transactions_With_Affiliates_S
Transactions With Affiliates - Summary Table (details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | $326,465 | ' | ' | $273,502 | [1] | ' | ' | $935,866 | $750,670 | [1] | ||
Equity income, net | 19,063 | [2],[3] | ' | ' | 4,520 | [1],[2],[3] | ' | ' | 41,322 | [2],[3],[4] | 11,944 | [1],[2],[3],[4] |
Cost of product | 108,393 | [5] | ' | ' | 93,516 | [1],[5] | ' | ' | 318,428 | [5] | 270,059 | [1],[5] |
Operation and maintenance | 53,657 | [5] | ' | ' | 42,757 | [1],[5] | ' | ' | 145,064 | [5] | 121,165 | [1],[5] |
General and administrative | 7,889 | [5] | ' | ' | 7,276 | [1],[5] | ' | ' | 24,304 | [5] | 22,228 | [1],[5] |
Operating expenses | 222,154 | ' | ' | 187,813 | [1] | ' | ' | 638,523 | 538,523 | [1] | ||
Interest income, net | 4,225 | [6] | ' | ' | 4,225 | [1],[6] | ' | ' | 12,675 | [6] | 12,675 | [1],[6] |
Distributions to unitholders | 111,609 | [7] | 105,655 | 98,749 | 83,986 | 79,315 | 70,143 | ' | ' | |||
Affiliated Entity [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenues | 245,500 | [2] | ' | ' | 213,125 | [1],[2] | ' | ' | 708,456 | [2] | 591,010 | [1],[2] |
Cost of product | 22,728 | [2] | ' | ' | 33,753 | [2] | ' | ' | 74,592 | [2] | 97,801 | [2] |
Operation and maintenance | 14,556 | [8] | ' | ' | 13,469 | [8] | ' | ' | 42,472 | [8] | 41,021 | [8] |
General and administrative | 6,566 | [9] | ' | ' | 5,867 | [9] | ' | ' | 19,859 | [9] | 17,325 | [9] |
Operating expenses | 43,850 | ' | ' | 53,089 | ' | ' | 136,923 | 156,147 | ||||
Distributions to unitholders | $60,794 | [10] | ' | ' | $44,378 | [10] | ' | ' | $169,001 | [10] | $121,493 | [10] |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||||||||||
[2] | Represents amounts earned or incurred on and subsequent to the date of acquisition of the Partnership assets, as well as amounts earned or incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | |||||||||||
[3] | Income earned from equity investments is classified as affiliate. See Note 1. | |||||||||||
[4] | Income earned on, distributions from and contributions to equity investments are classified as affiliate. See Note 1. | |||||||||||
[5] | Cost of product includes product purchases from Anadarko (as defined in Note 1) of $22.7 million and $74.6 million for the three and nine months ended September 30, 2014, respectively, and $33.8 million and $97.8 million for the three and nine months ended September 30, 2013, respectively. Operation and maintenance includes charges from Anadarko of $14.6 million and $42.5 million for the three and nine months ended September 30, 2014, respectively, and $13.5 million and $41.0 million for the three and nine months ended September 30, 2013, respectively. General and administrative includes charges from Anadarko of $6.6 million and $19.9 million for the three and nine months ended September 30, 2014, respectively, and $5.9 million and $17.3 million for the three and nine months ended September 30, 2013, respectively. See Note 5. | |||||||||||
[6] | Represents interest income recognized on the note receivable from Anadarko. | |||||||||||
[7] | On October 20, 2014, the board of directors of the Partnership’s general partner declared a cash distribution to the Partnership’s unitholders of $0.675 per unit, or $111.6 million in aggregate, including incentive distributions. The cash distribution is payable on November 13, 2014, to unitholders of record at the close of business on October 31, 2014. | |||||||||||
[8] | Represents expenses incurred on and subsequent to the date of the acquisition of the Partnership assets, as well as expenses incurred by Anadarko on a historical basis related to the Partnership assets prior to the acquisition of such assets. | |||||||||||
[9] | Represents general and administrative expense incurred on and subsequent to the date of the Partnership’s acquisition of the Partnership assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of the Partnership assets by the Partnership. These amounts include equity-based compensation expense allocated to the Partnership by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plans within this Note 5). | |||||||||||
[10] | Represents distributions paid under the partnership agreement (see Note 3 and Note 4). |
