Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 18, 2019 | Jun. 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-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1.7 | ||
Entity Common Units Outstanding | 218,937,797 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues and Other | ||||
Revenues and other | $ 1,990,276 | $ 2,248,356 | $ 1,804,270 | |
Equity income, net – affiliates | [1] | 153,024 | 85,194 | 78,717 |
Operating expenses | ||||
Cost of product | [2] | 431,921 | 908,693 | 494,194 |
Operation and maintenance | [2] | 414,784 | 315,994 | 308,010 |
General and administrative | [2] | 63,735 | 50,668 | 49,248 |
Property and other taxes | 42,934 | 46,818 | 40,161 | |
Depreciation and amortization | 337,536 | 290,874 | 272,933 | |
Impairments | 228,338 | 178,374 | 15,535 | |
Total operating expenses | 1,519,248 | 1,791,421 | 1,180,081 | |
Gain (loss) on divestiture and other, net | [3] | 1,312 | 132,388 | (14,641) |
Proceeds from business interruption insurance claims | 0 | 29,882 | 16,270 | |
Operating income (loss) | 625,364 | 704,399 | 704,535 | |
Interest income – affiliates | [4] | 16,900 | 16,900 | 16,900 |
Interest expense | [5] | (186,043) | (144,615) | (116,628) |
Other income (expense), net | (4,763) | 1,384 | 545 | |
Income (loss) before income taxes | 451,458 | 578,068 | 605,352 | |
Income tax expense (benefit) | 2,946 | 4,866 | 8,372 | |
Net income (loss) | 448,512 | 573,202 | 596,980 | |
Net income (loss) attributable to noncontrolling interests | 79,083 | 196,595 | 251,208 | |
Net income (loss) attributable to Western Gas Equity Partners, LP | 369,429 | 376,607 | 345,772 | |
Limited partners' interest in net income (loss): | ||||
Pre-acquisition net (income) loss allocated to Anadarko | 0 | 0 | (11,326) | |
Limited partners' interest in net income (loss) | 369,429 | 376,607 | 334,446 | |
Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 1,609,245 | |||
Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 85,553 | |||
Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 293,992 | |||
Affiliates [Member] | ||||
Revenues and Other | ||||
Revenues and other | [1] | 1,067,860 | 1,365,318 | 1,228,232 |
Operating expenses | ||||
Cost of product | [1] | 193,663 | 86,010 | 80,455 |
Operation and maintenance | [6] | 98,769 | 72,489 | 72,330 |
General and administrative | [7] | 46,212 | 39,940 | 38,873 |
Total operating expenses | 338,644 | 198,439 | 191,658 | |
Interest expense | [8] | 0 | (71) | 7,747 |
Affiliates [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 793,594 | 656,795 | 750,087 | |
Affiliates [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 2,248 | 0 | 0 | |
Affiliates [Member] | Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 272,018 | 692,447 | 478,145 | |
Affiliates [Member] | Other [Member] | ||||
Revenues and Other | ||||
Revenues and other | 0 | 16,076 | 0 | |
Third Parties [Member] | ||||
Revenues and Other | ||||
Revenues and other | 922,416 | 883,038 | 576,038 | |
Operating expenses | ||||
Interest expense | (186,043) | (144,544) | (124,375) | |
Third Parties [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 815,651 | 581,154 | 477,762 | |
Third Parties [Member] | Service Revenues - Product Based [Member] | ||||
Revenues and Other | ||||
Revenues and other | 83,305 | 0 | 0 | |
Third Parties [Member] | Product Sales [Member] | ||||
Revenues and Other | ||||
Revenues and other | 21,974 | 297,486 | 94,168 | |
Third Parties [Member] | Other [Member] | ||||
Revenues and Other | ||||
Revenues and other | $ 1,486 | $ 4,398 | $ 4,108 | |
Limited Partner [Member] | ||||
Limited partners' interest in net income (loss): | ||||
Net income (loss) per common unit - basic and diluted | $ 1.69 | $ 1.72 | $ 1.53 | |
Weighted-average common units outstanding - basic and diluted | 218,936 | 218,931 | 218,922 | |
[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. | |||
[2] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $193.7 million, $86.0 million and $80.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Operation and maintenance includes charges from affiliates of $98.8 million, $72.5 million and $72.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. General and administrative includes charges from affiliates of $46.2 million, $39.9 million and $38.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 6. | |||
[3] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1. | |||
[4] | Represents interest income recognized on the note receivable from Anadarko. | |||
[5] | Includes affiliate (as defined in Note 1) amounts of zero, $(0.1) million and $7.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 3 and Note 13. | |||
[6] | Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. | |||
[7] | Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plan within this Note 6) and amounts charged by Anadarko under the WGP and WES omnibus agreements. | |||
[8] | Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 13). |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cost of product | [1] | $ 431,921 | $ 908,693 | $ 494,194 |
Operation and maintenance | [1] | 414,784 | 315,994 | 308,010 |
General and administrative | [1] | 63,735 | 50,668 | 49,248 |
Interest expense | [2] | (186,043) | (144,615) | (116,628) |
Affiliates [Member] | ||||
Cost of product | [3] | 193,663 | 86,010 | 80,455 |
Operation and maintenance | [4] | 98,769 | 72,489 | 72,330 |
General and administrative | [5] | 46,212 | 39,940 | 38,873 |
Interest expense | [6] | $ 0 | $ (71) | $ 7,747 |
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $193.7 million, $86.0 million and $80.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Operation and maintenance includes charges from affiliates of $98.8 million, $72.5 million and $72.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. General and administrative includes charges from affiliates of $46.2 million, $39.9 million and $38.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 6. | |||
[2] | Includes affiliate (as defined in Note 1) amounts of zero, $(0.1) million and $7.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 3 and Note 13. | |||
[3] | Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. | |||
[4] | Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. | |||
[5] | Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plan within this Note 6) and amounts charged by Anadarko under the WGP and WES omnibus agreements. | |||
[6] | Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 13). |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Current assets | |||
Cash and cash equivalents | $ 92,142 | $ 79,588 | |
Accounts receivable, net | [1] | 216,892 | 160,239 |
Other current assets | [2] | 26,790 | 15,383 |
Total current assets | 335,824 | 255,210 | |
Note receivable - Anadarko | 260,000 | 260,000 | |
Property, plant and equipment | |||
Cost | 9,250,228 | 7,864,535 | |
Less accumulated depreciation | 2,638,155 | 2,133,644 | |
Net property, plant and equipment | 6,612,073 | 5,730,891 | |
Goodwill | 416,160 | 416,160 | |
Other intangible assets | 746,804 | 775,269 | |
Equity investments | 845,279 | 566,211 | |
Other assets | 22,503 | 12,570 | |
Total assets | 9,238,643 | 8,016,311 | |
Current liabilities | |||
Accounts and imbalance payables | 350,325 | 349,801 | |
Short-term debt | 28,000 | 0 | |
Accrued ad valorem taxes | 29,336 | 26,633 | |
Accrued liabilities | [3] | 129,196 | 47,992 |
Total current liabilities | 536,857 | 424,426 | |
Long-term liabilities | |||
Long-term debt | 4,787,381 | 3,492,712 | |
Deferred income taxes | 9,697 | 7,409 | |
Asset retirement obligations | 259,976 | 143,394 | |
Other liabilities | [4] | 140,067 | 3,491 |
Total long-term liabilities | 5,197,121 | 3,647,006 | |
Total liabilities | 5,733,978 | 4,071,432 | |
Equity and partners' capital | |||
Common units (218,937,797 and 218,933,141 units issued and outstanding at December 31, 2018 and 2017, respectively) | 951,888 | 1,061,125 | |
Total partners' capital | 951,888 | 1,061,125 | |
Noncontrolling interests | 2,552,777 | 2,883,754 | |
Total equity and partners' capital | 3,504,665 | 3,944,879 | |
Total liabilities, equity and partners' capital | $ 9,238,643 | $ 8,016,311 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $72.6 million and $36.1 million as of December 31, 2018 and 2017, respectively. | ||
[2] | Other current assets includes affiliate amounts of $3.7 million and zero as of December 31, 2018 and 2017, respectively. | ||
[3] | Accrued liabilities includes affiliate amounts of $2.4 million and $0.2 million as of December 31, 2018 and 2017, respectively. | ||
[4] | Other liabilities includes affiliate amounts of $55.7 million and $0.7 million as of December 31, 2018 and 2017, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 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] | $ 216,892 | $ 160,239 |
Other current assets | [2] | 26,790 | 15,383 |
Accrued liabilities | [3] | 129,196 | 47,992 |
Other liabilities | [4] | 140,067 | 3,491 |
Affiliates [Member] | |||
Accounts receivable, net | 72,600 | 36,100 | |
Other current assets | 3,700 | 0 | |
Accrued liabilities | 2,400 | 200 | |
Other liabilities | $ 55,700 | $ 700 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $72.6 million and $36.1 million as of December 31, 2018 and 2017, respectively. | ||
[2] | Other current assets includes affiliate amounts of $3.7 million and zero as of December 31, 2018 and 2017, respectively. | ||
[3] | Accrued liabilities includes affiliate amounts of $2.4 million and $0.2 million as of December 31, 2018 and 2017, respectively. | ||
[4] | Other liabilities includes affiliate amounts of $55.7 million and $0.7 million as of December 31, 2018 and 2017, respectively. |
Consolidated Statements of Equi
Consolidated Statements of Equity and Partners' Capital - USD ($) $ in Thousands | Total | Western Gas Partners, LP [Member] | Chipeta [Member] | Net Investment by Anadarko [Member] | Common Units [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member]Western Gas Partners, LP [Member] | Noncontrolling Interests [Member]Chipeta [Member] | ||
Balance at Dec. 31, 2015 | $ 3,920,098 | $ 430,598 | $ 1,060,842 | $ 2,428,658 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | 596,980 | 11,326 | 334,446 | 251,208 | ||||||
Above-market component of swap agreements with Anadarko | [1] | 45,820 | 45,820 | |||||||
WES equity transactions, net | [2] | 0 | (4,180) | 4,180 | ||||||
Distributions to noncontrolling interest owners | $ (294,841) | $ (13,784) | $ (294,841) | $ (13,784) | ||||||
Distributions to WGP unitholders | (374,082) | (374,082) | ||||||||
Acquisitions from affiliates | (712,500) | (553,833) | (158,667) | |||||||
Contributions of equity-based compensation to WES by Anadarko | 4,170 | 4,170 | ||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | (23,491) | (23,491) | ||||||||
Net contributions from (distributions to) Anadarko of other assets | (581) | [3] | (581) | |||||||
Other | 1,153 | 888 | 265 | |||||||
WES issuance of Series A Preferred units, net of offering expenses | 686,937 | 686,937 | ||||||||
Revision to Deferred purchase price obligation – Anadarko | [4] | 139,487 | 139,487 | |||||||
Elimination of net deferred tax liabilities | 135,400 | 135,400 | ||||||||
Balance at Dec. 31, 2016 | 4,110,766 | 0 | 1,048,143 | 3,062,623 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | 573,202 | 0 | 376,607 | 196,595 | ||||||
Above-market component of swap agreements with Anadarko | [1] | 58,551 | 58,551 | |||||||
WES equity transactions, net | [2] | (183) | 6,615 | (6,798) | ||||||
Distributions to noncontrolling interest owners | (355,623) | (13,569) | (355,623) | (13,569) | ||||||
Distributions to WGP unitholders | (441,967) | (441,967) | ||||||||
Acquisitions from affiliates | 0 | (1,263) | 1,263 | |||||||
Contributions of equity-based compensation to WES by Anadarko | 4,587 | 4,587 | ||||||||
Net pre-acquisition contributions from (distributions to) Anadarko | 1,263 | 1,263 | ||||||||
Net contributions from (distributions to) Anadarko of other assets | 3,189 | [3] | 3,189 | |||||||
Other | 498 | (28) | 526 | |||||||
Revision to Deferred purchase price obligation – Anadarko | [4] | 4,165 | 4,165 | |||||||
Balance at Dec. 31, 2017 | 3,944,879 | 0 | 1,061,125 | 2,883,754 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Net income (loss) | 448,512 | 0 | 369,429 | 79,083 | ||||||
Above-market component of swap agreements with Anadarko | [1] | 51,618 | 51,618 | |||||||
WES equity transactions, net | [2] | 0 | (19,577) | 19,577 | ||||||
Distributions to noncontrolling interest owners | $ (386,326) | $ (13,529) | $ (386,326) | $ (13,529) | ||||||
Distributions to WGP unitholders | (502,457) | (502,457) | ||||||||
Contributions of equity-based compensation to WES by Anadarko | 5,741 | 5,741 | ||||||||
Net contributions from (distributions to) Anadarko of other assets | [3] | 0 | ||||||||
Other | 606 | 209 | 397 | |||||||
Balance at Dec. 31, 2018 | 3,504,665 | $ 0 | 951,888 | 2,552,777 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||
Cumulative effect of accounting change | [5] | $ (44,379) | $ (14,200) | $ (30,179) | ||||||
[1] | See Note 6. | |||||||||
[2] | For the year ended December 31, 2018, includes the impact of the cumulative effect of accounting change in WES’s consolidated statement of equity and partners’ capital. For the year ended December 31, 2017, includes the impact of WES’s (as defined in Note 1) equity offerings as described in Note 5. The $(19.6) million, $6.6 million and $(4.2) million increase (decrease) to partners’ capital, together with net income (loss) attributable to Western Gas Equity Partners, LP, totaled $349.9 million, $383.2 million and $341.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. | |||||||||
[3] | Includes $(1.4) million related to pipe and equipment purchases and $(1.8) million related to other assets for the year ended December 31, 2017. See Note 6. | |||||||||
[4] | See Note 3. | |||||||||
[5] | See Note 1. |
Consolidated Statements of Eq_2
Consolidated Statements of Equity and Partners' Capital (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
WES equity transactions, net | [1] | $ 0 | $ (183) | $ 0 |
Combined change in Partners' Capital from WES equity transactions, net and net income (loss) attributable to Western Gas Equity Partners, LP | 349,900 | 383,200 | 341,600 | |
Common Units [Member] | ||||
WES equity transactions, net | [1] | $ (19,577) | $ 6,615 | $ (4,180) |
[1] | For the year ended December 31, 2018, includes the impact of the cumulative effect of accounting change in WES’s consolidated statement of equity and partners’ capital. For the year ended December 31, 2017, includes the impact of WES’s (as defined in Note 1) equity offerings as described in Note 5. The $(19.6) million, $6.6 million and $(4.2) million increase (decrease) to partners’ capital, together with net income (loss) attributable to Western Gas Equity Partners, LP, totaled $349.9 million, $383.2 million and $341.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Cash flows from operating activities | ||||||
Net income (loss) | $ 448,512 | $ 573,202 | $ 596,980 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization | 337,536 | 290,874 | 272,933 | |||
Impairments | 228,338 | 178,374 | 15,535 | |||
Non-cash equity-based compensation expense | 6,431 | 5,169 | 4,986 | |||
Deferred income taxes | 2,466 | 2,458 | 2,555 | |||
Accretion and amortization of long-term obligations, net | 5,943 | 4,932 | (3,262) | |||
Equity income, net – affiliates | [1] | (153,024) | (85,194) | (78,717) | ||
Distributions from equity investment earnings – affiliates | 144,299 | 87,380 | 82,185 | |||
(Gain) loss on divestiture and other, net | [2] | (1,312) | (132,388) | 14,641 | ||
(Gain) loss on interest-rate swaps | 7,972 | 0 | 0 | |||
Lower of cost or market inventory adjustments | 752 | 145 | 168 | |||
Changes in assets and liabilities: | ||||||
(Increase) decrease in accounts receivable, net | (56,707) | (16,195) | (48,998) | |||
Increase (decrease) in accounts and imbalance payables and accrued liabilities, net | 31,903 | (6,919) | 58,365 | |||
Change in other items, net | 13,586 | (4,426) | (4,295) | |||
Net cash provided by operating activities | 1,016,695 | 897,412 | 913,076 | |||
Cash flows from investing activities | ||||||
Capital expenditures | (1,193,896) | (675,025) | (479,993) | |||
Investments in equity affiliates | (133,335) | [3] | (384) | (27) | ||
Distributions from equity investments in excess of cumulative earnings – affiliates | 25,607 | [4] | 23,085 | [4] | 21,238 | |
Proceeds from property insurance claims | 0 | 22,977 | 17,465 | |||
Net cash used in investing activities | (1,459,798) | (763,604) | (1,105,534) | |||
Cash flows from financing activities | ||||||
Borrowings, net of debt issuance costs | 2,349,557 | 369,989 | 1,323,198 | |||
Repayments of debt | (1,040,000) | 0 | (900,000) | |||
Increase (decrease) in outstanding checks | (3,206) | 5,593 | 2,079 | |||
Distributions to WGP unitholders | [5] | (502,457) | (441,967) | (374,082) | ||
Net contributions from (distributions to) Anadarko | 0 | 1,263 | (23,491) | |||
Above-market component of swap agreements with Anadarko | [5] | 51,618 | 58,551 | 45,820 | ||
Net cash provided by (used in) financing activities | 455,657 | (413,292) | 451,836 | |||
Net increase (decrease) in cash and cash equivalents | 12,554 | (279,484) | 259,378 | |||
Cash and cash equivalents at beginning of period | 79,588 | 359,072 | 99,694 | |||
Cash and cash equivalents at end of period | 92,142 | 79,588 | 359,072 | |||
Supplemental disclosures | ||||||
Accretion expense and revisions to the Deferred purchase price obligation – Anadarko | [6] | 0 | (4,094) | (147,234) | ||
Net distributions to (contributions from) Anadarko of other assets | [7] | 0 | (3,189) | 581 | ||
Interest paid, net of capitalized interest | 149,678 | 138,871 | 107,657 | |||
Taxes paid (reimbursements received) | 2,408 | 1,194 | 838 | |||
Accrued capital expenditures | 196,095 | 204,309 | 79,253 | |||
Fair value of properties and equipment from non-cash third party transactions | [6] | 0 | 551,453 | 0 | ||
Chipeta [Member] | ||||||
Cash flows from financing activities | ||||||
Distributions to Chipeta noncontrolling interest owner | (13,529) | (13,569) | (13,784) | |||
Western Gas Partners, LP [Member] | ||||||
Cash flows from financing activities | ||||||
Proceeds from the issuance of WES common units, net of offering expenses | 0 | (183) | 0 | |||
Distributions to noncontrolling interest owners of WES | (386,326) | (355,623) | (294,841) | |||
Affiliates [Member] | ||||||
Cash flows from investing activities | ||||||
Contributions in aid of construction costs from affiliates | 0 | 1,387 | 6,135 | |||
Acquisitions | (254) | (3,910) | (716,465) | |||
Proceeds from the sale of assets | 0 | 0 | 623 | |||
Cash flows from financing activities | ||||||
Settlement of the Deferred purchase price obligation - Anadarko | [6] | 0 | (37,346) | 0 | ||
Distributions to WGP unitholders | [8] | (400,194) | (360,523) | (315,505) | ||
Affiliates [Member] | Western Gas Partners, LP [Member] | ||||||
Cash flows from financing activities | ||||||
Distributions to WGP unitholders | [9] | (7,583) | (7,100) | (5,614) | ||
Third Parties [Member] | ||||||
Cash flows from investing activities | ||||||
Acquisitions | (161,858) | (155,298) | 0 | |||
Proceeds from the sale of assets | 3,938 | 23,564 | 45,490 | |||
Series A Preferred Units [Member] | Western Gas Partners, LP [Member] | ||||||
Cash flows from financing activities | ||||||
Proceeds from the issuance of WES Series A Preferred units, net of offering expenses | $ 0 | $ 0 | $ 686,937 | |||
[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. | |||||
[2] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1. | |||||
[3] | Includes capitalized interest of $1.4 million related to the construction of the Cactus II pipeline. | |||||
[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] | Includes $(1.4) million related to pipe and equipment purchases and $(1.8) million related to other assets for the year ended December 31, 2017. See Note 6. | |||||
[8] | Represents distributions paid under WGP’s partnership agreement (see Note 4 and Note 5). | |||||
[9] | Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 4 and Note 5). |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | ||
Net distributions to (contributions from) Anadarko of other assets | $ (3,189) | [1] |
Equipment [Member] | ||
Net distributions to (contributions from) Anadarko of other assets | (1,400) | |
Other [Member] | ||
Net distributions to (contributions from) Anadarko of other assets | $ (1,800) | |
[1] | Includes $(1.4) million related to pipe and equipment purchases and $(1.8) million related to other assets for the year ended December 31, 2017. See Note 6. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. The “West Texas complex” refers to the Delaware Basin Midstream, LLC (“DBM”) complex and DBJV and Haley systems, all of which were combined into a single complex effective January 1, 2018. 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 customers. As of December 31, 2018 , WES’s assets and investments consisted of the following: Owned and Operated Operated Interests Non-Operated Interests Equity Interests Gathering systems (1) 12 2 3 2 Treating facilities 14 3 — 3 Natural gas processing plants/trains 21 3 — 2 NGLs 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 West Texas complex, commenced operation in the fourth quarter of 2018. Mentone Train II, a second processing train that is part of the West Texas complex, is expected to commence operation in the first quarter of 2019. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Merger transactions . On November 7, 2018, WGP, WES, Anadarko and certain of their affiliates entered into a Contribution Agreement and Agreement and Plan of Merger (as may be amended from time to time, the “Merger Agreement”), pursuant to which, among other things, Clarity Merger Sub, LLC, a wholly owned subsidiary of WGP, will merge with and into WES, with WES continuing as the surviving entity and a subsidiary of WGP (the “Merger”). Upon closing of the Merger which is expected to occur in the first quarter of 2019, the common units of WES will no longer be publicly traded and will cease to trade on the NYSE under the symbol “WES.” The common units of WGP will begin trading on the NYSE under the symbol “WES” and WGP will change its name to Western Midstream Partners, LP. The Merger Agreement also provides that WGP, WES and Anadarko will, and will cause their respective affiliates to, cause the following transactions, among others, to occur immediately prior to the Merger becoming effective in the order as follows: (1) Anadarko E&P Onshore LLC and WGR Asset Holding Company LLC (“WGRAH”) (the “Contributing Parties”) will contribute to WES all of their interests in each of Anadarko Wattenberg Oil Complex LLC, Anadarko DJ Oil Pipeline LLC, Anadarko DJ Gas Processing LLC, Wamsutter Pipeline LLC, DBM Oil Services, LLC, Anadarko Pecos Midstream LLC, Anadarko Mi Vida LLC and APC Water Holdings 1, LLC (“APCWH”) to WGR Operating, LP, Kerr-McGee Gathering LLC and Delaware Basin Midstream, LLC (each wholly owned by WES) in exchange for aggregate consideration of $1.814 billion in cash from WES, minus the outstanding amount payable pursuant to an intercompany note (“APCWH Note Payable”) to be assumed by WES in connection with the transaction, and 45,760,201 WES common units; (2) APC Midstream Holdings, LLC (“AMH”) will sell to WES its interests in Saddlehorn Pipeline Company, LLC and Panola Pipeline Company, LLC in exchange for aggregate consideration of $193.9 million in cash; (3) WES will contribute cash in an amount equal to the outstanding balance of the APCWH Note Payable immediately prior to the effective time to APCWH, and APCWH will pay such cash to Anadarko in satisfaction of the APCWH Note Payable; (4) WES Class C units will convert into WES common units on a one -for-one basis; and (5) WES and WES GP will cause the conversion of the incentive distribution rights (“IDRs”) and the 2,583,068 general partner units in WES held by WES GP into a non-economic general partner interest in WES and 105,624,704 WES common units. The 45,760,201 WES common units to be issued to the Contributing Parties, less 6,375,284 WES common units to be retained by WGRAH, will be converted into the right to receive an aggregate of 55,360,984 WGP common units upon the consummation of the Merger. See Note 13 for additional information. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (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 10.00 % Rendezvous 22.00 % Mont Belvieu JV 25.00 % TEP 20.00 % TEG 20.00 % FRP 33.33 % Whitethorn 20.00 % Cactus II 15.00 % Proportionate consolidation (2) Marcellus Interest systems 33.75 % Springfield system 50.10 % Full consolidation Chipeta (3) 75.00 % (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. 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 13 . 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Adjustments to previously issued financial statements. WGP’s consolidated statements of operations for the year ended December 31, 2018, include adjustments to revenue and cost of product expense of the following amounts: (i) $42.6 million increase in Service revenues - fee based, (ii) $13.8 million increase in Product sales and (iii) $56.4 million increase in Cost of product; all of which relate to the nine months ended September 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 How WES Evaluates Its Operations under Part II, Item 7 of this Form 10-K) and are not considered material to the results of operations for the year ended December 31, 2018. WGP will revise its previously reported unaudited financial statements for the 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 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. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (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 December 31, 2018 (see Note 10 ). 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 assets from Anadarko, WES and WGP (by virtue of its consolidation of WES) are 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 year ended December 31, 2018 , reflect (i) an accrual of $10.9 million 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 $134.0 million associated with reducing the net book value of the gathering systems and increasing the asset retirement obligation. Fair value. The fair-value-measurement standard defines fair value as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard characterizes inputs used in determining fair value according to a hierarchy that prioritizes those inputs based upon the degree to which they are observable. The three input levels of the fair value hierarchy are as follows: Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in management’s internally developed present value of future cash flows model that underlies the fair value measurement). 