Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 29, 2018 | |
Document And Entity Information [Abstract] | ||
Trading Symbol | WGP | |
Entity Registrant Name | Western Gas Equity Partners, LP | |
Entity Central Index Key | 1,423,902 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Units Outstanding | 218,937,797 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||
Revenues and Other | |||||||
Revenues and other | $ 507,762 | $ 574,695 | $ 1,432,483 | $ 1,616,338 | |||
Equity income, net – affiliates | [1] | 43,110 | 21,519 | 102,752 | 62,708 | ||
Operating expenses | |||||||
Cost of product | [2] | 105,966 | 239,223 | 303,518 | 631,859 | ||
Operation and maintenance | [2] | 111,359 | 79,536 | 300,266 | 229,444 | ||
General and administrative | [2] | 15,158 | 12,922 | 44,853 | 37,595 | ||
Property and other taxes | 10,954 | 11,215 | 35,090 | 35,433 | |||
Depreciation and amortization | 82,553 | 72,539 | 238,187 | 216,272 | |||
Impairments | 25,317 | 2,159 | 152,708 | 170,079 | |||
Total operating expenses | 351,307 | 417,594 | 1,074,622 | 1,320,682 | |||
Gain (loss) on divestiture and other, net | [3] | 65 | 72 | 351 | [4] | 135,017 | [4] |
Proceeds from business interruption insurance claims | 0 | 0 | 0 | 29,882 | |||
Operating income (loss) | 199,630 | 178,692 | 460,964 | 523,263 | |||
Interest income – affiliates | [5] | 4,225 | 4,225 | 12,675 | 12,675 | ||
Interest expense | (48,316) | (36,117) | (133,359) | (108,447) | |||
Other income (expense), net | 655 | 311 | 2,749 | 1,029 | |||
Income (loss) before income taxes | 156,194 | 147,111 | 343,029 | 428,520 | |||
Income tax (benefit) expense | 1,517 | 510 | 3,301 | 4,905 | |||
Net income (loss) | 154,677 | 146,601 | 339,728 | 423,615 | |||
Net income (loss) attributable to noncontrolling interests | 47,203 | 50,399 | 63,669 | 146,529 | |||
Net income (loss) attributable to Western Gas Equity Partners, LP | 107,474 | 96,202 | 276,059 | 277,086 | |||
Service Revenues - Fee Based [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 409,106 | 1,146,099 | |||||
Service Revenues - Product Based [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 22,735 | 67,433 | |||||
Product Sales [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 75,150 | 217,738 | |||||
Affiliates [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | [1] | 274,514 | 351,127 | 766,179 | 982,595 | ||
Operating expenses | |||||||
Cost of product | [1] | 46,971 | 22,902 | 131,428 | 60,497 | ||
Operation and maintenance | [6] | 25,145 | 18,110 | 68,830 | 53,661 | ||
General and administrative | [7] | 11,780 | 10,414 | 35,000 | 29,637 | ||
Total operating expenses | 83,896 | 51,426 | 235,258 | 143,795 | |||
Interest expense | [8] | 0 | 0 | 0 | (71) | ||
Affiliates [Member] | Service Revenues - Fee Based [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 204,090 | 157,303 | 582,579 | 484,601 | |||
Affiliates [Member] | Service Revenues - Product Based [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 701 | 0 | 1,228 | 0 | |||
Affiliates [Member] | Product Sales [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 69,723 | 185,002 | 182,372 | 489,172 | |||
Affiliates [Member] | Other [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 0 | 8,822 | 0 | 8,822 | |||
Third Parties [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 233,248 | 223,568 | 666,304 | 633,743 | |||
Operating expenses | |||||||
Interest expense | (48,316) | (36,117) | (133,359) | (108,376) | |||
Third Parties [Member] | Service Revenues - Fee Based [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 205,016 | 148,884 | 563,520 | 428,835 | |||
Third Parties [Member] | Service Revenues - Product Based [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 22,034 | 0 | 66,205 | 0 | |||
Third Parties [Member] | Product Sales [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | 5,427 | 74,139 | 35,366 | 201,318 | |||
Third Parties [Member] | Other [Member] | |||||||
Revenues and Other | |||||||
Revenues and other | $ 771 | $ 545 | $ 1,213 | $ 3,590 | |||
Limited Partner [Member] | |||||||
Limited partners' interest in net income (loss): | |||||||
Net income (loss) per common unit - basic and diluted | $ 0.49 | $ 0.44 | $ 1.26 | $ 1.27 | |||
Weighted-average common units outstanding - basic and diluted | 218,938 | 218,933 | 218,935 | 218,931 | |||
[1] | Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | ||||||
[2] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $47.0 million and $131.4 million for the three and nine months ended September 30, 2018, respectively, and $22.9 million and $60.5 million for the three and nine months ended September 30, 2017, respectively. Operation and maintenance includes charges from affiliates of $25.1 million and $68.8 million for the three and nine months ended September 30, 2018, respectively, and $18.1 million and $53.7 million for the three and nine months ended September 30, 2017, respectively. General and administrative includes charges from affiliates of $11.8 million and $35.0 million for the three and nine months ended September 30, 2018, respectively, and $10.4 million and $29.6 million for the three and nine months ended September 30, 2017, respectively. See Note 6. | ||||||
[3] | Includes losses related to an incident at the DBM complex for the nine months ended September 30, 2017. See Note 1. | ||||||
[4] | Includes losses related to an incident at the DBM complex for the nine months ended September 30, 2017. See Note 1. | ||||||
[5] | Represents interest income recognized on the note receivable from Anadarko. | ||||||
[6] | Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. | ||||||
[7] | Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and Anadarko Incentive Plan within this Note 6) and amounts charged by Anadarko under the WGP and WES omnibus agreements. | ||||||
[8] | Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 10). |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Cost of product | [1] | $ 105,966 | $ 239,223 | $ 303,518 | $ 631,859 |
Operation and maintenance | [1] | 111,359 | 79,536 | 300,266 | 229,444 |
General and administrative | [1] | 15,158 | 12,922 | 44,853 | 37,595 |
Affiliates [Member] | |||||
Cost of product | [2] | 46,971 | 22,902 | 131,428 | 60,497 |
Operation and maintenance | [3] | 25,145 | 18,110 | 68,830 | 53,661 |
General and administrative | [4] | $ 11,780 | $ 10,414 | $ 35,000 | $ 29,637 |
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $47.0 million and $131.4 million for the three and nine months ended September 30, 2018, respectively, and $22.9 million and $60.5 million for the three and nine months ended September 30, 2017, respectively. Operation and maintenance includes charges from affiliates of $25.1 million and $68.8 million for the three and nine months ended September 30, 2018, respectively, and $18.1 million and $53.7 million for the three and nine months ended September 30, 2017, respectively. General and administrative includes charges from affiliates of $11.8 million and $35.0 million for the three and nine months ended September 30, 2018, respectively, and $10.4 million and $29.6 million for the three and nine months ended September 30, 2017, respectively. See Note 6. | ||||
[2] | Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | ||||
[3] | Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. | ||||
[4] | Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and Anadarko Incentive Plan within this Note 6) and amounts charged by Anadarko under the WGP and WES omnibus agreements. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Current assets | |||
Cash and cash equivalents | $ 132,877 | $ 79,588 | |
Accounts receivable, net | [1] | 224,887 | 160,239 |
Other current assets | [2] | 26,119 | 15,383 |
Total current assets | 383,883 | 255,210 | |
Note receivable - Anadarko | 260,000 | 260,000 | |
Property, plant and equipment | |||
Cost | 8,912,755 | 7,864,535 | |
Less accumulated depreciation | 2,494,121 | 2,133,644 | |
Net property, plant and equipment | 6,418,634 | 5,730,891 | |
Goodwill | 416,160 | 416,160 | |
Other intangible assets | 753,947 | 775,269 | |
Equity investments | 786,876 | 566,211 | |
Other assets | 14,057 | 12,570 | |
Total assets | 9,033,557 | 8,016,311 | |
Current liabilities | |||
Accounts and imbalance payables | 360,651 | 349,801 | |
Short-term debt | 28,000 | 0 | |
Accrued ad valorem taxes | 37,123 | 26,633 | |
Accrued liabilities | [3] | 114,504 | 47,992 |
Total current liabilities | 540,278 | 424,426 | |
Long-term liabilities | |||
Long-term debt | 4,566,464 | 3,492,712 | |
Deferred income taxes | 10,285 | 7,409 | |
Asset retirement obligations | 157,933 | 143,394 | |
Other liabilities | [4] | 141,957 | 3,491 |
Total long-term liabilities | 4,876,639 | 3,647,006 | |
Total liabilities | 5,416,917 | 4,071,432 | |
Equity and partners' capital | |||
Common units (218,937,797 and 218,933,141 units issued and outstanding at September 30, 2018, and December 31, 2017, respectively) | 981,408 | 1,061,125 | |
Total partners' capital | 981,408 | 1,061,125 | |
Noncontrolling interests | 2,635,232 | 2,883,754 | |
Total equity and partners' capital | 3,616,640 | 3,944,879 | |
Total liabilities, equity and partners' capital | $ 9,033,557 | $ 8,016,311 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $59.1 million and $36.1 million as of September 30, 2018, and December 31, 2017, respectively. | ||
[2] | Other current assets includes affiliate amounts of $1.4 million and zero as of September 30, 2018, and December 31, 2017, respectively. | ||
[3] | Accrued liabilities includes affiliate amounts of $2.3 million and $0.2 million as of September 30, 2018, and December 31, 2017, respectively. | ||
[4] | Other liabilities includes affiliate amounts of $50.2 million and $0.7 million as of September 30, 2018, and December 31, 2017, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Common units issued | 218,937,797 | 218,933,141 | |
Common units outstanding | 218,937,797 | 218,933,141 | |
Accounts receivable, net | [1] | $ 224,887 | $ 160,239 |
Other current assets | [2] | 26,119 | 15,383 |
Accrued liabilities | [3] | 114,504 | 47,992 |
Other liabilities | [4] | 141,957 | 3,491 |
Affiliates [Member] | |||
Accounts receivable, net | 59,100 | 36,100 | |
Other current assets | 1,400 | 0 | |
Accrued liabilities | 2,300 | 200 | |
Other liabilities | $ 50,200 | $ 700 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $59.1 million and $36.1 million as of September 30, 2018, and December 31, 2017, respectively. | ||
[2] | Other current assets includes affiliate amounts of $1.4 million and zero as of September 30, 2018, and December 31, 2017, respectively. | ||
[3] | Accrued liabilities includes affiliate amounts of $2.3 million and $0.2 million as of September 30, 2018, and December 31, 2017, respectively. | ||
[4] | Other liabilities includes affiliate amounts of $50.2 million and $0.7 million as of September 30, 2018, and December 31, 2017, respectively. |
Consolidated Statement of Equit
Consolidated Statement of Equity and Partners' Capital - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Western Gas Partners, LP [Member] | Chipeta [Member] | Common Units [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member]Western Gas Partners, LP [Member] | Noncontrolling Interests [Member]Chipeta [Member] | |
Balance at Dec. 31, 2017 | $ 3,944,879 | $ 1,061,125 | $ 2,883,754 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Net income (loss) | 339,728 | 276,059 | 63,669 | |||||
Above-market component of swap agreements with Anadarko | [1] | 40,722 | 40,722 | |||||
WES equity transactions, net | [2] | 0 | (14,565) | 14,565 | ||||
Distributions to noncontrolling interest owners | $ (287,435) | $ (9,446) | $ (287,435) | $ (9,446) | ||||
Distributions to WGP unitholders | (372,189) | (372,189) | ||||||
Contributions of equity-based compensation to WES by Anadarko | 4,306 | 4,306 | ||||||
Other | 454 | 150 | 304 | |||||
Balance at Sep. 30, 2018 | 3,616,640 | 981,408 | 2,635,232 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Cumulative effect of accounting change | [3] | $ (44,379) | $ (14,200) | $ (30,179) | ||||
[1] | See Note 6. | |||||||
[2] | Includes the impact of the cumulative effect of accounting change in WES’s consolidated statement of equity and partners’ capital. The $14.6 million decrease to partners’ capital, together with net income (loss) attributable to Western Gas Equity Partners, LP, totaled $261.5 million for the nine months ended September 30, 2018. | |||||||
[3] | See Note 1. |
Consolidated Statement of Equ_2
Consolidated Statement of Equity and Partners' Capital (Parenthetical) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($) | ||
WES equity transactions, net | $ 0 | [1] |
Combined change in Partners' Capital from WES equity transactions, net and net income (loss) attributable to Western Gas Equity Partners, LP | 261,500 | |
Common Units [Member] | ||
WES equity transactions, net | $ (14,565) | [1] |
[1] | Includes the impact of the cumulative effect of accounting change in WES’s consolidated statement of equity and partners’ capital. The $14.6 million decrease to partners’ capital, together with net income (loss) attributable to Western Gas Equity Partners, LP, totaled $261.5 million for the nine months ended September 30, 2018. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | |||
Cash flows from operating activities | ||||
Net income (loss) | $ 339,728 | $ 423,615 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 238,187 | 216,272 | ||
Impairments | 152,708 | 170,079 | ||
Non-cash equity-based compensation expense | 4,834 | 3,751 | ||
Deferred income taxes | 3,054 | 3,882 | ||
Accretion and amortization of long-term obligations, net | 4,659 | 3,701 | ||
Equity income, net – affiliates | [1] | (102,752) | (62,708) | |
Distributions from equity investment earnings – affiliates | 93,827 | 64,313 | ||
(Gain) loss on divestiture and other, net | [2],[3] | (351) | (135,017) | |
Lower of cost or market inventory adjustments | 184 | 140 | ||
Changes in assets and liabilities: | ||||
(Increase) decrease in accounts receivable, net | (64,690) | (47,137) | ||
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | 55,480 | 4,127 | ||
Change in other items, net | 24,511 | (2,549) | ||
Net cash provided by operating activities | 749,379 | 642,469 | ||
Cash flows from investing activities | ||||
Capital expenditures | (949,022) | (419,193) | ||
Investments in equity affiliates | (67,979) | (384) | ||
Distributions from equity investments in excess of cumulative earnings – affiliates | 18,097 | [4] | 16,255 | |
Proceeds from property insurance claims | 0 | 22,977 | ||
Net cash used in investing activities | (1,160,684) | (514,797) | ||
Cash flows from financing activities | ||||
Borrowings, net of debt issuance costs | 2,135,629 | 249,989 | ||
Repayments of debt | (1,040,000) | 0 | ||
Increase (decrease) in outstanding checks | (2,687) | 3,310 | ||
Distributions to WGP unitholders | [5] | (372,189) | (324,290) | |
Net contributions from (distributions to) Anadarko | 0 | 30 | ||
Above-market component of swap agreements with Anadarko | [5] | 40,722 | 46,719 | |
Net cash provided by (used in) financing activities | 464,594 | (333,708) | ||
Net increase (decrease) in cash and cash equivalents | 53,289 | (206,036) | ||
Cash and cash equivalents at beginning of period | 79,588 | 359,072 | ||
Cash and cash equivalents at end of period | 132,877 | 153,036 | ||
Supplemental disclosures | ||||
Accretion expense and revisions to the Deferred purchase price obligation – Anadarko | 0 | (4,094) | ||
Net distributions to (contributions from) Anadarko of other assets | 0 | (1,373) | ||
Interest paid, net of capitalized interest | 114,790 | 98,956 | ||
Taxes paid (reimbursements received) | (87) | 189 | ||
Accrued capital expenditures | 178,694 | 165,732 | ||
Fair value of properties and equipment from non-cash third party transactions | [6] | 0 | 551,453 | |
Chipeta [Member] | ||||
Cash flows from financing activities | ||||
Distributions to Chipeta noncontrolling interest owner | (9,446) | (9,049) | ||
Western Gas Partners, LP [Member] | ||||
Cash flows from financing activities | ||||
Proceeds from the issuance of WES common units, net of offering expenses | 0 | (183) | ||
Distributions to noncontrolling interest owners of WES | (287,435) | (262,888) | ||
Affiliates [Member] | ||||
Cash flows from investing activities | ||||
Contributions in aid of construction costs from affiliates | 0 | 1,386 | ||
Acquisitions | (254) | (3,910) | ||
Cash flows from financing activities | ||||
Settlement of the Deferred purchase price obligation - Anadarko | [6] | 0 | (37,346) | |
Distributions to WGP unitholders | [7] | (298,818) | (264,533) | |
Affiliates [Member] | Western Gas Partners, LP [Member] | ||||
Cash flows from financing activities | ||||
Distributions to WGP unitholders | [8] | (5,642) | (5,280) | |
Supplemental disclosures | ||||
Net distributions to (contributions from) Anadarko of other assets | 0 | (1,373) | ||
Third Parties [Member] | ||||
Cash flows from investing activities | ||||
Acquisitions | (161,858) | (155,298) | ||
Proceeds from the sale of assets | $ 332 | $ 23,370 | ||
[1] | Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | |||
[2] | Includes losses related to an incident at the DBM complex for the nine months ended September 30, 2017. See Note 1. | |||
[3] | Includes losses related to an incident at the DBM complex for the nine months ended September 30, 2017. See Note 1. | |||
[4] | Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual investment basis. | |||
[5] | See Note 6. | |||
[6] | See Note 3. | |||
[7] | Represents distributions paid under WGP’s partnership agreement (see Note 4 and Note 5). | |||
[8] | Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 4 and Note 5). |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION General. Western Gas Equity Partners, LP is a Delaware master limited partnership (“MLP”) formed in September 2012 to own three types of partnership interests in Western Gas Partners, LP. Western Gas Equity Partners, LP was formed by converting WGR Holdings, LLC into a limited partnership and changing its name. Western Gas Partners, LP (together with its subsidiaries, “WES”) is a Delaware MLP formed by Anadarko Petroleum Corporation in 2007 to acquire, own, develop and operate midstream assets. For purposes of these consolidated financial statements, “WGP” refers to Western Gas Equity Partners, LP in its individual capacity or to Western Gas Equity Partners, LP and its subsidiaries, including Western Gas Holdings, LLC and WES, as the context requires. “WES GP” refers to Western Gas Holdings, LLC, individually as the general partner of WES, and excludes WES. WGP’s general partner, Western Gas Equity Holdings, LLC (“WGP GP”), is a wholly owned subsidiary of Anadarko Petroleum Corporation. WES GP owns all of the general partner interest in WES, which constitutes substantially all of its business, which primarily is to manage the affairs and operations of WES. Refer to Note 5 for a discussion of WGP’s holdings of WES equity. “Anadarko” refers to Anadarko Petroleum Corporation and its subsidiaries, excluding WGP and WGP GP, and “affiliates” refers to subsidiaries of Anadarko, excluding WGP, but including 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”), Front Range Pipeline LLC (“FRP”), Whitethorn Pipeline Company LLC (“Whitethorn LLC”) and Cactus II Pipeline LLC (“Cactus II”). See Note 3 . The interests in TEP, TEG and FRP are referred to collectively as the “TEFR Interests.” “MGR assets” refers to the Red Desert complex and the Granger straddle plant. WES is engaged in the business of gathering, compressing, treating, processing and transporting natural gas; gathering, stabilizing and transporting condensate, natural gas liquids (“NGLs”) and crude oil; and gathering and disposing of produced water. In addition, in its capacity as a processor of natural gas, WES also buys and sells natural gas, NGLs and condensate on behalf of itself and as agent for its customers under certain of its contracts. WES provides these midstream services for Anadarko, as well as for third-party producers and customers. As of September 30, 2018 , WES’s assets and investments consisted of the following: Owned and Operated Operated Interests Non-Operated Interests Equity Interests Gathering systems (1) 12 3 3 2 Treating facilities 19 3 — 3 Natural gas processing plants/trains 20 4 — 2 NGL pipelines 2 — — 3 Natural gas pipelines 5 — — — Oil pipelines — 1 — 2 (1) Includes the DBM water systems. These assets and investments are located in the Rocky Mountains (Colorado, Utah and Wyoming), North-central Pennsylvania, Texas and New Mexico. Mentone Train I, a processing train that is part of the DBM complex, is expected to commence operation in the fourth quarter of 2018. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Basis of presentation. The following table outlines WES’s ownership interests and the accounting method of consolidation used in WES’s consolidated financial statements for entities not wholly owned: Percentage Interest Equity investments (1) Fort Union 14.81 % White Cliffs 10 % Rendezvous 22 % Mont Belvieu JV 25 % TEP 20 % TEG 20 % FRP 33.33 % Whitethorn 20 % Cactus II 15 % Proportionate consolidation (2) Marcellus Interest systems 33.75 % Newcastle system 50 % Springfield system 50.1 % Full consolidation Chipeta (3) 75 % (1) Investments in non-controlled entities over which WES exercises significant influence are accounted for under the equity method. “Equity investment throughput” refers to WES’s share of average throughput for these investments. (2) WGP proportionately consolidates WES’s associated share of the assets, liabilities, revenues and expenses attributable to these assets. (3) The 25% interest in Chipeta Processing LLC (“Chipeta”) held by a third-party member is reflected within noncontrolling interests in the consolidated financial statements, in addition to the noncontrolling interests noted below. 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 WGP and entities in which it holds a controlling financial interest, including WES and WES GP. All significant intercompany transactions have been eliminated. 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 WGP’s 2017 Form 10-K, as filed with the SEC on February 16, 2018 . Management believes that the disclosures made are adequate to make the information not misleading. The consolidated financial results of WES are included in WGP’s consolidated financial statements due to WGP’s 100% ownership interest in WES GP and WES GP’s control of WES. Throughout these notes to consolidated financial statements, and to the extent material, any differences between the consolidated financial results of WGP and WES are discussed separately. WGP has no independent operations or material assets other than its partnership interests in WES. WGP’s consolidated financial statements differ from those of WES primarily as a result of (i) the presentation of noncontrolling interest ownership (attributable to the limited partner interests in WES held by the public, other subsidiaries of Anadarko and private investors, see Note 5 ), (ii) the elimination of WES GP’s investment in WES with WES GP’s underlying capital account, (iii) the general and administrative expenses incurred by WGP, which are separate from, and in addition to, those incurred by WES, (iv) the inclusion of the impact of WGP equity balances and WGP distributions, and (v) WGP’s senior secured revolving credit facility (“WGP RCF”). See Note 10 . 