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WESTERN GAS PARTNERS LP Reports Operating Results (10-Q)

November 01, 2012 | About:
10qk

10qk

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WESTERN GAS PARTNERS LP (WES) filed Quarterly Report for the period ended 2012-09-30.

Western Gas Partners, Lp has a market cap of $4.93 billion; its shares were traded at around $51.4101 with a P/E ratio of 32.8 and P/S ratio of 7.4. The dividend yield of Western Gas Partners, Lp stocks is 3.7%.

Highlight of Business Operations:

Gathering, processing and transportation of natural gas and natural gas liquids revenues increased by $2.5 million for the three months ended September 30, 2012, primarily due to increases of $3.6 million and $2.1 million due to increased drilling activity in the areas around the Wattenberg and Chipeta systems, respectively, and increased rates at the Haley system for an increase of $0.8 million. These increases were partially offset by decreased revenue of $1.0 million at the Helper system due to a downward rate revision effective April 1, 2012, decreased revenue of $0.5 million at the Platte Valley system due to decreased wellhead volumes and a rate adjustment, decreased revenue of $0.5 million at the Red Desert complex due to changes in contracts and lower volumes due to shut-ins, decreased revenue of $0.4 million at MIGC due to the expiration of firm transportation agreements and due to a decrease in interruptible volumes, decreased revenue of $0.3 million at a plant included in the MGR acquisition due to the expiration of processing agreements, and decreased revenue of $0.9 million due to decreased throughput at the Dew, Pinnacle and Clawson systems as a result of natural production declines in the area.

Gathering, processing and transportation of natural gas and natural gas liquids revenues increased by $13.4 million for the nine months ended September 30, 2012, primarily due to increases of $8.8 million and $7.4 million due to increased drilling activity in the areas around the Wattenberg and Chipeta systems, respectively, an increase of $5.5 million due to the acquisition of the Platte Valley system in February 2011, and an increase of $2.1 million due to increased rates at the Haley system. These increases were partially offset by decreased revenue of $2.0 million at the Granger system due to diverted volumes, decreased revenue of $1.9 million at the Helper system due to a downward rate revision effective April 1, 2012, decreased revenue of $1.4 million at MIGC due to the expiration of firm transportation agreements, decreased revenue of $1.3 million at the Red Desert complex due to changes in contracts and lower volumes due to shut-ins, and decreased revenue of $3.3 million due to decreased throughput at the Pinnacle, Dew and Hugoton systems as a result of natural production declines in the area.

For the nine months ended September 30, 2012, the increase in NGLs sales was primarily due to: $15.8 million, $7.3 million, $6.8 million and $4.1 million due to increased volumes sold at the Chipeta, Granger, Hilight, and Wattenberg systems, respectively; a $2.4 million increase due to increased volumes at the Red Desert complex; and an increase of $7.6 million related to volumes processed at a plant included in the MGR acquisition under a new contract effective January 2012, with no volumes in the comparable period. These increases were partially offset by a $6.8 million price-related decrease at the Platte Valley system.

Adjusted EBITDA increased by $2.2 million for the three months ended September 30, 2012, primarily due to a $1.6 million increase in distributions from equity investees, a $1.1 million decrease in general and administrative expenses excluding non-cash equity-based compensation, a $0.6 million decrease in cost of product, a $0.5 million decrease in net income attributable to noncontrolling interests, a $0.3 million increase in total revenues excluding equity income and a $0.3 million decrease in depreciation expense, partially offset by a $1.5 million increase in operation and maintenance expenses and a $0.7 million increase in property and other taxes expense.

Adjusted EBITDA increased by $3.1 million for the nine months ended September 30, 2012, primarily due to a $25.5 million increase in total revenues excluding equity income, a $3.6 million increase in distributions from equity investees, a $0.6 million decrease in general and administrative expenses excluding non-cash equity-based compensation and a $0.4 million decrease in depreciation expense, partially offset by a $14.0 million increase in cost of product, a $9.2 million increase in operation and maintenance expenses, a $2.3 million increase in net income attributable to noncontrolling interests, a $1.6 million increase in property and other taxes expense.

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