Western Midstream Partners, Lp · NYSE:WES
Western Midstream Partners, Lp — Western Gas Partners — Q4 2015 Earnings Presentation
16 slides from Western Midstream Partners, Lp's earnings presentation, Feb 25, 2016
Slide 1: Fourth Quarter and Full Year 2015 Review
Fourth Quarter and Full Year 2015 Review February 25, 2016 NYSE: WES, WGP 1 www.westerngas.com
Slide 2: Cautionary Language Re: Forward-Looking Statements
Western Gas Cautionary Language Re: Forward-Looking Statements This presentation contains forward-looking statements. Western Gas Partners, LP and Western Gas Equity Partners, LP believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expect
Slide 3: 2015 WES Performance vs. Guidance
2015 WES Performance vs. Guidance ($ in millions) Actual Guidance(1) Adjusted EBITDA $758 $745 – 770 Total Capex(2) $536 $580 - 620 Maint. Capex as % of EBITDA 7% 7 – 10% Coverage Ratio 1.11x NA WES Distribution Growth 15% Min 15% WGP Distribution Growth 33% Min 30% (1) Provided during the third-qua
Slide 4: WES Financial Summary – 4Q15 vs. 3Q15
WES Financial Summary – 4Q15 vs. 3Q15 ($ in millions) 4Q15 3Q15 Adjusted EBITDA $188.7 $182.9 Total Capex(1) $119.9 $128.5 Maintenance Capex(1) $12.7 $13.7 Maint. Capex as % of EBITDA 7% 7% Distributable Cash Flow $162.2 $152.8 Coverage Ratio 1.06x 1.05x (1) Attributable to WES; includes equity inve
Slide 5: WES Operating Summary – 4Q15 vs. 3Q15
WES Operating Summary – 4Q15 vs. 3Q15 4Q15 3Q15 Key Drivers Sequentially flat when adjusted Natural Gas Throughput for Ramsey downtime and 3.64 3.78 (Bcf/d) Dew/Pinnacle divestiture in mid- July Crude / NGL Throughput Lower volumes at Greater Natural 142 145 (MBbls/d) Buttes NGL Pipeline Adjusted Gr
Slide 6: Maverick Basin Acquisition
Maverick Basin Acquisition Acquisition of 50.1% interest in Springfield Oil and Gas Gathering System Expands Eagleford Position Brasada Gas Plant • Expected to close by 3/15/2016 Maverick Oil Handling Facility • Immediately accretive acquisition – $750MM purchase price Dimmit La Salle - Represents ~
Slide 7: 2016 Capital
2016 Capital Other Delaware 3% Marcellus Basin 6% DJ Basin 6% 85% Note: Excludes acquisition capital 7
Slide 8: Delaware Basin Midstream Update
Delaware Basin Midstream Update • Incident on December 3, 2015 – No significant injuries – No material impact to Ramsey IV and V construction timetable • Train III (200 MMcf/d) expected to be in limited service in April – Full service expected by end of 2Q16 • Train II (100MMcf/d) to be repaired lat
Slide 9: 2016 Outlook
2016 Outlook Full-Year ($ in millions) 2016 WES Adjusted EBITDA(1) $860 – 950 WES Total Capex(1) $450 - 490 WES Maint. Capex as % of Adj. EBITDA 7 – 10% WES Distribution Growth 10% WGP Distribution Growth 20% (1) Includes the full year effect of the Maverick acquisition 9
Slide 10: WES Upstream Counterparty Risk
WES Upstream Counterparty Risk Producer Credit Ratings1 Not Rated 1% 11% Non-IG Investment Grade 88% Note: 1) Credit ratings as of February 23, 2016; includes split-rated entities 10
Slide 11: Reconciliations
MERSSEEAVL Reconciliations
Slide 12: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted EBITDA” The Partnership 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 and amortizati
Slide 13: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted EBITDA” The Partnership 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 and amortizati
Slide 14: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Distributable Cash Flow” WES defines Distributable cash flow as Adjusted EBITDA, plus interest income and the net settlement amounts from the sale and/or purchase of natural gas, drip condensate and NGLs under WES’s commodity price swap agreements to the extent such amou
Slide 15: WES Non-GAAP Reconciliation
WES Non-GAAP Reconciliation “Adjusted gross margin” WES defines Adjusted gross margin as total revenues and other less reimbursements for electricity-related expenses recorded as revenue, and cost of product, plus distributions from equity investees and excluding the noncontrolling interest owner’s
Slide 16: www.westerngas.com
MERSSEEAVL www.westerngas.com