News Column

Western Gas Announces First-Quarter 2014 Results

May 8, 2014



ENP Newswire - 08 May 2014

Release date- 07052014 - HOUSTON, TX - Western Gas Partners, LP (NYSE: WES) and Western Gas Equity Partners, LP (NYSE: WGP) today announced first-quarter 2014 financial and operating results.

WESTERN GAS PARTNERS, LP

Net income available to limited partners for the first quarter of 2014 totaled $63.6 million, or $0.54 per common unit (diluted). For the first quarter of 2014, Adjusted EBITDA was $141.0 million and Distributable cash flow) was $119.3 million, resulting in a Coverage ratio of 1.21 times.

Total throughput attributable to WES for natural gas assets for the first quarter of 2014 averaged 3.4 Bcf/d, which was 2% below the prior quarter and 17% above the first quarter of 2013. The prior quarter's reported throughput included 112 MMcf/d of volumes reported as both gathered by the Partnership's Wattenberg system and processed by the Partnership's Platte Valley system. After combining these two systems into the DJ Basin complex in the first quarter of 2014, these volumes are reported only once as processing volumes. Adjusted for comparability, the Partnership's first-quarter reported throughput would have been 2% higher than the prior quarter.

Capital expenditures attributable to WES including equity investments, but excluding acquisitions, on a cash basis totaled $213.3 million during the first quarter of 2014. Of this amount, maintenance capital expenditures were $8.8 million, or 6% of Adjusted EBITDA. Also including equity investments, but excluding acquisitions, capital expenditures attributable to WES on an accrual basis totaled $189.1 million during the first quarter of 2014.

'While 2014 began with tough weather conditions in the Rockies, our resilient portfolio once again delivered strong performance,' said Chief Executive Officer, Don Sinclair. 'This year is off to a solid start with our Brasada plant in the Eagleford now operating at or above 90% capacity and our new Lancasterplant in the DJ Basin complex commencing operations in early April.'

WES previously declared a quarterly distribution of $0.625 per unit for the first quarter of 2014, representing a 4% increase over the prior quarter's distribution and a 16% increase over the first-quarter 2013 distribution of $0.54 per unit. The distribution will be paid on May 14, 2014, to unitholders of record at the close of business on April 30, 2014. The first-quarter 2014 Coverage ratio of 1.21 times is based on the quarterly distribution of $0.625 per unit.

WESTERN GAS EQUITY PARTNERS, LP

As of March 31, 2014, WGP indirectly owned the 2% general partner interest in WES, 100% of the incentive distribution rights in WES and 49,296,205 WES common units. Net income available to limited partners for the first quarter of 2014 totaled $50.5 million, or $0.23 per common unit (diluted).

WGP previously declared a quarterly distribution of $0.25 per unit for the first quarter of 2014, representing an 8% increase over the prior quarter's distribution and a 40% increase over the first-quarter 2013 distribution of $0.17875. The distribution will be paid on May 23, 2014, to unitholders of record at the close of business on April 30, 2014. WGP will receive distributions from WES of $55.9 million attributable to the first quarter and will pay out $54.7 million in distributions for the same period.

CONFERENCE CALL TOMORROW AT 11 A.M. CDT

WES and WGP will host a joint conference call on Wednesday, May 7, 2014, at 11:00 a.m. Central Daylight Time (12:00 p.m. Eastern Daylight Time) to discuss first-quarter 2014 results. To participate via telephone, please dial 877.621.4819 and enter participant code 23292162. Please call in 10 minutes prior to the scheduled start time. To access the live audio webcast of the conference call and slide presentation, please visit www.westerngas.com. A replay of the call will also be available on the website for approximately two weeks following the conference call.

Western Gas Partners, LP ('WES') is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. With midstream assets in the Rocky Mountains, the Mid-Continent, north-central Pennsylvania and Texas, WES is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko and other producers and customers.

Western Gas Equity Partners, LP ('WGP') is a Delaware master limited partnership formed by Anadarko to own the following types of interests in WES: (i) the 2.0% general partner interest and all of the incentive distribution rights in WES, both owned through WGP's 100% ownership of WES's general partner, and (ii) a significant limited partner interest in WES.

This news release contains forward-looking statements. Western Gas Partners and Western Gas Equity Partners believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release.

These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate WES's assets; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures and the other factors described in the 'Risk Factors' sections of WES's and WGP's most recent Forms 10-K filed with the Securities and Exchange Commission and in their other public filings and press releases.

Western Gas Partners and Western Gas Equity Partners undertake no obligation to publicly update or revise any forward-looking statements.

Western Gas Partners, LP Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of (i) WES's Distributable cash flow (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP), (ii) Adjusted EBITDA attributable to Western Gas Partners, LP('Adjusted EBITDA') (non-GAAP) to net income attributable to Western Gas Partners, LP (GAAP) and to net cash provided by operating activities (GAAP), and (iii) Adjusted gross margin attributable to Western Gas Partners, LP ('Adjusted gross margin') (non-GAAP) to operating income (GAAP), as required under Regulation G of the Securities Exchange Act of 1934.

Management believes that WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio are widely accepted financial indicators of WES's financial performance compared to other publicly traded partnerships and are useful in assessing its ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA, Adjusted gross margin and Coverage ratio, as defined by WES, may not be comparable to similarly titled measures used by other companies.

Therefore, WES's Distributable cash flow, Adjusted EBITDA, Adjusted gross margin, and Coverage ratio should be considered in conjunction with net income and other applicable performance measures, such as operating income or cash flows from operating activities.

Distributable Cash Flow

WES defines Distributable cash flow as Adjusted EBITDA, plus interest income, less net cash paid for interest expense (including amortization of deferred debt issuance costs originally paid in cash, offset by non-cash capitalized interest), maintenance capital expenditures, and income taxes.

Adjusted EBITDA Attributable to Western Gas Partners, LP

WES defines Adjusted EBITDA as net income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investees, non-cash equity-based compensation expense, interest expense, income tax expense, depreciation, amortization and impairments, and other expense, less income from equity investments, interest income, income tax benefit, and other income.

Adjusted gross margin attributable to Western Gas Partners, LP

WES defines Adjusted gross margin as total revenues less cost of product, plus distributions from equity investees and excluding the noncontrolling interest owner's proportionate share of revenue and cost of product.

Contact:

Benjamin Fink

Tel: 832.636.6010


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Source: ENP Newswire


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