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Adjustments to previously issued financial statements. WGP’s unaudited consolidated statements of operations for the nine months ended September 30, 2018, include adjustments to revenue and cost of product expense of the following amounts: (i) $39.0 million increase in Service revenues - fee based, (ii) $12.6 million increase in Product sales and (iii) $51.6 million increase in Cost of product; all of which relate to the six months ended June 30, 2018. During the third quarter of 2018, management determined that under ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“Topic 606”) adopted on January 1, 2018, WES’s marketing affiliate was acting as WES’s agent in certain product sales transactions on behalf of WES and in performing marketing services on behalf of WES’s customers. The adjustments have no impact to Operating income (loss), Net income (loss), the balance sheets, cash flows or any non-GAAP metric WES uses to evaluate its operations (see Key Performance Metrics under Item 2 of this Form 10-Q) and are not considered material to the results of operations for the nine months ended September 30, 2018. WGP will revise its previously reported unaudited financial statements for 2018 interim periods to reflect the adjustments in future filings. Variable interest entity. WES is a variable interest entity (“VIE”) because the partners in WES with equity at risk lack the power, through voting or similar rights, to direct the activities that most significantly impact WES’s economic performance. A reporting entity that concludes it has a variable interest in a VIE must evaluate whether it has a controlling financial interest in the VIE, such that it is the VIE’s primary beneficiary and should consolidate. WGP is the primary beneficiary of WES and therefore should consolidate because (i) WGP has the power to direct the activities of WES that most significantly affect its economic performance and (ii) WGP has the right to receive benefits or the obligation to absorb losses that could be potentially significant to WES. As noted above, WGP has no independent operations or material assets other than its partnership interests in WES. The assets of WES cannot be used by WGP for general partnership purposes. WES’s long-term debt is recourse to WES GP, which is wholly owned by WGP. In turn, WES GP is indemnified by wholly owned subsidiaries of Anadarko for any claims made against WES GP under the indentures governing WES’s outstanding notes or borrowings under WES’s senior unsecured revolving credit facility (“WES RCF”). WES’s sources of liquidity include cash and cash equivalents, cash flows generated from operations, interest income on its $260.0 million note receivable from Anadarko, available borrowing capacity under the WES RCF, and issuances of additional equity or debt securities. Noncontrolling interests. WGP’s noncontrolling interests in the consolidated financial statements consist of the following for all periods presented: (i) the 25% interest in Chipeta held by a third-party member, (ii) the publicly held limited partner interests in WES, (iii) the 2,011,380 WES common units issued by WES to other subsidiaries of Anadarko as part of the consideration paid for the acquisitions of the Non-Operated Marcellus Interest, the TEFR Interests and Springfield Pipeline LLC (“Springfield”), and (iv) the WES Class C units issued by WES to a subsidiary of Anadarko as part of the funding for the acquisition of Delaware Basin Midstream, LLC (“DBM”). The WES Series A Preferred units issued to private investors as part of the funding of the Springfield acquisition were also noncontrolling interests in the consolidated financial statements until converted into WES common units in 2017. See Note 3 and Note 5 . When WES issues equity, the carrying amount of the noncontrolling interest reported by WGP is adjusted to reflect the noncontrolling ownership interest in WES. The resulting impact of such noncontrolling interest adjustment on WGP’s interest in WES is reflected as an adjustment to WGP’s partners’ capital. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Presentation of WES assets. The term “WES assets” includes both the assets indirectly owned and the interests accounted for under the equity method by WGP through its partnership interests in WES as of September 30, 2018 (see Note 8 ). Because WGP owns the entire interest in and controls WES GP, and WGP GP is controlled by Anadarko, each of WES’s acquisitions of WES assets from Anadarko has been considered a transfer of net assets between entities under common control. As such, WES assets acquired from Anadarko were initially recorded at Anadarko’s historic carrying value, which did not correlate to the total acquisition price paid by WES. Further, after an acquisition of WES assets from Anadarko, WES and WGP (by virtue of its consolidation of WES) may be required to recast their financial statements to include the activities of such WES assets from the date of common control. For those periods requiring recast, the consolidated financial statements for periods prior to the acquisition of WES assets from Anadarko are 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 WES had owned the WES assets during the periods reported. Net income (loss) attributable to the WES assets acquired from Anadarko for periods prior to WES’s acquisition of the WES assets is not allocated to the limited partners. Use of estimates. 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. 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 included 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. Shutdown of gathering systems. In May 2018, after assessing a number of factors, with safety and protection of the environment as the primary focus, WES decided to take the Kitty Draw gathering system in Wyoming (part of the Hilight system) and the Third Creek gathering system in Colorado (part of the DJ Basin complex) permanently out of service. Results for the three and nine months ended September 30, 2018 , reflect (i) accruals of zero and $10.9 million , respectively, in anticipated costs associated with the shutdown of the systems, recorded as a reduction in affiliate Product sales in the consolidated statements of operations and (ii) impairment expense of $6.8 million and $134.0 million , respectively, associated with reducing the net book value of the gathering systems and increasing the asset retirement obligation. Insurance recoveries. In December 2015, there was an initial fire and secondary explosion at the processing facility within the DBM complex. The majority of the damage from the incident was to the liquid handling facilities and the amine treating units at the inlet of the complex. During the nine months ended September 30, 2017 , a $5.7 million loss was recorded in Gain (loss) on divestiture and other, net in the consolidated statements of operations, related to a change in WES’s estimate of the amount that would be recovered under the property insurance claim based on further discussions with insurers. During the second quarter of 2017, WES reached a settlement with insurers and final proceeds were received. During the nine months ended September 30, 2017 , WES received $52.9 million in cash proceeds from insurers, including $29.9 million in proceeds from business interruption insurance claims and $23.0 million in proceeds from property insurance claims. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Recently adopted accounting standards. Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash requires an entity to explain the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents on the statement of cash flows and to provide a reconciliation of the totals in that statement to the related captions in the balance sheet when the cash, cash equivalents, restricted cash, and restricted cash equivalents are presented in more than one line item on the balance sheet. WGP adopted this ASU using a retrospective approach on January 1, 2018, and the adoption did not impact the consolidated financial statements. Revenue from contracts with customers (Topic 606). WGP adopted Topic 606 on January 1, 2018, using the modified retrospective method applied to WES contracts that were not completed as of January 1, 2018. The cumulative effect adjustment that was recognized in the opening balance of equity and partners’ capital was a decrease of $44.4 million . The comparative historical financial information has not been adjusted and continues to be reported under Revenue Recognition (Topic 605) (“Topic 605”). Effective January 1, 2018, WGP changed its accounting policy for revenue recognition as detailed below: • Fee-based gathering / processing. Under Topic 605, fee revenues were recognized based on the rate in effect for the month of service, even when certain fees were charged on an upfront or limited-term basis. In addition, deficiency fees were charged and recognized only when the customer did not meet the specified delivery minimums for the completed performance period. Under Topic 606, (i) revenues continue to be recognized based on the rate in effect when the fee is either the same rate per unit over the contract term or when the fee escalates and the escalation factor approximates inflation, (ii) deficiency fees are estimated and recognized during the performance period as the services are performed for the customer’s delivered volumes, and (iii) timing differences between Service revenues – fee based recognized and amounts billed to customers are recognized as contract assets or contract liabilities, as appropriate, which results in a change in the timing of revenue and changes to net income as a result of the revenue contract’s consideration provisions. In addition, under Topic 606, revenue associated with upfront or limited-term fees is recognized over the expected period of customer benefit, which is generally the life of the related properties. These revenues also include revenues earned for marketing services performed on behalf of WES’s customers, and the expense associated with these marketing activities is recognized in cost of product expense, resulting in no impact to operating income. • Cost of service rate adjustments. Under Topic 605, revenue was recognized based on the amounts billed to customers each period as Service revenues – fee based. Under Topic 606, fixed minimum volume commitment demand fees and variable fees that are also billed on these minimum volumes are recognized as Service revenues – fee based on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost of service rates charged to customers, and, as a result, a cumulative catch-up revenue adjustment related to the services already provided under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate. Fees received on volumes in excess of the minimum volumes are recognized as Service revenues – fee based as service is provided to the customer based on the billing rate in effect for the performance period. This revenue recognition timing does not affect billings to customers, and differences between amounts billed and revenue recognized are recorded as contract assets or liabilities, as appropriate. • Aid in construction. Under Topic 605, aid in construction reimbursements were reflected as a reduction to property, plant and equipment upon receipt (and a reduction to capital expenditures). Under Topic 606, reimbursement of capital costs received from customers is reflected as a contract liability (deferred revenue) upon receipt. The contract liability is amortized to Service revenues – fee based over the expected period of customer benefit, which is generally the life of the related properties. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) • Percent-of-proceeds gathering / processing. Under Topic 605, WES recognized cost of product expense when the product was purchased from a producer to whom it provides services, and WES recognized revenue when the product was sold to Anadarko or a third party. Under Topic 606, in some instances, where all or a percentage of the proceeds from the sale must be returned to the producer, the net margin from the purchase and sale transactions is presented net within Service revenues – product based because WES is acting as the producer’s agent in the product sale. • Noncash consideration - keep-whole and percent-of-product agreements. Under Topic 605, WES recognized revenues only upon the sale of the related products. Under Topic 606, (i) Service revenues – product based is recognized for the products received as noncash consideration in exchange for the services provided, with the keep-whole noncash consideration value based on the net value of the NGLs over the replacement residue gas cost, and (ii) product sales revenue is recognized, along with cost of product expense related to the sale, when the product is sold to Anadarko or a third party. When the product is sold to Anadarko, Anadarko is acting as WES’s agent in the product sale and WES recognizes revenue, along with cost of product expense related to the sale, based on the Anadarko sales price to the third party, resulting in no impact to operating income. • Wellhead purchase / sale incorporated into gathering / processing. Under Topic 605, the natural gas purchase cost was recognized as cost of product expense and any specified gathering or processing fees charged to the producer were recognized as revenues. Under Topic 606, the fees charged to the producer under this contract type are recognized as adjustments to the amount recognized in cost of product expense instead of revenues when such fees relate to services performed after control of the product transfers to WES. The following tables summarize the impact of adopting Topic 606 on the impacted line items within the consolidated statements of operations and the consolidated balance sheet. The differences between revenue as reported following Topic 606 and revenue as it would have been reported under Topic 605 are due to the changes described above. Three Months Ended thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Revenues Service revenues – fee based $ 409,106 $ 396,161 $ 12,945 Service revenues – product based 22,735 — 22,735 Product sales 75,150 366,603 (291,453 ) Expenses Cost of product 105,966 353,641 (247,675 ) Operation and maintenance 111,359 111,327 32 Depreciation and amortization 82,553 81,824 729 Income tax (benefit) expense 1,517 1,580 (63 ) Net income (loss) attributable to noncontrolling interests 47,203 40,471 6,732 Net income (loss) attributable to Western Gas Equity Partners, LP 107,474 123,002 (15,528 ) 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Nine Months Ended thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Revenues Service revenues – fee based $ 1,146,099 $ 1,096,708 $ 49,391 Service revenues – product based 67,433 — 67,433 Product sales 217,738 978,127 (760,389 ) Expenses Cost of product 303,518 940,936 (637,418 ) Operation and maintenance 300,266 300,098 168 Depreciation and amortization 238,187 236,102 2,085 Impairments 152,708 152,663 45 Income tax (benefit) expense 3,301 3,361 (60 ) Net income (loss) attributable to noncontrolling interests 63,669 89,339 (25,670 ) Net income (loss) attributable to Western Gas Equity Partners, LP 276,059 258,774 17,285 September 30, 2018 thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Assets Other current assets $ 26,119 $ 23,371 $ 2,748 Net property, plant and equipment 6,418,634 6,320,225 98,409 Other assets 14,057 13,894 163 Liabilities Accrued liabilities 114,504 106,810 7,694 Deferred income taxes 10,285 10,519 (234 ) Other liabilities 141,957 2,781 139,176 Equity and partners’ capital Total equity and partners’ capital 3,616,640 3,661,956 (45,316 ) 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) New accounting standards issued but not yet adopted. ASU 2016-02, Leases (Topic 842) requires lessees to recognize a lease liability and a right-of-use (“ROU”) asset for all leases, including operating leases, with a term greater than 12 months on the balance sheet. This ASU modifies the definition of a lease and outlines the recognition, measurement, presentation, and disclosure of leasing arrangements by both lessees and lessors. WGP plans to make certain elections allowing WGP not to reassess contracts that commenced prior to adoption, to continue applying WES’s current accounting policy for existing or expired land easements and not to recognize ROU assets or lease liabilities for short-term leases. WGP continues to review contracts in WES’s portfolio of leased assets to assess the impact of adopting this ASU, which is expected to primarily impact other assets and other long-term liabilities. To facilitate compliance with this ASU, WES expects to implement new accounting software and complete the evaluation of its systems, processes and internal controls by the end of 2018. WGP will adopt this ASU on January 1, 2019, using a modified retrospective approach. As permitted by ASU 2018-11, Leases (Topic 842): Targeted Improvements , WGP does not expect to adjust comparative period financial statements. Revenue and cost of product. Upon adoption of the new revenue recognition standard on January 1, 2018 (discussed in Recently adopted accounting standards ), WGP changed its accounting policy for revenue recognition as described below. WES provides gathering, processing, treating, transportation and disposal services pursuant to a variety of contracts. Under these arrangements, WES receives fees and/or retains a percentage of products or a percentage of the proceeds from the sale of the customer’s products. These revenues are included in Service revenues and Product sales in the consolidated statements of operations. Payment is generally received from the customer in the month following the service or delivery of the product. Contracts with customers generally have initial terms ranging from 5 to 10 years. Service revenues – fee based is recognized for fee-based contracts in the month of service based on the volumes delivered by the customer. Producers’ wells or production facilities are connected to WES’s gathering systems for gathering, processing, treating, transportation and disposal of natural gas, NGLs, condensate, crude oil and produced water, as applicable. Revenues are valued based on the rate in effect for the month of service when the fee is either the same rate per unit over the contract term or when the fee escalates and the escalation factor approximates inflation. Deficiency fees charged to customers that do not meet their minimum delivery requirements are recognized as services are performed based on an estimate of the fees that will be billed upon completion of the performance period. Because of its significant upfront capital investment, WES may charge additional service fees to customers for only a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold), and these fees are recognized as revenue over the expected period of customer benefit, which is generally the life of the related properties. WES also recognizes revenue and cost of product expense from marketing services performed on behalf of its customers by Anadarko. WES also receives Service revenues – fee based from contracts that have minimum volume commitment demand fees and fees that require periodic rate redeterminations based upon the related facility cost of service. These fees include fixed and variable consideration that are recognized on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost of service rates charged to customers, and a cumulative catch-up revenue adjustment related to services already provided to the minimum volumes under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate. Service revenues – product based includes service revenues from percent-of-proceeds gathering and processing contracts that are recognized net of the cost of product for purchases from WES’s customers since it is acting as the agent in the product sale. Keep-whole and percent-of-product agreements result in Service revenues – product based being recognized when the natural gas and/or NGLs are received from the customer as noncash consideration for the services provided. Noncash consideration for these services is valued at the time the services are provided. Revenue from product sales is also recognized, along with the cost of product expense related to the sale, when the product received as noncash consideration is sold to either Anadarko or a third party. When the product is sold to Anadarko, Anadarko is acting as WES’s agent in the product sale, with WES recognizing revenue and related cost of product expense associated with these marketing activities based on the Anadarko sales price to the third party. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) WES also purchases natural gas volumes from producers at the wellhead or from a production facility, typically at an index price, and charges the producer fees associated with the downstream gathering and processing services. When the fees relate to services performed after control of the product has transferred to WES, the fees are treated as a reduction of the purchase cost. Revenue from product sales is recognized, along with cost of product expense related to the sale, when the purchased product is sold to either Anadarko or a third party. WES receives aid in construction reimbursements for certain capital costs necessary to provide services to customers (i.e., connection costs, etc.) under certain service contracts. Aid in construction reimbursements are reflected as a contract liability upon receipt and amortized to Service revenues – fee based over the expected period of customer benefit, which is generally the life of the related properties. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. REVENUE FROM CONTRACTS WITH CUSTOMERS The following table summarizes revenue from contracts with customers: thousands Three Months Ended Nine Months Ended Revenue from customers Service revenues – fee based $ 409,106 $ 1,146,099 Service revenues – product based 22,735 67,433 Product sales 78,887 224,089 Total revenue from customers 510,728 1,437,621 Revenue from other than customers Net gains (losses) on commodity price swap agreements (3,737 ) (6,351 ) Other 771 1,213 Total revenues and other $ 507,762 $ 1,432,483 2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $298.2 million and $244.4 million as of September 30, 2018 , and December 31, 2017 , respectively. Contract assets primarily relate to accrued deficiency fees WES expects to charge customers once the related performance periods are completed. The following table summarizes the current period activity related to contract assets from contracts with customers: thousands Balance at December 31, 2017 $ — Cumulative effect of adopting Topic 606 5,129 Amounts transferred to Accounts receivable, net from contract assets recognized in the adoption effect (1) (4,358 ) Additional estimated revenues recognized (2) 2,140 Balance at September 30, 2018 $ 2,911 Contract assets at September 30, 2018 Other current assets $ 2,748 Other assets 163 Total contract assets from contracts with customers $ 2,911 (1) Includes $(1.7) million for the three months ended September 30, 2018 . (2) Includes $(5.0) million for the three months ended September 30, 2018 . Contract liabilities primarily relate to (i) fees that are charged to customers for only a portion of the contract term and must be recognized as revenues over the expected period of customer benefit, (ii) fixed and variable fees under cost of service contracts that are received from customers for which revenue recognition is deferred and (iii) aid in construction payments received from customers that must be recognized over the expected period of customer benefit. The following table summarizes the current period activity related to contract liabilities from contracts with customers: thousands Balance at December 31, 2017 $ — Cumulative effect of adopting Topic 606 120,717 Cash received or receivable, excluding revenues recognized during the period (1) 37,340 Revenues recognized during the period that were included in the adoption effect (2) (10,850 ) Balance at September 30, 2018 $ 147,207 Contract liabilities at September 30, 2018 Accrued liabilities $ 8,031 Other liabilities 139,176 Total contract liabilities from contracts with customers $ 147,207 (1) Includes $(3.7) million for the three months ended September 30, 2018 . (2) Includes $(8.8) million for the three months ended September 30, 2018 , of which $(7.5) million was from a performance obligation satisfied in a previous period related to the arbitration against SWEPI LP (see Note 11 ). 