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In determining fair value, management uses observable market data when available, or models that incorporate observable market data. When a fair value measurement is required and there is not a market-observable price for the asset or liability or a market-observable price for a similar asset or liability, the cost, income, or multiples approach is used, depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset replacement cost. The income approach uses management’s best assumptions regarding expectations of projected cash flows, and discounts the expected cash flows using a commensurate risk adjusted discount rate. Such evaluations involve a significant amount of judgment, since the results are based on expected future events or conditions, such as sales prices, estimates of future throughput, capital and operating costs and the timing thereof, economic and regulatory climates and other factors. A multiples approach uses management’s best assumptions regarding expectations of projected earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and the multiple of that EBITDA that a buyer would pay to acquire an asset. Management’s estimates of future net cash flows and EBITDA are inherently imprecise because they reflect management’s expectation of future conditions that are often outside of management’s control. However, the assumptions used reflect a market participant’s view of long-term prices, costs and other factors, and are consistent with assumptions used in WES’s business plans and investment decisions. In arriving at fair-value estimates, management uses relevant observable inputs available for the valuation technique employed. If a fair value measurement reflects inputs at multiple levels within the hierarchy, the fair value measurement is characterized based on the lowest level of input that is significant to the fair value measurement. Nonfinancial assets and liabilities initially measured at fair value include certain assets and liabilities acquired in a third-party business combination, assets and liabilities exchanged in non-monetary transactions, goodwill and other intangibles, initial recognition of asset retirement obligations, and initial recognition of environmental obligations assumed in a third-party acquisition. Impairment analyses for long-lived assets, goodwill and other intangibles, and the initial recognition of asset retirement obligations and environmental obligations use Level 3 inputs. The fair value of debt reflects any premium or discount for the difference between the stated interest rate and the quarter-end market interest rate, and is based on quoted market prices for identical instruments, if available, or based on valuations of similar debt instruments. See Note 13 . The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable reported on the consolidated balance sheets approximate fair value due to the short-term nature of these items. Cash equivalents. All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. Allowance for uncollectible accounts. Revenues are primarily from Anadarko, for which no credit limit is maintained. Exposure to bad debts is analyzed on a customer-by-customer basis for its third-party accounts receivable and WES may establish credit limits for significant third-party customers. The allowance for uncollectible accounts was immaterial at December 31, 2018 and 2017 . Imbalances. The consolidated balance sheets include imbalance receivables and payables resulting from differences in volumes received into WES’s systems and volumes delivered by WES to customers. Volumes owed to or by WES that are subject to monthly cash settlement are valued according to the terms of the contract as of the balance sheet dates and reflect market index prices. Other volumes owed to or by WES are valued at WES’s weighted-average cost as of the balance sheet dates and are settled in-kind. As of December 31, 2018 , imbalance receivables and payables were $8.9 million and $9.5 million , respectively. As of December 31, 2017 , imbalance receivables and payables were $1.6 million and $2.9 million , respectively. Net changes in imbalance receivables and payables are reported in Cost of product in the consolidated statements of operations. Inventory. The cost of NGLs inventories is determined by the weighted-average cost method on a location-by-location basis. Inventory is stated at the lower of weighted-average cost or net realizable value and is reported in Other current assets on the consolidated balance sheets. See Note 11 . 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property, plant and equipment. Property, plant and equipment are generally stated at the lower of historical cost less accumulated depreciation or fair value, if impaired. Because acquisitions of assets from Anadarko are transfers of net assets between entities under common control, the assets acquired from Anadarko are initially recorded at Anadarko’s historic carrying value. The difference between the carrying value of net assets acquired from Anadarko and the consideration paid is recorded as an adjustment to partners’ capital. Assets acquired in a business combination or non-monetary exchange with a third party are initially recorded at fair value. All construction-related direct labor and material costs are capitalized. The cost of renewals and betterments that extend the useful life of property, plant and equipment is also capitalized. The cost of repairs, replacements and major maintenance projects that do not extend the useful life or increase the expected output of property, plant and equipment is expensed as incurred. Depreciation is computed using the straight-line method based on estimated useful lives and salvage values of assets. However, subsequent events could cause a change in estimates, thereby impacting future depreciation amounts. Uncertainties that may impact these estimates include, but are not limited to, changes in laws and regulations relating to environmental matters, including air and water quality, restoration and abandonment requirements, economic conditions, and supply and demand in the area. Management evaluates the ability to recover the carrying amount of its long-lived assets to determine whether its long-lived assets have been impaired. Impairments exist when the carrying amount of an asset exceeds estimates of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. When alternative courses of action to recover the carrying amount of a long-lived asset are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence. If the carrying amount of the long-lived asset is not recoverable based on the estimated future undiscounted cash flows, the impairment loss is measured as the excess of the asset’s carrying amount over its estimated fair value, such that the asset’s carrying amount is adjusted to its estimated fair value with an offsetting charge to impairment expense. Refer to Note 8 for a description of impairments recorded during the years ended December 31, 2018, 2017 and 2016. Insurance recoveries. Involuntary conversions result from the loss of an asset because of some unforeseen event (e.g., destruction due to fire). Some of these events are insurable and result in property damage insurance recovery. Amounts that are received from insurance carriers are net of any deductibles related to the covered event. A receivable is recorded from insurance to the extent a loss is recognized from an involuntary conversion event and the likelihood of recovering such loss is deemed probable. To the extent that any insurance claim receivables are later judged not probable of recovery (e.g., due to new information), such amounts are expensed. A gain on involuntary conversion is recognized when the amount received from insurance exceeds the net book value of the retired asset(s). In addition, gains related to insurance recoveries are not recognized until all contingencies related to such proceeds have been resolved; that is, a cash payment is received from the insurance carrier or there is a binding settlement agreement with the carrier that clearly states that a payment will be made. To the extent that an asset is rebuilt, the associated expenditures are capitalized, as appropriate, on the consolidated balance sheets and presented as Capital expenditures in the consolidated statements of cash flows. With respect to business interruption insurance claims, income is recognized only when cash proceeds are received from insurers, which are presented in the consolidated statements of operations as a component of Operating income (loss). 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 year ended December 31, 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 years ended December 31, 2017 and 2016, WES received $52.9 million and $33.8 million , respectively, in cash proceeds from insurers, including $29.9 million and $16.3 million , respectively, in proceeds from business interruption insurance claims and $23.0 million and $17.5 million , respectively, in proceeds from property insurance claims. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capitalized interest. Interest is capitalized as part of the historical cost of constructing assets for significant projects that are in progress. Capitalized interest is determined by multiplying WES’s weighted-average borrowing cost on debt by the average amount of qualifying costs incurred during the period. Once the construction of an asset subject to interest capitalization is completed and the asset is placed in service, the associated capitalized interest is expensed through depreciation or impairment, together with other capitalized costs related to that asset. Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated portion of Anadarko’s midstream goodwill attributed to the WES assets WGP, through its consolidation of WES, has acquired from Anadarko. WES has allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment annually, as of October 1, or more often as facts and circumstances warrant. An initial qualitative assessment is performed to determine the likelihood of whether or not goodwill is impaired. If management concludes, based on qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds its carrying amount, then goodwill is not impaired and further testing is not necessary. If a quantitative assessment must be performed and the carrying amount of the reporting unit exceeds its fair value, goodwill is written down to its implied fair value through a charge to impairment expense. The carrying value of goodwill after such an impairment would represent a Level 3 fair value measurement. See Note 9 . Other intangible assets. WES assesses intangible assets, as described in Note 9 , for impairment together with related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Property, plant and equipment within this Note 1 for further discussion of management’s process to evaluate potential impairment of long-lived assets. Asset retirement obligations. A liability based on the estimated costs of retiring tangible long-lived assets is recognized as an asset retirement obligation in the period incurred. The liability is recognized at fair value, measured using discounted expected future cash outflows for the asset retirement obligation when the obligation originates, which generally is when an asset is acquired or constructed. The carrying amount of the associated asset is increased commensurate with the liability recognized. Over time, the discounted liability is adjusted to its expected settlement value through accretion expense, which is reported within Depreciation and amortization in the consolidated statements of operations. Subsequent to the initial recognition, the liability is also adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to property, plant and equipment) until the obligation is settled. Revisions in estimated asset retirement obligations may result from changes in estimated inflation rates, discount rates, asset retirement costs and the estimated timing of settling asset retirement obligations. See Note 12 . Environmental expenditures. WES expenses environmental obligations related to conditions caused by past operations that do not generate current or future revenues. Environmental obligations related to operations that generate current or future revenues are expensed or capitalized, as appropriate. Liabilities are recorded when the necessity for environmental remediation or other potential environmental liabilities becomes probable and the costs can be reasonably estimated. Accruals for estimated losses from environmental remediation obligations are recognized no later than at the time of the completion of the remediation feasibility study. These accruals are adjusted as additional information becomes available or as circumstances change. Costs of future expenditures for environmental-remediation obligations are not discounted to their present value. See Note 14 . Segments. Because WGP reflects its ownership interest in WES on a consolidated basis, and has no independent operations or material assets outside those of WES, WGP’s segment analysis and presentation is the same as that of WES. WES’s operations are organized into a single operating segment, the assets of which gather, compress, treat, process and transport natural gas; gather, stabilize and transport condensate, NGLs and crude oil; and gather and dispose of produced water in t |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 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 Year Ended Revenue from customers Service revenues – fee based $ 1,609,245 Service revenues – product based 85,553 Product sales 301,867 Total revenue from customers 1,996,665 Revenue from other than customers Net gains (losses) on commodity price swap agreements (7,875 ) Other 1,486 Total revenues and other $ 1,990,276 Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $210.0 million and $244.4 million as of December 31, 2018 and 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 (4,952 ) Additional estimated revenues recognized 5,414 Balance at December 31, 2018 $ 5,591 Contract assets at December 31, 2018 Other current assets $ 5,399 Other assets 192 Total contract assets from contracts with customers $ 5,591 2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) 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 53,064 Assets received from customer 12,933 Revenues recognized during the period that were included in the adoption effect (1) (11,137 ) Cumulative catch up adjustment for change in estimated consideration due to cost of service rate updates (21,848 ) Balance at December 31, 2018 $ 153,729 Contract liabilities at December 31, 2018 Accrued liabilities $ 16,403 Other liabilities 137,326 Total contract liabilities from contracts with customers $ 153,729 (1) Includes $(7.5) million from a performance obligation satisfied in a previous period related to the arbitration against SWEPI LP (see Note 14 ). Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 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 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 2019 $ 470,247 2020 554,099 2021 533,861 2022 530,528 2023 488,603 Thereafter 1,802,153 Total $ 4,379,491 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Acquisitions and Divestitures | 3. ACQUISITIONS AND DIVESTITURES Red Bluff Express acquisition. In January 2019, WES acquired a 30% interest in Red Bluff Express Pipeline, LLC (“Red Bluff Express”), which owns a natural gas pipeline operated by a third party (the “Red Bluff Express pipeline”) connecting Reeves County and Loving County, Texas to the WAHA hub in Pecos County, Texas. WES acquired its 30% interest from a third party via an initial net investment of $92.5 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 Red Bluff Express will be accounted for under the equity method. 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 10 . 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 is expected to become operational in late 2019. WES acquired its 15% interest from a third party via an initial net investment of $12.1 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 10 . Property exchange. In March 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) The following table summarizes the financial statement impact of the Deferred purchase price obligation – Anadarko: Deferred purchase price obligation - Anadarko Estimated future payment obligation (1) Balance at December 31, 2015 $ 188,674 $ 282,807 Accretion revision (2) (7,747 ) Revision to Deferred purchase price obligation – Anadarko (3) (139,487 ) Balance at December 31, 2016 41,440 56,455 Accretion expense (4) 71 Revision to Deferred purchase price obligation – Anadarko (3) (4,165 ) Settlement of the Deferred purchase price obligation – Anadarko (37,346 ) Balance at December 31, 2017 $ — $ — (1) Calculated using Level 3 inputs. (2) Financing-related accretion revisions were recorded in Interest expense in the consolidated statements of operations. (3) Recorded as revisions within Common units in the consolidated balance sheets and consolidated statements of equity and partners’ capital. (4) Accretion expense was recorded as a charge to Interest expense in the consolidated statements of operations. Springfield acquisition. In March 2016, WES acquired Springfield Pipeline LLC (“Springfield”) from Anadarko for $750.0 million , consisting of $712.5 million in cash and the issuance of 1,253,761 of WES common units. Springfield owns a 50.1% interest in an oil gathering system and a gas gathering system. The Springfield oil and gas gathering systems (collectively, the “Springfield system”) are located in Dimmit, La Salle, Maverick and Webb Counties in South Texas. WES financed the cash portion of the acquisition through: (i) borrowings of $247.5 million on WES’s senior unsecured revolving credit facility originally entered into in February 2014, (ii) the issuance of 835,841 of WES common units to WGP and (iii) the issuance of WES Series A Preferred units to private investors. See Note 5 for further information regarding the Series A Preferred units. Newcastle system divestiture. In December 2018, the Newcastle system, located in Northeast Wyoming, was sold to a third party for $3.2 million , resulting in a net gain on sale of $0.6 million recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. WES previously held a 50% interest in, and operated, the Newcastle system. Helper and Clawson systems divestiture. In June 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. Hugoton system divestiture. In October 2016, the Hugoton system, located in Southwest Kansas and Oklahoma, was sold to a third party, resulting in a net loss on sale of $12.0 million recorded as Gain (loss) on divestiture and other, net in the consolidated statements of operations. WES allocated $1.6 million in goodwill to this divestiture. |
Partnership Distributions
Partnership Distributions | 12 Months Ended |
Dec. 31, 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 declared the following cash distributions to WGP unitholders for the periods presented: thousands except per-unit amounts Total Quarterly Total Quarterly Date of 2016 March 31 $ 0.42375 $ 92,767 May 2016 June 30 0.43375 94,958 August 2016 September 30 0.44750 97,968 November 2016 December 31 0.46250 101,254 February 2017 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 0.59500 130,268 November 2018 December 31 (1) 0.60250 131,910 February 2019 (1) The Board of Directors declared a cash distribution to WGP unitholders for the fourth quarter of 2018 of $0.60250 per unit, or $131.9 million in aggregate. The cash distribution is payable on February 21, 2019 , to WGP unitholders of record at the close of business on February 1, 2019 . 4. PARTNERSHIP DISTRIBUTIONS (CONTINUED) 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 2016 March 31 $ 0.815 $ 158,905 May 2016 June 30 0.830 162,827 August 2016 September 30 0.845 166,742 November 2016 December 31 0.860 170,657 February 2017 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 0.965 230,239 November 2018 December 31 (1) 0.980 234,787 February 2019 (1) The Board of Directors of WES GP declared a cash distribution to WES unitholders for the fourth quarter of 2018 of $0.980 per unit, or $234.8 million in aggregate, including incentive distributions, but excluding distributions on WES Class C units (see WES Class C unit distributions below). The cash distribution was paid on February 13, 2019 , to WES unitholders of record at the close of business on February 1, 2019 . 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 distrib utions. 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 earlier of (i) the consummation of the Merger or (ii) March 1, 2020, unless WES elects to convert such units earlier or Anadarko extends the conversion date, and the Class C units are disregarded with respect to WES’s distributions of WES’s available cash until such event. The number of additional P IK 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. 4. PARTNERSHIP DISTRIBUTIONS (CONTINUED) 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. The following table summarizes the Series A Preferred unitholders’ cash distributions for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Distribution per Unit Total Quarterly Cash Distribution Date of Distribution 2016 March 31 (1) $ 0.68 $ 1,887 May 2016 June 30 (2) 0.68 14,082 August 2016 September 30 0.68 14,907 November 2016 December 31 0.68 14,908 February 2017 2017 March 31 $ 0.68 $ 7,453 May 2017 (1) Quarterly per unit distribution prorated for the 18 -day period during which 14,030,611 WES Series A Preferred units were outstanding during the first quarter of 2016. (2) Full quarterly per unit distribution on 14,030,611 WES Series A Preferred units and quarterly per unit distribution prorated for the 77 -day period during which 7,892,220 WES Series A Preferred units were outstanding during the second quarter of 2016. WES’s general partner interest and incentive distribution rights. As of December 31, 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 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 | 12 Months Ended |
Dec. 31, 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 December 31, 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. In June 2016, Anadarko sold 12,500,000 of its WGP common units to the public through an underwritten offering. WGP did not receive any proceeds from, or incur any expense in, the public offering. 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. 5. EQUITY AND PARTNERS’ CAPITAL (CONTINUED) 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 years ended December 31, 2017 and 2016. 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 December 31, 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 December 31, 2018 , (i) other subsidiaries of Anadarko collectively held 2,011,380 WES common units and 14,372,665 Class C units, representing an aggregate 9.7% limited partner interest in WES and (ii) the public held 100,465,859 WES common units, representing a 59.2% 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. Upon the consummation of the Merger (see Note 1 ), WES will terminate the registration statement relating to the $500.0 million COP and, therefore, WES common units will no longer be available for issuance thereunder. WES Class C units. In November 2014, WES issued 10,913,853 Class C units to 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, and in February 2017, Anadarko elected to extend the conversion date of the WES Class C units to March 1, 2020. All outstanding WES Class C units will convert into WES common units on a one-for-one basis immediately prior to the closing of the Merger, if consummated. If the Merger is not consummated, the conversion will occur on March 1, 2020, unless WES elects to convert such units earlier or Anadarko extends the conversion date (see Note 1 ). 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, generating proceeds of $686.9 million (net of fees and expenses, but including a 2.0% transaction fee paid to the 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 years ended December 31, 2018 and 2017: WES Common Units WES Class C Units WES Series A Preferred Units WES General Partner Units Total Balance at December 31, 2016 130,671,970 12,358,123 21,922,831 2,583,068 167,535,992 PIK Class C units — 885,760 — — 885,760 Conversion of Series A Preferred units 21,922,831 — (21,922,831 ) — — Long-Term Incentive Plan award vestings 7,304 — — — 7,304 Balance at December 31, 2017 152,602,105 13,243,883 — 2,583,068 168,429,056 PIK Class C units — 1,128,782 — — 1,128,782 Long-Term Incentive Plan award vestings 7,180 — — — 7,180 Balance at December 31, 2018 152,609,285 14,372,665 — 2,583,068 169,565,018 |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 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. Merger transactions. As discussed in more detail in Note 1 , WGP has entered into the Merger Agreement with WES, Anadarko and certain of their affiliates. 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. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) 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 $279.6 million and $325.2 million at December 31, 2018 and 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. Commodity price swap agreements. WES had commodity price swap agreements with Anadarko to mitigate exposure to 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 were not specifically defined. Instead, the commodity price swap agreements applied to the actual volume of natural gas, condensate and NGLs purchased and sold. The commodity price swap agreements did not satisfy the definition of a derivative financial instrument and, therefore, were not required to be measured at fair value. WES’s net gains (losses) on commodity price swap agreements were $(7.9) million , $0.6 million and $28.5 million for the years ended December 31, 2018 , 2017 and 2016 , 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 in 2017 and 2016 (see Note 1 ). These commodity price swap agreements expired without renewal on December 31, 2018. Swap agreements - DJ Basin complex, Hugoton system and MGR assets. On December 8, 2015, the commodity price swap agreements with Anadarko for the DJ Basin complex and Hugoton system were extended from January 1, 2016, through December 31, 2016. On December 1, 2016, the commodity price swap agreements with Anadarko for the DJ Basin complex and the MGR assets were extended from January 1, 2017 through December 31, 2017. On December 20, 2017, the commodity price swap agreements with Anadarko for the DJ Basin complex and the MGR assets were extended from January 1, 2018 through December 31, 2018. Revenues or costs attributable to volumes sold and purchased during 2016, 2017 and 2018 for the DJ Basin complex, MGR assets and Hugoton system 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 statements 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 applicable market price in the tables below. For the years ended December 31, 2018, 2017 and 2016, the capital contributions from Anadarko were $51.6 million , $58.6 million and $45.8 million , respectively. The tables below summarize the swap prices compared to the forward market prices: DJ Basin Complex per barrel except natural gas 2016 - 2018 Swap Prices 2016 Market Prices (1) 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 18.41 $ 0.60 $ 5.09 $ 5.41 Propane 47.08 10.98 18.85 28.72 Isobutane 62.09 17.23 26.83 32.92 Normal butane 54.62 16.86 26.20 32.71 Natural gasoline 72.88 26.15 41.84 48.04 Condensate 76.47 34.65 45.40 49.36 Natural gas (per MMBtu) 5.96 2.11 3.05 2.21 Hugoton System (2) per barrel except natural gas 2016 Swap Prices 2016 Market Prices (1) Condensate $ 78.61 $ 18.81 Natural gas (per MMBtu) 5.50 2.12 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) MGR Assets per barrel except natural gas 2016 - 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 8, 2015, December 1, 2016, and December 20, 2017, for the 2016 Market Prices, 2017 Market Prices and 2018 Market Prices, respectively, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs. (2) The Hugoton system was sold in October 2016. See Note 3 . Gathering and processing agreements. WES has significant gathering and processing arrangements with affiliates of Anadarko on a majority of its systems. The combination of the DBM complex and DBJV and Haley systems, effective January 1, 2018, into a single complex now referred to as the “West Texas complex” resulted in natural gas throughput previously reported as “Gathering, treating and transportation” now being reported as “Processing.” WES’s natural gas gathering, treating and transportation throughput (excluding equity investment throughput) attributable to production owned or controlled by Anadarko was 7% , 34% and 37% for the years ended December 31, 2018 , 2017 and 2016 , respectively. WES’s natural gas processing throughput (excluding equity investment throughput) attributable to production owned or controlled by Anadarko was 41% for each of the years ended December 31, 2018 and 2017 , and 54% for the year ended December 31, 2016 . WES’s crude oil, NGLs and produced water gathering, treating, transportation and disposal throughput (excluding equity investment throughput) attributable to production owned or controlled by Anadarko was 73% , 56% and 65% for the years ended December 31, 2018 , 2017 and 2016 , 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. Acquisitions from Anadarko. On March 14, 2016, WES acquired Springfield from Anadarko (see Note 3 ). Omnibus agreements. Pursuant to the omnibus agreements discussed below, Anadarko performs centralized corporate functions for WGP and WES such as legal; accounting; treasury; cash management; investor relations; insurance administration and claims processing; risk management; health, safety and environmental; information technology; human resources; credit; payroll; internal audit; tax; marketing and midstream administration. Anadarko, in accordance with WES’s partnership agreement and the omnibus agreement between Anadarko and WES GP that governs certain reimbursement and indemnification matters (the “WES omnibus agreement”), determines, in its reasonable discretion, amounts to be reimbursed by WES in exchange for services provided under the WES omnibus agreement. See Summary of affiliate transactions below. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) WGP omnibus agreement. In connection with WGP’s IPO in December 2012, WGP entered into an omnibus agreement with WGP GP and Anadarko that governs the following: (i) WGP’s obligation to reimburse Anadarko for expenses incurred or payments made on WGP’s behalf in conjunction with Anadarko’s provision of general and administrative services to WGP, including public company expenses and general and administrative expenses; (ii) WGP’s obligation to pay Anadarko, in quarterly installments, an administrative services fee of $250,000 per year (subject to an annual increase as described in the agreement); and (iii) WGP’s obligation to reimburse Anadarko for all insurance coverage expenses it incurs or payments it makes on WGP’s behalf. The following table summarizes the amounts WGP reimbursed to Anadarko, separate from, and in addition to, those reimbursed by WES: Year Ended December 31, thousands 2018 2017 2016 General and administrative expenses $ 269 $ 263 $ 258 Public company expenses 2,895 1,821 2,449 Total reimbursement $ 3,164 $ 2,084 $ 2,707 WES omnibus agreement. In connection with WES’s IPO in 2008, WES entered into the WES omnibus agreement with Anadarko and WES GP, which governs its relationship regarding certain reimbursement and indemnification matters. The following table summarizes the amounts WES reimbursed to Anadarko: Year Ended December 31, thousands 2018 2017 2016 General and administrative expenses $ 35,077 $ 31,733 $ 29,360 Public company expenses 15,409 9,379 8,410 Total reimbursement $ 50,486 $ 41,112 $ 37,770 Services and secondment agreement. Pursuant to the services and secondment agreement, specified employees of Anadarko are seconded to provide operating, routine maintenance and other services with respect to the assets owned and operated by WES under the direction, supervision and control of WES GP. Pursuant to the services and secondment agreement, WES reimburses Anadarko for services provided by the seconded employees. The initial term of the services and secondment agreement expired in May 2018, but was extended for a twelve-month period and will continue to automatically extend for additional twelve-month periods unless either party provides 180 days written notice of termination before the applicable twelve-month period expires. The consolidated financial statements include costs allocated by Anadarko for expenses incurred under the services and secondment agreement for periods including and subsequent to WES’s acquisition of the WES assets. WGP tax sharing agreement. Prior to WGP’s conversion from WGR Holdings, LLC to a limited partnership in September 2012, WGP was a single-member limited liability company, required to reflect its income tax expense liability on a separate-return basis. Upon the completion of WGP’s IPO in December 2012, WGP became a partnership for U.S. federal and state income tax purposes and is therefore not subject to U.S. federal and state income taxes, except for Texas margin tax on the portion of WGP’s income apportionable to Texas. See Note 7 . In connection with WGP’s IPO in December 2012, WGP entered into a tax sharing agreement with Anadarko, pursuant to which WGP reimburses Anadarko for its estimated share of taxes from all forms of taxation, excluding taxes imposed by the United States. Taxes for which WGP reimburses Anadarko include state taxes attributable to WGP’s income which are directly borne by Anadarko on WGP’s behalf as a result of WGP’s results being included in a combined or consolidated tax return filed by Anadarko with respect to periods including and subsequent to the closing date of the IPO. Anadarko may use its tax attributes to cause its combined or consolidated group, of which WGP may be a member for this purpose, to owe no tax. Nevertheless, WGP will be required to reimburse Anadarko for the estimated share of taxes that WGP would have owed had the attributes not been available or used for WGP’s benefit, regardless of whether Anadarko pays taxes for the period. 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) WES tax sharing agreement. Concurrently with WES’s IPO in 2008, WES entered into a tax sharing agreement, pursuant to which WES reimburses Anadarko for its estimated share of taxes from all forms of taxation, excluding taxes imposed by the United States. Taxes for which WES reimburses Anadarko include state taxes attributable to WES’s income, which are directly borne by Anadarko through its filing of a combined or consolidated tax return with respect to periods beginning on and subsequent to the acquisition of the WES assets from Anadarko. Anadarko may use its own tax attributes to reduce or eliminate the tax liability of its combined or consolidated group, which may include WES as a member. However, under this circumstance, WES nevertheless is required to reimburse Anadarko for its allocable share of taxes that would have been owed had tax attributes not been available to Anadarko. WES long-term debt and WES RCF indemnification agreements. WES’s long-term debt is recourse to WES GP. In turn, WES GP has been indemnified by wholly owned subsidiaries of Anadarko for any claims made against WES GP under WES’s long-term debt or the WES RCF. See Note 13 . Allocation of costs. For periods prior to WES’s acquisition of the WES assets, the consolidated financial statements include costs allocated by Anadarko in the form of a management services fee. This management services fee was allocated to WES based on its proportionate share of Anadarko’s revenues and expenses or other contractual arrangements. Management believes these allocation methodologies are reasonable. The employees supporting WES’s operations are employees of Anadarko. Anadarko allocates costs to WES for its share of personnel costs, including costs associated with equity-based compensation plans, non-contributory defined benefit pension and postretirement plans and defined contribution savings plans pursuant to the WES omnibus agreement and services and secondment agreement. In general, WES’s reimbursement to Anadarko under the WES omnibus agreement or services and secondment agreement is either (i) on an actual basis for direct expenses Anadarko and WES GP incur on behalf of WES, or (ii) based on an allocation of salaries and related employee benefits between WES, WES GP and Anadarko based on estimates of time spent on each entity’s business and affairs. Most general and administrative expenses charged to WES by Anadarko are attributed to WES on an actual basis, and do not include any mark-up or subsidy component. With respect to allocated costs, management believes the allocation method employed by Anadarko is reasonable. Although it is not practicable to determine what the amount of these direct and allocated costs would be if WES were to directly obtain these services, management believes that aggregate costs charged to WES by Anadarko are reasonable. WGP LTIP and Anadarko Incentive Plan. WGP GP awards phantom units under 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. The following table summarizes WGP LTIP award activity for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Phantom units outstanding at beginning of year $ 43.39 5,763 $ 39.78 5,658 $ 47.20 12,537 Vested 43.39 (5,763 ) 39.78 (5,658 ) 47.20 (12,537 ) Granted 35.08 7,128 43.39 5,763 39.78 5,658 Phantom units outstanding at end of year 35.08 7,128 43.39 5,763 39.78 5,658 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) WGP LTIP and Anadarko Incentive Plan Compensation Expense. Compensation expense under the WGP LTIP is recognized over the vesting period and was $0.3 million for the year ended December 31, 2018, and $0.2 million for each of the years ended December 31, 2017 and 2016 . As of December 31, 2018 , there was $0.1 million of unrecognized compensation expense attributable to the outstanding awards under the WGP LTIP, all of which will be realized by WGP, and which is expected to be recognized over a weighted-average period of 0.4 years. General and administrative expenses included $6.6 million , $4.6 million and $5.2 million for the years ended December 31, 2018 , 2017 and 2016 , 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 WGP LTIP and Anadarko Incentive Plan. Of these amounts, $5.7 million , $4.6 million and $4.2 million are reflected as contributions to partners’ capital in the consolidated statements of equity and partners’ capital for each of years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , $12.5 million of estimated unrecognized compensation expense attributable to the Anadarko Incentive Plans will be allocated to WES over a weighted-average period of 2.0 years. WES LTIP. WES GP awards phantom units under the WES LTIP primarily 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. The following table summarizes WES LTIP award activity for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Phantom units outstanding at beginning of year $ 55.73 7,180 $ 49.30 7,304 $ 68.78 5,477 Vested 55.73 (7,180 ) 49.30 (7,304 ) 68.78 (5,477 ) Granted 49.88 8,020 55.73 7,180 49.30 7,304 Phantom units outstanding at end of year 49.88 8,020 55.73 7,180 49.30 7,304 WES LTIP Compensation Expense. Compensation expense is recognized over the vesting period and was $0.4 million for each of the years ended December 31, 2018 , 2017 and 2016 . As of December 31, 2018 , there was $0.1 million of unrecognized compensation expense attributable to the outstanding awards under the WES LTIP, all of which will be realized by WES, and which is expected to be recognized over a weighted-average period of 0.4 years. Affiliate asset contributions and distributions. The following table summarizes Anadarko’s contributions and distributions of other assets to WES: Year Ended December 31, 2018 2017 2016 2018 2017 2016 thousands Purchases Sales Cash consideration $ (254 ) $ (3,910 ) $ (3,965 ) $ — $ — $ 623 Net carrying value 254 5,283 3,366 — — (605 ) Partners’ capital adjustment $ — $ 1,373 $ (599 ) $ — $ — $ 18 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: Year ended December 31, thousands 2018 2017 2016 Revenues and other (1) $ 1,067,860 $ 1,365,318 $ 1,228,232 Equity income, net – affiliates (1) 153,024 85,194 78,717 Cost of product (1) 193,663 86,010 80,455 Operation and maintenance (2) 98,769 72,489 72,330 General and administrative (3) 46,212 39,940 38,873 Operating expenses 338,644 198,439 191,658 Interest income (4) 16,900 16,900 16,900 Interest expense (5) — 71 (7,747 ) Settlement of the Deferred purchase price obligation – Anadarko (6) — (37,346 ) — Distributions to WGP unitholders (7) 400,194 360,523 315,505 Distributions to WES unitholders (8) 7,583 7,100 5,614 Above-market component of swap agreements with Anadarko 51,618 58,551 45,820 (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. (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 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 WGP 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 13 ) . (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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. INCOME TAXES The components of income tax expense (benefit) are as follows: Year Ended December 31, thousands 2018 2017 2016 Current income tax expense (benefit) Federal income tax expense (benefit) $ — $ — $ 4,477 State income tax expense (benefit) 480 2,408 1,340 Total current income tax expense (benefit) 480 2,408 5,817 Deferred income tax expense (benefit) Federal income tax expense (benefit) — — 1,622 State income tax expense (benefit) 2,466 2,458 933 Total deferred income tax expense (benefit) 2,466 2,458 2,555 Total income tax expense (benefit) $ 2,946 $ 4,866 $ 8,372 Total income taxes differed from the amounts computed by applying the statutory income tax rate to income (loss) before income taxes. The sources of these differences are as follows: Year Ended December 31, thousands except percentages 2018 2017 2016 Income (loss) before income taxes $ 451,458 $ 578,068 $ 605,352 Statutory tax rate — % — % — % Tax computed at statutory rate $ — $ — $ — Adjustments resulting from: Federal taxes on income attributable to Anadarko’s investment in WES — — 6,162 State taxes on income attributable to Anadarko’s investment in WES (net of federal benefit) — — 117 Texas margin tax expense (benefit) 2,946 4,866 2,093 Income tax expense (benefit) $ 2,946 $ 4,866 $ 8,372 Effective tax rate 1 % 1 % 1 % The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows: December 31, thousands 2018 2017 Depreciable property $ (10,057 ) $ (7,676 ) Credit carryforwards 497 448 Other intangible assets (299 ) (189 ) Other 162 8 Net long-term deferred income tax liabilities $ (9,697 ) $ (7,409 ) Credit carryforwards, which are available for use on future income tax returns, consist of $0.5 million of state income tax credits that expire in 2026. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8. PROPERTY, PLANT AND EQUIPMENT A summary of the historical cost of property, plant and equipment is as follows: December 31, thousands Estimated Useful Life 2018 2017 Land n/a $ 4,653 $ 4,450 Gathering systems and processing complexes 15 to 40 years 8,550,373 7,113,114 Pipelines and equipment 6 to 45 years 172,497 137,644 Assets under construction n/a 490,705 579,501 Other 3 to 40 years 32,000 29,826 Total property, plant and equipment 9,250,228 7,864,535 Less accumulated depreciation 2,638,155 2,133,644 Net property, plant and equipment $ 6,612,073 $ 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 year ended December 31, 2018 , WES recognized impairments of $228.3 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. Also during 2018, WES recognized impairments of $38.7 million and $34.6 million at the Hilight and MIGC systems, respectively. These assets were impaired to their estimated fair values of $4.9 million and $15.2 million , respectively, using the income approach and Level 3 fair value inputs, due to a reduction in estimated future cash flows. The remaining $21.0 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. During the year ended December 31, 2016, WES recognized impairments of $15.5 million , including an impairment of $6.1 million at the Newcastle system, which was impaired to its estimated fair value of $3.1 million , using the income approach and Level 3 fair value inputs, due to a reduction in estimated future cash flows caused by the low commodity price environment. Also during 2016, WES recognized impairments of $9.4 million , primarily related to the cancellation of projects at the DJ Basin complex and Springfield and DBJV systems, and the abandonment of compressors at the MIGC system. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | 9. GOODWILL AND INTANGIBLES Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated portion of Anadarko’s midstream goodwill attributed to the WES assets WGP, through its consolidation of WES, has acquired from Anadarko. The carrying value of Anadarko’s midstream goodwill represents the excess of the purchase price paid to a third-party entity over the estimated fair value of the identifiable assets acquired and liabilities assumed by Anadarko. Accordingly, WES’s allocated goodwill balance does not represent, and in some cases is significantly different from, the difference between the consideration WES paid for its acquisitions from Anadarko and the fair value of such net assets on their respective acquisition dates. Goodwill is evaluated for impairment annually (see Note 1 ). WES’s annual qualitative goodwill impairment assessment as of October 1, 2018 , indicated no impairment. Qualitative factors were also assessed in the fourth quarter of 2018 to review any changes in circumstances subsequent to the annual test, including changes in commodity prices. This assessment also indicated no impairment. Other intangible assets. The intangible asset balance on the consolidated balance sheets includes the fair value, net of amortization, of (i) contracts assumed by WES in connection with the Platte Valley acquisition in February 2011, which are being amortized on a straight-line basis over 38 years , (ii) interconnect agreements at Chipeta entered into in November 2012, which are being amortized on a straight-line basis over 10 years , and (iii) contracts assumed by WES in connection with the DBM acquisition in November 2014, which are being amortized on a straight-line basis over 30 years . WES assesses intangible assets for impairment together with related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Property, plant and equipment in Note 1 for further discussion of management’s process to evaluate potential impairment of long-lived assets. No intangible asset impairment has been recognized in these consolidated financial statements. The following table presents the gross carrying amount and accumulated amortization of other intangible assets: December 31, thousands 2018 2017 Gross carrying amount $ 868,035 $ 868,035 Accumulated amortization (121,231 ) (92,766 ) Other intangible assets $ 746,804 $ 775,269 Amortization expense for intangible assets was $28.5 million for the year ended December 31, 2018 , and $28.4 million for each of the years ended December 31, 2017 and 2016 . Intangible asset amortization recorded in each of the next five years is estimated to be $28.9 million for the years ended December 31, 2019 to December 31, 2022 , and $28.6 million for the year ended December 31, 2023 . |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | 10. EQUITY INVESTMENTS The following tables present the activity in WES’s equity investments for the years ended December 31, 2018 and 2017: thousands Balance at December 31, 2016 Impairment expense (1) Equity income, net Contributions Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2017 Fort Union $ 12,833 $ (3,110 ) $ 3,821 $ — $ (4,217 ) $ (2,297 ) $ 7,030 White Cliffs 47,319 — 12,547 277 (11,965 ) (3,233 ) 44,945 Rendezvous 46,739 — 1,144 — (3,085 ) (2,270 ) 42,528 Mont Belvieu JV 112,805 — 29,444 — (29,482 ) (2,468 ) 110,299 TEG 15,846 — 3,350 — (3,317 ) — 15,879 TEP 189,194 — 17,387 107 (17,639 ) (10,074 ) 178,975 FRP 169,472 — 17,501 — (17,675 ) (2,743 ) 166,555 Total $ 594,208 $ (3,110 ) $ 85,194 $ 384 $ (87,380 ) $ (23,085 ) $ 566,211 thousands Balance at December 31, 2017 Acquisitions Equity income, net Contributions (3) Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2018 Fort Union $ 7,030 $ — $ (1,433 ) $ — $ (194 ) $ (3,144 ) $ 2,259 White Cliffs 44,945 — 11,841 1,278 (11,259 ) (3,785 ) 43,020 Rendezvous 42,528 — 767 — (2,709 ) (2,745 ) 37,841 Mont Belvieu JV 110,299 — 29,200 — (29,239 ) (5,311 ) 104,949 TEG 15,879 — 4,290 3,720 (4,368 ) (163 ) 19,358 TEP 178,975 — 37,963 11,980 (33,552 ) (2,168 ) 193,198 FRP 166,555 — 23,308 14,980 (23,481 ) (4,926 ) 176,436 Whitethorn — 150,563 47,088 7,069 (39,497 ) (3,365 ) 161,858 Cactus II — 12,052 — 94,308 — — 106,360 Total $ 566,211 $ 162,615 $ 153,024 $ 133,335 $ (144,299 ) $ (25,607 ) $ 845,279 (1) Recorded in Impairments in the consolidated statements of operations. (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. (3) Includes capitalized interest of $1.4 million related to the construction of the Cactus II pipeline. The investment balance in Fort Union at December 31, 2018 , is $3.1 million less than WES’s underlying equity in Fort Union’s net assets due to an impairment loss recognized by WES in 2017 for its investment in Fort Union. The investment balance in Rendezvous at December 31, 2018 , includes $34.3 million for the purchase price allocated to the investment in Rendezvous in excess of the historic cost basis of Western Gas Resources, Inc. (“WGRI”), the entity that previously owned the interest in Rendezvous, which Anadarko acquired in August 2006. This excess balance is attributable to the difference between the fair value and book value of such gathering and treating facilities (at the time WGRI was acquired by Anadarko) and is being amortized to Equity income, net – affiliates over the remaining estimated useful life of those facilities. 10. EQUITY INVESTMENTS (CONTINUED) The investment balance in White Cliffs at December 31, 2018 , is $6.4 million less than WES’s underlying equity in White Cliffs’ net assets, primarily due to WES recording the acquisition of its initial 0.4% interest in White Cliffs at Anadarko’s historic carrying value. This difference is being amortized to Equity income, net – affiliates over the remaining estimated useful life of the White Cliffs pipeline. The investment balance in Whitethorn at December 31, 2018 , is $39.1 million less than WES’s underlying equity in Whitethorn’s net assets, primarily due to terms of the acquisition agreement which provided WES a share of pre-acquisition operating cash flow. This difference is being amortized to Equity income, net – affiliates over the remaining estimated useful life of Whitethorn. An impairment loss was recognized by the operator of Fort Union during the year ended December 31, 2016. WES’s 14.81% share of the impairment loss was $3.0 million for the year ended December 31, 2016, recorded in Equity income, net – affiliates in the consolidated statements of operations. Management evaluates its equity investments for impairment whenever events or changes in circumstances indicate that the carrying value of such investments may have experienced a decline in value that is other than temporary. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether the investment has been impaired. Management assesses the fair value of equity investments using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third-party comparable sales and discounted cash flow models. If the estimated fair value is less than the carrying value, the excess of the carrying value over the estimated fair value is recognized as an impairment loss. The following tables present the summarized combined financial information for WES’s equity investments (amounts represent 100% of investee financial information): Year Ended December 31, thousands 2018 2017 2016 Revenues $ 1,087,125 $ 703,424 $ 687,554 Operating income 733,802 435,735 428,454 Net income 731,364 434,749 427,511 December 31, thousands 2018 2017 Current assets $ 220,912 $ 137,957 Property, plant and equipment, net 3,426,438 2,512,214 Other assets 35,411 36,373 Total assets $ 3,682,761 $ 2,686,544 Current liabilities 80,109 80,490 Non-current liabilities 12,213 7,447 Equity 3,590,439 2,598,607 Total liabilities and equity $ 3,682,761 $ 2,686,544 |
Components of Working Capital
Components of Working Capital | 12 Months Ended |
Dec. 31, 2018 | |
Components Of Working Capital [Abstract] | |
Components of Working Capital | 11. COMPONENTS OF WORKING CAPITAL A summary of accounts receivable, net is as follows: December 31, thousands 2018 2017 Trade receivables, net $ 216,847 $ 160,194 Other receivables, net 45 45 Total accounts receivable, net $ 216,892 $ 160,239 A summary of other current assets is as follows: December 31, thousands 2018 2017 NGLs inventory $ 6,370 $ 10,788 Imbalance receivables 8,864 1,640 Prepaid insurance 1,973 2,955 Contract assets 5,399 — Other 4,184 — Total other current assets $ 26,790 $ 15,383 A summary of accrued liabilities is as follows: December 31, thousands 2018 2017 Accrued interest expense $ 70,968 $ 40,646 Short-term asset retirement obligations 25,938 2,304 Short-term remediation and reclamation obligations 863 833 Income taxes payable 384 2,495 Contract liabilities 16,403 — Other 14,640 1,714 Total accrued liabilities $ 129,196 $ 47,992 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 12. ASSET RETIREMENT OBLIGATIONS The following table provides a summary of changes in asset retirement obligations: Year Ended December 31, thousands 2018 2017 Carrying amount of asset retirement obligations at beginning of year $ 145,698 $ 142,407 Liabilities incurred 16,343 16,153 Liabilities settled (12,432 ) (10,468 ) Accretion expense 7,217 6,956 Revisions in estimated liabilities 129,088 (9,350 ) Carrying amount of asset retirement obligations at end of year $ 285,914 $ 145,698 The liabilities incurred for the year ended December 31, 2018 , represented additions in asset retirement obligations primarily due to capital expansions at the West T exas and DJ Basin complexes. Revisions in estimated liabilities for the year ended December 31, 2018 , primarily included (i) $61.1 million related to changes in expected settlement costs and timing, primarily at the DJ Basin and West Texas complexes and the MGR assets, and (ii) $43.4 million related to the shutdown of the Third Creek gathering system during the second quarter of 2018. See Note 1 for further inf ormation. The liabilities incurred for the year ended December 31, 2017 , represented additions in asset retirement obligations primarily due to (i) capital expansions at the DJ Basin and DBM complexes and the DBJV system, (ii) the Property Exchange in March 2017 and (iii) the start-up of the DBM water systems in 2017. Revisions in estimated liabilities for the year ended December 31, 2017 , were related to (i) changes in expected settlement costs and timing primarily at the Hilight system and the DJ Basin and DBM complexes, and (ii) changes in property lives primarily at the Granger, DJ Basin and DBM complexes and the Hilight and DBJV systems. |