Transactions_With_Affiliates_A
Transactions With Affiliates - Additional Information (details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | 31-May-08 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Western Gas Partners Long Term Incentive Plan [Member] | Western Gas Partners Long Term Incentive Plan [Member] | Western Gas Partners Long Term Incentive Plan [Member] | Western Gas Partners Long Term Incentive Plan [Member] | Western Gas Equity Partners Long Term Incentive Plan [Member] | Western Gas Equity Partners Long Term Incentive Plan [Member] | Western Gas Equity Partners Long Term Incentive Plan [Member] | Western Gas Equity Partners Long Term Incentive Plan [Member] | Independent Director [Member] | Note Receivable From Anadarko [Member] | Note Receivable From Anadarko [Member] | Note Receivable From Anadarko [Member] | Gathering Transportation And Treating [Member] | Gathering Transportation And Treating [Member] | Gathering Transportation And Treating [Member] | Gathering Transportation And Treating [Member] | Processing [Member] | Processing [Member] | Processing [Member] | Processing [Member] | ||||
Anadarko Incentive Plans [Member] | Anadarko Incentive Plans [Member] | Anadarko Incentive Plans [Member] | Anadarko Incentive Plans [Member] | Western Gas Partners Long Term Incentive Plan [Member] | |||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Note receivable - Anadarko | $260,000,000 | $260,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | $260,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note receivable, due date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14-May-38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Fixed annual rate for note receivable bearing interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Fair value of the note receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 322,300,000 | 296,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Affiliate throughput percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.00% | 53.00% | 48.00% | 55.00% | 58.00% | 60.00% | 58.00% | 59.00% | |
Phantom units vesting period | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Equity-based compensation expense | ' | ' | 200,000 | 100,000 | 500,000 | 400,000 | 900,000 | 800,000 | 2,700,000 | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Partners' capital adjustment | $628,000 | ' | ' | ' | ' | ' | ' | ' | $2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. |
Recovered_Sheet1
Property, Plant and Equipment Table (details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
In Thousands, unless otherwise specified | Land [Member] | Land [Member] | Gathering Systems [Member] | Gathering Systems [Member] | Gathering Systems [Member] | Gathering Systems [Member] | Pipelines And Equipment [Member] | Pipelines And Equipment [Member] | Pipelines And Equipment [Member] | Pipelines And Equipment [Member] | Assets Under Construction [Member] | Assets Under Construction [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | |||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Property, plant and equipment | $4,754,279 | $4,239,100 | [1] | $2,584 | $2,584 | $4,244,640 | $3,673,008 | ' | ' | $145,851 | $146,008 | ' | ' | $345,799 | $405,633 | $15,405 | $11,867 | ' | ' |
Accumulated depreciation | 986,692 | 855,845 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net property, plant and equipment | $3,767,587 | $3,383,255 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | '3 years | '47 years | ' | ' | '15 years | '45 years | ' | ' | ' | ' | '3 years | '40 years | |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (details) (USD $) | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||
Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | ||
Natural Gas Processing Plant [Member] | Non-Operated Marcellus Interest [Member] | Non-Operated Marcellus Interest [Member] | Hilight System [Member] | Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | |
Unguaranteed residual value | ' | ' | $4,600,000 | ' | ' | ' | ' | ' | |
Property, plant and equipment | ' | 4,754,279,000 | 4,239,100,000 | [1] | 4,600,000 | ' | ' | ' | ' |
Impairment | 1,200,000 | ' | ' | ' | 400,000 | 700,000 | 500,000 | ' | |