2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2018 , are reflected in the following table. WGP applies the optional exemptions in Topic 606 and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Therefore, the following table represents only a small portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and in some cases variable commodity prices for those volumes. thousands Remainder of 2018 $ 124,395 2019 480,211 2020 545,223 2021 524,810 2022 528,900 Thereafter 2,191,811 Total $ 4,395,350 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Acquisitions and Divestitures | 3. ACQUISITIONS AND DIVESTITURES Whitethorn LLC acquisition. In June 2018, WES acquired a 20% interest in Whitethorn LLC, which owns a crude oil and condensate pipeline that originates in Midland, Texas and terminates in Sealy, Texas (the “Midland-to-Sealy pipeline”) and related storage facilities (collectively referred to as “Whitethorn”). A third party operates Whitethorn and oversees the related commercial activities. In connection with its investment in Whitethorn, WES will share proportionally in the commercial activities. WES acquired its 20% interest via a $150.6 million net investment, which was funded with cash on hand and is accounted for under the equity method. See Note 8 . Cactus II acquisition. In June 2018, WES acquired a 15% interest in Cactus II, which will own a crude oil pipeline operated by a third party (the “Cactus II pipeline”) connecting West Texas to the Corpus Christi area. The Cactus II pipeline is under construction and expected to become operational in the fourth quarter of 2019. WES acquired its 15% interest from a third party via an initial net investment of $11.3 million , which represented its share of costs incurred up to the date of acquisition. The initial investment was funded with cash on hand and the interest in Cactus II is accounted for under the equity method. See Note 8 . Property exchange. On March 17, 2017, WES acquired an additional 50% interest in the Delaware Basin JV Gathering LLC (“DBJV”) system (the “Additional DBJV System Interest”) from a third party in exchange for (a) WES’s 33.75% non-operated interest in two natural gas gathering systems located in northern Pennsylvania (the “Non-Operated Marcellus Interest”), commonly referred to as the Liberty and Rome systems, and (b) $155.0 million of cash consideration (collectively, the “Property Exchange”). WES previously held a 50% interest in, and operated, the DBJV system. The Property Exchange was reflected as a nonmonetary transaction whereby the acquired Additional DBJV System Interest was recorded at the fair value of the divested Non-Operated Marcellus Interest plus the $155.0 million of cash consideration. The Property Exchange resulted in a net gain of $125.7 million recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. Results of operations attributable to the Property Exchange were included in the consolidated statements of operations beginning on the acquisition date in the first quarter of 2017. DBJV acquisition - Deferred purchase price obligation - Anadarko. Prior to WES’s agreement with Anadarko to settle its deferred purchase price obligation early, the consideration that would have been paid by WES for the March 2015 acquisition of DBJV from Anadarko consisted of a cash payment to Anadarko due on March 31, 2020. In May 2017, WES reached an agreement with Anadarko to settle this obligation with a cash payment to Anadarko of $37.3 million , which was equal to the estimated net present value of the obligation at March 31, 2017. 3. ACQUISITIONS AND DIVESTITURES (CONTINUED) Helper and Clawson systems divestiture. During the second quarter of 2017, the Helper and Clawson systems, located in Utah, were sold to a third party, resulting in a net gain on sale of $16.3 million recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. |
Partnership Distributions
Partnership Distributions | 9 Months Ended |
Sep. 30, 2018 | |
Distributions Made to Members or Limited Partners [Abstract] | |
Partnership Distributions | 4. PARTNERSHIP DISTRIBUTIONS WGP partnership distributions. WGP’s partnership agreement requires WGP to distribute all of its available cash (as defined in its partnership agreement) to WGP unitholders of record on the applicable record date within 55 days of the end of each quarter. The Board of Directors of WGP GP (the “Board of Directors”) declared the following cash distributions to WGP unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Distribution per Unit Total Quarterly Cash Distribution Date of Distribution 2017 March 31 $ 0.49125 $ 107,549 May 2017 June 30 0.52750 115,487 August 2017 September 30 0.53750 117,677 November 2017 December 31 0.54875 120,140 February 2018 2018 March 31 $ 0.56875 $ 124,518 May 2018 June 30 0.58250 127,531 August 2018 September 30 (1) 0.59500 130,268 November 2018 (1) The Board of Directors declared a cash distribution to WGP unitholders for the third quarter of 2018 of $0.59500 per unit, or $130.3 million in aggregate. The cash distribution is payable on November 21, 2018 , to WGP unitholders of record at the close of business on October 31, 2018 . WES partnership distributions. WES’s partnership agreement requires WES to distribute all of its available cash (as defined in WES’s partnership agreement) to WES unitholders of record on the applicable record date within 45 days of the end of each quarter. The Board of Directors of WES GP declared the following cash distributions to WES’s common and general partner unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Date of 2017 March 31 $ 0.875 $ 188,753 May 2017 June 30 0.890 207,491 August 2017 September 30 0.905 212,038 November 2017 December 31 0.920 216,586 February 2018 2018 March 31 $ 0.935 $ 221,133 May 2018 June 30 0.950 225,691 August 2018 September 30 (1) 0.965 230,239 November 2018 (1) The Board of Directors of WES GP declared a cash distribution to WES unitholders for the third quarter of 2018 of $0.965 per unit, or $230.2 million in aggregate, including incentive distributions, but excluding distributions on WES Class C units (see WES Class C unit distributions below). The cash distribution is payable on November 13, 2018 , to WES unitholders of record at the close of business on October 31, 2018 . 4. PARTNERSHIP DISTRIBUTIONS (CONTINUED) WES’s available cash. The amount of available cash (as defined in WES’s partnership agreement) generally is all cash on hand at the end of the quarter, plus, at the discretion of WES GP, working capital borrowings made subsequent to the end of such quarter, less the amount of cash reserves established by WES GP to provide for the proper conduct of WES’s business, including reserves to fund future capital expenditures; to comply with applicable laws, debt instruments or other agreements; or to provide funds for distributions to WES unitholders and to WES GP for any one or more of the next four quarters. Working capital borrowings generally include borrowings made under a credit facility or similar financing arrangement. Working capital borrowings may only be those that, at the time of such borrowings, were intended to be repaid within 12 months. In all cases, working capital borrowings are used solely for working capital purposes or to fund distributions to partners. WES Class C unit distributions. WES’s Class C units receive quarterly distributions at a rate equivalent to WES’s common units. The distributions are paid in the form of additional Class C units (“PIK Class C units”) until the scheduled conversion date on March 1, 2020 (unless earlier converted), and the Class C units are disregarded with respect to WES’s distributions of WES’s available cash until they are converted into WES common units. The number of additional PIK Class C units to be issued in connection with a distribution payable on the Class C units is determined by dividing the corresponding distribution attributable to the Class C units by the volume-weighted-average price of WES’s common units for the ten days immediately preceding the payment date for the WES common unit distribution, less a 6% discount. WES records the PIK Class C unit distributions at fair value at the time of issuance. This Level 2 fair value measurement uses WES’s unit price as a significant input in the determination of the fair value. See Note 5 for further discussion of the WES Class C units. WES Series A Preferred unit distributions. As further described in Note 5 , WES issued Series A Preferred units representing limited partner interests in WES to private investors in 2016. The Series A Preferred unitholders received quarterly distributions in cash equal to $0.68 per Series A Preferred unit, subject to certain adjustments. On March 1, 2017, 50% of the outstanding WES Series A Preferred units converted into WES common units on a one -for-one basis, and on May 2, 2017, all remaining WES Series A Preferred units converted into WES common units on a one -for-one basis. Such converted WES common units were entitled to distributions made to WES common unitholders with respect to the quarter during which the applicable conversion occurred and did not include a prorated WES Series A Preferred unit distribution. For the quarter ended March 31, 2017, the WES Series A Preferred unitholders received an aggregate cash distribution of $7.5 million (paid in May 2017). WES’s general partner interest and incentive distribution rights. As of September 30, 2018 , WES GP was entitled to 1.5% of all quarterly distributions that WES makes prior to its liquidation and, as the holder of the incentive distribution rights (“IDRs”), was entitled to incentive distributions at the maximum distribution sharing percentage of 48.0% for all periods presented, after the minimum quarterly distribution and the target distribution levels had been achieved. The maximum distribution sharing percentage of 49.5% does not include any distributions that WES GP may receive on common units that it may acquire. |
Equity and Partners' Capital
Equity and Partners' Capital | 9 Months Ended |
Sep. 30, 2018 | |
Partners' Capital Notes [Abstract] | |
Equity and Partners' Capital | 5. EQUITY AND PARTNERS’ CAPITAL Holdings of WGP equity. WGP’s common units are listed on the New York Stock Exchange under the symbol “WGP.” As of September 30, 2018 , Anadarko held 170,380,161 WGP common units, representing a 77.8% limited partner interest in WGP, and, through its ownership of WGP GP, Anadarko indirectly held the entire non-economic general partner interest in WGP. The public held 48,557,636 WGP common units, representing a 22.2% limited partner interest in WGP. Tangible equity units. In June 2015, Anadarko completed the public issuance of 9,200,000 7.50% tangible equity units (“TEUs”), including 1,200,000 TEUs pursuant to the full exercise of the underwriters’ over-allotment option, at a price to the public of $50.00 per TEU. Each TEU that Anadarko issued consisted of (1) a prepaid equity purchase contract for WGP common units owned by Anadarko (which was subject to Anadarko’s right to elect to deliver shares of its common stock in lieu of such WGP common units) and (2) a senior amortizing note that was due June 7, 2018 . On June 7, 2018, the mandatory settlement date, Anadarko settled the 9,200,000 then outstanding TEUs by delivering to the holders 8,207,204 of its WGP common units in exchange for the prepaid equity purchase contracts. WGP did not receive any proceeds from, or incur any expense in, the public offering or settlement of the TEUs. Net income (loss) per common unit. For WGP, basic net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) by the weighted-average number of common units outstanding during the period. Dilutive net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) adjusted for distributions on the WES Series A Preferred units and a reallocation of the limited partners’ interest in net income (loss) assuming, prior to the actual conversion, conversion of the WES Series A Preferred units into WES common units, by the weighted-average number of WGP common units outstanding during the period. As of May 2, 2017, all WES Series A Preferred units were converted into WES common units on a one-for-one basis. The impact of the Series A Preferred units assuming, prior to the actual conversion, conversion to WES common units would be anti-dilutive for the nine months ended September 30, 2017 . Net income (loss) per common unit is calculated assuming that cash distributions are equal to the net income attributable to WGP. Net income (loss) attributable to the WES assets (as defined in Note 1 ) acquired from Anadarko for periods prior to WES’s acquisition of the WES assets is not allocated to the limited partners when calculating net income (loss) per common unit. Net income equal to the amount of available cash (as defined by WGP’s partnership agreement) is allocated to WGP common unitholders consistent with actual cash distributions. Holdings of WES equity. As of September 30, 2018 , WGP held 50,132,046 WES common units, representing a 29.6% limited partner interest in WES, and, through its ownership of WES GP, WGP indirectly held 2,583,068 general partner units, representing a 1.5% general partner interest in WES, and 100% of WES’s IDRs. As of September 30, 2018 , (i) other subsidiaries of Anadarko collectively held 2,011,380 WES common units and 14,045,429 Class C units, representing an aggregate 9.5% limited partner interest in WES and (ii) the public held 100,465,859 WES common units, representing a 59.4% limited partner interest in WES, which are all reflected as noncontrolling interests within the consolidated financial statements of WGP (see Note 1 ). WES equity offerings. In July 2017, WES filed a registration statement with the SEC for the issuance of up to an aggregate of $500.0 million of WES common units pursuant to a new continuous offering program that has not yet been initiated. WES Class C units. In November 2014, WES issued 10,913,853 Class C units to APC Midstream Holdings, LLC (“AMH”), pursuant to a Unit Purchase Agreement with Anadarko and AMH. The Class C units were issued to partially fund WES’s acquisition of DBM. When issued, the WES Class C units were scheduled to convert into WES common units on a one -for-one basis on December 31, 2017. In February 2017, Anadarko elected to extend the conversion date of the WES Class C units to March 1, 2020. WES can elect to convert the Class C units earlier or Anadarko can extend the conversion date again. 5. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) WES Series A Preferred units. In 2016, WES issued 21,922,831 Series A Preferred units to private investors. Pursuant to an agreement between WES and the holders of the WES Series A Preferred units, 50% of the WES Series A Preferred units converted into WES common units on a one -for-one basis on March 1, 2017, and all remaining Series A Preferred units converted into WES common units on a one -for-one basis on May 2, 2017. WES interests . The following table summarizes WES’s units issued during the nine months ended September 30, 2018 : WES Common Units WES Class C Units WES General Partner Units Total Balance at December 31, 2017 152,602,105 13,243,883 2,583,068 168,429,056 PIK Class C units — 801,546 — 801,546 Long-Term Incentive Plan award vestings 7,180 — — 7,180 Balance at September 30, 2018 152,609,285 14,045,429 2,583,068 169,237,782 |
Transactions with Affiliates
Transactions with Affiliates | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | |
Transactions with Affiliates | 6. TRANSACTIONS WITH AFFILIATES Affiliate transactions. Revenues from affiliates include amounts earned by WES from services provided to Anadarko as well as from the sale of natural gas, condensate and NGLs to Anadarko. Anadarko sells such natural gas, condensate and NGLs as an agent on behalf of either WES or WES’s customers. When such sales are on WES’s customers’ behalf, WES recognizes associated service revenues and cost of product expense. When such sales are on WES’s behalf, WES recognizes product sales revenues based on the Anadarko sales price to the third party and cost of product expense associated with these sales activities. In addition, WES purchases natural gas, condensate and NGLs from an affiliate of Anadarko pursuant to gas purchase agreements. Operation and maintenance expense includes amounts accrued for or paid to affiliates for the operation of WES assets, whether in providing services to affiliates or to third parties, including field labor, measurement and analysis, and other disbursements. A portion of general and administrative expenses is paid by Anadarko, which results in affiliate transactions pursuant to the reimbursement provisions of the omnibus agreements of WES and WGP. 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. 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 acquisition of WES assets, third-party sales and purchases related to such assets were received or paid in cash by Anadarko within its centralized cash management system. The outstanding affiliate balances were entirely settled through an adjustment to net investment by Anadarko in connection with the acquisition of WES assets. Subsequent to the acquisition of WES assets from Anadarko, transactions related to such assets are cash-settled directly with third parties and with Anadarko affiliates. Chipeta cash settles its transactions directly with third parties and Anadarko, as well as with the other subsidiaries of WES. Note receivable - Anadarko. Concurrently with the closing of WES’s May 2008 initial public offering, WES 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 $300.9 million and $325.2 million at September 30, 2018 , and December 31, 2017 , 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. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) Commodity price swap agreements. WES has commodity price swap agreements with Anadarko to mitigate exposure to a majority of the commodity price risk inherent in its percent-of-proceeds, percent-of-product and keep-whole contracts. 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. 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. WES’s net gains (losses) on commodity price swap agreements were $(3.7) million and $(6.4) million for the three and nine months ended September 30, 2018 , respectively, and $(1.0) million and $(0.6) million for the three and nine months ended September 30, 2017 , respectively, and are reported in the consolidated statements of operations as affiliate Product sales in 2018 and as affiliate Product sales and Cost of product expense in 2017 (see Note 1 ). Revenues or costs attributable to volumes sold and purchased during 2017 and 2018 for the DJ Basin complex and MGR assets are recognized in the consolidated statements of operations at the applicable market price in the tables below. WES also records a capital contribution from Anadarko in its consolidated statement of equity and partners’ capital for an amount equal to (i) the amount by which the swap price for product sales exceeds the applicable market price in the tables below, minus (ii) the amount by which the swap price for product purchases exceeds the market price in the tables below. For the nine months ended September 30, 2018 , the capital contribution from Anadarko was $40.7 million . The tables below summarize the swap prices compared to the forward market prices: DJ Basin Complex per barrel except natural gas 2017 - 2018 Swap Prices 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 18.41 $ 5.09 $ 5.41 Propane 47.08 18.85 28.72 Isobutane 62.09 26.83 32.92 Normal butane 54.62 26.20 32.71 Natural gasoline 72.88 41.84 48.04 Condensate 76.47 45.40 49.36 Natural gas (per MMBtu) 5.96 3.05 2.21 MGR Assets per barrel except natural gas 2017 - 2018 Swap Prices 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 23.11 $ 4.08 $ 2.52 Propane 52.90 19.24 25.83 Isobutane 73.89 25.79 30.03 Normal butane 64.93 25.16 29.82 Natural gasoline 81.68 45.01 47.25 Condensate 81.68 53.55 56.76 Natural gas (per MMBtu) 4.87 3.05 2.21 (1) Represents the New York Mercantile Exchange forward strip price as of December 1, 2016, and December 20, 2017 , for the 2017 Market Prices and 2018 Market Prices, respectively, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) Gathering and processing agreements. WES has significant gathering and processing arrangements with affiliates of Anadarko on a majority of its systems. WES’s natural gas gathering, treating and transportation throughput (excluding equity investment throughput) attributable to production owned or controlled by Anadarko was 41% and 37% for the three and nine months ended September 30, 2018 , respectively, and 33% and 34% for the three and nine months ended September 30, 2017 , respectively. WES’s natural gas processing throughput (excluding equity investment throughput) attributable to production owned or controlled by Anadarko was 35% for both the three and nine months ended September 30, 2018 , and 39% and 42% for the three and nine months ended September 30, 2017 , respectively. WES’s crude oil, NGL and produced water gathering, treating, transportation and disposal throughput (excluding equity investment throughput) attributable to production owned or controlled by Anadarko was 77% and 71% for the three and nine months ended September 30, 2018 , respectively, and 54% and 50% for the three and nine months ended September 30, 2017 , respectively. Commodity purchase and sale agreements. WES sells a significant amount of its natural gas, condensate and NGLs to Anadarko Energy Services Company (“AESC”), Anadarko’s marketing affiliate that acts as an agent in the sale to a third party. In addition, WES purchases natural gas, condensate and NGLs from AESC pursuant to purchase agreements. WES’s purchase and sale agreements with AESC are generally one-year contracts, subject to annual renewal. WGP LTIP. WGP GP awards phantom units under the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan (the “WGP LTIP”) to its independent directors and executive officers. The phantom units awarded to the independent directors vest one year from the grant date, while awards granted to executive officers are subject to graded vesting over a three -year service period. Compensation expense under the WGP LTIP is recognized over the vesting period and was $62,000 and $0.2 million for the three and nine months ended September 30, 2018 , respectively, and $63,000 and $0.2 million for the three and nine months ended September 30, 2017 , respectively. Anadarko Incentive Plan. General and administrative expenses included $1.4 million and $5.2 million for the three and nine months ended September 30, 2018 , respectively, and $1.2 million and $3.2 million for the three and nine months ended September 30, 2017 , respectively, of equity-based compensation expense, allocated to WES by Anadarko, for awards granted to the executive officers of WES GP and other employees under the Anadarko Petroleum Corporation 2012 Omnibus Incentive Compensation Plan (“Anadarko Incentive Plan”). Of this amount, $4.3 million is reflected as contributions to partners’ capital in the consolidated statement of equity and partners’ capital for the nine months ended September 30, 2018 . WES LTIP. WES GP awards phantom units under the Western Gas Partners, LP 2017 Long-Term Incentive Plan, effective October 17, 2017. Awards granted prior to October 17, 2017, were awarded under the Western Gas Partners, LP 2008 Long-Term Incentive Plan. These awards are primarily granted to its independent directors, but also from time to time to its executive officers and Anadarko employees performing services for WES. 