Debt and Interest Expense
Debt and Interest Expense | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instruments [Abstract] | |
Debt and Interest Expense | 13. DEBT AND INTEREST EXPENSE The following table presents WES and WGP’s outstanding debt: December 31, 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 500,000 496,959 515,990 500,000 495,815 530,647 4.000% Senior Notes due 2022 670,000 669,078 662,109 670,000 668,849 684,043 3.950% Senior Notes due 2025 500,000 492,837 466,135 500,000 491,885 500,885 4.650% Senior Notes due 2026 500,000 495,710 483,994 500,000 495,245 520,144 4.500% Senior Notes due 2028 400,000 394,631 377,475 — — — 4.750% Senior Notes due 2028 400,000 395,841 384,370 — — — 5.450% Senior Notes due 2044 600,000 593,349 522,386 600,000 593,234 637,827 5.300% Senior Notes due 2048 700,000 686,648 605,327 — — — 5.500% Senior Notes due 2048 350,000 342,328 311,536 — — — WES RCF 220,000 220,000 220,000 370,000 370,000 370,000 Total long-term debt $ 4,840,000 $ 4,787,381 $ 4,549,322 $ 3,518,000 $ 3,492,712 $ 3,622,177 (1) Fair value is measured using the market approach and Level 2 inputs. Debt activity. The following table presents WES and WGP’s debt activity for the years ended December 31, 2018 and 2017: thousands Carrying Value Balance at December 31, 2016 $ 3,119,461 WES RCF borrowings 370,000 Other 3,251 Balance at December 31, 2017 $ 3,492,712 WES RCF borrowings 540,000 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 (27,331 ) Balance at December 31, 2018 $ 4,815,381 13. DEBT AND INTEREST EXPENSE (CONTINUED) WGP RCF. In February 2018, WGP voluntarily reduced the aggregate commitments of the lenders under the WGP RCF to $35.0 million . In December 2018, WGP amended the WGP RCF to extend the maturity date from March 2019 to the earlier of (i) June 14, 2019, or (ii) three business days following the consummation of the Merger (see Note 1 ). As of December 31, 2018 , the outstanding borrowings under the WGP RCF were classified as short-term debt on the consolidated balance sheet. Pursuant to a collateral agreement with the WGP RCF lenders, WGP’s obligations under the WGP RCF are secured by a first priority lien on all of WGP’s assets (not including the consolidated assets of WES), as well as all present and after acquired equity interests owned by WGP in WES GP and WES. Borrowings under the WGP RCF bear interest, at WGP’s option, at either (a) a base rate equal to the greatest of (i) the Prime Rate, (ii) the Federal Funds Effective Rate plus 0.50% and (iii) London Interbank Offered Rate (“LIBOR”) plus 1.00% , in each case plus applicable margins ranging from 1.00% to 1.75% based upon WGP’s consolidated leverage ratio or (b) LIBOR (with a floor of 0% ), plus applicable margins ranging from 2.00% to 2.75% based upon WGP’s consolidated leverage ratio. The unused portion of the WGP RCF is subject to a quarterly commitment fee ranging from 0.30% to 0.50% per annum on the daily unused amount of the WGP RCF based upon WGP’s consolidated leverage ratio. As of December 31, 2018 , WGP had $28.0 million in outstanding borrowings and $7.0 million available for borrowing under the WGP RCF. As of December 31, 2018 and 2017 , the interest rate on the outstanding WGP RCF borrowings was 4.53% and 3.57% , respectively. The commitment fee rate was 0.30% at December 31, 2018 and 2017 . At December 31, 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 December 31, 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 December 31, 2018 , WES had $220.0 million in outstanding borrowings and $4.6 million in outstanding letters of credit, resulting in $1.3 billion available borrowing capacity under the WES RCF. As of December 31, 2018 and 2017 , the interest rate on any outstanding WES RCF borrowings was 3.74% and 2.87% , respectively. The facility fee rate was 0.20% at December 31, 2018 and 2017 . At December 31, 2018 , WES was in compliance with all covenants under the WES RCF. 13. DEBT AND INTEREST EXPENSE (CONTINUED) In December 2018, WES entered into an amendment to the WES RCF for (i) subject to the consummation of the Merger (see Note 1 ), an increase to the size of the WES RCF to $2.0 billion , while leaving the $0.5 billion accordion feature of the WES RCF unexercised, and (ii) effective on February 15, 2019, the exercise of one of WES’s one-year extension options to extend the maturity date of the WES RCF to February 2024. All of WES’s notes and obligations under the WES RCF are recourse to WES GP. WES GP is indemnified by wholly owned subsidiaries of Anadarko against any claims made against WES GP for WES’s long-term debt and/or borrowings under the WES RCF. WES 364-day Facility. In December 2018, WES entered into a $2.0 billion 364-day senior unsecured credit agreement (the “WES 364-day Facility”), the proceeds of which will be used to fund substantially all of the cash portion of the consideration under the Merger Agreement and the payment of related transaction costs (see Note 1 ). The WES 364-day Facility will mature on the day prior to the one-year anniversary of the completion of the Merger, and will bear interest at LIBOR, plus applicable margins ranging from 1.000% to 1.625% , 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 as defined in the WES 364-day Facility and plus applicable margins currently ranging from zero to 0.625% , based upon WES’s senior unsecured debt rating. WES is also required to pay a ticking fee of 0.175% on the commitment amount beginning 90 days after the effective date of the credit agreement through the date of funding under the WES 364-day Facility. Funding of the WES 364-day Facility is conditioned upon the consummation of the Merger and net cash proceeds received from future asset sales and debt or equity offerings by WES must be used to repay amounts outstanding under the facility. Interest-rate swaps. In December 2018, WES entered into interest-rate swap agreements to manage interest rate risk associated with anticipated 2019 debt issuances. Pursuant to these swap agreements, WES exchanged a floating interest rate indexed to the three-month LIBOR for a fixed interest rate. Depending on market conditions, liability management actions or other factors, WES may settle or amend certain or all of the currently outstanding interest-rate swaps. The following interest-rate swaps were outstanding as of December 31, 2018 : Notional Principal Amount Reference Period Mandatory Termination Date Fixed Interest Rate $250.0 million December 2019 - 2024 December 2019 2.730% $250.0 million December 2019 - 2029 December 2019 2.856% $250.0 million December 2019 - 2049 December 2019 2.905% WES does not apply hedge accounting and, therefore, gains and losses associated with the interest-rate swaps are recognized currently in earnings. For the year ended December 31, 2018 , WES recognized a non-cash loss of $8.0 million , which is included in Other income (expense), net in the consolidated statements of operations. Valuation of the interest-rate swaps is based on similar transactions observable in active markets and industry standard models that primarily rely on market-observable inputs. Inputs used to estimate fair value in industry standard models are categorized as Level 2 inputs, because substantially all assumptions and inputs are observable in active markets throughout the full term of the instruments. Inputs used to estimate the fair value include market price curves, contract terms and prices, and credit risk adjustments. The fair value of the interest-rate swaps as of December 31, 2018 , was an $8.0 million liability, which is reported in Accrued liabilities on the consolidated balance sheets. 13. DEBT AND INTEREST EXPENSE (CONTINUED) Credit risk considerations. Over-the-counter traded swaps expose WES to counterparty credit risk. WES monitors the creditworthiness of its counterparties, establishes credit limits according to WES’s credit policies and guidelines, and assesses the impact on the fair value of its counterparties’ creditworthiness. WES has the ability to require cash collateral or letters of credit to mitigate its credit risk exposure. WES’s interest-rate swaps are subject to individually negotiated credit provisions that may require collateral of cash or letters of credit depending on the derivative’s portfolio valuation versus negotiated credit thresholds. These credit thresholds generally require full or partial collateralization of WES’s obligations depending on certain credit risk related provisions. Specifically, WES may be required to post collateral with respect to its interest-rate swaps if its credit ratings decline below current levels, the liability associated with the swaps increases substantially or certain credit event of default provisions occur. For example, based on the derivative positions as of December 31, 2018, if WES’s credit ratings from both Standard and Poor’s and Moody’s Investors Service were below the investment grade thresholds of BBB- and Baa3, respectively, WES would be required to post collateral of up to approximately $2.7 million . The aggregate fair value of interest-rate swaps with credit risk related contingent features for which a net liability position existed was $5.7 million at December 31, 2018. Interest expense. The following table summarizes the amounts included in interest expense: Year Ended December 31, thousands 2018 2017 2016 Third parties Long-term and short-term debt $ (200,454 ) $ (143,400 ) $ (122,428 ) Amortization of debt issuance costs and commitment fees (9,110 ) (7,970 ) (7,509 ) Capitalized interest 23,521 6,826 5,562 Total interest expense – third parties (186,043 ) (144,544 ) (124,375 ) Affiliates Deferred purchase price obligation – Anadarko (1) — (71 ) 7,747 Total interest expense – affiliates — (71 ) 7,747 Interest expense $ (186,043 ) $ (144,615 ) $ (116,628 ) (1) See Note 3 for a discussion of the Deferred purchase price obligation - Anadarko. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. COMMITMENTS AND CONTINGENCIES Environmental obligations. WGP, through its partnership interest in WES, is subject to various environmental-remediation obligations arising from federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. As of December 31, 2018 and 2017 , the consolidated balance sheets included $1.7 million and $1.8 million , respectively, of liabilities for remediation and reclamation obligations. The current portion of these amounts is included in Accrued liabilities and the long-term portion of these amounts is included in Other liabilities. The recorded obligations do not include any anticipated insurance recoveries. The majority of payments related to these obligations are expected to be made over the next five years. Management regularly monitors the remediation and reclamation process and the liabilities recorded and believes its environmental obligations are adequate to fund remedial actions to comply with present laws and regulations, and that the ultimate liability for these matters, if any, will not differ materially from recorded amounts nor materially affect the overall results of operations, cash flows or financial condition of WGP. There can be no assurance, however, that current regulatory requirements will not change, or past non-compliance with environmental issues will not be discovered. See Note 11 and Note 12 . 14. COMMITMENTS AND CONTINGENCIES (CONTINUED) 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 West Texas and DJ Basin complexes. Lease commitments. Anadarko, on WES’s behalf, has entered into lease arrangements for corporate offices, shared field offices, a warehouse and equipment supporting WES’s operations, for which Anadarko charges WES rent. The leases for the corporate offices and shared field offices extend through 2028 and 2033, respectively, and the lease for the warehouse expired in February 2017. Rent expense charged to WES associated with these lease arrangements was $53.6 million , $45.1 million and $37.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Operating leases. The amounts in the table below represent existing contractual operating lease obligations as of December 31, 2018 , that may be assigned or otherwise charged to WES pursuant to the reimbursement provisions of the omnibus agreement: thousands Operating Leases 2019 $ 8,711 2020 2,236 2021 460 2022 467 2023 473 Thereafter 1,547 Total $ 13,894 See Accounting standards adopted in 2019 in Note 1 for a discussion of the expected impact the adoption of ASU 2016-02, Leases (Topic 842) will have on the consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation policy | 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 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. 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 10.00 % Rendezvous 22.00 % Mont Belvieu JV 25.00 % TEP 20.00 % TEG 20.00 % FRP 33.33 % Whitethorn 20.00 % Cactus II 15.00 % Proportionate consolidation (2) Marcellus Interest systems 33.75 % Springfield system 50.10 % Full consolidation Chipeta (3) 75.00 % (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. 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 13 . |
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 December 31, 2018 (see Note 10 ). 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 assets from Anadarko, WES and WGP (by virtue of its consolidation of WES) are 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. |
Fair value policy | Fair value. The fair-value-measurement standard defines fair value as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard characterizes inputs used in determining fair value according to a hierarchy that prioritizes those inputs based upon the degree to which they are observable. The three input levels of the fair value hierarchy are as follows: Level 1 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). Level 3 – Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in management’s internally developed present value of future cash flows model that underlies the fair value measurement). 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In determining fair value, management uses observable market data when available, or models that incorporate observable market data. When a fair value measurement is required and there is not a market-observable price for the asset or liability or a market-observable price for a similar asset or liability, the cost, income, or multiples approach is used, depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset replacement cost. The income approach uses management’s best assumptions regarding expectations of projected cash flows, and discounts the expected cash flows using a commensurate risk adjusted discount rate. Such evaluations involve a significant amount of judgment, since the results are based on expected future events or conditions, such as sales prices, estimates of future throughput, capital and operating costs and the timing thereof, economic and regulatory climates and other factors. A multiples approach uses management’s best assumptions regarding expectations of projected earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and the multiple of that EBITDA that a buyer would pay to acquire an asset. Management’s estimates of future net cash flows and EBITDA are inherently imprecise because they reflect management’s expectation of future conditions that are often outside of management’s control. However, the assumptions used reflect a market participant’s view of long-term prices, costs and other factors, and are consistent with assumptions used in WES’s business plans and investment decisions. In arriving at fair-value estimates, management uses relevant observable inputs available for the valuation technique employed. If a fair value measurement reflects inputs at multiple levels within the hierarchy, the fair value measurement is characterized based on the lowest level of input that is significant to the fair value measurement. Nonfinancial assets and liabilities initially measured at fair value include certain assets and liabilities acquired in a third-party business combination, assets and liabilities exchanged in non-monetary transactions, goodwill and other intangibles, initial recognition of asset retirement obligations, and initial recognition of environmental obligations assumed in a third-party acquisition. Impairment analyses for long-lived assets, goodwill and other intangibles, and the initial recognition of asset retirement obligations and environmental obligations use Level 3 inputs. The fair value of debt reflects any premium or discount for the difference between the stated interest rate and the quarter-end market interest rate, and is based on quoted market prices for identical instruments, if available, or based on valuations of similar debt instruments. See Note 13 . The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable reported on the consolidated balance sheets approximate fair value due to the short-term nature of these items. |
Cash equivalents policy | Cash equivalents. All highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. |
Allowance for uncollectible accounts policy | Allowance for uncollectible accounts. Revenues are primarily from Anadarko, for which no credit limit is maintained. Exposure to bad debts is analyzed on a customer-by-customer basis for its third-party accounts receivable and WES may establish credit limits for significant third-party customers. The allowance for uncollectible accounts was immaterial at December 31, 2018 and 2017 . |
Imbalances policy | Imbalances. The consolidated balance sheets include imbalance receivables and payables resulting from differences in volumes received into WES’s systems and volumes delivered by WES to customers. Volumes owed to or by WES that are subject to monthly cash settlement are valued according to the terms of the contract as of the balance sheet dates and reflect market index prices. Other volumes owed to or by WES are valued at WES’s weighted-average cost as of the balance sheet dates and are settled in-kind. As of December 31, 2018 , imbalance receivables and payables were $8.9 million and $9.5 million , respectively. As of December 31, 2017 , imbalance receivables and payables were $1.6 million and $2.9 million , respectively. Net changes in imbalance receivables and payables are reported in Cost of product in the consolidated statements of operations. |
Inventory policy | Inventory. The cost of NGLs inventories is determined by the weighted-average cost method on a location-by-location basis. Inventory is stated at the lower of weighted-average cost or net realizable value and is reported in Other current assets on the consolidated balance sheets. See Note 11 . |
Property, plant and equipment policy | Property, plant and equipment. Property, plant and equipment are generally stated at the lower of historical cost less accumulated depreciation or fair value, if impaired. Because acquisitions of assets from Anadarko are transfers of net assets between entities under common control, the assets acquired from Anadarko are initially recorded at Anadarko’s historic carrying value. The difference between the carrying value of net assets acquired from Anadarko and the consideration paid is recorded as an adjustment to partners’ capital. Assets acquired in a business combination or non-monetary exchange with a third party are initially recorded at fair value. All construction-related direct labor and material costs are capitalized. The cost of renewals and betterments that extend the useful life of property, plant and equipment is also capitalized. The cost of repairs, replacements and major maintenance projects that do not extend the useful life or increase the expected output of property, plant and equipment is expensed as incurred. Depreciation is computed using the straight-line method based on estimated useful lives and salvage values of assets. However, subsequent events could cause a change in estimates, thereby impacting future depreciation amounts. Uncertainties that may impact these estimates include, but are not limited to, changes in laws and regulations relating to environmental matters, including air and water quality, restoration and abandonment requirements, economic conditions, and supply and demand in the area. Management evaluates the ability to recover the carrying amount of its long-lived assets to determine whether its long-lived assets have been impaired. Impairments exist when the carrying amount of an asset exceeds estimates of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. When alternative courses of action to recover the carrying amount of a long-lived asset are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence. If the carrying amount of the long-lived asset is not recoverable based on the estimated future undiscounted cash flows, the impairment loss is measured as the excess of the asset’s carrying amount over its estimated fair value, such that the asset’s carrying amount is adjusted to its estimated fair value with an offsetting charge to impairment expense. Refer to Note 8 for a description of impairments recorded during the years ended December 31, 2018, 2017 and 2016. Insurance recoveries. Involuntary conversions result from the loss of an asset because of some unforeseen event (e.g., destruction due to fire). Some of these events are insurable and result in property damage insurance recovery. Amounts that are received from insurance carriers are net of any deductibles related to the covered event. A receivable is recorded from insurance to the extent a loss is recognized from an involuntary conversion event and the likelihood of recovering such loss is deemed probable. To the extent that any insurance claim receivables are later judged not probable of recovery (e.g., due to new information), such amounts are expensed. A gain on involuntary conversion is recognized when the amount received from insurance exceeds the net book value of the retired asset(s). In addition, gains related to insurance recoveries are not recognized until all contingencies related to such proceeds have been resolved; that is, a cash payment is received from the insurance carrier or there is a binding settlement agreement with the carrier that clearly states that a payment will be made. To the extent that an asset is rebuilt, the associated expenditures are capitalized, as appropriate, on the consolidated balance sheets and presented as Capital expenditures in the consolidated statements of cash flows. With respect to business interruption insurance claims, income is recognized only when cash proceeds are received from insurers, which are presented in the consolidated statements of operations as a component of Operating income (loss). 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 year ended December 31, 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 years ended December 31, 2017 and 2016, WES received $52.9 million and $33.8 million , respectively, in cash proceeds from insurers, including $29.9 million and $16.3 million , respectively, in proceeds from business interruption insurance claims and $23.0 million and $17.5 million , respectively, in proceeds from property insurance claims. |
Capitalized interest policy | Capitalized interest. Interest is capitalized as part of the historical cost of constructing assets for significant projects that are in progress. Capitalized interest is determined by multiplying WES’s weighted-average borrowing cost on debt by the average amount of qualifying costs incurred during the period. Once the construction of an asset subject to interest capitalization is completed and the asset is placed in service, the associated capitalized interest is expensed through depreciation or impairment, together with other capitalized costs related to that asset. |
Goodwill policy | Goodwill. Goodwill is recorded when the purchase price of a business acquired exceeds the fair market value of the tangible and separately measurable intangible net assets. In addition, goodwill represents the allocated portion of Anadarko’s midstream goodwill attributed to the WES assets WGP, through its consolidation of WES, has acquired from Anadarko. WES has allocated goodwill on its two reporting units: (i) gathering and processing and (ii) transportation. Goodwill is evaluated for impairment annually, as of October 1, or more often as facts and circumstances warrant. An initial qualitative assessment is performed to determine the likelihood of whether or not goodwill is impaired. If management concludes, based on qualitative factors, that it is more likely than not that the fair value of the reporting unit exceeds its carrying amount, then goodwill is not impaired and further testing is not necessary. If a quantitative assessment must be performed and the carrying amount of the reporting unit exceeds its fair value, goodwill is written down to its implied fair value through a charge to impairment expense. The carrying value of goodwill after such an impairment would represent a Level 3 fair value measurement. See Note 9 . |
Other intangible assets policy | Other intangible assets. WES assesses intangible assets, as described in Note 9 , for impairment together with related underlying long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. See Property, plant and equipment within this Note 1 for further discussion of management’s process to evaluate potential impairment of long-lived assets. |