Estimated fair value | ' | ' | ' | ' | ' | ' | ' | $2,400,000 | |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. |
Components_of_Working_Capital_1
Components of Working Capital - Other Current Assets Table (details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other Current Assets [Line Items] | ' | ' | ||
Natural gas liquids inventory | $2,022 | $2,584 | ||
Natural gas imbalance receivables | 1,181 | 3,605 | ||
Prepaid insurance | 2,521 | 2,123 | ||
Other | 1,049 | 1,710 | ||
Total other current assets | $6,773 | [1] | $10,022 | [1],[2] |
[1] | Other current assets includes natural gas imbalance receivables from affiliates of $0.1 million as of September 30, 2014, and December 31, 2013. | |||
[2] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. |
Components_of_Working_Capital_2
Components of Working Capital - Accrued Liabilities Table (details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accrued Liabilities [Line Items] | ' | ' | ||
Other accrued liabilities | $186 | $218 | ||
Accrued interest expense | 28,525 | 18,119 | ||
Short-term asset retirement obligations | 483 | 1,966 | ||
Short-term remediation and reclamation obligations | 562 | 562 | ||
Total accrued liabilities | 152,878 | [1] | 137,011 | [1],[2] |
Accrued Capital Expenditures [Member] | ' | ' | ||
Accrued Liabilities [Line Items] | ' | ' | ||
Other accrued liabilities | 92,559 | 94,750 | ||
Accrued Plant Purchases [Member] | ' | ' | ||
Accrued Liabilities [Line Items] | ' | ' | ||
Other accrued liabilities | $30,563 | $21,396 | ||
[1] | Accrued liabilities includes amounts payable to affiliates of zero and $0.1 million as of September 30, 2014, and December 31, 2013, respectively. | |||
[2] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. |
Debt_and_Interest_Expense_Debt
Debt and Interest Expense - Debt Outstanding Table (details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Principal | $2,090,000 | $1,420,000 | ||
Carrying Value | 2,082,914 | 1,418,169 | [1] | |
Fair Value | 2,211,523 | [2] | 1,422,840 | [2] |
Revolving Credit Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal | 170,000 | 0 | ||
Carrying Value | 170,000 | 0 | ||
Fair Value | 170,000 | [2] | 0 | [2] |
Senior Notes 5 Point 375 Percent Due 2021 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal | 500,000 | 500,000 | ||
Carrying Value | 495,576 | 495,173 | ||
Fair Value | 557,828 | [2] | 533,615 | [2] |
Senior Notes 4 Percent Due 2022 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal | 670,000 | 670,000 | ||
Carrying Value | 673,017 | 673,278 | ||
Fair Value | 690,811 | [2] | 641,237 | [2] |
Senior Notes 2 Point 6 Percent Due 2018 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal | 350,000 | 250,000 | ||
Carrying Value | 350,506 | 249,718 | ||
Fair Value | 355,311 | [2] | 247,988 | [2] |
Senior Notes 5 Point 45 Percent Due 2044 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal | 400,000 | 0 | ||
Carrying Value | 393,815 | 0 | ||
Fair Value | $437,573 | [2] | $0 | [2] |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||
[2] | Fair value is measured using Level 2 inputs. |
Debt_and_Interest_Expense_Debt1
Debt and Interest Expense - Debt Activity Table (details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ' | |
Beginning Balance | $1,418,169 | [1] |
Other | -5,255 | |
Ending Balance | 2,082,914 | |
Revolving Credit Facility [Member] | ' | |
Debt Instrument [Line Items] | ' | |
Beginning Balance | 0 | |
Borrowings | 650,000 | |
Repayments | -480,000 | |
Ending Balance | 170,000 | |
Senior Notes 5 Point 45 Percent Due 2044 [Member] | ' | |
Debt Instrument [Line Items] | ' | |
Beginning Balance | 0 | |
Borrowings | 400,000 | |
Ending Balance | 393,815 | |
Senior Notes 2 Point 6 Percent Due 2018 [Member] | ' | |
Debt Instrument [Line Items] | ' | |
Beginning Balance | 249,718 | |
Borrowings | 100,000 | |
Ending Balance | $350,506 | |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. |
Debt_and_Interest_Expense_Inte
Debt and Interest Expense - Interest Expense Table (details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Debt Instruments [Abstract] | ' | ' | ' | ' | ||
Interest expense on long-term debt | $21,671 | $14,994 | $59,251 | $43,783 | ||