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 $0.1 million for each of the three months ended September 30, 2018 and 2017, and $0.3 million for each of the nine months ended September 30, 2018 and 2017. Purchases. The following table summarizes WES’s purchases from Anadarko of pipe and equipment: Nine Months Ended September 30, thousands 2018 2017 Cash consideration $ 254 $ 3,910 Net carrying value (254 ) (5,283 ) Partners’ capital adjustment $ — $ (1,373 ) 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) Contributions in aid of construction costs from affiliates. On certain of WES’s capital projects, Anadarko is obligated to reimburse WES for all or a portion of project capital expenditures. The majority of such arrangements are associated with projects related to pipeline construction activities and production well tie-ins. For periods prior to January 1, 2018, the cash receipts resulting from such reimbursements were presented as “Contributions in aid of construction costs from affiliates” within the investing section of the consolidated statements of cash flows. As discussed in Recently adopted accounting standards in Note 1 , upon adoption of Topic 606, affiliate reimbursements of capital costs are reflected as contract liabilities upon receipt, amortized to Service revenues – fee based over the expected period of customer benefit, and presented within the operating section of the consolidated statements of cash flows. Summary of affiliate transactions. The following table summarizes material affiliate transactions: Three Months Ended Nine Months Ended thousands 2018 2017 2018 2017 Revenues and other (1) $ 274,514 $ 351,127 $ 766,179 $ 982,595 Equity income, net – affiliates (1) 43,110 21,519 102,752 62,708 Cost of product (1) 46,971 22,902 131,428 60,497 Operation and maintenance (2) 25,145 18,110 68,830 53,661 General and administrative (3) 11,780 10,414 35,000 29,637 Operating expenses 83,896 51,426 235,258 143,795 Interest income (4) 4,225 4,225 12,675 12,675 Interest expense (5) — — — 71 Settlement of the Deferred purchase price obligation – Anadarko (6) — — — (37,346 ) Distributions to WGP unitholders (7) 99,247 94,205 298,818 264,533 Distributions to WES unitholders (8) 1,911 1,790 5,642 5,280 Above-market component of swap agreements with Anadarko 12,601 18,049 40,722 46,719 (1) Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements. (2) Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. (3) Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and Anadarko Incentive Plan within this Note 6 ) and amounts charged by Anadarko under the WGP and WES omnibus agreements. (4) Represents interest income recognized on the note receivable from Anadarko. (5) Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 10 ) . (6) Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation - Anadarko (see Note 3 ). (7) Represents distributions paid under WGP’s partnership agreement (see Note 4 and Note 5 ). (8) Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 4 and Note 5 ). Concentration of credit risk. Anadarko was the only customer from whom revenues exceeded 10% of consolidated revenues for all periods presented in the consolidated statements of operations. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 7. PROPERTY, PLANT AND EQUIPMENT A summary of the historical cost of property, plant and equipment is as follows: thousands Estimated Useful Life September 30, December 31, Land n/a $ 4,653 $ 4,450 Gathering systems and processing complexes 3 to 47 years 7,883,265 7,113,114 Pipelines and equipment 15 to 45 years 137,769 137,644 Assets under construction n/a 856,092 579,501 Other 3 to 40 years 30,976 29,826 Total property, plant and equipment 8,912,755 7,864,535 Less accumulated depreciation 2,494,121 2,133,644 Net property, plant and equipment $ 6,418,634 $ 5,730,891 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. Impairments. During the nine months ended September 30, 2018 , WES recognized impairments of $152.7 million , including impairments of $125.9 million at the Third Creek gathering system and $8.1 million at the Kitty Draw gathering system. These assets were impaired to their estimated salvage values of $1.8 million and zero , respectively, using the market approach and Level 3 fair value inputs, due to the shutdown of the systems. See Note 1 for further information. The remaining $18.7 million of impairments was primarily related to (i) a $10.9 million impairment at the GNB NGL pipeline, which was impaired to its estimated fair value of $10.0 million using the income approach and Level 3 fair value inputs, and (ii) a $5.6 million impairment related to an idle facility at the Chipeta complex, which was impaired to its estimated salvage value of $1.5 million using the market approach and Level 3 fair value inputs. During the year ended December 31, 2017, WES recognized impairments of $178.4 million , including an impairment of $158.8 million at the Granger complex, which was impaired to its estimated fair value of $48.5 million using the income approach and Level 3 fair value inputs, due to a reduced throughput fee as a result of a producer’s bankruptcy. The remaining $19.6 million of impairments was primarily related to (i) an $8.2 million impairment due to the cancellation of a plant project at the Hilight system, (ii) a $3.7 million impairment at the Granger straddle plant, which was impaired to its estimated salvage value of $0.6 million using the income approach and Level 3 fair value inputs, (iii) a $3.1 million impairment of the Fort Union equity investment, (iv) a $2.0 million impairment of an idle facility in northeast Wyoming, which was impaired to its estimated salvage value of $0.4 million using the market approach and Level 3 fair value inputs, and (v) the cancellation of a pipeline project in West Texas. |
Equity Investments
Equity Investments | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | 8. EQUITY INVESTMENTS The following table presents the activity in WES’s equity investments for the nine months ended September 30, 2018 : thousands Fort White Rendezvous Mont TEFR Interests Whitethorn Cactus II Total Balance at December 31, 2017 $ 7,030 $ 44,945 $ 42,528 $ 110,299 $ 361,409 $ — $ — $ 566,211 Acquisitions — — — — — 150,563 11,295 161,858 Investment earnings (loss), net of amortization (892 ) 8,547 635 22,916 47,736 23,810 — 102,752 Contributions — 1,278 — — 24,680 7,069 34,436 67,463 Capitalized interest — — — — — — 516 516 Distributions (194 ) (8,111 ) (2,091 ) (22,945 ) (43,989 ) (16,497 ) — (93,827 ) Distributions in excess of cumulative earnings (1) (2,889 ) (3,109 ) (2,015 ) (3,305 ) (6,779 ) — — (18,097 ) Balance at September 30, 2018 $ 3,055 $ 43,550 $ 39,057 $ 106,965 $ 383,057 $ 164,945 $ 46,247 $ 786,876 (1) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual investment basis. |
Components of Working Capital
Components of Working Capital | 9 Months Ended |
Sep. 30, 2018 | |
Components Of Working Capital [Abstract] | |
Components of Working Capital | 9. COMPONENTS OF WORKING CAPITAL A summary of accounts receivable, net is as follows: thousands September 30, 2018 December 31, 2017 Trade receivables, net $ 224,719 $ 160,194 Other receivables, net 168 45 Total accounts receivable, net $ 224,887 $ 160,239 A summary of other current assets is as follows: thousands September 30, 2018 December 31, 2017 Natural gas liquids inventory $ 11,212 $ 10,788 Imbalance receivables 3,829 1,640 Prepaid insurance 3,203 2,955 Contract assets 2,748 — Other 5,127 — Total other current assets $ 26,119 $ 15,383 9. COMPONENTS OF WORKING CAPITAL (CONTINUED) A summary of accrued liabilities is as follows: thousands September 30, 2018 December 31, 2017 Accrued interest expense $ 54,556 $ 40,646 Short-term asset retirement obligations (1) 42,872 2,304 Short-term remediation and reclamation obligations 833 833 Income taxes payable 247 2,495 Contract liabilities 8,031 — Other 7,965 1,714 Total accrued liabilities $ 114,504 $ 47,992 (1) As of September 30, 2018 , includes $40.2 million of short-term liabilities incurred during the second quarter of 2018 related to the shutdowns at the Third Creek and Kitty Draw gathering systems. See Note 1 for further information. |
Debt and Interest Expense
Debt and Interest Expense | 9 Months Ended |
Sep. 30, 2018 | |
Debt Instruments [Abstract] | |
Debt and Interest Expense | 10. DEBT AND INTEREST EXPENSE The following table presents WES and WGP’s outstanding debt: September 30, 2018 December 31, 2017 thousands Principal Carrying Value Fair Value (1) Principal Carrying Value Fair Value (1) Short-term debt WGP RCF $ 28,000 $ 28,000 $ 28,000 $ — $ — $ — WGP long-term debt WGP RCF $ — $ — $ — $ 28,000 $ 28,000 $ 28,000 WES long-term debt 2.600% Senior Notes due 2018 — — — 350,000 349,684 350,631 5.375% Senior Notes due 2021 500,000 496,669 517,160 500,000 495,815 530,647 4.000% Senior Notes due 2022 670,000 669,020 668,198 670,000 668,849 684,043 3.950% Senior Notes due 2025 500,000 492,596 478,470 500,000 491,885 500,885 4.650% Senior Notes due 2026 500,000 495,592 492,502 500,000 495,245 520,144 4.500% Senior Notes due 2028 400,000 394,514 384,964 — — — 4.750% Senior Notes due 2028 400,000 395,806 391,532 — — — 5.450% Senior Notes due 2044 600,000 593,319 565,485 600,000 593,234 637,827 5.300% Senior Notes due 2048 700,000 686,601 645,643 — — — 5.500% Senior Notes due 2048 350,000 342,347 331,981 — — — WES RCF — — — 370,000 370,000 370,000 Total long-term debt $ 4,620,000 $ 4,566,464 $ 4,475,935 $ 3,518,000 $ 3,492,712 $ 3,622,177 (1) Fair value is measured using the market approach and Level 2 inputs. 10. DEBT AND INTEREST EXPENSE (CONTINUED) Debt activity. The following table presents WES and WGP’s debt activity for the nine months ended September 30, 2018 : thousands Carrying Value Balance at December 31, 2017 $ 3,492,712 WES RCF borrowings 320,000 Issuance of 4.500% Senior Notes due 2028 400,000 Issuance of 5.300% Senior Notes due 2048 700,000 Issuance of 4.750% Senior Notes due 2028 400,000 Issuance of 5.500% Senior Notes due 2048 350,000 Repayment of 2.600% Senior Notes due 2018 (350,000 ) Repayments of WES RCF borrowings (690,000 ) Other (28,248 ) Balance at September 30, 2018 $ 4,594,464 WGP RCF. In February 2018, WGP voluntarily reduced the aggregate commitments of the lenders under the WGP RCF, which matures in March 2019, to $35.0 million . As of September 30, 2018 , the outstanding borrowings under the WGP RCF were classified as short-term debt on the consolidated balance sheet. As of September 30, 2018 , WGP had $28.0 million of outstanding borrowings and $7.0 million available for borrowing under the WGP RCF. As of September 30, 2018 and 2017 , the interest rate on the outstanding WGP RCF borrowings was 4.25% and 3.24% , respectively. The commitment fee rate was 0.30% at September 30, 2018 and 2017 . At September 30, 2018 , WGP was in compliance with all covenants under the WGP RCF. WES Senior Notes. In August 2018, the 4.750% Senior Notes due 2028 and 5.500% Senior Notes due 2048 were offered to the public at prices of 99.818% and 98.912% , respectively, of the face amount. Including the effects of the issuance and underwriting discounts, the effective interest rates of the senior notes are 4.885% and 5.652% , respectively. Interest is paid on each such series semi-annually on February 15 and August 15 of each year, beginning February 15, 2019. The net proceeds were used to repay the maturing 2.600% Senior Notes due August 2018, repay amounts outstanding under the WES RCF and for WES’s general partnership purposes, including to fund capital expenditures. In March 2018, the 4.500% Senior Notes due 2028 and 5.300% Senior Notes due 2048 were offered to the public at prices of 99.435% and 99.169% , respectively, of the face amount. Including the effects of the issuance and underwriting discounts, the effective interest rates of the senior notes are 4.682% and 5.431% , respectively. Interest is paid on each such series semi-annually on March 1 and September 1 of each year, beginning September 1, 2018. The net proceeds were used to repay amounts outstanding under the WES RCF and for WES’s general partnership purposes, including to fund capital expenditures. At September 30, 2018 , WES was in compliance with all covenants under the indentures governing its outstanding notes. WES RCF. In February 2018, WES entered into the five-year $1.5 billion WES RCF by amending and restating the $1.2 billion credit facility that was originally entered into in February 2014. The WES RCF is expandable to a maximum of $2.0 billion , matures in February 2023, with options to extend maturity by up to two additional one year increments, and bears interest at the London Interbank Offered Rate (“LIBOR”), plus applicable margins ranging from 1.00% to 1.50% , or an alternate base rate equal to the greatest of (a) the Prime Rate, (b) the Federal Funds Effective Rate plus 0.50% , or (c) LIBOR plus 1.00% , in each case plus applicable margins currently ranging from zero to 0.50% , based upon WES’s senior unsecured debt rating. WES is required to pay a quarterly facility fee ranging from 0.125% to 0.250% of the commitment amount (whether used or unused), also based upon its senior unsecured debt rating. As of September 30, 2018 , WES had no outstanding borrowings and $4.6 million in outstanding letters of credit, resulting in $1,495.4 million available borrowing capacity under the WES RCF. As of September 30, 2018 and 2017 , the interest rate on any outstanding WES RCF borrowings was 3.56% and 2.54% , respectively. The facility fee rate was 0.20% at September 30, 2018 and 2017 . At September 30, 2018 , WES was in compliance with all covenants under the WES RCF. 10. DEBT AND INTEREST EXPENSE (CONTINUED) Interest expense. The following table summarizes the amounts included in interest expense: Three Months Ended Nine Months Ended thousands 2018 2017 2018 2017 Third parties Long-term and short-term debt $ (53,229 ) $ (36,223 ) $ (143,436 ) $ (106,412 ) Amortization of debt issuance costs and commitment fees (2,054 ) (2,009 ) (6,955 ) (5,955 ) Capitalized interest 6,967 2,115 17,032 3,991 Total interest expense – third parties (48,316 ) (36,117 ) (133,359 ) (108,376 ) Affiliates Deferred purchase price obligation – Anadarko (1) — — — (71 ) Total interest expense – affiliates — — — (71 ) Interest expense $ (48,316 ) $ (36,117 ) $ (133,359 ) $ (108,447 ) (1) See Note 3 for a discussion of the Deferred purchase price obligation - Anadarko. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES Litigation and legal proceedings. In February 2017, DBJV, at the time a 50 / 50 joint venture between a third party and WES, initiated an arbitration against SWEPI LP (“SWEPI”) for breach of a 2007 gas gathering agreement between it and DBJV (the “GGA”). Specifically, DBJV sought to collect certain gathering fees under the GGA for the period January 1, 2016 to July 1, 2017. SWEPI disputed DBJV’s calculation of the cost of service based rate and filed a counterclaim alleging overpayment of fees under the GGA for the years 2013 through 2015. As part of the adoption of Topic 606 (see Note 1 ), during the first quarter of 2018, WES recorded a $7.5 million contract liability and reduced total equity and partners’ capital related to the counterclaim for the years 2013 through 2015 under the GGA revenue contract. The arbitration hearing concluded on June 27, 2018. On September 14, 2018, the panel issued a binding non-appealable decision awarding no damages to either DBJV or SWEPI. As such, during the third quarter of 2018, the previously recorded contract liability was reversed, resulting in a $7.5 million increase to Service revenues - fee based in the consolidated statements of operations. In addition, from time to time, WGP, through its partnership interests in WES, 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 the final disposition could have a material adverse effect on WGP’s financial condition, results of operations or cash flows. Other commitments. WES has short-term payment obligations, or commitments, related to its capital spending programs, as well as those of its unconsolidated affiliates, the majority of which is expected to be paid in the next twelve months. These commitments relate primarily to construction and expansion projects at the DBJV system and the DJ Basin and DBM complexes. Lease commitments. Anadarko, on WES’s behalf, has entered into lease arrangements for corporate offices, shared field offices and equipment supporting WES’s operations, for which Anadarko charges WES lease expense. The leases for the corporate off ices and shared field offices extend throu gh 2028 and 2033, res pectively . Lease expense charged to WES associated with these lease arrangements was $14.6 million and $40.5 million for the three and nine months ended September 30, 2018 , respectively, and $12.0 million and $32.7 million for the three and nine months ended September 30, 2017 , respectively. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation policy | Basis of presentation. The following table outlines WES’s ownership interests and the accounting method of consolidation used in WES’s consolidated financial statements for entities not wholly owned: Percentage Interest Equity investments (1) Fort Union 14.81 % White Cliffs 10 % Rendezvous 22 % Mont Belvieu JV 25 % TEP 20 % TEG 20 % FRP 33.33 % Whitethorn 20 % Cactus II 15 % Proportionate consolidation (2) Marcellus Interest systems 33.75 % Newcastle system 50 % Springfield system 50.1 % Full consolidation Chipeta (3) 75 % (1) Investments in non-controlled entities over which WES exercises significant influence are accounted for under the equity method. “Equity investment throughput” refers to WES’s share of average throughput for these investments. (2) WGP proportionately consolidates WES’s associated share of the assets, liabilities, revenues and expenses attributable to these assets. (3) The 25% interest in Chipeta Processing LLC (“Chipeta”) held by a third-party member is reflected within noncontrolling interests in the consolidated financial statements, in addition to the noncontrolling interests noted below. 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 WGP and entities in which it holds a controlling financial interest, including WES and WES GP. All significant intercompany transactions have been eliminated. 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 WGP’s 2017 Form 10-K, as filed with the SEC on February 16, 2018 . Management believes that the disclosures made are adequate to make the information not misleading. The consolidated financial results of WES are included in WGP’s consolidated financial statements due to WGP’s 100% ownership interest in WES GP and WES GP’s control of WES. Throughout these notes to consolidated financial statements, and to the extent material, any differences between the consolidated financial results of WGP and WES are discussed separately. WGP has no independent operations or material assets other than its partnership interests in WES. WGP’s consolidated financial statements differ from those of WES primarily as a result of (i) the presentation of noncontrolling interest ownership (attributable to the limited partner interests in WES held by the public, other subsidiaries of Anadarko and private investors, see Note 5 ), (ii) the elimination of WES GP’s investment in WES with WES GP’s underlying capital account, (iii) the general and administrative expenses incurred by WGP, which are separate from, and in addition to, those incurred by WES, (iv) the inclusion of the impact of WGP equity balances and WGP distributions, and (v) WGP’s senior secured revolving credit facility (“WGP RCF”). See Note 10 . Noncontrolling interests. WGP’s noncontrolling interests in the consolidated financial statements consist of the following for all periods presented: (i) the 25% interest in Chipeta held by a third-party member, (ii) the publicly held limited partner interests in WES, (iii) the 2,011,380 WES common units issued by WES to other subsidiaries of Anadarko as part of the consideration paid for the acquisitions of the Non-Operated Marcellus Interest, the TEFR Interests and Springfield Pipeline LLC (“Springfield”), and (iv) the WES Class C units issued by WES to a subsidiary of Anadarko as part of the funding for the acquisition of Delaware Basin Midstream, LLC (“DBM”). The WES Series A Preferred units issued to private investors as part of the funding of the Springfield acquisition were also noncontrolling interests in the consolidated financial statements until converted into WES common units in 2017. See Note 3 and Note 5 . When WES issues equity, the carrying amount of the noncontrolling interest reported by WGP is adjusted to reflect the noncontrolling ownership interest in WES. The resulting impact of such noncontrolling interest adjustment on WGP’s interest in WES is reflected as an adjustment to WGP’s partners’ capital. |
Variable interest entity policy | Variable interest entity. WES is a variable interest entity (“VIE”) because the partners in WES with equity at risk lack the power, through voting or similar rights, to direct the activities that most significantly impact WES’s economic performance. A reporting entity that concludes it has a variable interest in a VIE must evaluate whether it has a controlling financial interest in the VIE, such that it is the VIE’s primary beneficiary and should consolidate. WGP is the primary beneficiary of WES and therefore should consolidate because (i) WGP has the power to direct the activities of WES that most significantly affect its economic performance and (ii) WGP has the right to receive benefits or the obligation to absorb losses that could be potentially significant to WES. As noted above, WGP has no independent operations or material assets other than its partnership interests in WES. The assets of WES cannot be used by WGP for general partnership purposes. WES’s long-term debt is recourse to WES GP, which is wholly owned by WGP. In turn, WES GP is indemnified by wholly owned subsidiaries of Anadarko for any claims made against WES GP under the indentures governing WES’s outstanding notes or borrowings under WES’s senior unsecured revolving credit facility (“WES RCF”). WES’s sources of liquidity include cash and cash equivalents, cash flows generated from operations, interest income on its $260.0 million note receivable from Anadarko, available borrowing capacity under the WES RCF, and issuances of additional equity or debt securities. |
Business combinations policy | Presentation of WES assets. The term “WES assets” includes both the assets indirectly owned and the interests accounted for under the equity method by WGP through its partnership interests in WES as of September 30, 2018 (see Note 8 ). Because WGP owns the entire interest in and controls WES GP, and WGP GP is controlled by Anadarko, each of WES’s acquisitions of WES assets from Anadarko has been considered a transfer of net assets between entities under common control. As such, WES assets acquired from Anadarko were initially recorded at Anadarko’s historic carrying value, which did not correlate to the total acquisition price paid by WES. Further, after an acquisition of WES assets from Anadarko, WES and WGP (by virtue of its consolidation of WES) may be required to recast their financial statements to include the activities of such WES assets from the date of common control. For those periods requiring recast, the consolidated financial statements for periods prior to the acquisition of WES assets from Anadarko are 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 WES had owned the WES assets during the periods reported. Net income (loss) attributable to the WES assets acquired from Anadarko for periods prior to WES’s acquisition of the WES assets is not allocated to the limited partners. |
Use of estimates policy | Use of estimates. 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. 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 included 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. |