Asset retirement obligations and environmental expenditures policy | Asset retirement obligations. A liability based on the estimated costs of retiring tangible long-lived assets is recognized as an asset retirement obligation in the period incurred. The liability is recognized at fair value, measured using discounted expected future cash outflows for the asset retirement obligation when the obligation originates, which generally is when an asset is acquired or constructed. The carrying amount of the associated asset is increased commensurate with the liability recognized. Over time, the discounted liability is adjusted to its expected settlement value through accretion expense, which is reported within Depreciation and amortization in the consolidated statements of operations. Subsequent to the initial recognition, the liability is also adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to property, plant and equipment) until the obligation is settled. Revisions in estimated asset retirement obligations may result from changes in estimated inflation rates, discount rates, asset retirement costs and the estimated timing of settling asset retirement obligations. See Note 12 . Environmental expenditures. WES expenses environmental obligations related to conditions caused by past operations that do not generate current or future revenues. Environmental obligations related to operations that generate current or future revenues are expensed or capitalized, as appropriate. Liabilities are recorded when the necessity for environmental remediation or other potential environmental liabilities becomes probable and the costs can be reasonably estimated. Accruals for estimated losses from environmental remediation obligations are recognized no later than at the time of the completion of the remediation feasibility study. These accruals are adjusted as additional information becomes available or as circumstances change. Costs of future expenditures for environmental-remediation obligations are not discounted to their present value. See Note 14 . |
Segments policy | Segments. Because WGP reflects its ownership interest in WES on a consolidated basis, and has no independent operations or material assets outside those of WES, WGP’s segment analysis and presentation is the same as that of WES. WES’s operations are organized into a single operating segment, the assets of which gather, compress, treat, process and transport natural gas; gather, stabilize and transport condensate, NGLs and crude oil; and gather and dispose of produced water in the United States. |
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. 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. If the fees relate to services performed before control of the product has transferred to WES, the fees are treated as Service revenues – fee based. Product sales revenue 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. |
Equity-based compensation policy | Equity-based compensation. Concurrently with WGP’s initial public offering (“IPO”), WGP GP adopted the Western Gas Equity Partners, LP 2012 Long-Term Incentive Plan (the “WGP LTIP”). The WGP LTIP permits the issuance of up to 3,000,000 WGP common units, of which 2,937,197 units remained available for future issuance as of December 31, 2018 . Upon vesting of each phantom unit, the holder will receive common units of WGP or, at the discretion of WGP GP’s Board of Directors (the “Board of Directors”), cash in an amount equal to the market value of common units of WGP on the vesting date. Equity-based compensation expense attributable to grants made under the WGP LTIP impacts cash flows from operating activities only to the extent cash payments are made to a participant in lieu of issuance of WGP common units to the participant. Equity-based compensation expense attributable to awards granted under the WGP LTIP is amortized over the vesting periods applicable to the awards. Prior to October 17, 2017, phantom unit awards were granted under the Western Gas Partners, LP 2008 Long-Term Incentive Plan (the “WES 2008 LTIP”). On October 17, 2017, however, WES’s common and Class C unitholders approved the Western Gas Partners, LP 2017 Long-Term Incentive Plan (the “WES 2017 LTIP”), which replaced the WES 2008 LTIP. As used in this section, the term “WES LTIP” refers to the WES 2008 LTIP with respect to awards granted prior to October 17, 2017, and to the WES 2017 LTIP with respect to awards granted after October 17, 2017. The WES 2017 LTIP permits the issuance of up to 2,250,000 units, of which 2,241,980 units remained available for future issuance as of December 31, 2018 . Upon vesting of each phantom unit, the holder will receive common units of WES or, at the discretion of WES GP’s Board of Directors, cash in an amount equal to the market value of common units of WES on the vesting date. Equity-based compensation expense attributable to grants made under the WES LTIP impacts cash flows from operating activities only to the extent cash payments are made to a participant in lieu of issuance of WES common units to the participant. Equity-based compensation expense attributable to grants made under the WES LTIP is amortized over the vesting periods applicable to the awards. Additionally, general and administrative expenses include equity-based compensation costs allocated by Anadarko for grants made pursuant to the Anadarko Petroleum Corporation 2012 Omnibus Incentive Compensation Plan, as amended and restated (the “Anadarko Incentive Plan”) for all periods presented. Grants made under equity-based compensation plans result in equity-based compensation expense, which is determined by reference to the fair value of equity compensation. For equity-based awards ultimately settled through the issuance of units or stock, the fair value is measured as of the date of the relevant equity grant. Equity-based compensation granted under the Anadarko Incentive Plan does not impact cash flows from operating activities since the offset to compensation expense is recorded as a contribution to partners’ capital in the consolidated financial statements at the time of contribution, when the expense is realized. |
Income taxes policy | WES income taxes. WES generally is not subject to federal income tax or state income tax other than Texas margin tax on the portion of its income that is apportionable to Texas. Deferred state income taxes are recorded on temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. WES routinely assesses the realizability of its deferred tax assets. If WES concludes that it is more likely than not that some of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. Federal and state current and deferred income tax expense was recorded on WES assets prior to WES’s acquisition of these assets from Anadarko. For periods beginning on and subsequent to WES’s acquisition of the WES assets, WES makes payments to Anadarko pursuant to the tax sharing agreement entered into between Anadarko and WES for its estimated share of taxes from all forms of taxation, excluding income taxes imposed by the United States, that are included in any combined or consolidated returns filed by Anadarko. The aggregate difference in the basis of WES’s assets for financial and tax reporting purposes cannot be readily determined as WES does not have access to information about each partner’s tax attributes in WES. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The accounting standards for uncertain tax positions defines the criteria an individual tax position must satisfy for any part of the benefit of that position to be recognized in the financial statements. WES had no material uncertain tax positions at December 31, 2018 or 2017 . With respect to assets acquired from Anadarko, WES recorded Anadarko’s historic deferred income taxes for the periods prior to WES’s ownership of the assets. For periods on and subsequent to WES’s acquisition, WES is not subject to tax except for the Texas margin tax and, accordingly, does not record deferred federal income taxes related to the assets acquired from Anadarko. WGP income taxes. Deferred federal and state income taxes included in the accompanying consolidated financial statements are attributable to temporary differences between the financial statement carrying amount and tax basis of WGP’s investment in WES. WGP’s accounting policy is to “look through” its investment in WES for purposes of calculating deferred income tax asset and liability balances attributable to WGP’s interests in WES. The application of such accounting policy resulted in no deferred income taxes being recognized for the book and tax basis difference in goodwill, which is non-deductible for tax purposes for all periods presented. WGP had no material uncertain tax positions at December 31, 2018 or 2017 . |
Net income (loss) per common unit policy | Net income (loss) per common unit. Earnings per unit is calculated by dividing the limited partners’ interest in net income (loss) by the weighted-average number of common units outstanding. Net income (loss) per common unit is calculated assuming that cash distributions are equal to the net income (loss) attributable to WGP. Net income equal to the amount of available cash (as defined in WGP’s partnership agreement) is allocated to the common unitholders consistent with actual cash distributions. See Note 5 . 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 years ended December 31, 2017 and 2016. 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. |
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, with no impact to 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 (loss). 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • 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. • 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 (loss). • 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. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The following tables summarize the impact of adopting Topic 606 on the impacted line items within the consolidated statement 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. Year Ended thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Revenues Service revenues – fee based $ 1,609,245 $ 1,499,424 $ 109,821 Service revenues – product based 85,553 — 85,553 Product sales 293,992 1,306,479 (1,012,487 ) Expenses Cost of product 431,921 1,270,811 (838,890 ) Operation and maintenance 414,784 414,591 193 Depreciation and amortization 337,536 334,551 2,985 Impairments 228,338 228,293 45 Income tax expense (benefit) 2,946 2,816 130 Net income (loss) attributable to noncontrolling interests 79,083 86,164 (7,081 ) Net income (loss) attributable to Western Gas Equity Partners, LP 369,429 343,924 25,505 December 31, 2018 thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Assets Other current assets $ 26,790 $ 21,391 $ 5,399 Net property, plant and equipment 6,612,073 6,493,274 118,799 Other assets 22,503 22,311 192 Liabilities Accrued liabilities 129,196 123,289 5,907 Deferred income taxes 9,697 9,760 (63 ) Other liabilities 140,067 2,741 137,326 Equity and partners’ capital Total equity and partners’ capital 3,504,665 3,523,445 (18,780 ) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Accounting standards adopted in 2019. 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. This standard is effective for periods beginning after December 15, 2018, and in the first quarter of 2019, WGP fully adopted this standard using the modified retrospective method applied to all leases that existed on January 1, 2019. WGP made 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. Upon adoption, WGP recognized approximately $10.0 million of ROU assets and corresponding lease liabilities on the consolidated balance sheet. The adoption of this ASU did not have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. WGP has implemented the necessary changes to its business processes, systems and controls to support accounting and disclosure requirements under this ASU. |
Equity investments policy | Management evaluates its equity investments for impairment whenever events or changes in circumstances indicate that the carrying value of such investments may have experienced a decline in value that is other than temporary. When evidence of loss in value has occurred, management compares the estimated fair value of the investment to the carrying value of the investment to determine whether the investment has been impaired. Management assesses the fair value of equity investments using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third-party comparable sales and discounted cash flow models. If the estimated fair value is less than the carrying value, the excess of the carrying value over the estimated fair value is recognized as an impairment loss. |
Derivatives policy | WES does not apply hedge accounting and, therefore, gains and losses associated with the interest-rate swaps are recognized currently in earnings. For the year ended December 31, 2018 , WES recognized a non-cash loss of $8.0 million , which is included in Other income (expense), net in the consolidated statements of operations. Valuation of the interest-rate swaps is based on similar transactions observable in active markets and industry standard models that primarily rely on market-observable inputs. Inputs used to estimate fair value in industry standard models are categorized as Level 2 inputs, because substantially all assumptions and inputs are observable in active markets throughout the full term of the instruments. Inputs used to estimate the fair value include market price curves, contract terms and prices, and credit risk adjustments. The fair value of the interest-rate swaps as of December 31, 2018 , was an $8.0 million liability, which is reported in Accrued liabilities on the consolidated balance sheets. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Assets and Investments Table | As of December 31, 2018 , WES’s assets and investments consisted of the following: Owned and Operated Operated Interests Non-Operated Interests Equity Interests Gathering systems (1) 12 2 3 2 Treating facilities 14 3 — 3 Natural gas processing plants/trains 21 3 — 2 NGLs 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 10.00 % Rendezvous 22.00 % Mont Belvieu JV 25.00 % TEP 20.00 % TEG 20.00 % FRP 33.33 % Whitethorn 20.00 % Cactus II 15.00 % Proportionate consolidation (2) Marcellus Interest systems 33.75 % Springfield system 50.10 % Full consolidation Chipeta (3) 75.00 % (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 statement 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. Year Ended thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Revenues Service revenues – fee based $ 1,609,245 $ 1,499,424 $ 109,821 Service revenues – product based 85,553 — 85,553 Product sales 293,992 1,306,479 (1,012,487 ) Expenses Cost of product 431,921 1,270,811 (838,890 ) Operation and maintenance 414,784 414,591 193 Depreciation and amortization 337,536 334,551 2,985 Impairments 228,338 228,293 45 Income tax expense (benefit) 2,946 2,816 130 Net income (loss) attributable to noncontrolling interests 79,083 86,164 (7,081 ) Net income (loss) attributable to Western Gas Equity Partners, LP 369,429 343,924 25,505 December 31, 2018 thousands As Reported Without Adoption of Topic 606 Effect of Change Increase / (Decrease) Assets Other current assets $ 26,790 $ 21,391 $ 5,399 Net property, plant and equipment 6,612,073 6,493,274 118,799 Other assets 22,503 22,311 192 Liabilities Accrued liabilities 129,196 123,289 5,907 Deferred income taxes 9,697 9,760 (63 ) Other liabilities 140,067 2,741 137,326 Equity and partners’ capital Total equity and partners’ capital 3,504,665 3,523,445 (18,780 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 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 Year Ended Revenue from customers Service revenues – fee based $ 1,609,245 Service revenues – product based 85,553 Product sales 301,867 Total revenue from customers 1,996,665 Revenue from other than customers Net gains (losses) on commodity price swap agreements (7,875 ) Other 1,486 Total revenues and other $ 1,990,276 |
Contract Assets and Liabilities Activity Tables | 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 (4,952 ) Additional estimated revenues recognized 5,414 Balance at December 31, 2018 $ 5,591 Contract assets at December 31, 2018 Other current assets $ 5,399 Other assets 192 Total contract assets from contracts with customers $ 5,591 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 53,064 Assets received from customer 12,933 Revenues recognized during the period that were included in the adoption effect (1) (11,137 ) Cumulative catch up adjustment for change in estimated consideration due to cost of service rate updates (21,848 ) Balance at December 31, 2018 $ 153,729 Contract liabilities at December 31, 2018 Accrued liabilities $ 16,403 Other liabilities 137,326 Total contract liabilities from contracts with customers $ 153,729 (1) Includes $(7.5) million from a performance obligation satisfied in a previous period related to the arbitration against SWEPI LP (see Note 14 ). |
Expected Revenue Recognition from Satisfaction of Performance Obligations Table | Therefore, the following table represents only a 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 2019 $ 470,247 2020 554,099 2021 533,861 2022 530,528 2023 488,603 Thereafter 1,802,153 Total $ 4,379,491 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Impact of Deferred Purchase Price Obligation - Anadarko Table | The following table summarizes the financial statement impact of the Deferred purchase price obligation – Anadarko: Deferred purchase price obligation - Anadarko Estimated future payment obligation (1) Balance at December 31, 2015 $ 188,674 $ 282,807 Accretion revision (2) (7,747 ) Revision to Deferred purchase price obligation – Anadarko (3) (139,487 ) Balance at December 31, 2016 41,440 56,455 Accretion expense (4) 71 Revision to Deferred purchase price obligation – Anadarko (3) (4,165 ) Settlement of the Deferred purchase price obligation – Anadarko (37,346 ) Balance at December 31, 2017 $ — $ — (1) Calculated using Level 3 inputs. (2) Financing-related accretion revisions were recorded in Interest expense in the consolidated statements of operations. (3) Recorded as revisions within Common units in the consolidated balance sheets and consolidated statements of equity and partners’ capital. (4) Accretion expense was recorded as a charge to Interest expense in the consolidated statements of operations. |
Partnership Distributions (Tabl
Partnership Distributions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Distribution Made to Limited Partner [Line Items] | |
Cash Distributions Tables | The Board of Directors declared the following cash distributions to WGP unitholders for the periods presented: thousands except per-unit amounts Total Quarterly Total Quarterly Date of 2016 March 31 $ 0.42375 $ 92,767 May 2016 June 30 0.43375 94,958 August 2016 September 30 0.44750 97,968 November 2016 December 31 0.46250 101,254 February 2017 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 0.59500 130,268 November 2018 December 31 (1) 0.60250 131,910 February 2019 (1) The Board of Directors declared a cash distribution to WGP unitholders for the fourth quarter of 2018 of $0.60250 per unit, or $131.9 million in aggregate. The cash distribution is payable on February 21, 2019 , to WGP unitholders of record at the close of business on February 1, 2019 . |
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 2016 March 31 $ 0.815 $ 158,905 May 2016 June 30 0.830 162,827 August 2016 September 30 0.845 166,742 November 2016 December 31 0.860 170,657 February 2017 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 0.965 230,239 November 2018 December 31 (1) 0.980 234,787 February 2019 (1) The Board of Directors of WES GP declared a cash distribution to WES unitholders for the fourth quarter of 2018 of $0.980 per unit, or $234.8 million in aggregate, including incentive distributions, but excluding distributions on WES Class C units (see WES Class C unit distributions below). The cash distribution was paid on February 13, 2019 , to WES unitholders of record at the close of business on February 1, 2019 . |
Series A Preferred Units [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Cash Distributions Tables | The following table summarizes the Series A Preferred unitholders’ cash distributions for the periods presented: thousands except per-unit amounts Quarters Ended Total Quarterly Distribution per Unit Total Quarterly Cash Distribution Date of Distribution 2016 March 31 (1) $ 0.68 $ 1,887 May 2016 June 30 (2) 0.68 14,082 August 2016 September 30 0.68 14,907 November 2016 December 31 0.68 14,908 February 2017 2017 March 31 $ 0.68 $ 7,453 May 2017 (1) Quarterly per unit distribution prorated for the 18 -day period during which 14,030,611 WES Series A Preferred units were outstanding during the first quarter of 2016. (2) Full quarterly per unit distribution on 14,030,611 WES Series A Preferred units and quarterly per unit distribution prorated for the 77 -day period during which 7,892,220 WES Series A Preferred units were outstanding during the second quarter of 2016. |
Equity and Partners' Capital (T
Equity and Partners' Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Partners' Capital Notes [Abstract] | |
Partnership Interests Table | The following table summarizes WES’s units issued during the years ended December 31, 2018 and 2017: WES Common Units WES Class C Units WES Series A Preferred Units WES General Partner Units Total Balance at December 31, 2016 130,671,970 12,358,123 21,922,831 2,583,068 167,535,992 PIK Class C units — 885,760 — — 885,760 Conversion of Series A Preferred units 21,922,831 — (21,922,831 ) — — Long-Term Incentive Plan award vestings 7,304 — — — 7,304 Balance at December 31, 2017 152,602,105 13,243,883 — 2,583,068 168,429,056 PIK Class C units — 1,128,782 — — 1,128,782 Long-Term Incentive Plan award vestings 7,180 — — — 7,180 Balance at December 31, 2018 152,609,285 14,372,665 — 2,583,068 169,565,018 |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |
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 2016 - 2018 Swap Prices 2016 Market Prices (1) 2017 Market Prices (1) 2018 Market Prices (1) Ethane $ 18.41 $ 0.60 $ 5.09 $ 5.41 Propane 47.08 10.98 18.85 28.72 Isobutane 62.09 17.23 26.83 32.92 Normal butane 54.62 16.86 26.20 32.71 Natural gasoline 72.88 26.15 41.84 48.04 Condensate 76.47 34.65 45.40 49.36 Natural gas (per MMBtu) 5.96 2.11 3.05 2.21 Hugoton System (2) per barrel except natural gas 2016 Swap Prices 2016 Market Prices (1) Condensate $ 78.61 $ 18.81 Natural gas (per MMBtu) 5.50 2.12 6. TRANSACTIONS WITH AFFILIATES (CONTINUED) MGR Assets per barrel except natural gas 2016 - 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 8, 2015, December 1, 2016, and December 20, 2017, for the 2016 Market Prices, 2017 Market Prices and 2018 Market Prices, respectively, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs. (2) The Hugoton system was sold in October 2016. See Note 3 . |
Related Party Transactions Tables | The following table summarizes material affiliate transactions: Year ended December 31, thousands 2018 2017 2016 Revenues and other (1) $ 1,067,860 $ 1,365,318 $ 1,228,232 Equity income, net – affiliates (1) 153,024 85,194 78,717 Cost of product (1) 193,663 86,010 80,455 Operation and maintenance (2) 98,769 72,489 72,330 General and administrative (3) 46,212 39,940 38,873 Operating expenses 338,644 198,439 191,658 Interest income (4) 16,900 16,900 16,900 Interest expense (5) — 71 (7,747 ) Settlement of the Deferred purchase price obligation – Anadarko (6) — (37,346 ) — Distributions to WGP unitholders (7) 400,194 360,523 315,505 Distributions to WES unitholders (8) 7,583 7,100 5,614 Above-market component of swap agreements with Anadarko 51,618 58,551 45,820 (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. (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 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 WGP 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 13 ) . (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 ). The following table summarizes Anadarko’s contributions and distributions of other assets to WES: Year Ended December 31, 2018 2017 2016 2018 2017 2016 thousands Purchases Sales Cash consideration $ (254 ) $ (3,910 ) $ (3,965 ) $ — $ — $ 623 Net carrying value 254 5,283 3,366 — — (605 ) Partners’ capital adjustment $ — $ 1,373 $ (599 ) $ — $ — $ 18 The following table summarizes the amounts WGP reimbursed to Anadarko, separate from, and in addition to, those reimbursed by WES: Year Ended December 31, thousands 2018 2017 2016 General and administrative expenses $ 269 $ 263 $ 258 Public company expenses 2,895 1,821 2,449 Total reimbursement $ 3,164 $ 2,084 $ 2,707 |
LTIP Award Activity Tables | The following table summarizes WGP LTIP award activity for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Phantom units outstanding at beginning of year $ 43.39 5,763 $ 39.78 5,658 $ 47.20 12,537 Vested 43.39 (5,763 ) 39.78 (5,658 ) 47.20 (12,537 ) Granted 35.08 7,128 43.39 5,763 39.78 5,658 Phantom units outstanding at end of year 35.08 7,128 43.39 5,763 39.78 5,658 |
Western Gas Partners, LP [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transactions Tables | The following table summarizes the amounts WES reimbursed to Anadarko: Year Ended December 31, thousands 2018 2017 2016 General and administrative expenses $ 35,077 $ 31,733 $ 29,360 Public company expenses 15,409 9,379 8,410 Total reimbursement $ 50,486 $ 41,112 $ 37,770 |
LTIP Award Activity Tables | The following table summarizes WES LTIP award activity for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Phantom units outstanding at beginning of year $ 55.73 7,180 $ 49.30 7,304 $ 68.78 5,477 Vested 55.73 (7,180 ) 49.30 (7,304 ) 68.78 (5,477 ) Granted 49.88 8,020 55.73 7,180 49.30 7,304 Phantom units outstanding at end of year 49.88 8,020 55.73 7,180 49.30 7,304 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) Table | The components of income tax expense (benefit) are as follows: Year Ended December 31, thousands 2018 2017 2016 Current income tax expense (benefit) Federal income tax expense (benefit) $ — $ — $ 4,477 State income tax expense (benefit) 480 2,408 1,340 Total current income tax expense (benefit) 480 2,408 5,817 Deferred income tax expense (benefit) Federal income tax expense (benefit) — — 1,622 State income tax expense (benefit) 2,466 2,458 933 Total deferred income tax expense (benefit) 2,466 2,458 2,555 Total income tax expense (benefit) $ 2,946 $ 4,866 $ 8,372 |
Tax Rate Reconciliation Table | Total income taxes differed from the amounts computed by applying the statutory income tax rate to income (loss) before income taxes. The sources of these differences are as follows: Year Ended December 31, thousands except percentages 2018 2017 2016 Income (loss) before income taxes $ 451,458 $ 578,068 $ 605,352 Statutory tax rate — % — % — % Tax computed at statutory rate $ — $ — $ — Adjustments resulting from: Federal taxes on income attributable to Anadarko’s investment in WES — — 6,162 State taxes on income attributable to Anadarko’s investment in WES (net of federal benefit) — — 117 Texas margin tax expense (benefit) 2,946 4,866 2,093 Income tax expense (benefit) $ 2,946 $ 4,866 $ 8,372 Effective tax rate 1 % 1 % 1 % |
