Western Gas announces first quarter financial and operating results

Western Gas Partners, LP and Western Gas Equity Partners, LP have announced financial and operating results for the first quarter of 2015.

Western Gas Partners

Net income available to limited partners for the first quarter of 2015 totalled US$39.8 million, or US$0.26 per common unit (diluted). For the first quarter of 2015, adjusted EBITDA was US$180.9 million and distributable cash flow was US$148.0 million, resulting in a coverage ratio of 1.11 times for the period.

WES previously declared a quarterly distribution of US0.725 per unit for the first quarter of 2015. This distribution represented a 4% increase over the prior quarter's distribution and a 16% increase over the 1Q14 distribution of US$0.625 per unit. The distribution will be paid on 13 May 2015, to unitholders of record at the close of business on 30 April 2015. The 1Q15 coverage ratio of 1.11 times was based on the quarterly distribution of US$0.725 per unit.

Total throughput attributable to WES for natural gas assets for the first quarter of 2015 averaged 3.9 billion ft3/d, which was 8% above the prior quarter and 13% above the first quarter of 2014. Total throughput for crude/NGL assets for the first quarter of 2015 averaged 131 million bpd, which remained flat compared to the prior quarter and was 66% above the first quarter of 2014.

"Our excellent operating performance was primarily driven by volume increases in the DJ and Delaware Basins," said Chief Executive Officer, Don Sinclair. "Our 2015 adjusted EBITDA and distribution growth guidance is unchanged and assumes no additional acquisitions.”

Capital expenditures attributable to WES on a cash basis, including equity investments but excluding acquisitions, totalled US$202.4 million during the first quarter of 2015. Of this amount, maintenance capital expenditures were $12.6 million, or 7% of adjusted EBITDA. Capital expenditures attributable to WES on an accrual basis, including equity investments but excluding acquisitions, totalled US$167.8 million during the first quarter of 2015. The partnership also announced that it now expects full year 2015 total capital expenditures, including equity investments but excluding acquisitions, to be between US$640 and US$700 million.

Western Gas Equity Partners

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 for the first quarter of 2015 totalled $55.3 million, or US$0.25 per common unit (diluted).

WGP previously declared a quarterly distribution of US$0.34250 per unit for the first quarter of 2015. This distribution represented a 10% increase over the prior quarter's distribution and a 37% increase over the 1Q14 distribution of US$0.25000. The distribution will be paid on 22 May 2015, to unitholders of record at the close of business on 30 April 2015. WGP will receive distributions from WES of US$75.8 million attributable to the first quarter and will pay US$75.0 million in distributions for the same period.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/11052015/western-gas-announces-first-quarter-financial-and-operating-results-744/