New accounting standards policy | Recently adopted accounting standards. Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash requires an entity to explain the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents on the statement of cash flows and to provide a reconciliation of the totals in that statement to the related captions in the balance sheet when the cash, cash equivalents, restricted cash, and restricted cash equivalents are presented in more than one line item on the balance sheet. WGP adopted this ASU using a retrospective approach on January 1, 2018, and the adoption did not impact the consolidated financial statements. Revenue from contracts with customers (Topic 606). WGP adopted Topic 606 on January 1, 2018, using the modified retrospective method applied to WES contracts that were not completed as of January 1, 2018. The cumulative effect adjustment that was recognized in the opening balance of equity and partners’ capital was a decrease of $44.4 million . The comparative historical financial information has not been adjusted and continues to be reported under Revenue Recognition (Topic 605) (“Topic 605”). Effective January 1, 2018, WGP changed its accounting policy for revenue recognition as detailed below: • Fee-based gathering / processing. Under Topic 605, fee revenues were recognized based on the rate in effect for the month of service, even when certain fees were charged on an upfront or limited-term basis. In addition, deficiency fees were charged and recognized only when the customer did not meet the specified delivery minimums for the completed performance period. Under Topic 606, (i) revenues continue to be recognized based on the rate in effect when the fee is either the same rate per unit over the contract term or when the fee escalates and the escalation factor approximates inflation, (ii) deficiency fees are estimated and recognized during the performance period as the services are performed for the customer’s delivered volumes, and (iii) timing differences between Service revenues – fee based recognized and amounts billed to customers are recognized as contract assets or contract liabilities, as appropriate, which results in a change in the timing of revenue and changes to net income as a result of the revenue contract’s consideration provisions. In addition, under Topic 606, revenue associated with upfront or limited-term fees is recognized over the expected period of customer benefit, which is generally the life of the related properties. These revenues also include revenues earned for marketing services performed on behalf of WES’s customers, and the expense associated with these marketing activities is recognized in cost of product expense, resulting in no impact to operating income. • Cost of service rate adjustments. Under Topic 605, revenue was recognized based on the amounts billed to customers each period as Service revenues – fee based. Under Topic 606, fixed minimum volume commitment demand fees and variable fees that are also billed on these minimum volumes are recognized as Service revenues – fee based on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost of service rates charged to customers, and, as a result, a cumulative catch-up revenue adjustment related to the services already provided under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate. Fees received on volumes in excess of the minimum volumes are recognized as Service revenues – fee based as service is provided to the customer based on the billing rate in effect for the performance period. This revenue recognition timing does not affect billings to customers, and differences between amounts billed and revenue recognized are recorded as contract assets or liabilities, as appropriate. • Aid in construction. Under Topic 605, aid in construction reimbursements were reflected as a reduction to property, plant and equipment upon receipt (and a reduction to capital expenditures). Under Topic 606, reimbursement of capital costs received from customers is reflected as a contract liability (deferred revenue) upon receipt. The contract liability is amortized to Service revenues – fee based over the expected period of customer benefit, which is generally the life of the related properties. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) • Percent-of-proceeds gathering / processing. Under Topic 605, WES recognized cost of product expense when the product was purchased from a producer to whom it provides services, and WES recognized revenue when the product was sold to Anadarko or a third party. Under Topic 606, in some instances, where all or a percentage of the proceeds from the sale must be returned to the producer, the net margin from the purchase and sale transactions is presented net within Service revenues – product based because WES is acting as the producer’s agent in the product sale. • Noncash consideration - keep-whole and percent-of-product agreements. Under Topic 605, WES recognized revenues only upon the sale of the related products. Under Topic 606, (i) Service revenues – product based is recognized for the products received as noncash consideration in exchange for the services provided, with the keep-whole noncash consideration value based on the net value of the NGLs over the replacement residue gas cost, and (ii) product sales revenue is recognized, along with cost of product expense related to the sale, when the product is sold to Anadarko or a third party. When the product is sold to Anadarko, Anadarko is acting as WES’s agent in the product sale and WES recognizes revenue, along with cost of product expense related to the sale, based on the Anadarko sales price to the third party, resulting in no impact to operating income. • Wellhead purchase / sale incorporated into gathering / processing. Under Topic 605, the natural gas purchase cost was recognized as cost of product expense and any specified gathering or processing fees charged to the producer were recognized as revenues. Under Topic 606, the fees charged to the producer under this contract type are recognized as adjustments to the amount recognized in cost of product expense instead of revenues when such fees relate to services performed after control of the product transfers to WES. The following tables summarize the impact of adopting Topic 606 on the impacted line items within the consolidated statements of operations and the consolidated balance sheet. The differences between revenue as reported following Topic 606 and revenue as it would have been reported under Topic 605 are due to the changes described above. Three Months Ended thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Revenues Service revenues – fee based $ 409,106 $ 396,161 $ 12,945 Service revenues – product based 22,735 — 22,735 Product sales 75,150 366,603 (291,453 ) Expenses Cost of product 105,966 353,641 (247,675 ) Operation and maintenance 111,359 111,327 32 Depreciation and amortization 82,553 81,824 729 Income tax (benefit) expense 1,517 1,580 (63 ) Net income (loss) attributable to noncontrolling interests 47,203 40,471 6,732 Net income (loss) attributable to Western Gas Equity Partners, LP 107,474 123,002 (15,528 ) 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Nine Months Ended thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Revenues Service revenues – fee based $ 1,146,099 $ 1,096,708 $ 49,391 Service revenues – product based 67,433 — 67,433 Product sales 217,738 978,127 (760,389 ) Expenses Cost of product 303,518 940,936 (637,418 ) Operation and maintenance 300,266 300,098 168 Depreciation and amortization 238,187 236,102 2,085 Impairments 152,708 152,663 45 Income tax (benefit) expense 3,301 3,361 (60 ) Net income (loss) attributable to noncontrolling interests 63,669 89,339 (25,670 ) Net income (loss) attributable to Western Gas Equity Partners, LP 276,059 258,774 17,285 September 30, 2018 thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Assets Other current assets $ 26,119 $ 23,371 $ 2,748 Net property, plant and equipment 6,418,634 6,320,225 98,409 Other assets 14,057 13,894 163 Liabilities Accrued liabilities 114,504 106,810 7,694 Deferred income taxes 10,285 10,519 (234 ) Other liabilities 141,957 2,781 139,176 Equity and partners’ capital Total equity and partners’ capital 3,616,640 3,661,956 (45,316 ) 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) New accounting standards issued but not yet adopted. ASU 2016-02, Leases (Topic 842) requires lessees to recognize a lease liability and a right-of-use (“ROU”) asset for all leases, including operating leases, with a term greater than 12 months on the balance sheet. This ASU modifies the definition of a lease and outlines the recognition, measurement, presentation, and disclosure of leasing arrangements by both lessees and lessors. WGP plans to make certain elections allowing WGP not to reassess contracts that commenced prior to adoption, to continue applying WES’s current accounting policy for existing or expired land easements and not to recognize ROU assets or lease liabilities for short-term leases. WGP continues to review contracts in WES’s portfolio of leased assets to assess the impact of adopting this ASU, which is expected to primarily impact other assets and other long-term liabilities. To facilitate compliance with this ASU, WES expects to implement new accounting software and complete the evaluation of its systems, processes and internal controls by the end of 2018. WGP will adopt this ASU on January 1, 2019, using a modified retrospective approach. As permitted by ASU 2018-11, Leases (Topic 842): Targeted Improvements , WGP does not expect to adjust comparative period financial statements. |
Revenue and cost of product policy | Revenue and cost of product. Upon adoption of the new revenue recognition standard on January 1, 2018 (discussed in Recently adopted accounting standards ), WGP changed its accounting policy for revenue recognition as described below. WES provides gathering, processing, treating, transportation and disposal services pursuant to a variety of contracts. Under these arrangements, WES receives fees and/or retains a percentage of products or a percentage of the proceeds from the sale of the customer’s products. These revenues are included in Service revenues and Product sales in the consolidated statements of operations. Payment is generally received from the customer in the month following the service or delivery of the product. Contracts with customers generally have initial terms ranging from 5 to 10 years. Service revenues – fee based is recognized for fee-based contracts in the month of service based on the volumes delivered by the customer. Producers’ wells or production facilities are connected to WES’s gathering systems for gathering, processing, treating, transportation and disposal of natural gas, NGLs, condensate, crude oil and produced water, as applicable. Revenues are valued based on the rate in effect for the month of service when the fee is either the same rate per unit over the contract term or when the fee escalates and the escalation factor approximates inflation. Deficiency fees charged to customers that do not meet their minimum delivery requirements are recognized as services are performed based on an estimate of the fees that will be billed upon completion of the performance period. Because of its significant upfront capital investment, WES may charge additional service fees to customers for only a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold), and these fees are recognized as revenue over the expected period of customer benefit, which is generally the life of the related properties. WES also recognizes revenue and cost of product expense from marketing services performed on behalf of its customers by Anadarko. WES also receives Service revenues – fee based from contracts that have minimum volume commitment demand fees and fees that require periodic rate redeterminations based upon the related facility cost of service. These fees include fixed and variable consideration that are recognized on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost of service rates charged to customers, and a cumulative catch-up revenue adjustment related to services already provided to the minimum volumes under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate. Service revenues – product based includes service revenues from percent-of-proceeds gathering and processing contracts that are recognized net of the cost of product for purchases from WES’s customers since it is acting as the agent in the product sale. Keep-whole and percent-of-product agreements result in Service revenues – product based being recognized when the natural gas and/or NGLs are received from the customer as noncash consideration for the services provided. Noncash consideration for these services is valued at the time the services are provided. Revenue from product sales is also recognized, along with the cost of product expense related to the sale, when the product received as noncash consideration is sold to either Anadarko or a third party. When the product is sold to Anadarko, Anadarko is acting as WES’s agent in the product sale, with WES recognizing revenue and related cost of product expense associated with these marketing activities based on the Anadarko sales price to the third party. 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) WES also purchases natural gas volumes from producers at the wellhead or from a production facility, typically at an index price, and charges the producer fees associated with the downstream gathering and processing services. When the fees relate to services performed after control of the product has transferred to WES, the fees are treated as a reduction of the purchase cost. Revenue from product sales is recognized, along with cost of product expense related to the sale, when the purchased product is sold to either Anadarko or a third party. WES receives aid in construction reimbursements for certain capital costs necessary to provide services to customers (i.e., connection costs, etc.) under certain service contracts. Aid in construction reimbursements are reflected as a contract liability upon receipt and amortized to Service revenues – fee based over the expected period of customer benefit, which is generally the life of the related properties. |
Net income (loss) per common unit policy | Net income (loss) per common unit. For WGP, basic net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) by the weighted-average number of common units outstanding during the period. Dilutive net income (loss) per common unit is calculated by dividing the limited partners’ interest in net income (loss) adjusted for distributions on the WES Series A Preferred units and a reallocation of the limited partners’ interest in net income (loss) assuming, prior to the actual conversion, conversion of the WES Series A Preferred units into WES common units, by the weighted-average number of WGP common units outstanding during the period. As of May 2, 2017, all WES Series A Preferred units were converted into WES common units on a one-for-one basis. The impact of the Series A Preferred units assuming, prior to the actual conversion, conversion to WES common units would be anti-dilutive for the nine months ended September 30, 2017 . Net income (loss) per common unit is calculated assuming that cash distributions are equal to the net income attributable to WGP. Net income (loss) attributable to the WES assets (as defined in Note 1 ) acquired from Anadarko for periods prior to WES’s acquisition of the WES assets is not allocated to the limited partners when calculating net income (loss) per common unit. Net income equal to the amount of available cash (as defined by WGP’s partnership agreement) is allocated to WGP common unitholders consistent with actual cash distributions. |
Description of Business and B_3
Description of Business and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Assets and Investments Table | As of September 30, 2018 , WES’s assets and investments consisted of the following: Owned and Operated Operated Interests Non-Operated Interests Equity Interests Gathering systems (1) 12 3 3 2 Treating facilities 19 3 — 3 Natural gas processing plants/trains 20 4 — 2 NGL pipelines 2 — — 3 Natural gas pipelines 5 — — — Oil pipelines — 1 — 2 (1) Includes the DBM water systems. |
Ownership Interests and Method of Consolidation Table | The following table outlines WES’s ownership interests and the accounting method of consolidation used in WES’s consolidated financial statements for entities not wholly owned: Percentage Interest Equity investments (1) Fort Union 14.81 % White Cliffs 10 % Rendezvous 22 % Mont Belvieu JV 25 % TEP 20 % TEG 20 % FRP 33.33 % Whitethorn 20 % Cactus II 15 % Proportionate consolidation (2) Marcellus Interest systems 33.75 % Newcastle system 50 % Springfield system 50.1 % Full consolidation Chipeta (3) 75 % (1) Investments in non-controlled entities over which WES exercises significant influence are accounted for under the equity method. “Equity investment throughput” refers to WES’s share of average throughput for these investments. (2) WGP proportionately consolidates WES’s associated share of the assets, liabilities, revenues and expenses attributable to these assets. (3) The 25% interest in Chipeta Processing LLC (“Chipeta”) held by a third-party member is reflected within noncontrolling interests in the consolidated financial statements, in addition to the noncontrolling interests noted below. |
Impact of New Accounting Pronouncement Tables | The following tables summarize the impact of adopting Topic 606 on the impacted line items within the consolidated statements of operations and the consolidated balance sheet. The differences between revenue as reported following Topic 606 and revenue as it would have been reported under Topic 605 are due to the changes described above. Three Months Ended thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Revenues Service revenues – fee based $ 409,106 $ 396,161 $ 12,945 Service revenues – product based 22,735 — 22,735 Product sales 75,150 366,603 (291,453 ) Expenses Cost of product 105,966 353,641 (247,675 ) Operation and maintenance 111,359 111,327 32 Depreciation and amortization 82,553 81,824 729 Income tax (benefit) expense 1,517 1,580 (63 ) Net income (loss) attributable to noncontrolling interests 47,203 40,471 6,732 Net income (loss) attributable to Western Gas Equity Partners, LP 107,474 123,002 (15,528 ) 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (CONTINUED) Nine Months Ended thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Revenues Service revenues – fee based $ 1,146,099 $ 1,096,708 $ 49,391 Service revenues – product based 67,433 — 67,433 Product sales 217,738 978,127 (760,389 ) Expenses Cost of product 303,518 940,936 (637,418 ) Operation and maintenance 300,266 300,098 168 Depreciation and amortization 238,187 236,102 2,085 Impairments 152,708 152,663 45 Income tax (benefit) expense 3,301 3,361 (60 ) Net income (loss) attributable to noncontrolling interests 63,669 89,339 (25,670 ) Net income (loss) attributable to Western Gas Equity Partners, LP 276,059 258,774 17,285 September 30, 2018 thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Assets Other current assets $ 26,119 $ 23,371 $ 2,748 Net property, plant and equipment 6,418,634 6,320,225 98,409 Other assets 14,057 13,894 163 Liabilities Accrued liabilities 114,504 106,810 7,694 Deferred income taxes 10,285 10,519 (234 ) Other liabilities 141,957 2,781 139,176 Equity and partners’ capital Total equity and partners’ capital 3,616,640 3,661,956 (45,316 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers Table | The following table summarizes revenue from contracts with customers: thousands Three Months Ended Nine Months Ended Revenue from customers Service revenues – fee based $ 409,106 $ 1,146,099 Service revenues – product based 22,735 67,433 Product sales 78,887 224,089 Total revenue from customers 510,728 1,437,621 Revenue from other than customers Net gains (losses) on commodity price swap agreements (3,737 ) (6,351 ) Other 771 1,213 Total revenues and other $ 507,762 $ 1,432,483 |
Contract Assets and Liabilities Activity Tables | The following table summarizes the current period activity related to contract liabilities from contracts with customers: thousands Balance at December 31, 2017 $ — Cumulative effect of adopting Topic 606 120,717 Cash received or receivable, excluding revenues recognized during the period (1) 37,340 Revenues recognized during the period that were included in the adoption effect (2) (10,850 ) Balance at September 30, 2018 $ 147,207 Contract liabilities at September 30, 2018 Accrued liabilities $ 8,031 Other liabilities 139,176 Total contract liabilities from contracts with customers $ 147,207 (1) Includes $(3.7) million for the three months ended September 30, 2018 . (2) Includes $(8.8) million for the three months ended September 30, 2018 , of which $(7.5) million was from a performance obligation satisfied in a previous period related to the arbitration against SWEPI LP (see Note 11 ). The following table summarizes the current period activity related to contract assets from contracts with customers: thousands Balance at December 31, 2017 $ — Cumulative effect of adopting Topic 606 5,129 Amounts transferred to Accounts receivable, net from contract assets recognized in the adoption effect (1) (4,358 ) Additional estimated revenues recognized (2) 2,140 Balance at September 30, 2018 $ 2,911 Contract assets at September 30, 2018 Other current assets $ 2,748 Other assets 163 Total contract assets from contracts with customers $ 2,911 (1) Includes $(1.7) million for the three months ended September 30, 2018 . (2) Includes $(5.0) million for the three months ended September 30, 2018 . |
Expected Revenue Recognition from Satisfaction of Performance Obligations Table | Therefore, the following table represents only a small portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and in some cases variable commodity prices for those volumes. thousands Remainder of 2018 $ 124,395 2019 480,211 2020 545,223 2021 524,810 2022 528,900 Thereafter 2,191,811 Total $ 4,395,350 |
Partnership Distributions (Tabl
Partnership Distributions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Distribution Made to Limited Partner [Line Items] | |
Cash Distributions Tables | The Board of Directors of WGP GP (the “Board of Directors”) declared the following cash distributions to WGP unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Distribution per Unit Total Quarterly Cash Distribution Date of Distribution 2017 March 31 $ 0.49125 $ 107,549 May 2017 June 30 0.52750 115,487 August 2017 September 30 0.53750 117,677 November 2017 December 31 0.54875 120,140 February 2018 2018 March 31 $ 0.56875 $ 124,518 May 2018 June 30 0.58250 127,531 August 2018 September 30 (1) 0.59500 130,268 November 2018 (1) The Board of Directors declared a cash distribution to WGP unitholders for the third quarter of 2018 of $0.59500 per unit, or $130.3 million in aggregate. The cash distribution is payable on November 21, 2018 , to WGP unitholders of record at the close of business on October 31, 2018 . |
Western Gas Partners, LP [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Cash Distributions Tables | The Board of Directors of WES GP declared the following cash distributions to WES’s common and general partner unitholders for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Total Quarterly Date of 2017 March 31 $ 0.875 $ 188,753 May 2017 June 30 0.890 207,491 August 2017 September 30 0.905 212,038 November 2017 December 31 0.920 216,586 February 2018 2018 March 31 $ 0.935 $ 221,133 May 2018 June 30 0.950 225,691 August 2018 September 30 (1) 0.965 230,239 November 2018 (1) The Board of Directors of WES GP declared a cash distribution to WES unitholders for the third quarter of 2018 of $0.965 per unit, or $230.2 million in aggregate, including incentive distributions, but excluding distributions on WES Class C units (see WES Class C unit distributions below). The cash distribution is payable on November 13, 2018 , to WES unitholders of record at the close of business on October 31, 2018 . |
Equity and Partners' Capital (T
Equity and Partners' Capital (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Partners' Capital Notes [Abstract] | |
Partnership Interests Table | The following table summarizes WES’s units issued during the nine months ended September 30, 2018 : WES Common Units WES Class C Units WES General Partner Units Total Balance at December 31, 2017 152,602,105 13,243,883 2,583,068 168,429,056 PIK Class C units — 801,546 — 801,546 Long-Term Incentive Plan award vestings 7,180 — — 7,180 Balance at September 30, 2018 152,609,285 14,045,429 2,583,068 169,237,782 |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Fees and Other Arrangements, Limited Liability Company (LLC) or Limited Partnership (LP) [Abstract] | |