Income Tax Temporary Differences Table | The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows: December 31, thousands 2018 2017 Depreciable property $ (10,057 ) $ (7,676 ) Credit carryforwards 497 448 Other intangible assets (299 ) (189 ) Other 162 8 Net long-term deferred income tax liabilities $ (9,697 ) $ (7,409 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, thousands Estimated Useful Life 2018 2017 Land n/a $ 4,653 $ 4,450 Gathering systems and processing complexes 15 to 40 years 8,550,373 7,113,114 Pipelines and equipment 6 to 45 years 172,497 137,644 Assets under construction n/a 490,705 579,501 Other 3 to 40 years 32,000 29,826 Total property, plant and equipment 9,250,228 7,864,535 Less accumulated depreciation 2,638,155 2,133,644 Net property, plant and equipment $ 6,612,073 $ 5,730,891 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets Table | The following table presents the gross carrying amount and accumulated amortization of other intangible assets: December 31, thousands 2018 2017 Gross carrying amount $ 868,035 $ 868,035 Accumulated amortization (121,231 ) (92,766 ) Other intangible assets $ 746,804 $ 775,269 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments Tables | The following tables present the activity in WES’s equity investments for the years ended December 31, 2018 and 2017: thousands Balance at December 31, 2016 Impairment expense (1) Equity income, net Contributions Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2017 Fort Union $ 12,833 $ (3,110 ) $ 3,821 $ — $ (4,217 ) $ (2,297 ) $ 7,030 White Cliffs 47,319 — 12,547 277 (11,965 ) (3,233 ) 44,945 Rendezvous 46,739 — 1,144 — (3,085 ) (2,270 ) 42,528 Mont Belvieu JV 112,805 — 29,444 — (29,482 ) (2,468 ) 110,299 TEG 15,846 — 3,350 — (3,317 ) — 15,879 TEP 189,194 — 17,387 107 (17,639 ) (10,074 ) 178,975 FRP 169,472 — 17,501 — (17,675 ) (2,743 ) 166,555 Total $ 594,208 $ (3,110 ) $ 85,194 $ 384 $ (87,380 ) $ (23,085 ) $ 566,211 thousands Balance at December 31, 2017 Acquisitions Equity income, net Contributions (3) Distributions Distributions in excess of cumulative earnings (2) Balance at December 31, 2018 Fort Union $ 7,030 $ — $ (1,433 ) $ — $ (194 ) $ (3,144 ) $ 2,259 White Cliffs 44,945 — 11,841 1,278 (11,259 ) (3,785 ) 43,020 Rendezvous 42,528 — 767 — (2,709 ) (2,745 ) 37,841 Mont Belvieu JV 110,299 — 29,200 — (29,239 ) (5,311 ) 104,949 TEG 15,879 — 4,290 3,720 (4,368 ) (163 ) 19,358 TEP 178,975 — 37,963 11,980 (33,552 ) (2,168 ) 193,198 FRP 166,555 — 23,308 14,980 (23,481 ) (4,926 ) 176,436 Whitethorn — 150,563 47,088 7,069 (39,497 ) (3,365 ) 161,858 Cactus II — 12,052 — 94,308 — — 106,360 Total $ 566,211 $ 162,615 $ 153,024 $ 133,335 $ (144,299 ) $ (25,607 ) $ 845,279 (1) Recorded in Impairments in the consolidated statements of operations. (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. (3) Includes capitalized interest of $1.4 million related to the construction of the Cactus II pipeline. |
Summarized Equity Investments Financial Information Presented at 100 Percent Tables | The following tables present the summarized combined financial information for WES’s equity investments (amounts represent 100% of investee financial information): Year Ended December 31, thousands 2018 2017 2016 Revenues $ 1,087,125 $ 703,424 $ 687,554 Operating income 733,802 435,735 428,454 Net income 731,364 434,749 427,511 December 31, thousands 2018 2017 Current assets $ 220,912 $ 137,957 Property, plant and equipment, net 3,426,438 2,512,214 Other assets 35,411 36,373 Total assets $ 3,682,761 $ 2,686,544 Current liabilities 80,109 80,490 Non-current liabilities 12,213 7,447 Equity 3,590,439 2,598,607 Total liabilities and equity $ 3,682,761 $ 2,686,544 |
Components of Working Capital (
Components of Working Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Components Of Working Capital [Abstract] | |
Accounts Receivable, Net Table | A summary of accounts receivable, net is as follows: December 31, thousands 2018 2017 Trade receivables, net $ 216,847 $ 160,194 Other receivables, net 45 45 Total accounts receivable, net $ 216,892 $ 160,239 |
Other Current Assets Table | A summary of other current assets is as follows: December 31, thousands 2018 2017 NGLs inventory $ 6,370 $ 10,788 Imbalance receivables 8,864 1,640 Prepaid insurance 1,973 2,955 Contract assets 5,399 — Other 4,184 — Total other current assets $ 26,790 $ 15,383 |
Accrued Liabilities Table | A summary of accrued liabilities is as follows: December 31, thousands 2018 2017 Accrued interest expense $ 70,968 $ 40,646 Short-term asset retirement obligations 25,938 2,304 Short-term remediation and reclamation obligations 863 833 Income taxes payable 384 2,495 Contract liabilities 16,403 — Other 14,640 1,714 Total accrued liabilities $ 129,196 $ 47,992 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations Table | The following table provides a summary of changes in asset retirement obligations: Year Ended December 31, thousands 2018 2017 Carrying amount of asset retirement obligations at beginning of year $ 145,698 $ 142,407 Liabilities incurred 16,343 16,153 Liabilities settled (12,432 ) (10,468 ) Accretion expense 7,217 6,956 Revisions in estimated liabilities 129,088 (9,350 ) Carrying amount of asset retirement obligations at end of year $ 285,914 $ 145,698 |
Debt and Interest Expense (Tabl
Debt and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instruments [Abstract] | |
Debt Outstanding and Debt Activity Tables | The following table presents WES and WGP’s outstanding debt: December 31, 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 500,000 496,959 515,990 500,000 495,815 530,647 4.000% Senior Notes due 2022 670,000 669,078 662,109 670,000 668,849 684,043 3.950% Senior Notes due 2025 500,000 492,837 466,135 500,000 491,885 500,885 4.650% Senior Notes due 2026 500,000 495,710 483,994 500,000 495,245 520,144 4.500% Senior Notes due 2028 400,000 394,631 377,475 — — — 4.750% Senior Notes due 2028 400,000 395,841 384,370 — — — 5.450% Senior Notes due 2044 600,000 593,349 522,386 600,000 593,234 637,827 5.300% Senior Notes due 2048 700,000 686,648 605,327 — — — 5.500% Senior Notes due 2048 350,000 342,328 311,536 — — — WES RCF 220,000 220,000 220,000 370,000 370,000 370,000 Total long-term debt $ 4,840,000 $ 4,787,381 $ 4,549,322 $ 3,518,000 $ 3,492,712 $ 3,622,177 (1) Fair value is measured using the market approach and Level 2 inputs. Debt activity. The following table presents WES and WGP’s debt activity for the years ended December 31, 2018 and 2017: thousands Carrying Value Balance at December 31, 2016 $ 3,119,461 WES RCF borrowings 370,000 Other 3,251 Balance at December 31, 2017 $ 3,492,712 WES RCF borrowings 540,000 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 (27,331 ) Balance at December 31, 2018 $ 4,815,381 |
Interest-Rate Swap Table | The following interest-rate swaps were outstanding as of December 31, 2018 : Notional Principal Amount Reference Period Mandatory Termination Date Fixed Interest Rate $250.0 million December 2019 - 2024 December 2019 2.730% $250.0 million December 2019 - 2029 December 2019 2.856% $250.0 million December 2019 - 2049 December 2019 2.905% |
Interest Expense Table | The following table summarizes the amounts included in interest expense: Year Ended December 31, thousands 2018 2017 2016 Third parties Long-term and short-term debt $ (200,454 ) $ (143,400 ) $ (122,428 ) Amortization of debt issuance costs and commitment fees (9,110 ) (7,970 ) (7,509 ) Capitalized interest 23,521 6,826 5,562 Total interest expense – third parties (186,043 ) (144,544 ) (124,375 ) Affiliates Deferred purchase price obligation – Anadarko (1) — (71 ) 7,747 Total interest expense – affiliates — (71 ) 7,747 Interest expense $ (186,043 ) $ (144,615 ) $ (116,628 ) (1) See Note 3 for a discussion of the Deferred purchase price obligation - Anadarko. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Lease Obligations Table | The amounts in the table below represent existing contractual operating lease obligations as of December 31, 2018 , that may be assigned or otherwise charged to WES pursuant to the reimbursement provisions of the omnibus agreement: thousands Operating Leases 2019 $ 8,711 2020 2,236 2021 460 2022 467 2023 473 Thereafter 1,547 Total $ 13,894 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Assets and Investments Table (Details) - Western Gas Partners, LP [Member] | Dec. 31, 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 | 14 | |
Owned and Operated [Member] | Natural Gas Processing Plants/Trains [Member] | ||
Assets [Line Items] | ||
Assets, number of units | 21 | |
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 | 2 | [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 | 3 | |
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. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Ownership Interests and Method of Consolidation Table (Details) | 12 Months Ended | |
Dec. 31, 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] | Fort Union [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Equity investment ownership percentage | 14.81% | |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Fort Union [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Equity investment ownership percentage | 14.81% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | White Cliffs [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Equity investment ownership percentage | 10.00% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Rendezvous [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Equity investment ownership percentage | 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] | ||
Equity investment ownership percentage | 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] | ||
Equity investment ownership percentage | 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] | ||
Equity investment ownership percentage | 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] | ||
Equity investment ownership percentage | 33.33% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Whitethorn [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Equity investment ownership percentage | 20.00% | [1] |
Western Gas Partners, LP [Member] | Equity Investments [Member] | Cactus II [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Equity investment ownership percentage | 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] | 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. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Impact of New Accounting Pronouncement - Statements of Operations Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues | ||||
Revenues and other | $ 1,990,276 | $ 2,248,356 | $ 1,804,270 | |
Expenses | ||||
Cost of product | [1] | 431,921 | 908,693 | 494,194 |
Operation and maintenance | [1] | 414,784 | 315,994 | 308,010 |
Depreciation and amortization | 337,536 | 290,874 | 272,933 | |
Impairments | 228,338 | 178,374 | 15,535 | |
Income tax expense (benefit) | 2,946 | 4,866 | 8,372 | |
Net income (loss) attributable to noncontrolling interests | 79,083 | 196,595 | 251,208 | |
Net income (loss) attributable to Western Gas Equity Partners, LP | 369,429 | $ 376,607 | $ 345,772 | |
Service Revenues - Fee Based [Member] | ||||
Revenues | ||||
Revenues and other | 1,609,245 | |||
Service Revenues - Product Based [Member] | ||||
Revenues | ||||
Revenues and other | 85,553 | |||
Product Sales [Member] | ||||
Revenues | ||||
Revenues and other | 293,992 | |||
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | ||||
Expenses | ||||
Cost of product | 1,270,811 | |||
Operation and maintenance | 414,591 | |||
Depreciation and amortization | 334,551 | |||
Impairments | 228,293 | |||
Income tax expense (benefit) | 2,816 | |||
Net income (loss) attributable to noncontrolling interests | 86,164 | |||
Net income (loss) attributable to Western Gas Equity Partners, LP | 343,924 | |||
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues | ||||
Revenues and other | 1,499,424 | |||
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | Service Revenues - Product Based [Member] | ||||
Revenues | ||||
Revenues and other | 0 | |||
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | Product Sales [Member] | ||||
Revenues | ||||
Revenues and other | 1,306,479 | |||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | ||||
Expenses | ||||
Cost of product | (838,890) | |||
Operation and maintenance | 193 | |||
Depreciation and amortization | 2,985 | |||
Impairments | 45 | |||
Income tax expense (benefit) | 130 | |||
Net income (loss) attributable to noncontrolling interests | (7,081) | |||
Net income (loss) attributable to Western Gas Equity Partners, LP | 25,505 | |||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | Service Revenues - Fee Based [Member] | ||||
Revenues | ||||
Revenues and other | 109,821 | |||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | Service Revenues - Product Based [Member] | ||||
Revenues | ||||
Revenues and other | 85,553 | |||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | Product Sales [Member] | ||||
Revenues | ||||
Revenues and other | $ (1,012,487) | |||
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $193.7 million, $86.0 million and $80.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Operation and maintenance includes charges from affiliates of $98.8 million, $72.5 million and $72.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. General and administrative includes charges from affiliates of $46.2 million, $39.9 million and $38.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 6. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Impact of New Accounting Pronouncement - Balance Sheet Table (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets | |||||
Other current assets | [1] | $ 26,790 | $ 15,383 | ||
Net property, plant and equipment | 6,612,073 | 5,730,891 | |||
Other assets | 22,503 | 12,570 | |||
Liabilities | |||||
Accrued liabilities | [2] | 129,196 | 47,992 | ||
Deferred income taxes | 9,697 | 7,409 | |||
Other liabilities | [3] | 140,067 | 3,491 | ||
Equity and partners' capital | |||||
Total equity and partners' capital | 3,504,665 | $ 3,944,879 | $ 4,110,766 | $ 3,920,098 | |
Accounting Standards Update 2014-09 [Member] | Without Adoption of Topic 606 [Member] | |||||
Assets | |||||
Other current assets | 21,391 | ||||
Net property, plant and equipment | 6,493,274 | ||||
Other assets | 22,311 | ||||
Liabilities | |||||
Accrued liabilities | 123,289 | ||||
Deferred income taxes | 9,760 | ||||
Other liabilities | 2,741 | ||||
Equity and partners' capital | |||||
Total equity and partners' capital | 3,523,445 | ||||
Accounting Standards Update 2014-09 [Member] | Effect of Change Increase / (Decrease) [Member] | |||||
Assets | |||||
Other current assets | 5,399 | ||||
Net property, plant and equipment | 118,799 | ||||
Other assets | 192 | ||||
Liabilities | |||||
Accrued liabilities | 5,907 | ||||
Deferred income taxes | (63) | ||||
Other liabilities | 137,326 | ||||
Equity and partners' capital | |||||
Total equity and partners' capital | $ (18,780) | ||||
[1] | Other current assets includes affiliate amounts of $3.7 million and zero as of December 31, 2018 and 2017, respectively. | ||||
[2] | Accrued liabilities includes affiliate amounts of $2.4 million and $0.2 million as of December 31, 2018 and 2017, respectively. | ||||
[3] | Other liabilities includes affiliate amounts of $55.7 million and $0.7 million as of December 31, 2018 and 2017, respectively. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2014 | Mar. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | May 31, 2008 | ||
Acquisitions | $ 162,615,000 | |||||||||
Common units outstanding | 218,937,797 | 218,933,141 | ||||||||
Revenues and other | $ 1,990,276,000 | $ 2,248,356,000 | $ 1,804,270,000 | |||||||
Cost of product | [1] | 431,921,000 | 908,693,000 | 494,194,000 | ||||||
Note receivable - Anadarko | 260,000,000 | 260,000,000 | ||||||||
Impairments | 228,338,000 | 178,374,000 | 15,535,000 | |||||||
Imbalance receivables | 8,864,000 | 1,640,000 | ||||||||
Imbalance payables | 9,500,000 | 2,900,000 | ||||||||
Loss on divestiture and other, net | [2] | (1,312,000) | (132,388,000) | 14,641,000 | ||||||
Proceeds from property insurance claims | 0 | 22,977,000 | 17,465,000 | |||||||
Cumulative effect of accounting change | [3] | $ (44,379,000) | ||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||
Cumulative effect of accounting change | $ (44,379,000) | |||||||||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | ||||||||||
Right-of-use assets | $ 10,000,000 | |||||||||
Lease liabilities | $ 10,000,000 | |||||||||
Western Gas Equity Partners Long-Term Incentive Plan [Member] | ||||||||||
Units authorized under LTIP | 3,000,000 | |||||||||
Units available under LTIP | 2,937,197 | |||||||||
Affiliates [Member] | ||||||||||
Revenues and other | [4] | $ 1,067,860,000 | 1,365,318,000 | 1,228,232,000 | ||||||
Cost of product | [4] | 193,663,000 | 86,010,000 | 80,455,000 | ||||||
Service Revenues - Fee Based [Member] | ||||||||||
Revenues and other | 1,609,245,000 | |||||||||
Service Revenues - Fee Based [Member] | Affiliates [Member] | ||||||||||
Revenues and other | 793,594,000 | 656,795,000 | 750,087,000 | |||||||
Product Sales [Member] | ||||||||||
Revenues and other | 293,992,000 | |||||||||
Product Sales [Member] | Affiliates [Member] | ||||||||||
Revenues and other | $ 272,018,000 | $ 692,447,000 | 478,145,000 | |||||||
Prior Period Adjustment [Member] | ||||||||||
Cost of product | $ 56,400,000 | |||||||||
Prior Period Adjustment [Member] | Service Revenues - Fee Based [Member] | ||||||||||
Revenues and other | 42,600,000 | |||||||||
Prior Period Adjustment [Member] | Product Sales [Member] | ||||||||||
Revenues and other | $ 13,800,000 | |||||||||
Chipeta [Member] | ||||||||||
Ownership interest by noncontrolling interest owner | 25.00% | |||||||||
Western Gas Equity Partners, LP [Member] | Western Gas Partners, LP [Member] | ||||||||||
General partner units owned | 2,583,068 | |||||||||
Western Gas Equity Partners, LP [Member] | Common Units [Member] | Western Gas Partners, LP [Member] | ||||||||||
Common units outstanding | 50,132,046 | |||||||||
Western Gas Equity Partners, LP [Member] | General Partner [Member] | Western Gas Partners, LP [Member] | ||||||||||
Percentage ownership interest | 100.00% | |||||||||
Western Gas Partners, LP [Member] | ||||||||||
WES units issued | 1,128,782 | 885,760 | ||||||||
Conversion of units | 0 | |||||||||
Western Gas Partners, LP [Member] | Western Gas Partners Long-Term Incentive Plan [Member] | ||||||||||
Units authorized under LTIP | 2,250,000 | |||||||||
Units available under LTIP | 2,241,980 | |||||||||
Western Gas Partners, LP [Member] | Kitty Draw and Third Creek Gathering Systems [Member] | ||||||||||
Impairments | $ 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 | 33,800,000 | ||||||||
Proceeds from business interruption insurance claims | 29,882,000 | 16,270,000 | ||||||||
Proceeds from property insurance claims | $ 22,977,000 | $ 17,465,000 | ||||||||
Western Gas Partners, LP [Member] | Affiliates [Member] | ||||||||||
Note receivable - Anadarko | $ 260,000,000 | $ 260,000,000 | ||||||||
Western Gas Partners, LP [Member] | Other Subsidiaries of Anadarko [Member] | ||||||||||
WES common units issued | 2,011,380 | |||||||||
Western Gas Partners, LP [Member] | Product Sales [Member] | Affiliates [Member] | Kitty Draw and Third Creek Gathering Systems [Member] | ||||||||||
Revenues and other | $ (10,900,000) | |||||||||
Western Gas Partners, LP [Member] | Class C Units [Member] | ||||||||||
WES units issued | 1,128,782 | 885,760 | ||||||||
Class C units, common units issued upon conversion | 1 | |||||||||
Western Gas Partners, LP [Member] | Class C Units [Member] | Other Subsidiaries of Anadarko [Member] | ||||||||||
WES units issued | 10,913,853 | |||||||||
Western Gas Partners, LP [Member] | Common Units [Member] | ||||||||||
Conversion of units | 21,922,831 | |||||||||
Scenario, Forecast [Member] | Anadarko [Member] | Common Units [Member] | Western Gas Partners, LP [Member] | ||||||||||
Common units outstanding | 6,375,284 | |||||||||
Scenario, Forecast [Member] | Western Gas Equity Partners, LP [Member] | Western Gas Partners, LP [Member] | ||||||||||
General partner units owned | 2,583,068 | |||||||||
Scenario, Forecast [Member] | Western Gas Equity Partners, LP [Member] | Common Units [Member] | ||||||||||
Conversion of units | 55,360,984 | |||||||||
Scenario, Forecast [Member] | Western Gas Partners, LP [Member] | Anadarko [Member] | Anadarko Midstream Assets [Member] | ||||||||||
Cash payment for acquisition | $ 1,814,000,000 | |||||||||
Acquisitions | $ 193,900,000 | |||||||||
Scenario, Forecast [Member] | Western Gas Partners, LP [Member] | Class C Units [Member] | ||||||||||
Class C units, common units issued upon conversion | 1 | |||||||||
Scenario, Forecast [Member] | Western Gas Partners, LP [Member] | Common Units [Member] | ||||||||||
Conversion of units | 105,624,704 | |||||||||
Scenario, Forecast [Member] | Western Gas Partners, LP [Member] | Common Units [Member] | Anadarko [Member] | Anadarko Midstream Assets [Member] | ||||||||||
WES units issued | 45,760,201 | |||||||||
[1] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $193.7 million, $86.0 million and $80.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Operation and maintenance includes charges from affiliates of $98.8 million, $72.5 million and $72.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. General and administrative includes charges from affiliates of $46.2 million, $39.9 million and $38.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 6. | |||||||||
[2] | Includes losses related to an incident at the DBM complex for the year ended December 31, 2017. See Note 1. | |||||||||
[3] | See Note 1. | |||||||||
[4] | Represents amounts earned or incurred on and subsequent to the date of the acquisition of WES assets, as well as amounts earned or incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue From Contracts With Customers Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from customers | $ 1,996,665 | ||
Total revenues and other | 1,990,276 | $ 2,248,356 | $ 1,804,270 |
Service Revenues - Fee Based [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customers | 1,609,245 | ||
Total revenues and other | 1,609,245 | ||
Service Revenues - Product Based [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customers | 85,553 | ||
Total revenues and other | 85,553 | ||
Product Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from customers | 301,867 | ||
Total revenues and other | 293,992 | ||
Commodity Price Swap Agreement [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from other than customers | (7,875) | ||
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from other than customers | $ 1,486 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 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 | (4,952) | ||
Additional estimated revenues recognized | 5,414 | ||
Balance at December 31, 2018 | 5,591 | ||
Contract assets at December 31, 2018 | |||
Other current assets | $ 5,399 | $ 0 | |
Other assets | 192 | ||
Total contract assets from contracts with customers | $ 0 | $ 5,591 | $ 0 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Liabilities Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 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 | 53,064 | |||
Assets received from customer | 12,933 | |||
Revenues recognized during the period that were included in the adoption effect | [1] | (11,137) | ||
Cumulative catch up adjustment for change in estimated consideration due to cost of service rate updates | (21,848) | |||
Balance at December 31, 2018 | 153,729 | |||
Contract liabilities at December 31, 2018 | ||||
Accrued liabilities | $ 16,403 | $ 0 | ||
Other liabilities | 137,326 | |||
Total contract liabilities from contracts with customers | 0 | $ 153,729 | $ 0 | |
Change in Contract with Customer, Asset and Liability [Abstract] | ||||
Performance obligation satisfied in previous period | $ (7,500) | |||
[1] | Includes $(7.5) million from a performance obligation satisfied in a previous period related to the arbitration against SWEPI LP (see Note 14). |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Expected Revenues Table (Details) $ in Thousands | Dec. 31, 2018USD ($) |
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 | $ 470,247 |
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 | $ 554,099 |
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 | $ 533,861 |
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 | $ 530,528 |
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 | $ 488,603 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 4,379,491 |
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 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contracts with Customer [Line Items] | |||
Accounts receivable, net | [1] | $ 216,892 | $ 160,239 |
Customers [Member] | |||
Revenue from Contracts with Customer [Line Items] | |||
Accounts receivable, net | $ 210,000 | $ 244,400 | |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $72.6 million and $36.1 million as of December 31, 2018 and 2017, respectively. |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Impact of Deferred Purchase Price Obligation - Anadarko Table (Details) - Affiliates [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Property, Plant and Equipment [Line Items] | |||||||
Settlement of the Deferred purchase price obligation - Anadarko | [1] | $ 0 | $ (37,346) | $ 0 | |||
Deferred Purchase Price Obligation - Anadarko [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Accretion revision/expense | [2] | 0 | 71 | (7,747) | |||
Settlement of the Deferred purchase price obligation - Anadarko | [3] | $ 0 | (37,346) | 0 | |||
Western Gas Partners, LP [Member] | Delaware Basin JV Gathering LLC [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Deferred purchase price obligation - Anadarko | 0 | 41,440 | $ 188,674 | ||||
Accretion revision/expense | 71 | [4] | (7,747) | [5] | |||
Revision to Deferred purchase price obligation – Anadarko | [6] | (4,165) | (139,487) | ||||
Settlement of the Deferred purchase price obligation - Anadarko | (37,346) | ||||||
Deferred purchase price obligation - Anadarko, future value | [7] | $ 0 | $ 56,455 | $ 282,807 | |||
[1] | See Note 3. | ||||||
[2] | See Note 3 for a discussion of the Deferred purchase price obligation - Anadarko. | ||||||
[3] | Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation - Anadarko (see Note 3). | ||||||
[4] | Accretion expense was recorded as a charge to Interest expense in the consolidated statements of operations. | ||||||
[5] | Financing-related accretion revisions were recorded in Interest expense in the consolidated statements of operations. | ||||||
[6] | Recorded as revisions within Common units in the consolidated balance sheets and consolidated statements of equity and partners’ capital. | ||||||
[7] | Calculated using Level 3 inputs. |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Additional Information (Details) - USD ($) $ in Thousands | Jan. 18, 2019 | Dec. 14, 2018 | Jun. 27, 2018 | Jun. 01, 2018 | Mar. 17, 2017 | Mar. 14, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||||||||||
Acquisition, net investment | $ 162,615 | |||||||||
Affiliates [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Cash payment | 254 | $ 3,910 | $ 716,465 | |||||||
Settlement of the Deferred purchase price obligation - Anadarko | [1] | 0 | 37,346 | 0 | ||||||
Proceeds from the sale of assets | 0 | 0 | 623 | |||||||
