Western Gas Announces Fourth-Quarter and Full-Year 2014 Results
2015 Outlook to Be Released March 3, 2015
(firmenpresse) - HOUSTON, TX -- (Marketwired) -- 02/18/15 -- Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") and Western Gas Equity Partners, LP (NYSE: WGP) ("WGP") today announced fourth-quarter and full-year 2014 financial and operating results. WES also announced it would release its 2015 outlook after the market closes on March 3, 2015.
Net income available to limited partners(1) for 2014 totaled $256.5 million, or $2.12 per common unit (diluted), with full-year 2014 Adjusted EBITDA(2) of $646.0 million and full-year 2014 Distributable cash flow(2)of $531.1 million.
Net income available to limited partners(1) for the fourth quarter of 2014 totaled $54.3 million, or $0.42 per common unit (diluted), with fourth-quarter 2014 Adjusted EBITDA(2) of $170.4 million and fourth-quarter 2014 Distributable cash flow(2) of $138.1 million.
WES paid a quarterly distribution of $0.70 per unit for the fourth quarter of 2014. This distribution represented a 4% increase over the prior quarter's distribution and a 17% increase over the fourth-quarter 2013 distribution of $0.60 per unit. The full-year 2014 distribution of $2.65 per unit represented a 16% increase over the full-year 2013 distribution of $2.28 per unit. The fourth-quarter 2014 Coverage ratio(2) of 1.10 times was based on the quarterly distribution of $0.70 per unit and included the 8.6 million common units issued by the Partnership in November 2014, and 37 days of DBM(1) operating results. The Partnership's Coverage ratio(2) for full-year 2014 was 1.20 times.
(1) On November 25, 2014, the Partnership acquired Nuevo Midstream, LLC ("Nuevo"). Following the acquisition, the Partnership changed the name of Nuevo to Delaware Basin Midstream, LLC ("DBM"). Includes operating results attributable to DBM beginning on November 25, 2014.
(2) Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio.
The Class C units issued in connection with the acquisition of DBM received a distribution based on the $0.70 common unit distribution, prorated for the 37-day period the Class C units were outstanding during the fourth quarter of 2014. The Class C unit distribution was paid in the form of additional Class C units(1) and was excluded when determining the cash distribution to WES's common unitholders.
Total throughput attributable to WES for natural gas assets(2) for the fourth quarter of 2014 averaged 3.5 Bcf/d, which was 2% above both the prior quarter and the fourth quarter of 2013. For the full-year 2014, total throughput attributable to WES for natural gas assets(2) averaged 3.5 Bcf/d, which was 9% above the prior-year average. Total throughput for crude/NGL assets for the fourth quarter of 2014 averaged 131 MBbls/d, which was 5% below the prior quarter and 77% above the fourth quarter of 2013. For full-year 2014, total throughput for crude/NGL assets averaged 116 MBbls/d, which was 190% above the prior-year average.
"2014 was another year of top tier operating performance for WES," said Chief Executive Officer Don Sinclair. "With the support of Anadarko, our sponsor, we expect to maintain our track record of delivering steady, predictable growth and can reaffirm our previously stated guidance of no less than 15% distribution growth in 2015 despite a very challenging commodity price environment."
Capital expenditures attributable to WES on a cash basis(2), including equity investments but excluding acquisitions, totaled $179.0 million during the fourth quarter of 2014. Of this amount, maintenance capital expenditures were $12.7 million, or 7% of Adjusted EBITDA(3). For the full-year 2014, capital expenditures attributable to WES on a cash basis(2) totaled $726.0 million, including equity investments but excluding acquisitions. This amount includes maintenance capital expenditures of $45.2 million, or 7% of Adjusted EBITDA(3). Capital expenditures attributable to WES on an accrual basis(2), including equity investments but excluding acquisitions, totaled $204.5 million during the fourth quarter of 2014 and $747.7 million for full-year 2014.
(1) The number of additional Class C units 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 trading days immediately preceding the payment date for the WES common unit distribution, less a 6% discount.
(2) Includes operating results attributable to DBM beginning on November 25, 2014.
(3) Please see the tables at the end of this release for a reconciliation of non-GAAP to GAAP measures and calculation of the Coverage ratio.
WGP indirectly owns the entire 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(1) for 2014 totaled $222.9 million, or $1.02 per common unit (diluted). Net income available to limited partners(1) for the fourth quarter of 2014 totaled $57.2 million, or $0.26 per common unit (diluted).
WGP paid a quarterly distribution of $0.31250 per unit for the fourth quarter of 2014. This distribution represented a 7% increase over the prior quarter's distribution and a 35% increase over the fourth-quarter 2013 distribution of $0.23125. The full-year 2014 distribution of $1.12500 per unit represented a 37% increase over the full-year 2013 distribution. WGP received distributions from WES of $71.2 million attributable to the fourth quarter and will pay $68.4 million in distributions for the same period.
WES and WGP will host a joint conference call on Thursday, February 19, 2015, at 11:00 a.m. Central Standard Time (12:00 p.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2014 results. To participate via telephone, please dial 877.621.4819 and enter participant code 54439186. 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 . A replay of the call will also be available on the website for approximately two weeks following the conference call.
WES and WGP will release its full 2015 Outlook after the market closes on Tuesday, March 3, 2015, and will host a joint conference call on Wednesday, March 4, 2015, at 7:00 a.m. Central Standard Time (8:00 a.m. Eastern Standard Time) for discussion. To participate via telephone, please dial 866.825.1709 and enter participant code 24435275. 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 . A replay of the call will also be available on the website for approximately two weeks following the conference call.
(1) Includes operating results attributable to DBM beginning on November 25, 2014.
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 located 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, as well as for 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 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.
For more information about Western Gas Partners, LP and Western Gas Equity Partners, LP, please visit .
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; the ability to realize the expected benefits from the Nuevo acquisition; 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.
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.
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.
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.
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.
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
832.636.6010
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Datum: 18.02.2015 - 21:00 Uhr
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