Commodity Price Swap Agreements Tables | The tables below summarize the swap prices compared to the forward market prices: DJ Basin Complex per barrel except natural gas 2017 - 2018 Swap Prices 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 18.41 $ 5.09 $ 5.41 Propane 47.08 18.85 28.72 Isobutane 62.09 26.83 32.92 Normal butane 54.62 26.20 32.71 Natural gasoline 72.88 41.84 48.04 Condensate 76.47 45.40 49.36 Natural gas (per MMBtu) 5.96 3.05 2.21 MGR Assets per barrel except natural gas 2017 - 2018 Swap Prices 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 23.11 $ 4.08 $ 2.52 Propane 52.90 19.24 25.83 Isobutane 73.89 25.79 30.03 Normal butane 64.93 25.16 29.82 Natural gasoline 81.68 45.01 47.25 Condensate 81.68 53.55 56.76 Natural gas (per MMBtu) 4.87 3.05 2.21 (1) Represents the New York Mercantile Exchange forward strip price as of December 1, 2016, and December 20, 2017 , for the 2017 Market Prices and 2018 Market Prices, respectively, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs. |
Related Party Transactions Tables | The following table summarizes WES’s purchases from Anadarko of pipe and equipment: Nine Months Ended September 30, thousands 2018 2017 Cash consideration $ 254 $ 3,910 Net carrying value (254 ) (5,283 ) Partners’ capital adjustment $ — $ (1,373 ) The following table summarizes material affiliate transactions: Three Months Ended Nine Months Ended thousands 2018 2017 2018 2017 Revenues and other (1) $ 274,514 $ 351,127 $ 766,179 $ 982,595 Equity income, net – affiliates (1) 43,110 21,519 102,752 62,708 Cost of product (1) 46,971 22,902 131,428 60,497 Operation and maintenance (2) 25,145 18,110 68,830 53,661 General and administrative (3) 11,780 10,414 35,000 29,637 Operating expenses 83,896 51,426 235,258 143,795 Interest income (4) 4,225 4,225 12,675 12,675 Interest expense (5) — — — 71 Settlement of the Deferred purchase price obligation – Anadarko (6) — — — (37,346 ) Distributions to WGP unitholders (7) 99,247 94,205 298,818 264,533 Distributions to WES unitholders (8) 1,911 1,790 5,642 5,280 Above-market component of swap agreements with Anadarko 12,601 18,049 40,722 46,719 (1) Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements. (2) Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. (3) Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and Anadarko Incentive Plan within this Note 6 ) and amounts charged by Anadarko under the WGP and WES omnibus agreements. (4) Represents interest income recognized on the note receivable from Anadarko. (5) Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 10 ) . (6) Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation - Anadarko (see Note 3 ). (7) Represents distributions paid under WGP’s partnership agreement (see Note 4 and Note 5 ). (8) Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 4 and Note 5 ). |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Table | A summary of the historical cost of property, plant and equipment is as follows: thousands Estimated Useful Life September 30, December 31, Land n/a $ 4,653 $ 4,450 Gathering systems and processing complexes 3 to 47 years 7,883,265 7,113,114 Pipelines and equipment 15 to 45 years 137,769 137,644 Assets under construction n/a 856,092 579,501 Other 3 to 40 years 30,976 29,826 Total property, plant and equipment 8,912,755 7,864,535 Less accumulated depreciation 2,494,121 2,133,644 Net property, plant and equipment $ 6,418,634 $ 5,730,891 |
Equity Investments (Tables)
Equity Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments Table | The following table presents the activity in WES’s equity investments for the nine months ended September 30, 2018 : thousands Fort White Rendezvous Mont TEFR Interests Whitethorn Cactus II Total Balance at December 31, 2017 $ 7,030 $ 44,945 $ 42,528 $ 110,299 $ 361,409 $ — $ — $ 566,211 Acquisitions — — — — — 150,563 11,295 161,858 Investment earnings (loss), net of amortization (892 ) 8,547 635 22,916 47,736 23,810 — 102,752 Contributions — 1,278 — — 24,680 7,069 34,436 67,463 Capitalized interest — — — — — — 516 516 Distributions (194 ) (8,111 ) (2,091 ) (22,945 ) (43,989 ) (16,497 ) — (93,827 ) Distributions in excess of cumulative earnings (1) (2,889 ) (3,109 ) (2,015 ) (3,305 ) (6,779 ) — — (18,097 ) Balance at September 30, 2018 $ 3,055 $ 43,550 $ 39,057 $ 106,965 $ 383,057 $ 164,945 $ 46,247 $ 786,876 (1) Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual investment basis. |
Components of Working Capital (
Components of Working Capital (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Components Of Working Capital [Abstract] | |
Accounts Receivable, Net Table | A summary of accounts receivable, net is as follows: thousands September 30, 2018 December 31, 2017 Trade receivables, net $ 224,719 $ 160,194 Other receivables, net 168 45 Total accounts receivable, net $ 224,887 $ 160,239 |
Other Current Assets Table | A summary of other current assets is as follows: thousands September 30, 2018 December 31, 2017 Natural gas liquids inventory $ 11,212 $ 10,788 Imbalance receivables 3,829 1,640 Prepaid insurance 3,203 2,955 Contract assets 2,748 — Other 5,127 — Total other current assets $ 26,119 $ 15,383 |
Accrued Liabilities Table | A summary of accrued liabilities is as follows: thousands September 30, 2018 December 31, 2017 Accrued interest expense $ 54,556 $ 40,646 Short-term asset retirement obligations (1) 42,872 2,304 Short-term remediation and reclamation obligations 833 833 Income taxes payable 247 2,495 Contract liabilities 8,031 — Other 7,965 1,714 Total accrued liabilities $ 114,504 $ 47,992 (1) As of September 30, 2018 , includes $40.2 million of short-term liabilities incurred during the second quarter of 2018 related to the shutdowns at the Third Creek and Kitty Draw gathering systems. See Note 1 for further information. |
Debt and Interest Expense (Tabl
Debt and Interest Expense (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Instruments [Abstract] | |
Debt Outstanding and Debt Activity Tables | The following table presents WES and WGP’s outstanding debt: September 30, 2018 December 31, 2017 thousands Principal Carrying Value Fair Value (1) Principal Carrying Value Fair Value (1) Short-term debt WGP RCF $ 28,000 $ 28,000 $ 28,000 $ — $ — $ — WGP long-term debt WGP RCF $ — $ — $ — $ 28,000 $ 28,000 $ 28,000 WES long-term debt 2.600% Senior Notes due 2018 — — — 350,000 349,684 350,631 5.375% Senior Notes due 2021 500,000 496,669 517,160 500,000 495,815 530,647 4.000% Senior Notes due 2022 670,000 669,020 668,198 670,000 668,849 684,043 3.950% Senior Notes due 2025 500,000 492,596 478,470 500,000 491,885 500,885 4.650% Senior Notes due 2026 500,000 495,592 492,502 500,000 495,245 520,144 4.500% Senior Notes due 2028 400,000 394,514 384,964 — — — 4.750% Senior Notes due 2028 400,000 395,806 391,532 — — — 5.450% Senior Notes due 2044 600,000 593,319 565,485 600,000 593,234 637,827 5.300% Senior Notes due 2048 700,000 686,601 645,643 — — — 5.500% Senior Notes due 2048 350,000 342,347 331,981 — — — WES RCF — — — 370,000 370,000 370,000 Total long-term debt $ 4,620,000 $ 4,566,464 $ 4,475,935 $ 3,518,000 $ 3,492,712 $ 3,622,177 (1) Fair value is measured using the market approach and Level 2 inputs. 10. DEBT AND INTEREST EXPENSE (CONTINUED) Debt activity. The following table presents WES and WGP’s debt activity for the nine months ended September 30, 2018 : thousands Carrying Value Balance at December 31, 2017 $ 3,492,712 WES RCF borrowings 320,000 Issuance of 4.500% Senior Notes due 2028 400,000 Issuance of 5.300% Senior Notes due 2048 700,000 Issuance of 4.750% Senior Notes due 2028 400,000 Issuance of 5.500% Senior Notes due 2048 350,000 Repayment of 2.600% Senior Notes due 2018 (350,000 ) Repayments of WES RCF borrowings (690,000 ) Other (28,248 ) Balance at September 30, 2018 $ 4,594,464 |
Interest Expense Table | The following table summarizes the amounts included in interest expense: Three Months Ended Nine Months Ended thousands 2018 2017 2018 2017 Third parties Long-term and short-term debt $ (53,229 ) $ (36,223 ) $ (143,436 ) $ (106,412 ) Amortization of debt issuance costs and commitment fees (2,054 ) (2,009 ) (6,955 ) (5,955 ) Capitalized interest 6,967 2,115 17,032 3,991 Total interest expense – third parties (48,316 ) (36,117 ) (133,359 ) (108,376 ) Affiliates Deferred purchase price obligation – Anadarko (1) — — — (71 ) Total interest expense – affiliates — — — (71 ) Interest expense $ (48,316 ) $ (36,117 ) $ (133,359 ) $ (108,447 ) (1) See Note 3 for a discussion of the Deferred purchase price obligation - Anadarko. |
Description of Business and B_4
Description of Business and Basis of Presentation - Assets and Investments Table (Details) - Western Gas Partners, LP [Member] | Sep. 30, 2018unit | |
Owned and Operated [Member] | Gathering Systems [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 12 | [1] |
Owned and Operated [Member] | Treating Facilities [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 19 | |
Owned and Operated [Member] | Natural Gas Processing Plants/Trains [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 20 | |
Owned and Operated [Member] | Natural Gas Liquids Pipelines [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 2 | |
Owned and Operated [Member] | Natural Gas Pipelines [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 5 | |
Operated Interests [Member] | Gathering Systems [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 3 | [1] |
Operated Interests [Member] | Treating Facilities [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 3 | |
Operated Interests [Member] | Natural Gas Processing Plants/Trains [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 4 | |
Operated Interests [Member] | Oil Pipelines [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 1 | |
Non-Operated Interests [Member] | Gathering Systems [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 3 | [1] |
Equity Interests [Member] | Gathering Systems [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 2 | [1] |
Equity Interests [Member] | Treating Facilities [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 3 | |
Equity Interests [Member] | Natural Gas Processing Plants/Trains [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 2 | |
Equity Interests [Member] | Natural Gas Liquids Pipelines [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 3 | |
Equity Interests [Member] | Oil Pipelines [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 2 | |
[1] | Includes the DBM water systems. |
Description of Business and B_5
Description of Business and Basis of Presentation - Ownership Interests and Method of Consolidation Table (Details) | 9 Months Ended | |
Sep. 30, 2018 | ||
Chipeta [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Ownership interest by noncontrolling interest owner | 25.00% | |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Fort Union [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 14.81% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | White Cliffs [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 10.00% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Rendezvous [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 22.00% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Mont Belvieu JV [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 25.00% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Texas Express Pipeline [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 20.00% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Texas Express Gathering [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 20.00% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Front Range Pipeline [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 33.33% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Whitethorn [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 20.00% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Cactus II [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 15.00% | [1] |
Western Gas Partners, LP [Member] | Proportionate Consolidation [Member] | Marcellus Interest Systems [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 33.75% | [2] |
Western Gas Partners, LP [Member] | Proportionate Consolidation [Member] | Newcastle System [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 50.00% | [2] |
Western Gas Partners, LP [Member] | Proportionate Consolidation [Member] | Springfield System [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 50.10% | [2] |
Western Gas Partners, LP [Member] | Full Consolidation [Member] | Chipeta [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage ownership interest | 75.00% | [3] |
[1] | Investments in non-controlled entities over which WES exercises significant influence are accounted for under the equity method. “Equity investment throughput” refers to WES’s share of average throughput for these investments. | |
[2] | WGP proportionately consolidates WES’s associated share of the assets, liabilities, revenues and expenses attributable to these assets. | |
[3] | The 25% interest in Chipeta Processing LLC (“Chipeta”) held by a third-party member is reflected within noncontrolling interests in the consolidated financial statements, in addition to the noncontrolling interests noted below. |
Description of Business and B_6
Description of Business and Basis of Presentation - Impact of New Accounting Pronouncement - Statements of Operations Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Revenues | ||||||
Revenues and other | $ 507,762 | $ 574,695 | $ 1,432,483 | $ 1,616,338 | ||
Expenses | ||||||
Cost of product | [1] | 105,966 | 239,223 | 303,518 | 631,859 | |
Operation and maintenance | [1] | 111,359 | 79,536 | 300,266 | 229,444 | |
Depreciation and amortization | 82,553 | 72,539 | 238,187 | 216,272 | ||
Impairments | 25,317 | 2,159 | 152,708 | 170,079 | $ 178,400 | |
Income tax (benefit) expense | 1,517 | 510 | 3,301 | 4,905 | ||
Net income (loss) attributable to noncontrolling interests | 47,203 | 50,399 | 63,669 | 146,529 | ||
Net income (loss) attributable to Western Gas Equity Partners, LP | 107,474 | $ 96,202 | 276,059 | $ 277,086 | ||
Service Revenues - Fee Based [Member] | ||||||
Revenues | ||||||
Revenues and other | 409,106 | 1,146,099 | ||||
Service Revenues - Product Based [Member] | ||||||
Revenues | ||||||
Revenues and other | 22,735 | 67,433 | ||||
Product Sales [Member] | ||||||
Revenues | ||||||
Revenues and other | 75,150 | 217,738 | ||||
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | ||||||
Expenses | ||||||
Cost of product | 353,641 | 940,936 | ||||
Operation and maintenance | 111,327 | 300,098 | ||||
Depreciation and amortization | 81,824 | 236,102 | ||||
Impairments | 152,663 | |||||
Income tax (benefit) expense | 1,580 | 3,361 | ||||
Net income (loss) attributable to noncontrolling interests | 40,471 | 89,339 | ||||
Net income (loss) attributable to Western Gas Equity Partners, LP | 123,002 | 258,774 | ||||
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | Service Revenues - Fee Based [Member] | ||||||
Revenues | ||||||
Revenues and other | 396,161 | 1,096,708 | ||||
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | Service Revenues - Product Based [Member] | ||||||
Revenues | ||||||
Revenues and other | 0 | 0 | ||||
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | Product Sales [Member] | ||||||
Revenues | ||||||
Revenues and other | 366,603 | 978,127 | ||||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | ||||||
Expenses | ||||||
Cost of product | (247,675) | (637,418) | ||||
Operation and maintenance | 32 | 168 | ||||
Depreciation and amortization | 729 | 2,085 | ||||
Impairments | 45 | |||||
Income tax (benefit) expense | (63) | (60) | ||||
Net income (loss) attributable to noncontrolling interests | 6,732 | (25,670) | ||||
Net income (loss) attributable to Western Gas Equity Partners, LP | (15,528) | 17,285 | ||||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | Service Revenues - Fee Based [Member] | ||||||
Revenues | ||||||
Revenues and other | 12,945 | 49,391 | ||||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | Service Revenues - Product Based [Member] | ||||||
Revenues | ||||||
Revenues and other | 22,735 | 67,433 | ||||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | Product Sales [Member] | ||||||
Revenues | ||||||
Revenues and other | $ (291,453) | $ (760,389) | ||||
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $47.0 million and $131.4 million for the three and nine months ended September 30, 2018, respectively, and $22.9 million and $60.5 million for the three and nine months ended September 30, 2017, respectively. Operation and maintenance includes charges from affiliates of $25.1 million and $68.8 million for the three and nine months ended September 30, 2018, respectively, and $18.1 million and $53.7 million for the three and nine months ended September 30, 2017, respectively. General and administrative includes charges from affiliates of $11.8 million and $35.0 million for the three and nine months ended September 30, 2018, respectively, and $10.4 million and $29.6 million for the three and nine months ended September 30, 2017, respectively. See Note 6. |
Description of Business and B_7
Description of Business and Basis of Presentation - Impact of New Accounting Pronouncement - Balance Sheet Table (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Assets | |||
Other current assets | [1] | $ 26,119 | $ 15,383 |
Net property, plant and equipment | 6,418,634 | 5,730,891 | |
Other assets | 14,057 | 12,570 | |
Liabilities | |||
Accrued liabilities | [2] | 114,504 | 47,992 |
Deferred income taxes | 10,285 | 7,409 | |
Other liabilities | [3] | 141,957 | 3,491 |
Equity and partners' capital | |||
Total equity and partners' capital | 3,616,640 | $ 3,944,879 | |
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | |||
Assets | |||
Other current assets | 23,371 | ||
Net property, plant and equipment | 6,320,225 | ||
Other assets | 13,894 | ||
Liabilities | |||
Accrued liabilities | 106,810 | ||
Deferred income taxes | 10,519 | ||
Other liabilities | 2,781 | ||
Equity and partners' capital | |||
Total equity and partners' capital | 3,661,956 | ||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | |||
Assets | |||
Other current assets | 2,748 | ||
Net property, plant and equipment | 98,409 | ||
Other assets | 163 | ||
Liabilities | |||
Accrued liabilities | 7,694 | ||
Deferred income taxes | (234) | ||
Other liabilities | 139,176 | ||
Equity and partners' capital | |||
Total equity and partners' capital | $ (45,316) | ||
[1] | Other current assets includes affiliate amounts of $1.4 million and zero as of September 30, 2018, and December 31, 2017, respectively. | ||
[2] | Accrued liabilities includes affiliate amounts of $2.3 million and $0.2 million as of September 30, 2018, and December 31, 2017, respectively. | ||
[3] | Other liabilities includes affiliate amounts of $50.2 million and $0.7 million as of September 30, 2018, and December 31, 2017, respectively. |
Description of Business and B_8
Description of Business and Basis of Presentation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jan. 01, 2018 | May 31, 2008 | ||||
Revenues and other | $ 507,762,000 | $ 574,695,000 | $ 1,432,483,000 | $ 1,616,338,000 | |||||||
Cost of product | [1] | 105,966,000 | 239,223,000 | 303,518,000 | 631,859,000 | ||||||
Note receivable - Anadarko | 260,000,000 | 260,000,000 | $ 260,000,000 | ||||||||
Impairments | 25,317,000 | 2,159,000 | 152,708,000 | 170,079,000 | $ 178,400,000 | ||||||
Loss on divestiture and other, net | [2] | (65,000) | (72,000) | (351,000) | [3] | (135,017,000) | [3] | ||||
Proceeds from property insurance claims | 0 | 22,977,000 | |||||||||
Cumulative effect of accounting change | [4] | (44,379,000) | (44,379,000) | ||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||
Cumulative effect of accounting change | $ (44,379,000) | ||||||||||
Service Revenues - Fee Based [Member] | |||||||||||
Revenues and other | 409,106,000 | 1,146,099,000 | |||||||||
Product Sales [Member] | |||||||||||
Revenues and other | $ 75,150,000 | $ 217,738,000 | |||||||||
Chipeta [Member] | |||||||||||
Ownership interest by noncontrolling interest owner | 25.00% | 25.00% | |||||||||
Affiliates [Member] | |||||||||||
Revenues and other | [5] | $ 274,514,000 | 351,127,000 | $ 766,179,000 | 982,595,000 | ||||||
Cost of product | [5] | 46,971,000 | 22,902,000 | 131,428,000 | 60,497,000 | ||||||
Affiliates [Member] | Service Revenues - Fee Based [Member] | |||||||||||
Revenues and other | 204,090,000 | 157,303,000 | 582,579,000 | 484,601,000 | |||||||
Affiliates [Member] | Product Sales [Member] | |||||||||||
Revenues and other | 69,723,000 | $ 185,002,000 | $ 182,372,000 | 489,172,000 | |||||||
Prior Period Adjustment [Member] | |||||||||||
Cost of product | $ 51,600,000 | ||||||||||
Prior Period Adjustment [Member] | Service Revenues - Fee Based [Member] | |||||||||||
Revenues and other | 39,000,000 | ||||||||||
Prior Period Adjustment [Member] | Product Sales [Member] | |||||||||||
Revenues and other | $ 12,600,000 | ||||||||||
Western Gas Equity Partners, LP [Member] | Western Gas Partners, LP [Member] | General Partner [Member] | |||||||||||
Percentage ownership interest | 100.00% | ||||||||||
Western Gas Partners, LP [Member] | Maximum [Member] | |||||||||||
Contract terms | Payment is generally received from the customer in the month following the service or delivery of the product. Contracts with customers generally have initial terms ranging from 5 to 10 years. | ||||||||||
Western Gas Partners, LP [Member] | Kitty Draw and Third Creek Gathering Systems [Member] | |||||||||||
Impairments | 6,800,000 | $ 134,000,000 | |||||||||
Western Gas Partners, LP [Member] | Delaware Basin Midstream Complex [Member] | |||||||||||
Loss on divestiture and other, net | 5,700,000 | ||||||||||
Proceeds from insurance claims, total | 52,900,000 | ||||||||||
Proceeds from business interruption insurance claims | 29,882,000 | ||||||||||
Proceeds from property insurance claims | $ 22,977,000 | ||||||||||
Western Gas Partners, LP [Member] | Affiliates [Member] | |||||||||||
Note receivable - Anadarko | 260,000,000 | 260,000,000 | $ 260,000,000 | ||||||||
Western Gas Partners, LP [Member] | Affiliates [Member] | Product Sales [Member] | Kitty Draw and Third Creek Gathering Systems [Member] | |||||||||||
Revenues and other | $ 0 | $ (10,900,000) | |||||||||
Western Gas Partners, LP [Member] | Other Subsidiaries of Anadarko [Member] | |||||||||||
WES common units issued | 2,011,380 | ||||||||||
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $47.0 million and $131.4 million for the three and nine months ended September 30, 2018, respectively, and $22.9 million and $60.5 million for the three and nine months ended September 30, 2017, respectively. Operation and maintenance includes charges from affiliates of $25.1 million and $68.8 million for the three and nine months ended September 30, 2018, respectively, and $18.1 million and $53.7 million for the three and nine months ended September 30, 2017, respectively. General and administrative includes charges from affiliates of $11.8 million and $35.0 million for the three and nine months ended September 30, 2018, respectively, and $10.4 million and $29.6 million for the three and nine months ended September 30, 2017, respectively. See Note 6. | ||||||||||
[2] | Includes losses related to an incident at the DBM complex for the nine months ended September 30, 2017. See Note 1. | ||||||||||
[3] | Includes losses related to an incident at the DBM complex for the nine months ended September 30, 2017. See Note 1. | ||||||||||
[4] | See Note 1. | ||||||||||
[5] | Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue From Contracts With Customers Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | $ 510,728 | $ 1,437,621 | ||
Total revenues and other | 507,762 | $ 574,695 | 1,432,483 | $ 1,616,338 |
Service Revenues - Fee Based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 409,106 | 1,146,099 | ||
Total revenues and other | 409,106 | 1,146,099 | ||
Service Revenues - Product Based [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 22,735 | 67,433 | ||
Total revenues and other | 22,735 | 67,433 | ||
Product Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 78,887 | 224,089 | ||
Total revenues and other | 75,150 | 217,738 | ||