Deferred Purchase Price Obligation - Anadarko [Member] | Affiliates [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Settlement of the Deferred purchase price obligation - Anadarko | [2] | $ 0 | $ 37,346 | 0 | ||||||
Western Gas Partners, LP [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
WES units issued | 1,128,782 | 885,760 | ||||||||
Western Gas Partners, LP [Member] | Newcastle System [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Proceeds from the sale of assets | $ 3,200 | |||||||||
Gain (loss) on sale of assets | $ 600 | |||||||||
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] | Hugoton System [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Gain (loss) on sale of assets | (12,000) | |||||||||
Goodwill allocated to divestiture | $ 1,600 | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Borrowings - revolving credit facility | $ 540,000 | 370,000 | ||||||||
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] | Newcastle System [Member] | Newcastle System [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Percentage ownership interest | 50.00% | |||||||||
Western Gas Partners, LP [Member] | Red Bluff Express Pipeline LLC [Member] | Subsequent Event [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Ownership percentage acquired | 30.00% | |||||||||
Acquisition, net investment | $ 92,500 | |||||||||
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 | $ 12,100 | |||||||||
Western Gas Partners, LP [Member] | Delaware Basin JV Gathering LLC [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Ownership percentage acquired | 50.00% | |||||||||
Cash payment | $ 155,000 | |||||||||
Net gain from property exchange | 125,700 | |||||||||
Western Gas Partners, LP [Member] | Delaware Basin JV Gathering LLC [Member] | Delaware Basin JV Gathering LLC [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Percentage ownership interest | 50.00% | |||||||||
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 | |||||||||
Western Gas Partners, LP [Member] | Springfield [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Ownership percentage acquired | 50.10% | |||||||||
Acquisition price | $ 750,000 | |||||||||
Cash payment for acquisition | 712,500 | |||||||||
Western Gas Partners, LP [Member] | Springfield [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Borrowings - revolving credit facility | $ 247,500 | |||||||||
Western Gas Partners, LP [Member] | Springfield [Member] | Anadarko [Member] | Common Units [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
WES units issued | 1,253,761 | |||||||||
Western Gas Partners, LP [Member] | Springfield [Member] | Western Gas Equity Partners, LP [Member] | Common Units [Member] | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
WES units issued | 835,841 | |||||||||
[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 | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | ||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Total quarterly distribution per unit | $ 0.60250 | [1] | $ 0.59500 | $ 0.58250 | $ 0.56875 | $ 0.54875 | $ 0.53750 | $ 0.52750 | $ 0.49125 | $ 0.46250 | $ 0.44750 | $ 0.43375 | $ 0.42375 |
Total quarterly cash distribution | $ 131,910 | [1] | $ 130,268 | $ 127,531 | $ 124,518 | $ 120,140 | $ 117,677 | $ 115,487 | $ 107,549 | $ 101,254 | $ 97,968 | $ 94,958 | $ 92,767 |
Western Gas Partners, LP [Member] | |||||||||||||
Distribution Made to Limited Partner [Line Items] | |||||||||||||
Total quarterly distribution per unit | $ 0.980 | [2] | $ 0.965 | $ 0.950 | $ 0.935 | $ 0.920 | $ 0.905 | $ 0.890 | $ 0.875 | $ 0.860 | $ 0.845 | $ 0.830 | $ 0.815 |
Total quarterly cash distribution | $ 234,787 | [2] | $ 230,239 | $ 225,691 | $ 221,133 | $ 216,586 | $ 212,038 | $ 207,491 | $ 188,753 | $ 170,657 | $ 166,742 | $ 162,827 | $ 158,905 |
[1] | The Board of Directors declared a cash distribution to WGP unitholders for the fourth quarter of 2018 of $0.60250 per unit, or $131.9 million in aggregate. The cash distribution is payable on February 21, 2019, to WGP unitholders of record at the close of business on February 1, 2019. | ||||||||||||
[2] | The Board of Directors of WES GP declared a cash distribution to WES unitholders for the fourth quarter of 2018 of $0.980 per unit, or $234.8 million in aggregate, including incentive distributions, but excluding distributions on WES Class C units (see WES Class C unit distributions below). The cash distribution was paid on February 13, 2019, to WES unitholders of record at the close of business on February 1, 2019. |
Partnership Distributions - Ser
Partnership Distributions - Series A Preferred Unit Distributions Table (Details) - Western Gas Partners, LP [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Distribution Made to Limited Partner [Line Items] | ||||||||||
Units issued | 1,128,782 | 885,760 | ||||||||
Series A Preferred Units [Member] | ||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||
Series A Preferred units, quarterly distribution per unit | $ 0.68 | $ 0.68 | $ 0.68 | $ 0.68 | [1] | $ 0.68 | [2] | |||
Series A Preferred units, quarterly cash distribution | $ 7,453 | $ 14,908 | $ 14,907 | $ 14,082 | [1] | $ 1,887 | [2] | |||
Number of days in prorated period | 77 days | 18 days | ||||||||
Series A Preferred Units [Member] | Private Investor [Member] | ||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||
Units issued | 14,030,611 | 14,030,611 | 21,922,831 | |||||||
Series A Preferred Units [Member] | Private Investor [Member] | Over-Allotment Option [Member] | ||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||
Units issued | 7,892,220 | |||||||||
[1] | Full quarterly per unit distribution on 14,030,611 WES Series A Preferred units and quarterly per unit distribution prorated for the 77-day period during which 7,892,220 WES Series A Preferred units were outstanding during the second quarter of 2016. | |||||||||
[2] | Quarterly per unit distribution prorated for the 18-day period during which 14,030,611 WES Series A Preferred units were outstanding during the first quarter of 2016. |
Partnership Distributions - Add
Partnership Distributions - Additional Information (Details) - $ / shares | May 02, 2017 | Mar. 01, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [2] | Dec. 31, 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 | $ 0.68 | $ 0.68 | $ 0.68 | $ 0.68 | |||||
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 | |||||||||
[1] | Full quarterly per unit distribution on 14,030,611 WES Series A Preferred units and quarterly per unit distribution prorated for the 77-day period during which 7,892,220 WES Series A Preferred units were outstanding during the second quarter of 2016. | |||||||||
[2] | Quarterly per unit distribution prorated for the 18-day period during which 14,030,611 WES Series A Preferred units were outstanding during the first quarter of 2016. |
Equity and Partners' Capital -
Equity and Partners' Capital - Partnership Interests Table (Details) - Western Gas Partners, LP [Member] - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change In Units [Roll Forward] | ||
Balance | 168,429,056 | 167,535,992 |
Units issued | 1,128,782 | 885,760 |
Conversion of Series A Preferred units | 0 | |
Long-Term Incentive Plan award vestings | 7,180 | 7,304 |
Balance | 169,565,018 | 168,429,056 |
Common Units [Member] | ||
Change In Units [Roll Forward] | ||
Balance | 152,602,105 | 130,671,970 |
Conversion of Series A Preferred units | 21,922,831 | |
Long-Term Incentive Plan award vestings | 7,180 | 7,304 |
Balance | 152,609,285 | 152,602,105 |
Class C Units [Member] | ||
Change In Units [Roll Forward] | ||
Balance | 13,243,883 | 12,358,123 |
Units issued | 1,128,782 | 885,760 |
Balance | 14,372,665 | 13,243,883 |
Series A Preferred Units [Member] | ||
Change In Units [Roll Forward] | ||
Balance | 0 | 21,922,831 |
Conversion of Series A Preferred units | (21,922,831) | |
Balance | 0 | 0 |
General Partner [Member] | ||
Change In Units [Roll Forward] | ||
Balance | 2,583,068 | 2,583,068 |
Balance | 2,583,068 | 2,583,068 |
Equity and Partners' Capital _2
Equity and Partners' Capital - Additional Information (Details) $ in Thousands | Jun. 07, 2018shares | May 02, 2017shares | Mar. 01, 2017shares | Jun. 30, 2016shares | Jun. 30, 2015$ / unitshares | Nov. 30, 2014shares | Jun. 30, 2016shares | Mar. 31, 2016shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Jul. 31, 2017USD ($) |
Schedule of Investments [Line Items] | ||||||||||||
Limited partner units owned | 218,937,797 | 218,933,141 | ||||||||||
Common Units [Member] | Anadarko [Member] | ||||||||||||
Schedule of Investments [Line Items] | ||||||||||||
Common units issued | 12,500,000 | |||||||||||
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 | 59.20% | |||||||||||
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 | 1,128,782 | 885,760 | ||||||||||
Western Gas Partners, LP [Member] | July 2017 COP [Member] | ||||||||||||
Schedule of Investments [Line Items] | ||||||||||||
Maximum aggregate principal of common units | $ | $ 500,000 | |||||||||||
Western Gas Partners, LP [Member] | Class C Units [Member] | ||||||||||||
Schedule of Investments [Line Items] | ||||||||||||
Units issued | 1,128,782 | 885,760 | ||||||||||
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] | ||||||||||||
Schedule of Investments [Line Items] | ||||||||||||
Series A Preferred units, proceeds from issuance | $ | $ 0 | $ 0 | $ 686,937 | |||||||||
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 | 14,030,611 | 14,030,611 | 21,922,831 | |||||||||
Series A Preferred units, proceeds from issuance | $ | $ 686,937 | |||||||||||
Series A Preferred units, transaction fee percentage | 2.00% | |||||||||||
Western Gas Partners, LP [Member] | Series A Preferred Units [Member] | Private Investor [Member] | Over-Allotment Option [Member] | ||||||||||||
Schedule of Investments [Line Items] | ||||||||||||
Units issued | 7,892,220 | |||||||||||
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 | 14,372,665 | |||||||||||
Other Subsidiaries of Anadarko [Member] | Western Gas Partners, LP [Member] | Common and Class C Units [Member] | ||||||||||||
Schedule of Investments [Line Items] | ||||||||||||
Ownership interest | 9.70% |
Transactions with Affiliates -
Transactions with Affiliates - Commodity Price Swap Agreements Tables (Details) - Western Gas Partners, LP [Member] | Dec. 31, 2018$ / MMBTU$ / bbl | Dec. 20, 2017$ / MMBTU$ / bbl | Dec. 31, 2016$ / MMBTU$ / bbl | Dec. 01, 2016$ / MMBTU$ / bbl | Dec. 08, 2015$ / MMBTU$ / bbl | |
DJ Basin Complex [Member] | Years 2016 - 2018 [Member] | Ethane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 18.41 | |||||
DJ Basin Complex [Member] | Years 2016 - 2018 [Member] | Propane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 47.08 | |||||
DJ Basin Complex [Member] | Years 2016 - 2018 [Member] | Isobutane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 62.09 | |||||
DJ Basin Complex [Member] | Years 2016 - 2018 [Member] | Normal Butane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 54.62 | |||||
DJ Basin Complex [Member] | Years 2016 - 2018 [Member] | Natural Gasoline [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 72.88 | |||||
DJ Basin Complex [Member] | Years 2016 - 2018 [Member] | Condensate [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 76.47 | |||||
DJ Basin Complex [Member] | Years 2016 - 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 2016 [Member] | Ethane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity market price | [1] | 0.60 | ||||
DJ Basin Complex [Member] | Year 2016 [Member] | Propane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity market price | [1] | 10.98 | ||||
DJ Basin Complex [Member] | Year 2016 [Member] | Isobutane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity market price | [1] | 17.23 | ||||
DJ Basin Complex [Member] | Year 2016 [Member] | Normal Butane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity market price | [1] | 16.86 | ||||
DJ Basin Complex [Member] | Year 2016 [Member] | Natural Gasoline [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity market price | [1] | 26.15 | ||||
DJ Basin Complex [Member] | Year 2016 [Member] | Condensate [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity market price | [1] | 34.65 | ||||
DJ Basin Complex [Member] | Year 2016 [Member] | Natural Gas (per MMBtu) [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity market price | $ / MMBTU | [1] | 2.11 | ||||
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 | ||||
Hugoton System [Member] | Year 2016 [Member] | Condensate [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | [2] | 78.61 | ||||
Commodity market price | [1],[2] | 18.81 | ||||
Hugoton System [Member] | Year 2016 [Member] | Natural Gas (per MMBtu) [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | $ / MMBTU | [2] | 5.50 | ||||
Commodity market price | $ / MMBTU | [1],[2] | 2.12 | ||||
MGR Assets [Member] | Years 2016 - 2018 [Member] | Ethane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 23.11 | |||||
MGR Assets [Member] | Years 2016 - 2018 [Member] | Propane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 52.90 | |||||
MGR Assets [Member] | Years 2016 - 2018 [Member] | Isobutane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 73.89 | |||||
MGR Assets [Member] | Years 2016 - 2018 [Member] | Normal Butane [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 64.93 | |||||
MGR Assets [Member] | Years 2016 - 2018 [Member] | Natural Gasoline [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 81.68 | |||||
MGR Assets [Member] | Years 2016 - 2018 [Member] | Condensate [Member] | ||||||
Commodity Price Risk Swap [Line Items] | ||||||
Commodity swap fixed price | 81.68 | |||||
MGR Assets [Member] | Years 2016 - 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 8, 2015, December 1, 2016, and December 20, 2017, for the 2016 Market Prices, 2017 Market Prices and 2018 Market Prices, respectively, adjusted for product specification, location, basis and, in the case of NGLs, transportation and fractionation costs. | |||||
[2] | The Hugoton system was sold in October 2016. See Note 3. |
Transactions with Affiliates _2
Transactions with Affiliates - Omnibus Agreement Tables (Details) - Omnibus Agreement [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Allocated costs from Anadarko | $ 3,164 | $ 2,084 | $ 2,707 |
Western Gas Partners, LP [Member] | |||
Related Party Transaction [Line Items] | |||
Allocated costs from Anadarko | 50,486 | 41,112 | 37,770 |
General and Administrative Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Allocated costs from Anadarko | 269 | 263 | 258 |
General and Administrative Expenses [Member] | Western Gas Partners, LP [Member] | |||
Related Party Transaction [Line Items] | |||
Allocated costs from Anadarko | 35,077 | 31,733 | 29,360 |
Public Company Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
Allocated costs from Anadarko | 2,895 | 1,821 | 2,449 |
Public Company Expenses [Member] | Western Gas Partners, LP [Member] | |||
Related Party Transaction [Line Items] | |||
Allocated costs from Anadarko | $ 15,409 | $ 9,379 | $ 8,410 |
Transactions with Affiliates _3
Transactions with Affiliates - LTIP Award Activity Tables (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Value per unit of phantom units outstanding at beginning of year | $ 43.39 | $ 39.78 | $ 47.20 |
Value per unit of phantom units vested during the period | 43.39 | 39.78 | 47.20 |
Value per unit of phantom units granted during the period | 35.08 | 43.39 | 39.78 |
Value per unit of phantom units outstanding at end of year | $ 35.08 | $ 43.39 | $ 39.78 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Phantom units outstanding at beginning of year | 5,763 | 5,658 | 12,537 |
Phantom units vested | (5,763) | (5,658) | (12,537) |
Phantom units granted | 7,128 | 5,763 | 5,658 |
Phantom units outstanding at end of year | 7,128 | 5,763 | 5,658 |
Western Gas Partners, LP [Member] | |||
Related Party Transaction [Line Items] | |||
Value per unit of phantom units outstanding at beginning of year | $ 55.73 | $ 49.30 | $ 68.78 |
Value per unit of phantom units vested during the period | 55.73 | 49.30 | 68.78 |
Value per unit of phantom units granted during the period | 49.88 | 55.73 | 49.30 |
Value per unit of phantom units outstanding at end of year | $ 49.88 | $ 55.73 | $ 49.30 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Phantom units outstanding at beginning of year | 7,180 | 7,304 | 5,477 |
Phantom units vested | (7,180) | (7,304) | (5,477) |
Phantom units granted | 8,020 | 7,180 | 7,304 |
Phantom units outstanding at end of year | 8,020 | 7,180 | 7,304 |
Transactions with Affiliates _4
Transactions with Affiliates - Affiliate Asset Contributions and Distributions Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Related Party Transaction [Line Items] | ||||
Partners’ capital adjustment | [1] | $ 0 | $ (3,189) | $ 581 |
Western Gas Partners, LP [Member] | Purchases [Member] | Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cash consideration - purchases | (254) | (3,910) | (3,965) | |
Net carrying value | 254 | 5,283 | 3,366 | |
Partners’ capital adjustment | 0 | 1,373 | (599) | |
Western Gas Partners, LP [Member] | Sales [Member] | Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cash consideration - sales | 0 | 0 | 623 | |
Net carrying value | 0 | 0 | (605) | |
Partners’ capital adjustment | $ 0 | $ 0 | $ 18 | |
[1] | Includes $(1.4) million related to pipe and equipment purchases and $(1.8) million related to other assets for the year ended December 31, 2017. See Note 6. |
Transactions with Affiliates _5
Transactions with Affiliates - Summary of Affiliate Transactions Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Related Party Transaction [Line Items] | ||||
Revenues and other | $ 1,990,276 | $ 2,248,356 | $ 1,804,270 | |
Equity income, net – affiliates | [1] | 153,024 | 85,194 | 78,717 |
Cost of product | [2] | 431,921 | 908,693 | 494,194 |
Operation and maintenance | [2] | 414,784 | 315,994 | 308,010 |
General and administrative | [2] | 63,735 | 50,668 | 49,248 |
Operating expenses | 1,519,248 | 1,791,421 | 1,180,081 | |
Interest income | [3] | 16,900 | 16,900 | 16,900 |
Interest expense | [4] | 186,043 | 144,615 | 116,628 |
Distributions to unitholders | [5] | 502,457 | 441,967 | 374,082 |
Above-market component of swap agreements with Anadarko | [5] | 51,618 | 58,551 | 45,820 |
Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues and other | [1] | 1,067,860 | 1,365,318 | 1,228,232 |
Cost of product | [1] | 193,663 | 86,010 | 80,455 |
Operation and maintenance | [6] | 98,769 | 72,489 | 72,330 |
General and administrative | [7] | 46,212 | 39,940 | 38,873 |
Operating expenses | 338,644 | 198,439 | 191,658 | |
Interest expense | [8] | 0 | 71 | (7,747) |
Settlement of the Deferred purchase price obligation - Anadarko | [9] | 0 | (37,346) | 0 |
Distributions to unitholders | [10] | 400,194 | 360,523 | 315,505 |
Affiliates [Member] | Western Gas Partners, LP [Member] | ||||
Related Party Transaction [Line Items] | ||||
Distributions to unitholders | [11] | 7,583 | 7,100 | 5,614 |
Affiliates [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | ||||
Related Party Transaction [Line Items] | ||||
Settlement of the Deferred purchase price obligation - Anadarko | [12] | $ 0 | $ (37,346) | $ 0 |
[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. | |||
[2] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $193.7 million, $86.0 million and $80.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Operation and maintenance includes charges from affiliates of $98.8 million, $72.5 million and $72.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. General and administrative includes charges from affiliates of $46.2 million, $39.9 million and $38.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 6. | |||
[3] | Represents interest income recognized on the note receivable from Anadarko. | |||
[4] | Includes affiliate (as defined in Note 1) amounts of zero, $(0.1) million and $7.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 3 and Note 13. | |||
[5] | See Note 6. | |||
[6] | Represents expenses incurred on and subsequent to the date of the acquisition of WES assets, as well as expenses incurred by Anadarko on a historical basis related to WES assets prior to the acquisition of such assets by WES. | |||
[7] | Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plan within this Note 6) and amounts charged by Anadarko under the WGP and WES omnibus agreements. | |||
[8] | Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 13). | |||
[9] | See Note 3. | |||
[10] | Represents distributions paid under WGP’s partnership agreement (see Note 4 and Note 5). | |||
[11] | Represents distributions paid to other subsidiaries of Anadarko under WES’s partnership agreement (see Note 4 and Note 5). | |||
[12] | Represents the cash payment to Anadarko for the settlement of the Deferred purchase price obligation - Anadarko (see Note 3). |
Transactions with Affiliates _6
Transactions with Affiliates - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2008 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Related Party Transaction [Line Items] | |||||
Note receivable - Anadarko | $ 260,000,000 | $ 260,000,000 | |||
Above-market component of swap agreements with Anadarko | [1] | 51,618,000 | 58,551,000 | $ 45,820,000 | |
Administrative services fee under the omnibus agreement | [2] | 63,735,000 | 50,668,000 | 49,248,000 | |
Contributions of equity-based compensation to WES by Anadarko | $ 5,741,000 | 4,587,000 | 4,170,000 | ||
Western Gas Equity Partners Long-Term Incentive Plan [Member] | |||||
Related Party Transaction [Line Items] | |||||
Units vesting period | 3 years | ||||
Equity-based compensation expense | $ 300,000 | 200,000 | 200,000 | ||
Unvested equity-based compensation expense | $ 100,000 | ||||
Weighted-average term of unvested awards | 5 months | ||||
Omnibus Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Administrative services fee under the omnibus agreement | $ 250,000 | ||||
Commodity Price Swap Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Net gains (losses) on commodity price swap agreements | (7,875,000) | ||||
Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Administrative services fee under the omnibus agreement | [3] | 46,212,000 | 39,940,000 | 38,873,000 | |
Affiliates [Member] | Commodity Price Swap Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Net gains (losses) on commodity price swap agreements | $ (7,875,000) | 600,000 | 28,500,000 | ||
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] | Western Gas Equity Partners Long-Term Incentive Plan [Member] | Anadarko Incentive Plan [Member] | |||||
Related Party Transaction [Line Items] | |||||
Equity-based compensation expense | $ 6,600,000 | 4,600,000 | 5,200,000 | ||
Contributions of equity-based compensation to WES by Anadarko | 5,700,000 | 4,600,000 | 4,200,000 | ||
Unvested equity-based compensation expense | $ 12,500,000 | ||||
Weighted-average term of unvested awards | 2 years | ||||
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 | $ 400,000 | $ 400,000 | $ 400,000 | ||
Unvested equity-based compensation expense | $ 100,000 | ||||
Weighted-average term of unvested awards | 5 months | ||||
Western Gas Partners, LP [Member] | Natural Gas [Member] | Gathering, Treating, Transportation and Disposal [Member] | |||||
Related Party Transaction [Line Items] | |||||
Affiliate throughput percent | 7.00% | 34.00% | 37.00% | ||
Western Gas Partners, LP [Member] | Natural Gas [Member] | Processing [Member] | |||||
Related Party Transaction [Line Items] | |||||
Affiliate throughput percent | 41.00% | 41.00% | 54.00% | ||
Western Gas Partners, LP [Member] | Crude Oil, NGLs and Produced Water [Member] | Gathering, Treating, Transportation and Disposal [Member] | |||||
Related Party Transaction [Line Items] | |||||
Affiliate throughput percent | 73.00% | 56.00% | 65.00% | ||
Western Gas Partners, LP [Member] | Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Note receivable - Anadarko | $ 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 | $ 279,600,000 | $ 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. | ||||
[2] | Cost of product includes product purchases from affiliates (as defined in Note 1) of $193.7 million, $86.0 million and $80.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. Operation and maintenance includes charges from affiliates of $98.8 million, $72.5 million and $72.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. General and administrative includes charges from affiliates of $46.2 million, $39.9 million and $38.9 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 6. | ||||
[3] | Represents general and administrative expense incurred on and subsequent to the date of the acquisition of WES assets, as well as a management services fee for expenses incurred by Anadarko for periods prior to the acquisition of WES assets by WES. These amounts include equity-based compensation expense allocated to WES and WGP by Anadarko (see WES LTIP and WGP LTIP and Anadarko Incentive Plan within this Note 6) and amounts charged by Anadarko under the WGP and WES omnibus agreements. |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax expense (benefit) | |||
Federal income tax expense (benefit) | $ 0 | $ 0 | $ 4,477 |
State income tax expense (benefit) | 480 | 2,408 | 1,340 |
Total current income tax expense (benefit) | 480 | 2,408 | 5,817 |
Deferred income tax expense (benefit) | |||
Federal income tax expense (benefit) | 0 | 0 | 1,622 |
State income tax expense (benefit) | 2,466 | 2,458 | 933 |
Total deferred income tax expense (benefit) | 2,466 | 2,458 | 2,555 |
Total income tax expense (benefit) | $ 2,946 | $ 4,866 | $ 8,372 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Income (loss) before income taxes | $ 451,458 | $ 578,068 | $ 605,352 |
Statutory tax rate | 0.00% | 0.00% | 0.00% |
Adjustments resulting from: | |||
Federal taxes on income | $ 0 | $ 0 | $ 0 |
State taxes on income (net of federal benefit) and Texas margin tax expense (benefit) | 2,946 | 4,866 | 2,093 |
Income tax expense (benefit) | $ 2,946 | $ 4,866 | $ 8,372 |
Effective tax rate | 1.00% | 1.00% | 1.00% |
Western Gas Partners, LP [Member] | |||
Adjustments resulting from: | |||
Federal taxes on income | $ 0 | $ 0 | $ 6,162 |
State taxes on income (net of federal benefit) and Texas margin tax expense (benefit) | $ 0 | $ 0 | $ 117 |
Income Taxes - Income Tax Tempo
Income Taxes - Income Tax Temporary Differences Table (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Depreciable property | $ (10,057) | $ (7,676) |
Credit carryforwards | 497 | 448 |
Other intangible assets | (299) | (189) |
Other | 162 | 8 |
Net long-term deferred income tax liabilities | $ (9,697) | $ (7,409) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Credit carryforwards | $ 497 | $ 448 |
Tax credit carryforward, expiration date | Dec. 31, 2026 |
Property, Plant and Equipment -
Property, Plant and Equipment - Historical Cost Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 9,250,228 | $ 7,864,535 |
Less accumulated depreciation | 2,638,155 | 2,133,644 |
Net property, plant and equipment | 6,612,073 | 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 | $ 8,550,373 | 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 | 15 years | |