Amortization of debt issuance costs and commitment fees | 1,107 | 1,135 | 3,799 | 3,252 | ||
Capitalized interest | -1,900 | -3,111 | -7,347 | -9,552 | ||
Interest expense | $20,878 | $13,018 | [1] | $55,703 | $37,483 | [1] |
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. |
Debt_and_Interest_Expense_Addi
Debt and Interest Expense - Additional Information (details) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Mar. 31, 2011 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Mar. 03, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | |||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Percentage Above Federal Funds Effective Rate [Member] | Texas Express And Front Range [Member] | Texas Express And Front Range [Member] | Senior Notes 5 Point 375 Percent Due 2021 [Member] | Senior Notes 4 Percent Due 2022 [Member] | Senior Notes 2 Point 6 Percent Due 2018 [Member] | Senior Notes 2 Point 6 Percent Due 2018 [Member] | Senior Notes 5 Point 45 Percent Due 2044 [Member] | Senior Notes 5 Point 45 Percent Due 2044 [Member] | |||||
Alternate Base Rate [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Alternate Base Rate [Member] | Alternate Base Rate [Member] | Alternate Base Rate [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.38% | 4.00% | ' | 2.60% | ' | 5.45% | ||
Offering percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.86% | ' | 98.44% | ' | ||
Effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.74% | ' | 5.63% | ||
Underwriting discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $600,000 | ' | $3,500,000 | ' | ||
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jun-21 | 1-Jul-22 | ' | 15-Aug-18 | ' | 1-Apr-44 | ||
Line of credit, expiration date | ' | ' | 26-Feb-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Borrowings | 1,136,878,000 | 842,566,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | [2] | 350,000,000 | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | ' | ' | ' | ' | 1,200,000,000 | 800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revolving credit facility, expandable maximum borrowing capacity | ' | ' | ' | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate percent above LIBOR | ' | ' | ' | ' | ' | ' | 1.00% | 0.98% | 0.00% | 1.45% | 0.45% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revolving credit facility, interest rate at period end | ' | ' | 1.46% | 1.67% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Facility fee | ' | ' | 0.20% | 0.25% | ' | ' | ' | 0.15% | ' | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding borrowings | ' | ' | 170,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding letters of credit | ' | ' | 12,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Available borrowing capacity | ' | ' | $1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Financial information has been recast to include the financial position and results attributable to the TEFR Interests. See Note 1 and Note 2. | |||||||||||||||||||||
[2] | The Partnership acquired a 20% interest in each of TEG and TEP and a 33.33% interest in FRP from Anadarko. These assets gather and transport NGLs primarily from the Anadarko and Denver-Julesburg Basins. The interests in these entities are accounted for under the equity method of accounting. In connection with the issuance of the common units, the Partnership’s general partner purchased 6,296 general partner units for consideration of $0.4 million to maintain its 2.0% general partner interest in the Partnership. |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Committed capital | $70.50 | ' | $70.50 | ' |
Rent expense associated with office and equipment leases | $0.70 | $0.60 | $2.20 | $2 |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent Event [Member], Nuevo Midstream, LLC [Member], USD $) | 0 Months Ended |
Oct. 28, 2014 | |
Subsequent Event [Line Items] | ' |
Cash consideration | $1,500,000,000 |
Minimum [Member] | ' |
Subsequent Event [Line Items] | ' |
Percentage acquired | 50.00% |
Maximum [Member] | ' |
Subsequent Event [Line Items] | ' |
Percentage acquired | 100.00% |
Redeemable Convertible Preferred Stock [Member] | ' |
Subsequent Event [Line Items] | ' |
Class C unit proceeds | $750,000,000 |