Commodity Price Swap Agreement [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other than customers | (3,737) | (6,351) | ||
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from other than customers | $ 771 | $ 1,213 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | ||
Change in Contracts with Customer, Asset [Roll Forward] | |||||
Balance at December 31, 2017 | $ 0 | ||||
Cumulative effect of adopting Topic 606 | 5,129 | ||||
Amounts transferred to Accounts receivable, net from contract assets recognized in the adoption effect | $ (1,700) | (4,358) | [1] | ||
Additional estimated revenues recognized | (5,000) | 2,140 | [2] | ||
Balance at September 30, 2018 | 2,911 | 2,911 | |||
Contract assets at September 30, 2018 | |||||
Other current assets | $ 2,748 | $ 0 | |||
Other assets | 163 | ||||
Total contract assets from contracts with customers | $ 2,911 | $ 0 | $ 2,911 | $ 0 | |
[1] | Includes $(1.7) million for the three months ended September 30, 2018. | ||||
[2] | Includes $(5.0) million for the three months ended September 30, 2018. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Liabilities Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | ||
Change in Contracts with Customer, Liability [Roll Forward] | |||||
Balance at December 31, 2017 | $ 0 | ||||
Cumulative effect of adopting Topic 606 | 120,717 | ||||
Cash received or receivable, excluding revenues recognized during the period | $ (3,700) | 37,340 | [1] | ||
Revenues recognized during the period that were included in the adoption effect | (8,800) | (10,850) | [2] | ||
Balance at September 30, 2018 | 147,207 | 147,207 | |||
Contract liabilities at September 30, 2018 | |||||
Accrued liabilities | $ 8,031 | $ 0 | |||
Other liabilities | 139,176 | ||||
Total contract liabilities from contracts with customers | $ 147,207 | 0 | $ 147,207 | $ 0 | |
Change in Contract with Customer, Asset and Liability [Abstract] | |||||
Performance obligation satisfied in previous period | $ (7,500) | ||||
[1] | Includes $(3.7) million for the three months ended September 30, 2018. | ||||
[2] | Includes $(8.8) million for the three months ended September 30, 2018, of which $(7.5) million was from a performance obligation satisfied in a previous period related to the arbitration against SWEPI LP (see Note 11). |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Expected Revenues Table (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 124,395 |
Performance obligation expected to be satisfied, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 480,211 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 545,223 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 524,810 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 528,900 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 4,395,350 |
Performance obligation expected to be satisfied, expected timing |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Revenue from Contracts with Customer [Line Items] | |||
Accounts receivable, net | [1] | $ 224,887 | $ 160,239 |
Customers [Member] | |||
Revenue from Contracts with Customer [Line Items] | |||
Accounts receivable, net | $ 298,200 | $ 244,400 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $59.1 million and $36.1 million as of September 30, 2018, and December 31, 2017, respectively. |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Thousands | Jun. 27, 2018 | Jun. 01, 2018 | Mar. 17, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||||||
Acquisition, net investment | $ 161,858 | |||||||
Affiliates [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Cash payment | 254 | $ 3,910 | ||||||
Settlement of the Deferred purchase price obligation - Anadarko | [1] | 0 | 37,346 | |||||
Deferred Purchase Price Obligation - Anadarko [Member] | Affiliates [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Settlement of the Deferred purchase price obligation - Anadarko | [2] | $ 0 | $ 0 | $ 0 | 37,346 | |||
Western Gas Partners, LP [Member] | Helper and Clawson Systems [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Gain (loss) on sale of assets | 16,300 | |||||||
Western Gas Partners, LP [Member] | Non-Operated Marcellus Interest [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Percentage ownership interest | 33.75% | |||||||
Western Gas Partners, LP [Member] | Whitethorn [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Ownership percentage acquired | 20.00% | |||||||
Acquisition, net investment | $ 150,600 | |||||||
Western Gas Partners, LP [Member] | Cactus II [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Ownership percentage acquired | 15.00% | |||||||
Acquisition, net investment | $ 11,300 | |||||||
Western Gas Partners, LP [Member] | Delaware Basin JV Gathering LLC [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Ownership percentage acquired | 50.00% | |||||||
Percentage ownership interest | 50.00% | |||||||
Cash payment | $ 155,000 | |||||||
Net gain from property exchange | 125,700 | |||||||
Western Gas Partners, LP [Member] | Delaware Basin JV Gathering LLC [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | Affiliates [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Settlement of the Deferred purchase price obligation - Anadarko | $ 37,346 | |||||||
[1] | See Note 3. | |||||||
[2] | Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation - Anadarko (see Note 3). |
Partnership Distributions - Cas
Partnership Distributions - Cash Distributions Tables (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | ||
Distribution Made to Limited Partner [Line Items] | ||||||||
Total quarterly distribution per unit | $ 0.59500 | [1] | $ 0.58250 | $ 0.56875 | $ 0.54875 | $ 0.53750 | $ 0.52750 | $ 0.49125 |
Total quarterly cash distribution | $ 130,268 | [1] | $ 127,531 | $ 124,518 | $ 120,140 | $ 117,677 | $ 115,487 | $ 107,549 |
Western Gas Partners, LP [Member] | ||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||
Total quarterly distribution per unit | $ 0.965 | [2] | $ 0.950 | $ 0.935 | $ 0.920 | $ 0.905 | $ 0.890 | $ 0.875 |
Total quarterly cash distribution | $ 230,239 | [2] | $ 225,691 | $ 221,133 | $ 216,586 | $ 212,038 | $ 207,491 | $ 188,753 |
[1] | The Board of Directors declared a cash distribution to WGP unitholders for the third quarter of 2018 of $0.59500 per unit, or $130.3 million in aggregate. The cash distribution is payable on November 21, 2018, to WGP unitholders of record at the close of business on October 31, 2018. | |||||||
[2] | The Board of Directors of WES GP declared a cash distribution to WES unitholders for the third quarter of 2018 of $0.965 per unit, or $230.2 million in aggregate, including incentive distributions, but excluding distributions on WES Class C units (see WES Class C unit distributions below). The cash distribution is payable on November 13, 2018, to WES unitholders of record at the close of business on October 31, 2018. |
Partnership Distributions - Add
Partnership Distributions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | May 02, 2017 | Mar. 01, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2018 |
Distribution Made to Limited Partner [Line Items] | |||||
Partnership agreement day requirement of distribution of available cash | 55 days | ||||
Western Gas Partners, LP [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Partnership agreement day requirement of distribution of available cash | 45 days | ||||
Incentive distributions percentage | 48.00% | ||||
Western Gas Partners, LP [Member] | Minimum [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Distribution sharing percentage | 1.50% | ||||
Western Gas Partners, LP [Member] | Maximum [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Distribution sharing percentage | 49.50% | ||||
Western Gas Partners, LP [Member] | Class C Units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Class C units, discount rate percentage on distribution | 6.00% | ||||
Western Gas Partners, LP [Member] | Series A Preferred Units [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Series A Preferred units, quarterly distribution per unit | $ 0.68 | ||||
Series A Preferred units, quarterly cash distribution | $ 7.5 | ||||
Western Gas Partners, LP [Member] | Series A Preferred Units [Member] | Series A Preferred Units March 2017 Conversion [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Series A Preferred units, percentage converted | 50.00% | ||||
Series A Preferred units, common units issued upon conversion | 1 | ||||
Western Gas Partners, LP [Member] | Series A Preferred Units [Member] | Series A Preferred Units May 2017 Conversion [Member] | |||||
Distribution Made to Limited Partner [Line Items] | |||||
Series A Preferred units, percentage converted | 50.00% | ||||
Series A Preferred units, common units issued upon conversion | 1 |
Equity and Partners' Capital -
Equity and Partners' Capital - Partnership Interests Table (Details) - Western Gas Partners, LP [Member] | 9 Months Ended |
Sep. 30, 2018shares | |
Change In Units [Roll Forward] | |
Balance | 168,429,056 |
Units issued | 801,546 |
Long-Term Incentive Plan award vestings | 7,180 |
Balance | 169,237,782 |
Common Units [Member] | |
Change In Units [Roll Forward] | |
Balance | 152,602,105 |
Long-Term Incentive Plan award vestings | 7,180 |
Balance | 152,609,285 |
Class C Units [Member] | |
Change In Units [Roll Forward] | |
Balance | 13,243,883 |
Units issued | 801,546 |
Balance | 14,045,429 |
General Partner [Member] | |
Change In Units [Roll Forward] | |
Balance | 2,583,068 |
Balance | 2,583,068 |
Equity and Partners' Capital _2
Equity and Partners' Capital - Additional Information (Details) $ in Millions | Jun. 07, 2018shares | May 02, 2017shares | Mar. 01, 2017shares | Jun. 30, 2015$ / unitshares | Nov. 30, 2014shares | Sep. 30, 2018shares | Dec. 31, 2016shares | Dec. 31, 2017shares | Jul. 31, 2017USD ($) |
Schedule of Investments [Line Items] | |||||||||
Limited partner units owned | 218,937,797 | 218,933,141 | |||||||
7.50% Tangible Equity Units [Member] | Anadarko [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Tangible equity units, number issued | 9,200,000 | ||||||||
Tangible equity units, rate | 7.50% | ||||||||
Tangible equity units, stated amount per unit | $ / unit | 50 | ||||||||
Debt instrument, maturity date | Jun. 7, 2018 | ||||||||
Tangible equity units, number settled | 9,200,000 | ||||||||
7.50% Tangible Equity Units [Member] | Anadarko [Member] | Over-Allotment Option [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Tangible equity units, number issued | 1,200,000 | ||||||||
7.50% Tangible Equity Units [Member] | Common Units [Member] | Anadarko [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Units issued | 8,207,204 | ||||||||
Western Gas Equity Partners, LP [Member] | Public [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Limited partner units owned | 48,557,636 | ||||||||
Ownership interest | 22.20% | ||||||||
Western Gas Partners, LP [Member] | Public [Member] | Common Units [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Limited partner units owned | 100,465,859 | ||||||||
Ownership interest | 59.40% | ||||||||
Anadarko [Member] | Western Gas Equity Partners, LP [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Limited partner units owned | 170,380,161 | ||||||||
Ownership interest | 77.80% | ||||||||
Western Gas Equity Partners, LP [Member] | Western Gas Partners, LP [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
General partner units owned | 2,583,068 | ||||||||
General partner's interest | 1.50% | ||||||||
Western Gas Equity Partners, LP [Member] | Western Gas Partners, LP [Member] | Common Units [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Limited partner units owned | 50,132,046 | ||||||||
Ownership interest | 29.60% | ||||||||
Western Gas Equity Partners, LP [Member] | Western Gas Partners, LP [Member] | Incentive Distribution Rights [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
General partner's interest | 100.00% | ||||||||
Western Gas Partners, LP [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Units issued | 801,546 | ||||||||
Western Gas Partners, LP [Member] | July 2017 COP [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Maximum aggregate principal of common units | $ | $ 500 | ||||||||
Western Gas Partners, LP [Member] | Class C Units [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Units issued | 801,546 | ||||||||
Class C units, common units issued upon conversion | 1 | ||||||||
Western Gas Partners, LP [Member] | Class C Units [Member] | Other Subsidiaries of Anadarko [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Units issued | 10,913,853 | ||||||||
Western Gas Partners, LP [Member] | Series A Preferred Units [Member] | Series A Preferred Units March 2017 Conversion [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Series A Preferred units, percentage converted | 50.00% | ||||||||
Series A Preferred units, common units issued upon conversion | 1 | ||||||||
Western Gas Partners, LP [Member] | Series A Preferred Units [Member] | Series A Preferred Units May 2017 Conversion [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Series A Preferred units, percentage converted | 50.00% | ||||||||
Series A Preferred units, common units issued upon conversion | 1 | ||||||||
Western Gas Partners, LP [Member] | Series A Preferred Units [Member] | Private Investor [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Units issued | 21,922,831 | ||||||||
Other Subsidiaries of Anadarko [Member] | Western Gas Partners, LP [Member] | Common Units [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Limited partner units owned | 2,011,380 | ||||||||
Other Subsidiaries of Anadarko [Member] | Western Gas Partners, LP [Member] | Class C Units [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Limited partner units owned | 14,045,429 | ||||||||
Other Subsidiaries of Anadarko [Member] | Western Gas Partners, LP [Member] | Common and Class C Units [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Ownership interest | 9.50% |
Transactions with Affiliates -
Transactions with Affiliates - Commodity Price Swap Agreements Tables (Details) - Western Gas Partners, LP [Member] | Sep. 30, 2018$ / bbl$ / MMBTU | Dec. 20, 2017$ / bbl$ / MMBTU | Dec. 01, 2016$ / bbl$ / MMBTU | |
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Ethane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 18.41 | |||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Propane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 47.08 | |||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Isobutane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 62.09 | |||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Normal Butane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 54.62 | |||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Natural Gasoline [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 72.88 | |||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Condensate [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 76.47 | |||
DJ Basin Complex [Member] | Years 2017 - 2018 [Member] | Natural Gas (per MMBtu) [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | $ / MMBTU | 5.96 | |||
DJ Basin Complex [Member] | Year 2017 [Member] | Ethane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 5.09 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Propane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 18.85 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Isobutane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 26.83 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Normal Butane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 26.20 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Natural Gasoline [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 41.84 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Condensate [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 45.40 | ||
DJ Basin Complex [Member] | Year 2017 [Member] | Natural Gas (per MMBtu) [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | $ / MMBTU | [1] | 3.05 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Ethane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 5.41 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Propane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 28.72 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Isobutane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 32.92 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Normal Butane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 32.71 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Natural Gasoline [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 48.04 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Condensate [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 49.36 | ||
DJ Basin Complex [Member] | Year 2018 [Member] | Natural Gas (per MMBtu) [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | $ / MMBTU | [1] | 2.21 | ||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Ethane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 23.11 | |||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Propane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 52.90 | |||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Isobutane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 73.89 | |||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Normal Butane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 64.93 | |||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Natural Gasoline [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 81.68 | |||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Condensate [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | 81.68 | |||
MGR Assets [Member] | Years 2017 - 2018 [Member] | Natural Gas (per MMBtu) [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity swap fixed price | $ / MMBTU | 4.87 | |||
MGR Assets [Member] | Year 2017 [Member] | Ethane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 4.08 | ||
MGR Assets [Member] | Year 2017 [Member] | Propane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 19.24 | ||
MGR Assets [Member] | Year 2017 [Member] | Isobutane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 25.79 | ||
MGR Assets [Member] | Year 2017 [Member] | Normal Butane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 25.16 | ||
MGR Assets [Member] | Year 2017 [Member] | Natural Gasoline [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 45.01 | ||
MGR Assets [Member] | Year 2017 [Member] | Condensate [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 53.55 | ||
MGR Assets [Member] | Year 2017 [Member] | Natural Gas (per MMBtu) [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | $ / MMBTU | [1] | 3.05 | ||
MGR Assets [Member] | Year 2018 [Member] | Ethane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 2.52 | ||
MGR Assets [Member] | Year 2018 [Member] | Propane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 25.83 | ||
MGR Assets [Member] | Year 2018 [Member] | Isobutane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 30.03 | ||
MGR Assets [Member] | Year 2018 [Member] | Normal Butane [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 29.82 | ||
MGR Assets [Member] | Year 2018 [Member] | Natural Gasoline [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 47.25 | ||
MGR Assets [Member] | Year 2018 [Member] | Condensate [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | [1] | 56.76 | ||
MGR Assets [Member] | Year 2018 [Member] | Natural Gas (per MMBtu) [Member] | ||||
Commodity Price Risk Swap [Line Items] | ||||
Commodity market price | $ / MMBTU | [1] | 2.21 | ||
[1] | Represents the New York Mercantile Exchange forward strip price as of December 1, 2016, and December 20, 2017, for the 2017 Market Prices and 2018 Market Prices, respectively, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs. |
Transactions with Affiliates _2
Transactions with Affiliates - Purchases Table (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transaction [Line Items] | ||
Partners’ capital adjustment | $ 0 | $ (1,373) |
Western Gas Partners, LP [Member] | Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Cash consideration | 254 | 3,910 |
Net carrying value | (254) | (5,283) |
Partners’ capital adjustment | $ 0 | $ (1,373) |
Transactions with Affiliates _3
Transactions with Affiliates - Summary of Affiliate Transactions Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||
Related Party Transaction [Line Items] | |||||||
Revenues and other | $ 507,762 | $ 574,695 | $ 1,432,483 | $ 1,616,338 | |||
Equity income, net – affiliates | [1] | 43,110 | 21,519 | 102,752 | 62,708 | ||
Cost of product | [2] | 105,966 | 239,223 | 303,518 | 631,859 | ||
Operation and maintenance | [2] | 111,359 | 79,536 | 300,266 | 229,444 | ||
General and administrative | [2] | 15,158 | 12,922 | 44,853 | 37,595 | ||
Operating expenses | 351,307 | 417,594 | 1,074,622 | 1,320,682 | |||
Interest income | [3] | 4,225 | 4,225 | 12,675 | 12,675 | ||
Interest expense | 48,316 | 36,117 | 133,359 | 108,447 | |||
Distributions to unitholders | [4] | 372,189 | 324,290 | ||||
Above-market component of swap agreements with Anadarko | 12,601 | 18,049 | 40,722 | [4] | 46,719 | [4] | |
Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Revenues and other | [1] | 274,514 | 351,127 | 766,179 | 982,595 | ||
Cost of product | [1] | 46,971 | 22,902 | 131,428 | 60,497 | ||
Operation and maintenance | [5] | 25,145 | 18,110 | 68,830 | 53,661 | ||
General and administrative | [6] | 11,780 | 10,414 | 35,000 | 29,637 | ||
Operating expenses | 83,896 | 51,426 | 235,258 | 143,795 | |||
Interest expense | [7] | 0 | 0 | 0 | 71 | ||
Settlement of the Deferred purchase price obligation - Anadarko | [8] | 0 | (37,346) | ||||
Distributions to unitholders | [9] | 99,247 | 94,205 | 298,818 | 264,533 | ||
Affiliates [Member] | Western Gas Partners, LP [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Distributions to unitholders | [10] | 1,911 | 1,790 | 5,642 | 5,280 | ||
Affiliates [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Settlement of the Deferred purchase price obligation - Anadarko | [11] | $ 0 | $ 0 | $ 0 | $ (37,346) | ||
[1] | Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | ||||||
[2] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $47.0 million and $131.4 million for the three and nine months ended September 30, 2018, respectively, and $22.9 million and $60.5 million for the three and nine months ended September 30, 2017, respectively. Operation and maintenance includes charges from affiliates of $25.1 million and $68.8 million for the three and nine months ended September 30, 2018, respectively, and $18.1 million and $53.7 million for the three and nine months ended September 30, 2017, respectively. General and administrative includes charges from affiliates of $11.8 million and $35.0 million for the three and nine months ended September 30, 2018, respectively, and $10.4 million and $29.6 million for the three and nine months ended September 30, 2017, respectively. See Note 6. | ||||||
[3] | Represents interest income recognized on the note receivable from Anadarko. | ||||||
[4] | See Note 6. | ||||||
[5] | Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. | ||||||
[6] | Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for reimbursement of expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and Anadarko Incentive Plan within this Note 6) and amounts charged by Anadarko under the WGP and WES omnibus agreements. | ||||||
[7] | Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 10). | ||||||
[8] | See Note 3. | ||||||
[9] | Represents distributions paid under WGP’s partnership agreement (see Note 4 and Note 5). | ||||||
[10] | Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 4 and Note 5). | ||||||
[11] | Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation - Anadarko (see Note 3). |
Transactions with Affiliates _4
Transactions with Affiliates - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2008 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Related Party Transaction [Line Items] | |||||||
Note receivable - Anadarko | $ 260,000,000 | $ 260,000,000 | $ 260,000,000 | ||||