Western Gas Partners, LP [Member] | Gathering Systems and Processing Complexes [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Western Gas Partners, LP [Member] | Pipelines and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 172,497 | 137,644 |
Western Gas Partners, LP [Member] | Pipelines and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 6 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 | $ 490,705 | 579,501 |
Western Gas Partners, LP [Member] | Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 32,000 | $ 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 ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Property, Plant and Equipment [Line Items] | |||||
Impairments | $ 228,338,000 | $ 178,374,000 | $ 15,535,000 | ||
Equity investment impairment loss | [1] | 3,110,000 | |||
Western Gas Partners, LP [Member] | Fort Union [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Equity investment impairment loss | 3,110,000 | [1] | 3,000,000 | ||
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 | ||||
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 | ||||
Western Gas Partners, LP [Member] | Hilight System [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 38,700,000 | 8,200,000 | |||
Western Gas Partners, LP [Member] | Hilight System [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Income Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated fair value | 4,900,000 | ||||
Western Gas Partners, LP [Member] | MIGC System [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 34,600,000 | ||||
Western Gas Partners, LP [Member] | MIGC System [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Income Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated fair value | 15,200,000 | ||||
Western Gas Partners, LP [Member] | Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 21,000,000 | 19,600,000 | 9,400,000 | ||
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 | ||||
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 | ||||
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] | 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 | ||||
Western Gas Partners, LP [Member] | Newcastle System [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairments | 6,100,000 | ||||
Western Gas Partners, LP [Member] | Newcastle System [Member] | Fair Value, Measurements, Nonrecurring [Member] | Level 3 Inputs [Member] | Valuation, Income Approach [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated fair value | $ 3,100,000 | ||||
[1] | Recorded in Impairments in the consolidated statements of operations. |
Goodwill and Intangibles - Othe
Goodwill and Intangibles - Other Intangible Assets Table (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 868,035 | $ 868,035 |
Accumulated amortization | (121,231) | (92,766) |
Other intangible assets | $ 746,804 | $ 775,269 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, impairment loss | $ 0 | ||
Intangible assets (excluding goodwill), impairment loss | 0 | ||
Amortization of intangible assets | 28,500,000 | $ 28,400,000 | $ 28,400,000 |
Estimated amortization expense 2019 | 28,900,000 | ||
Estimated amortization expense 2020 | 28,900,000 | ||
Estimated amortization expense 2021 | 28,900,000 | ||
Estimated amortization expense 2022 | 28,900,000 | ||
Estimated amortization expense 2023 | $ 28,600,000 | ||
Western Gas Partners, LP [Member] | Platte Valley [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 38 years | ||
Western Gas Partners, LP [Member] | Chipeta [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 10 years | ||
Western Gas Partners, LP [Member] | Delaware Basin Midstream LLC [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset, useful life | 30 years |
Equity Investments - Equity Inv
Equity Investments - Equity Investments Tables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | $ 566,211 | $ 594,208 | ||||
Impairment expense | [1] | (3,110) | ||||
Equity income, net | [2] | 153,024 | 85,194 | $ 78,717 | ||
Contributions | 133,335 | [3] | 384 | 27 | ||
Distributions | (144,299) | (87,380) | (82,185) | |||
Distributions in excess of cumulative earnings | (25,607) | [4] | (23,085) | [4] | (21,238) | |
Acquisitions | 162,615 | |||||
Balance | 845,279 | 566,211 | 594,208 | |||
Western Gas Partners, LP [Member] | Fort Union [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 7,030 | 12,833 | ||||
Impairment expense | (3,110) | [1] | (3,000) | |||
Equity income, net | (1,433) | 3,821 | ||||
Contributions | 0 | [3] | 0 | |||
Distributions | (194) | (4,217) | ||||
Distributions in excess of cumulative earnings | [4] | (3,144) | (2,297) | |||
Acquisitions | 0 | |||||
Balance | 2,259 | 7,030 | 12,833 | |||
Western Gas Partners, LP [Member] | White Cliffs [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 44,945 | 47,319 | ||||
Impairment expense | [1] | 0 | ||||
Equity income, net | 11,841 | 12,547 | ||||
Contributions | 1,278 | [3] | 277 | |||
Distributions | (11,259) | (11,965) | ||||
Distributions in excess of cumulative earnings | [4] | (3,785) | (3,233) | |||
Acquisitions | 0 | |||||
Balance | 43,020 | 44,945 | 47,319 | |||
Western Gas Partners, LP [Member] | Rendezvous [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 42,528 | 46,739 | ||||
Impairment expense | [1] | 0 | ||||
Equity income, net | 767 | 1,144 | ||||
Contributions | 0 | [3] | 0 | |||
Distributions | (2,709) | (3,085) | ||||
Distributions in excess of cumulative earnings | [4] | (2,745) | (2,270) | |||
Acquisitions | 0 | |||||
Balance | 37,841 | 42,528 | 46,739 | |||
Western Gas Partners, LP [Member] | Mont Belvieu JV [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 110,299 | 112,805 | ||||
Impairment expense | [1] | 0 | ||||
Equity income, net | 29,200 | 29,444 | ||||
Contributions | 0 | [3] | 0 | |||
Distributions | (29,239) | (29,482) | ||||
Distributions in excess of cumulative earnings | [4] | (5,311) | (2,468) | |||
Acquisitions | 0 | |||||
Balance | 104,949 | 110,299 | 112,805 | |||
Western Gas Partners, LP [Member] | Texas Express Gathering [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 15,879 | 15,846 | ||||
Impairment expense | [1] | 0 | ||||
Equity income, net | 4,290 | 3,350 | ||||
Contributions | 3,720 | [3] | 0 | |||
Distributions | (4,368) | (3,317) | ||||
Distributions in excess of cumulative earnings | [4] | (163) | 0 | |||
Acquisitions | 0 | |||||
Balance | 19,358 | 15,879 | 15,846 | |||
Western Gas Partners, LP [Member] | Texas Express Pipeline [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 178,975 | 189,194 | ||||
Impairment expense | [1] | 0 | ||||
Equity income, net | 37,963 | 17,387 | ||||
Contributions | 11,980 | [3] | 107 | |||
Distributions | (33,552) | (17,639) | ||||
Distributions in excess of cumulative earnings | [4] | (2,168) | (10,074) | |||
Acquisitions | 0 | |||||
Balance | 193,198 | 178,975 | 189,194 | |||
Western Gas Partners, LP [Member] | Front Range Pipeline [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 166,555 | 169,472 | ||||
Impairment expense | [1] | 0 | ||||
Equity income, net | 23,308 | 17,501 | ||||
Contributions | 14,980 | [3] | 0 | |||
Distributions | (23,481) | (17,675) | ||||
Distributions in excess of cumulative earnings | [4] | (4,926) | (2,743) | |||
Acquisitions | 0 | |||||
Balance | 176,436 | 166,555 | $ 169,472 | |||
Western Gas Partners, LP [Member] | Whitethorn [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 0 | |||||
Equity income, net | 47,088 | |||||
Contributions | [3] | 7,069 | ||||
Distributions | (39,497) | |||||
Distributions in excess of cumulative earnings | [4] | (3,365) | ||||
Acquisitions | 150,563 | |||||
Balance | 161,858 | 0 | ||||
Western Gas Partners, LP [Member] | Cactus II [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Balance | 0 | |||||
Equity income, net | 0 | |||||
Contributions | [3] | 94,308 | ||||
Distributions | 0 | |||||
Distributions in excess of cumulative earnings | [4] | 0 | ||||
Acquisitions | 12,052 | |||||
Balance | 106,360 | $ 0 | ||||
Capitalized interest | $ 1,400 | |||||
[1] | Recorded in Impairments in the consolidated statements of operations. | |||||
[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. | |||||
[3] | Includes capitalized interest of $1.4 million related to the construction of the Cactus II pipeline. | |||||
[4] | Distributions in excess of cumulative earnings, classified as investing cash flows in the consolidated statements of cash flows, are calculated on an individual investment basis. |
Equity Investments - Summarized
Equity Investments - Summarized Combined Financial Data For Equity Investments - Income Statement Table (Details) - Western Gas Partners, LP [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues | $ 1,087,125 | $ 703,424 | $ 687,554 |
Operating income | 733,802 | 435,735 | 428,454 |
Net income | $ 731,364 | $ 434,749 | $ 427,511 |
Equity Investments - Summariz_2
Equity Investments - Summarized Combined Financial Data For Equity Investments - Balance Sheet Table (Details) - Western Gas Partners, LP [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 220,912 | $ 137,957 |
Property, plant and equipment, net | 3,426,438 | 2,512,214 |
Other assets | 35,411 | 36,373 |
Total assets | 3,682,761 | 2,686,544 |
Current liabilities | 80,109 | 80,490 |
Non-current liabilities | 12,213 | 7,447 |
Equity | 3,590,439 | 2,598,607 |
Total liabilities and equity | $ 3,682,761 | $ 2,686,544 |
Equity Investments - Additional
Equity Investments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment impairment loss | [1] | $ 3,110 | |||
Western Gas Partners, LP [Member] | Fort Union [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment difference between carrying and underlying value | $ (3,100) | ||||
Equity investment ownership percentage | 14.81% | ||||
Equity investment impairment loss | 3,110 | [1] | $ 3,000 | ||
Western Gas Partners, LP [Member] | Rendezvous [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment difference between carrying and underlying value | $ 34,300 | ||||
Equity investment impairment loss | [1] | 0 | |||
Western Gas Partners, LP [Member] | White Cliffs [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment difference between carrying and underlying value | $ (6,400) | ||||
Equity investment impairment loss | [1] | $ 0 | |||
Western Gas Partners, LP [Member] | White Cliffs [Member] | Affiliates [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment ownership percentage | 0.40% | ||||
Western Gas Partners, LP [Member] | Whitethorn [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity investment difference between carrying and underlying value | $ (39,100) | ||||
[1] | Recorded in Impairments in the consolidated statements of operations. |
Components of Working Capital -
Components of Working Capital - Accounts Receivable, Net Table (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Trade receivables, net | $ 216,847 | $ 160,194 | |
Other receivables, net | 45 | 45 | |
Total accounts receivable, net | [1] | $ 216,892 | $ 160,239 |
[1] | Accounts receivable, net includes amounts receivable from affiliates (as defined in Note 1) of $72.6 million and $36.1 million as of December 31, 2018 and 2017, respectively. |
Components of Working Capital_2
Components of Working Capital - Other Current Assets Table (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Current Assets [Line Items] | |||
NGLs inventory | $ 6,370 | $ 10,788 | |
Imbalance receivables | 8,864 | 1,640 | |
Prepaid insurance | 1,973 | 2,955 | |
Contract assets | 5,399 | 0 | |
Other | 4,184 | 0 | |
Total other current assets | [1] | $ 26,790 | $ 15,383 |
[1] | Other current assets includes affiliate amounts of $3.7 million and zero as of December 31, 2018 and 2017, respectively. |
Components of Working Capital_3
Components of Working Capital - Accrued Liabilities Table (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Components Of Working Capital [Abstract] | |||
Accrued interest expense | $ 70,968 | $ 40,646 | |
Short-term asset retirement obligations | 25,938 | 2,304 | |
Short-term remediation and reclamation obligations | 863 | 833 | |
Income taxes payable | 384 | 2,495 | |
Contract liabilities | 16,403 | 0 | |
Other | 14,640 | 1,714 | |
Total accrued liabilities | [1] | $ 129,196 | $ 47,992 |
[1] | Accrued liabilities includes affiliate amounts of $2.4 million and $0.2 million as of December 31, 2018 and 2017, respectively. |
Asset Retirement Obligations -
Asset Retirement Obligations - Asset Retirement Obligations Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Carrying amount of asset retirement obligations at beginning of year | $ 145,698 | $ 142,407 |
Liabilities incurred | 16,343 | 16,153 |
Liabilities settled | (12,432) | (10,468) |
Accretion expense | 7,217 | 6,956 |
Revisions in estimated liabilities | 129,088 | (9,350) |
Carrying amount of asset retirement obligations at end of year | $ 285,914 | $ 145,698 |
Asset Retirement Obligations _2
Asset Retirement Obligations - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Revisions in estimated liabilities | $ 129,088 | $ (9,350) |
Gathering Systems and Processing Complexes [Member] | Western Gas Partners, LP [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Revisions in estimated liabilities | 61,100 | |
Third Creek Gathering System [Member] | Western Gas Partners, LP [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Revisions in estimated liabilities | $ 43,400 |
Debt and Interest Expense - Deb
Debt and Interest Expense - Debt Outstanding Table (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Short-term debt, carrying value | $ 28,000,000 | $ 0 | |
Total long-term debt, principal | 4,840,000,000 | 3,518,000,000 | |
Long-term debt, carrying value | 4,787,381,000 | 3,492,712,000 | |
Valuation, Market Approach [Member] | Level 2 Inputs [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, fair value | [1] | 4,549,322,000 | 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 | 220,000,000 | 370,000,000 | |
Long-term debt, carrying value | 220,000,000 | 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] | $ 220,000,000 | 370,000,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 2.600% Senior Notes due 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, 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] | |||
Senior note, interest rate | 5.375% | ||
Debt instrument, maturity date | Jun. 1, 2021 | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 496,959,000 | 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] | $ 515,990,000 | 530,647,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.000% Senior Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.00% | ||
Debt instrument, maturity date | Jul. 1, 2022 | ||
Principal | $ 670,000,000 | 670,000,000 | |
Long-term debt, carrying value | 669,078,000 | 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] | $ 662,109,000 | 684,043,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 3.950% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 3.95% | ||
Debt instrument, maturity date | Jun. 1, 2025 | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 492,837,000 | 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] | $ 466,135,000 | 500,885,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.650% Senior Notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.65% | ||
Debt instrument, maturity date | Jul. 1, 2026 | ||
Principal | $ 500,000,000 | 500,000,000 | |
Long-term debt, carrying value | 495,710,000 | 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] | $ 483,994,000 | 520,144,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.500% Senior Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.50% | ||
Debt instrument, maturity date | Mar. 1, 2028 | ||
Principal | $ 400,000,000 | 0 | |
Long-term debt, carrying value | 394,631,000 | 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] | $ 377,475,000 | 0 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 4.750% Senior Notes due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 4.75% | ||
Debt instrument, maturity date | Aug. 15, 2028 | ||
Principal | $ 400,000,000 | 0 | |
Long-term debt, carrying value | 395,841,000 | 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] | $ 384,370,000 | 0 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.450% Senior Notes due 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 5.45% | ||
Debt instrument, maturity date | Apr. 1, 2044 | ||
Principal | $ 600,000,000 | 600,000,000 | |
Long-term debt, carrying value | 593,349,000 | 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] | $ 522,386,000 | 637,827,000 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.300% Senior Notes due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 5.30% | ||
Debt instrument, maturity date | Mar. 1, 2048 | ||
Principal | $ 700,000,000 | 0 | |
Long-term debt, carrying value | 686,648,000 | 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] | $ 605,327,000 | 0 |
Western Gas Partners, LP [Member] | Senior Notes [Member] | 5.500% Senior Notes due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Senior note, interest rate | 5.50% | ||
Debt instrument, maturity date | Aug. 15, 2048 | ||
Principal | $ 350,000,000 | 0 | |
Long-term debt, carrying value | 342,328,000 | 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] | $ 311,536,000 | $ 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) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in Debt Outstanding [Roll Forward] | ||
Beginning balance | $ 3,492,712 | $ 3,119,461 |
Other | (27,331) | 3,251 |
Ending balance | 4,815,381 | 3,492,712 |
Western Gas Partners, LP [Member] | WES RCF [Member] | Revolving Credit Facility [Member] | ||
Changes in Debt Outstanding [Roll Forward] | ||
RCF borrowings | 540,000 | $ 370,000 |
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-Rate Swap Table (Details) - Western Gas Partners, LP [Member] - Not Designated as Hedging Instrument [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Interest-Rate Swap 1 [Member] | |
Derivative [Line Items] | |
Interest-rate swap, notional amount | $ 250 |
Interest-rate swap, reference period start date | Dec. 31, 2019 |
Interest-rate swap, reference period end date | Dec. 31, 2024 |
Interest-rate swap, maturity date | Dec. 31, 2019 |
Interest-rate swap, fixed interest rate | 2.73% |
Interest-Rate Swap 2 [Member] | |
Derivative [Line Items] | |
Interest-rate swap, notional amount | $ 250 |
Interest-rate swap, reference period start date | Dec. 31, 2019 |
Interest-rate swap, reference period end date | Dec. 31, 2029 |
Interest-rate swap, maturity date | Dec. 31, 2019 |
Interest-rate swap, fixed interest rate | 2.856% |
Interest-Rate Swap 3 [Member] | |
Derivative [Line Items] | |
Interest-rate swap, notional amount | $ 250 |
Interest-rate swap, reference period start date | Dec. 31, 2019 |
Interest-rate swap, reference period end date | Dec. 31, 2049 |
Interest-rate swap, maturity date | Dec. 31, 2019 |
Interest-rate swap, fixed interest rate | 2.905% |
Debt and Interest Expense - I_2
Debt and Interest Expense - Interest Expense Table (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | ||||
Interest expense | [1] | $ (186,043) | $ (144,615) | $ (116,628) |
Third Parties [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term and short-term debt | (200,454) | (143,400) | (122,428) | |
Amortization of debt issuance costs and commitment fees | (9,110) | (7,970) | (7,509) | |
Capitalized interest | 23,521 | 6,826 | 5,562 | |
Interest expense | (186,043) | (144,544) | (124,375) | |
Affiliates [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense | [2] | 0 | (71) | 7,747 |
Affiliates [Member] | Deferred Purchase Price Obligation - Anadarko [Member] | ||||
Debt Instrument [Line Items] | ||||
Deferred purchase price obligation - Anadarko | [3] | $ 0 | $ (71) | $ 7,747 |
[1] | Includes affiliate (as defined in Note 1) amounts of zero, $(0.1) million and $7.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. See Note 3 and Note 13. | |||
[2] | Includes amounts related to the Deferred purchase price obligation - Anadarko (see Note 3 and Note 13). | |||
[3] | See Note 3 for a discussion of the Deferred purchase price obligation - Anadarko. |
Debt and Interest Expense - Add
Debt and Interest Expense - Additional Information (Details) - USD ($) | Feb. 15, 2019 | Dec. 19, 2018 | Feb. 16, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2019 | Aug. 31, 2018 | Mar. 31, 2018 | Feb. 25, 2014 |
Debt Instrument [Line Items] | ||||||||||
Gain (loss) on interest-rate swaps | $ (7,972,000) | $ 0 | $ 0 | |||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, maximum borrowing capacity | $ 35,000,000 | |||||||||
Facility, expiration date | Jun. 14, 2019 | |||||||||
Facility, fee rate | 0.30% | 0.30% | ||||||||
Facility, outstanding borrowings | $ 28,000,000 | |||||||||
Facility, available borrowing capacity | $ 7,000,000 | |||||||||
Facility, interest rate at period end | 4.53% | 3.57% | ||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, fee rate | 0.30% | |||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, fee rate | 0.50% | |||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, variable rate floor | 0.00% | |||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 2.00% | |||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 2.75% | |||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | Percentage Above Federal Funds Effective Rate [Member] | Alternate Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.50% | |||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
Revolving Credit Facility [Member] | WGP RCF [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.75% | |||||||||
Western Gas Partners, LP [Member] | Interest-Rate Swap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Gain (loss) on interest-rate swaps | $ (7,972,000) | |||||||||
Western Gas Partners, LP [Member] | Interest-Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest-rate swap, collateral posted if credit risk related provision triggered | 2,700,000 | |||||||||
Interest-rate swap, aggregate fair value of swaps with credit risk related features for which a net liability position existed | 5,700,000 | |||||||||
Western Gas Partners, LP [Member] | Interest-Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest-rate swap, liability fair value | $ 8,000,000 | |||||||||
Western Gas Partners, LP [Member] | 4.750% Senior Notes due 2028 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior note, interest rate | 4.75% | |||||||||
Senior note, offering percent | 99.818% | |||||||||
Senior note, effective interest rate | 4.885% | |||||||||
Western Gas Partners, LP [Member] | 5.500% Senior Notes due 2048 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior note, interest rate | 5.50% | |||||||||
Senior note, offering percent | 98.912% | |||||||||
Senior note, effective interest rate | 5.652% | |||||||||
Western Gas Partners, LP [Member] | 4.500% Senior Notes due 2028 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior note, interest rate | 4.50% | |||||||||
Senior note, offering percent | 99.435% | |||||||||
Senior note, effective interest rate | 4.682% | |||||||||
Western Gas Partners, LP [Member] | 5.300% Senior Notes due 2048 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior note, interest rate | 5.30% | |||||||||
Senior note, offering percent | 99.169% | |||||||||
Senior note, 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, fee rate | 0.20% | 0.20% | ||||||||
Facility, outstanding borrowings | $ 220,000,000 | |||||||||
Facility, available borrowing capacity | $ 1,300,000,000 | |||||||||
Facility, interest rate at period end | 3.74% | 2.87% | ||||||||
Facility, expandable maximum borrowing capacity | $ 2,000,000,000 | |||||||||
Facility, outstanding letters of credit | $ 4,600,000 | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, expiration date | Feb. 15, 2024 | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES RCF [Member] | Scenario, Forecast [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, maximum borrowing capacity | $ 2,000,000,000 | |||||||||
Facility, accordion feature amount | $ 500,000,000 | |||||||||
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] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, 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] | ||||||||||
Facility, applicable margin added | 1.50% | |||||||||
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] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
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] | ||||||||||
Facility, 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] | ||||||||||
Facility, 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] | ||||||||||
Facility, applicable margin added | 0.50% | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES 364-Day Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, maximum borrowing capacity | $ 2,000,000,000 | |||||||||
Facility, fee rate | 0.175% | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES 364-Day Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES 364-Day Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.625% | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES 364-Day Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Alternate Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 1.00% | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES 364-Day Facility [Member] | Percentage Above Federal Funds Effective Rate [Member] | Alternate Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.50% | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES 364-Day Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.00% | |||||||||
Western Gas Partners, LP [Member] | Revolving Credit Facility [Member] | WES 364-Day Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility, applicable margin added | 0.625% |
Commitments and Contingencies -
Commitments and Contingencies - Operating Lease Obligations Table (Details) - Western Gas Partners, LP [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Loss Contingencies [Line Items] | |
2,019 | $ 8,711 |
2,020 | 2,236 |
2,021 | 460 |
2,022 | 467 |
2,023 | 473 |
Thereafter | 1,547 |
Total | $ 13,894 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 17, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 |
Loss Contingencies [Line Items] | ||||||
Contract liabilities | $ 16,403 | $ 0 | ||||
Revenues and other | 1,990,276 | 2,248,356 | $ 1,804,270 | |||
Service Revenues - Fee Based [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Revenues and other | 1,609,245 | |||||
Western Gas Partners, LP [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Liability for remediation and reclamation obligations | 1,700 | 1,800 | ||||
Rent expense associated with office, warehouse and equipment leases | $ 53,600 | $ 45,100 | $ 37,500 | |||
Western Gas Partners, LP [Member] | DBJV Arbitration [Member] | Pending Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Contract liabilities | $ 7,500 | |||||
Western Gas Partners, LP [Member] | DBJV Arbitration [Member] | Settled Litigation [Member] | Service Revenues - Fee Based [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Revenues and other | $ 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% |