Above-market component of swap agreements with Anadarko | [1] | 40,722,000 | |||||
Contributions of equity-based compensation to WES by Anadarko | $ 4,306,000 | ||||||
Western Gas Equity Partners Long Term Incentive Plan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Units vesting period | 3 years | ||||||
Equity-based compensation expense | 62,000 | $ 63,000 | $ 200,000 | $ 200,000 | |||
Commodity Price Swap Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Net gains (losses) on commodity price swap agreements | (3,737,000) | (6,351,000) | |||||
Affiliates [Member] | Commodity Price Swap Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Net gains (losses) on commodity price swap agreements | (3,737,000) | (1,000,000) | $ (6,351,000) | (600,000) | |||
Independent Director [Member] | Western Gas Equity Partners Long Term Incentive Plan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Units vesting period | 1 year | ||||||
Western Gas Partners, LP [Member] | Anadarko Incentive Plan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Equity-based compensation expense | 1,400,000 | 1,200,000 | $ 5,200,000 | 3,200,000 | |||
Contributions of equity-based compensation to WES by Anadarko | $ 4,300,000 | ||||||
Western Gas Partners, LP [Member] | Western Gas Partners Long Term Incentive Plan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Units vesting period | 3 years | ||||||
Equity-based compensation expense | $ 100,000 | $ 100,000 | $ 300,000 | $ 300,000 | |||
Western Gas Partners, LP [Member] | Natural Gas [Member] | Gathering, Treating, Transportation and Disposal [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Affiliate throughput percent | 41.00% | 33.00% | 37.00% | 34.00% | |||
Western Gas Partners, LP [Member] | Natural Gas [Member] | Processing [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Affiliate throughput percent | 35.00% | 39.00% | 35.00% | 42.00% | |||
Western Gas Partners, LP [Member] | Crude Oil, NGL and Produced Water [Member] | Gathering, Treating, Transportation and Disposal [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Affiliate throughput percent | 77.00% | 54.00% | 71.00% | 50.00% | |||
Western Gas Partners, LP [Member] | Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Note receivable - Anadarko | $ 260,000,000 | $ 260,000,000 | $ 260,000,000 | ||||
Note receivable, due date | May 14, 2038 | ||||||
Fixed annual rate for note receivable bearing interest | 6.50% | ||||||
Western Gas Partners, LP [Member] | Affiliates [Member] | Level 2 Inputs [Member] | Valuation, Market Approach [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Fair value of the note receivable | $ 300,900,000 | $ 300,900,000 | $ 325,200,000 | ||||
Western Gas Partners, LP [Member] | Independent Director [Member] | Western Gas Partners Long Term Incentive Plan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Units vesting period | 1 year | ||||||
[1] | See Note 6. |
Property, Plant and Equipment -
Property, Plant and Equipment - Historical Cost Table (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 8,912,755 | $ 7,864,535 |
Less accumulated depreciation | 2,494,121 | 2,133,644 |
Net property, plant and equipment | 6,418,634 | 5,730,891 |
Western Gas Partners, LP [Member] | Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 4,653 | 4,450 |
Western Gas Partners, LP [Member] | Gathering Systems and Processing Complexes [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 7,883,265 | 7,113,114 |
Western Gas Partners, LP [Member] | Gathering Systems and Processing Complexes [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Western Gas Partners, LP [Member] | Gathering Systems and Processing Complexes [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 47 years | |
Western Gas Partners, LP [Member] | Pipelines and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 137,769 | 137,644 |
Western Gas Partners, LP [Member] | Pipelines and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Western Gas Partners, LP [Member] | Pipelines and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 45 years | |
Western Gas Partners, LP [Member] | Assets Under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 856,092 | 579,501 |
Western Gas Partners, LP [Member] | Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 30,976 | $ 29,826 |
Western Gas Partners, LP [Member] | Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Western Gas Partners, LP [Member] | Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Impairments | $ 25,317,000 | $ 2,159,000 | $ 152,708,000 | $ 170,079,000 | $ 178,400,000 |
Western Gas Partners, LP [Member] | Fort Union [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Equity investment impairment loss | 3,100,000 | ||||
Western Gas Partners, LP [Member] | Third Creek Gathering System [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 125,900,000 | ||||
Western Gas Partners, LP [Member] | Third Creek Gathering System [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Market Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated salvage value | 1,800,000 | 1,800,000 | |||
Western Gas Partners, LP [Member] | Kitty Draw Gathering System [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 8,100,000 | ||||
Western Gas Partners, LP [Member] | Kitty Draw Gathering System [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Market Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated salvage value | 0 | 0 | |||
Western Gas Partners, LP [Member] | Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 18,700,000 | 19,600,000 | |||
Western Gas Partners, LP [Member] | GNB NGL Pipeline [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 10,900,000 | ||||
Western Gas Partners, LP [Member] | GNB NGL Pipeline [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Income Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated fair value | 10,000,000 | 10,000,000 | |||
Western Gas Partners, LP [Member] | Chipeta Complex [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 5,600,000 | ||||
Western Gas Partners, LP [Member] | Chipeta Complex [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Market Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated salvage value | $ 1,500,000 | $ 1,500,000 | |||
Western Gas Partners, LP [Member] | Granger Complex [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 158,800,000 | ||||
Western Gas Partners, LP [Member] | Granger Complex [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Income Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated fair value | 48,500,000 | ||||
Western Gas Partners, LP [Member] | Hilight System [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 8,200,000 | ||||
Western Gas Partners, LP [Member] | Granger Straddle Plant [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 3,700,000 | ||||
Western Gas Partners, LP [Member] | Granger Straddle Plant [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Income Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated salvage value | 600,000 | ||||
Western Gas Partners, LP [Member] | Northeast Wyoming Facility [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 2,000,000 | ||||
Western Gas Partners, LP [Member] | Northeast Wyoming Facility [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Market Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated salvage value | $ 400,000 |
Equity Investments - Equity Inv
Equity Investments - Equity Investments Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | $ 566,211 | |||||
Acquisitions | 161,858 | |||||
Investment earnings (loss), net of amortization | [1] | $ 43,110 | $ 21,519 | 102,752 | $ 62,708 | |
Contributions | 67,463 | |||||
Capitalized interest | 516 | |||||
Distributions | (93,827) | (64,313) | ||||
Distributions in excess of cumulative earnings | (18,097) | [2] | $ (16,255) | |||
Balance | 786,876 | 786,876 | ||||
Western Gas Partners, LP [Member] | Fort Union [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 7,030 | |||||
Acquisitions | 0 | |||||
Investment earnings (loss), net of amortization | (892) | |||||
Contributions | 0 | |||||
Capitalized interest | 0 | |||||
Distributions | (194) | |||||
Distributions in excess of cumulative earnings | [2] | (2,889) | ||||
Balance | 3,055 | 3,055 | ||||
Western Gas Partners, LP [Member] | White Cliffs [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 44,945 | |||||
Acquisitions | 0 | |||||
Investment earnings (loss), net of amortization | 8,547 | |||||
Contributions | 1,278 | |||||
Capitalized interest | 0 | |||||
Distributions | (8,111) | |||||
Distributions in excess of cumulative earnings | [2] | (3,109) | ||||
Balance | 43,550 | 43,550 | ||||
Western Gas Partners, LP [Member] | Rendezvous [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 42,528 | |||||
Acquisitions | 0 | |||||
Investment earnings (loss), net of amortization | 635 | |||||
Contributions | 0 | |||||
Capitalized interest | 0 | |||||
Distributions | (2,091) | |||||
Distributions in excess of cumulative earnings | [2] | (2,015) | ||||
Balance | 39,057 | 39,057 | ||||
Western Gas Partners, LP [Member] | Mont Belvieu JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 110,299 | |||||
Acquisitions | 0 | |||||
Investment earnings (loss), net of amortization | 22,916 | |||||
Contributions | 0 | |||||
Capitalized interest | 0 | |||||
Distributions | (22,945) | |||||
Distributions in excess of cumulative earnings | [2] | (3,305) | ||||
Balance | 106,965 | 106,965 | ||||
Western Gas Partners, LP [Member] | TEFR Interests [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 361,409 | |||||
Acquisitions | 0 | |||||
Investment earnings (loss), net of amortization | 47,736 | |||||
Contributions | 24,680 | |||||
Capitalized interest | 0 | |||||
Distributions | (43,989) | |||||
Distributions in excess of cumulative earnings | [2] | (6,779) | ||||
Balance | 383,057 | 383,057 | ||||
Western Gas Partners, LP [Member] | Whitethorn [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 0 | |||||
Acquisitions | 150,563 | |||||
Investment earnings (loss), net of amortization | 23,810 | |||||
Contributions | 7,069 | |||||
Capitalized interest | 0 | |||||
Distributions | (16,497) | |||||
Distributions in excess of cumulative earnings | [2] | 0 | ||||
Balance | 164,945 | 164,945 | ||||
Western Gas Partners, LP [Member] | Cactus II [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 0 | |||||
Acquisitions | 11,295 | |||||
Investment earnings (loss), net of amortization | 0 | |||||
Contributions | 34,436 | |||||
Capitalized interest | 516 | |||||
Distributions | 0 | |||||
Distributions in excess of cumulative earnings | [2] | 0 | ||||
Balance | $ 46,247 | $ 46,247 | ||||
[1] | Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES, recognized under gathering, treating or processing agreements, and purchase and sale agreements. | |||||
[2] | Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual investment basis. |
Components of Working Capital -
Components of Working Capital - Accounts Receivable, Net Table (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Trade receivables, net | $ 224,719 | $ 160,194 | |
Other receivables, net | 168 | 45 | |
Total accounts receivable, net | [1] | $ 224,887 | $ 160,239 |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $59.1 million and $36.1 million as of September 30, 2018, and December 31, 2017, respectively. |
Components of Working Capital_2
Components of Working Capital - Other Current Assets Table (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Other Current Assets [Line Items] | |||
Natural gas liquids inventory | $ 11,212 | $ 10,788 | |
Imbalance receivables | 3,829 | 1,640 | |
Prepaid insurance | 3,203 | 2,955 | |
Contract assets | 2,748 | 0 | |
Other | 5,127 | 0 | |
Total other current assets | [1] | $ 26,119 | $ 15,383 |
[1] | Other current assets includes affiliate amounts of $1.4 million and zero as of September 30, 2018, and December 31, 2017, respectively. |
Components of Working Capital_3
Components of Working Capital - Accrued Liabilities Table (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Components Of Working Capital [Abstract] | |||
Accrued interest expense | $ 54,556 | $ 40,646 | |
Short-term asset retirement obligations | [1] | 42,872 | 2,304 |
Short-term remediation and reclamation obligations | 833 | 833 | |
Income taxes payable | 247 | 2,495 | |
Contract liabilities | 8,031 | 0 | |
Other | 7,965 | 1,714 | |
Total accrued liabilities | [2] | 114,504 | $ 47,992 |
Liabilities incurred | $ 40,200 | ||
[1] | As of September 30, 2018, includes $40.2 million of short-term liabilities incurred during the second quarter of 2018 related to the shutdowns at the Third Creek and Kitty Draw gathering systems. See Note 1 for further information. | ||
[2] | Accrued liabilities includes affiliate amounts of $2.3 million and $0.2 million as of September 30, 2018, and December 31, 2017, respectively. |
Debt and Interest Expense - Deb
Debt and Interest Expense - Debt Outstanding Table (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Short-term debt, carrying value | $ 28,000,000 | $ 0 | |
Total long-term debt, principal | 4,620,000,000 | 3,518,000,000 | |
Long-term debt, carrying value | 4,566,464,000 | 3,492,712,000 | |
Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | 4,475,935,000 | 3,622,177,000 |
WGP RCF [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 28,000,000 | 28,000,000 | |
Short-term debt, carrying value | 28,000,000 | ||
Long-term debt, carrying value | 28,000,000 | ||
WGP RCF [Member] | Revolving Credit Facility [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Short-term debt, fair value | [1] | 28,000,000 | |
Long-term debt, fair value | [1] | 28,000,000 | |
Western Gas Partners, LP [Member] | WES RCF [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 0 | 370,000,000 | |
Long-term debt, carrying value | 0 | 370,000,000 | |
Western Gas Partners, LP [Member] | WES RCF [Member] | Revolving Credit Facility [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 0 | 370,000,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 2.600% Senior Notes due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.60% | ||
Debt instrument, maturity date | Aug. 15, 2018 | ||
Principal | $ 0 | 350,000,000 | |
Long-term debt, carrying value | 0 | 349,684,000 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 2.600% Senior Notes due 2018 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 0 | 350,631,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.375% Senior Notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 5.375% | ||
Debt instrument, maturity date | Jun. 1, 2021 | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 496,669,000 | 495,815,000 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.375% Senior Notes due 2021 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 517,160,000 | 530,647,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.00% | ||
Debt instrument, maturity date | Jul. 1, 2022 | ||
Principal | $ 670,000,000 | 670,000,000 | |
Long-term debt, carrying value | 669,020,000 | 668,849,000 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 668,198,000 | 684,043,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 3.95% | ||
Debt instrument, maturity date | Jun. 1, 2025 | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 492,596,000 | 491,885,000 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 478,470,000 | 500,885,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.650% Senior Notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.65% | ||
Debt instrument, maturity date | Jul. 1, 2026 | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 495,592,000 | 495,245,000 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.650% Senior Notes due 2026 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 492,502,000 | 520,144,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.500% Senior Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.50% | ||
Debt instrument, maturity date | Mar. 1, 2028 | ||
Principal | $ 400,000,000 | 0 | |
Long-term debt, carrying value | 394,514,000 | 0 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.500% Senior Notes due 2028 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 384,964,000 | 0 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.750% Senior Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.75% | ||
Debt instrument, maturity date | Aug. 15, 2028 | ||
Principal | $ 400,000,000 | 0 | |
Long-term debt, carrying value | 395,806,000 | 0 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.750% Senior Notes due 2028 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 391,532,000 | 0 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 5.45% | ||
Debt instrument, maturity date | Apr. 1, 2044 | ||
Principal | $ 600,000,000 | 600,000,000 | |
Long-term debt, carrying value | 593,319,000 | 593,234,000 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 565,485,000 | 637,827,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.300% Senior Notes due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 5.30% | ||
Debt instrument, maturity date | Mar. 1, 2048 | ||
Principal | $ 700,000,000 | 0 | |
Long-term debt, carrying value | 686,601,000 | 0 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.300% Senior Notes due 2048 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 645,643,000 | 0 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.500% Senior Notes due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 5.50% | ||
Debt instrument, maturity date | Aug. 15, 2048 | ||
Principal | $ 350,000,000 | 0 | |
Long-term debt, carrying value | 342,347,000 | 0 | |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.500% Senior Notes due 2048 [Member] | Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | $ 331,981,000 | $ 0 |
[1] | Fair value is measured using the market approach and Level 2 inputs. |
Debt and Interest Expense - D_2
Debt and Interest Expense - Debt Activity Table (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Changes in Debt Outstanding [Roll Forward] | |
Beginning balance | $ 3,492,712 |
Other | (28,248) |
Ending balance | 4,594,464 |
Western Gas Partners, LP [Member] | WES RCF [Member] | Revolving Credit Facility [Member] | |
Changes in Debt Outstanding [Roll Forward] | |
RCF borrowings | 320,000 |
Repayments of RCF borrowings | (690,000) |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.500% Senior Notes due 2028 [Member] | |
Changes in Debt Outstanding [Roll Forward] | |
Issuance of senior notes | 400,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.300% Senior Notes due 2048 [Member] | |
Changes in Debt Outstanding [Roll Forward] | |
Issuance of senior notes | 700,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.750% Senior Notes due 2028 [Member] | |
Changes in Debt Outstanding [Roll Forward] | |
Issuance of senior notes | 400,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.500% Senior Notes due 2048 [Member] | |
Changes in Debt Outstanding [Roll Forward] | |
Issuance of senior notes | 350,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 2.600% Senior Notes due 2018 [Member] | |
Changes in Debt Outstanding [Roll Forward] | |
Repayment of senior notes | $ (350,000) |
Debt and Interest Expense - Int
Debt and Interest Expense - Interest Expense Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Debt Instrument [Line Items] | |||||
Interest expense | $ (48,316) | $ (36,117) | $ (133,359) | $ (108,447) | |
Third Parties [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term and short-term debt | (53,229) | (36,223) | (143,436) | (106,412) | |
Amortization of debt issuance costs and commitment fees | (2,054) | (2,009) | (6,955) | (5,955) | |
Capitalized interest | 6,967 | 2,115 | 17,032 | 3,991 | |
Interest expense | (48,316) | (36,117) | (133,359) | (108,376) | |
Affiliates [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest expense | [1] | 0 | 0 | 0 | (71) |
Affiliates [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | |||||
Debt Instrument [Line Items] | |||||
Deferred purchase price obligation - Anadarko | [2] | $ 0 | $ 0 | $ 0 | $ (71) |
[1] | Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 10). | ||||
[2] | See Note 3 for a discussion of the Deferred purchase price obligation - Anadarko. |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Details) - USD ($) | Feb. 16, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Aug. 31, 2018 | Mar. 31, 2018 | Feb. 25, 2014 |
Revolving Credit Facility [Member] | WGP RCF [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Facility, maximum borrowing capacity | $ 35,000,000 | |||||
Facility, expiration date | Mar. 14, 2019 | |||||
Facility, outstanding borrowings | $ 28,000,000 | |||||
Facility, available borrowing capacity | $ 7,000,000 | |||||
Facility, interest rate at period end | 4.25% | 3.24% | ||||
Facility, fee rate | 0.30% | 0.30% | ||||
Western Gas Partners, LP [Member] | 4.750% Senior Notes due 2028 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 4.75% | |||||
Offering percent | 99.818% | |||||
Effective interest rate | 4.885% | |||||
Western Gas Partners, LP [Member] | 5.500% Senior Notes due 2048 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 5.50% | |||||
Offering percent | 98.912% | |||||
Effective interest rate | 5.652% | |||||
Western Gas Partners, LP [Member] | 4.500% Senior Notes due 2028 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 4.50% | |||||
Offering percent | 99.435% | |||||
Effective interest rate | 4.682% | |||||
Western Gas Partners, LP [Member] | 5.300% Senior Notes due 2048 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 5.30% | |||||
Offering percent | 99.169% | |||||
Effective interest rate | 5.431% | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Facility, maximum borrowing capacity | $ 1,500,000,000 | $ 1,200,000,000 | ||||
Facility, expiration date | Feb. 15, 2023 | |||||
Facility, outstanding borrowings | $ 0 | |||||
Facility, available borrowing capacity | $ 1,495,400,000 | |||||
Facility, interest rate at period end | 3.56% | 2.54% | ||||
Facility, fee rate | 0.20% | 0.20% | ||||
Facility, expandable maximum borrowing capacity | $ 2,000,000,000 | |||||
Outstanding letters of credit | $ 4,600,000 | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Facility, fee rate | 0.125% | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Facility, fee rate | 0.25% | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin added | 1.00% | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin added | 1.00% | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin added | 1.50% | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | Percentage Above Federal Funds Effective Rate [Member] | Alternate Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin added | 0.50% | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | Base Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin added | 0.00% | |||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | Base Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin added | 0.50% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 17, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | |||||||
Contract liabilities | $ 8,031 | $ 8,031 | $ 0 | ||||
Revenues and other | 507,762 | $ 574,695 | 1,432,483 | $ 1,616,338 | |||
Western Gas Partners, LP [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Rent expense associated with office and equipment leases | 14,600 | $ 12,000 | 40,500 | $ 32,700 | |||
Western Gas Partners, LP [Member] | DBJV Arbitration [Member] | Pending Litigation [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Contract liabilities | $ 7,500 | ||||||
Western Gas Partners, LP [Member] | Delaware Basin JV Gathering LLC [Member] | DBJV Arbitration [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Percentage ownership interest | 50.00% | ||||||
Percentage third-party ownership interest | 50.00% | ||||||
Service Revenues - Fee Based [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Revenues and other | 409,106 | $ 1,146,099 | |||||
Service Revenues - Fee Based [Member] | Western Gas Partners, LP [Member] | DBJV Arbitration [Member] | Settled Litigation [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Revenues and other | $ 7,500 |