Jefferies Global Energy Conference

Transcription

1 Jefferies Global Energy Conference NYSE: WES, WGP

2 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 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 presentation. 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 close and realize the expected benefits from the Nuevo acquisition; and the other factors described in the Risk Factors section 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, LP and Western Gas Equity Partners, LP undertake no obligation to publicly update or revise any forward-looking statements. Please also see our earnings release, posted on our website at and the information provided at the end of this presentation for reconciliations of the differences between any non- GAAP financial measures used in this presentation and the most directly comparable GAAP financial measures. 2

3 APC WES WGP Relationships 1 WGP Public Unitholders 88.0% 12.0% 0.6% LP Interest 38.2% LP -and- 2.0% GP Interest 59.2% Note: 1. As of November 4,

4 2008: WES IPO Powder River Uintah Hugoton Demand Charge 15% ADJUSTED GROSS MARGIN 1-2Q08- Delaware Basin Bossier Cost of Service 85% Dry Gas Basin Dry Gas Pipelines Note: 1. Adjusted gross margin as defined in the third-quarter 2014 earnings release 4

5 : Growth Through Acquisitions 8/2012 $135MM Chipeta 24% 1/2010 $254MM Granger 7/2009 $107MM Chipeta 51% 12/2008 $210MM PRB 7/2011 $130MM Bison 8/2010 $498MM Watt GGS 2/2011 $302MM Platte Valley 9/2010 $38MM White Cliffs 10% Dropdown 3 rd Party Acquisition 5

6 : Adding Organic Capex Step Change in Capital Expenditures ($MM) E 2 Notes: 1. As reported 2. Per 2014 guidance estimates provided on October 28, 2014; includes $36MM of equity investments 6

7 While Continuing to Make Acquisitions 8/2013 $28MM OTTCO 3/2013 $490MM Marcellus 3/2013 $134MM CHK Marc 1/2012 $483MM Red Desert Dropdown 10/2014 $1.5 Billion Nuevo Midstream 3/2014 $375MM Texas Express & Front Range 6/2013 $120MM MB Fracs 7&8 25% 3 rd Party Acquisition 7

8 2014: $1.5B Nuevo Midstream Acquisition Delaware Basin JV (50% APC Interest) Haley Gathering (100% WES Interest) APC Acreage Lone Creek Oil Gathering (100% APC Interest) Bone Spring Plant (33.33% APC Interest) 8

9 2014: $1.5B Nuevo Midstream Acquisition Nuevo Midstream, LLC Delaware Basin JV (50% APC Interest) Ramsey Processing Complex Haley Gathering (100% WES Interest) APC Acreage Lone Creek Oil Gathering (100% APC Interest) Bone Spring Plant (33.33% APC Interest) 9

10 WES Today Powder River Marcellus Uintah Greater Green River Basin Niobrara DJ Basin 11% Hugoton 15% ADJUSTED GROSS MARGIN 1-3Q14- Delaware Basin Bossier 74% Liquids-Rich Gas Marcellus Dry Gas (cost of service) Non-Marcellus Dry Gas (cost of service / demand charge) Maverick Eagleford Dry Gas Basin Liquids-Rich Basin Pipelines Note: 1. Adjusted gross margin as defined in the third-quarter 2014 earnings release; does not include pro forma financial data from Nuevo Midstream acquisition 10

11 Future Growth: Robust Capital Projects Estimated 2014 Capital and Equity Investments: $670 - $720MM Other 10% Equity Investments 9% Marcellus 13% Powder River 8% DJ Basin 60% Note: 1. Per 2014 guidance estimates provided on October 28, 2014; excludes acquisition capital 11

12 Future Growth: APC Midstream Inventory AT WES IPO (May 2008) TODAY Marcellus Wind River Rendezvous Granger Complex Powder River Complex Ft. Union Powder River Gathering Natural Buttes Atlantic Rim San Juan Red Desert Complex Wattenberg ~$2.7 Billion Natural Buttes DJ Basin Oil Gath Wattenberg Plant Satanta Plant Mitchell / Gomez Sabine Valley Tyler County of Dropdowns Later Bone Spring Plant DBJV Gas Lone Creek Oil Alta Haynesville Sabine Valley APC Midstream Assets At WES IPO Maverick Oil & Gas Since WES IPO APC has invested ~$2 Billion in midstream over past 3 years 12

13 Future Growth: APC Equity Interests White Cliffs Front Range Pipeline 33 1 / 3 % Interest Acquired Mar 2014 Texas Express Gathering 20% Interest Acquired Mar % Interest Acquired Sept 2010 Skellytown Satanta Plant (APC) 49% Interest Acquired Jan 2011 Cushing, OK Texas Express Pipeline 20% Interest Saddlehorn Pipeline (APC) Option to Acquire Interest Acquired March 2014 Bone Spring Plant (APC) 33 1 / 3 % Interest Acquired Dec 2011 MiVida Plant (APC) 50% Interest Acquired Oct 2014 Mt Belvieu MB Fracs 7&8 25% Interest Acquired June 2013 APC Asset WES Asset 13

14 Commodity Risk Management Anadarko has retained commodity-price risk related to dropdown assets 100% Fee-Based & Fixed-Price ADJUSTED GROSS MARGIN 1 Note: 1. Last Twelve Months ending 9/30/2014; adjusted gross margin as defined in the third-quarter 2014 earnings release 14

15 Volumetric Risk Management Bison MIGC OTTCO Ft. Union Chipeta Front Range Lancaster White Cliffs Demand Charges in Non-Marcellus Dry Gas Areas MIGC, Bison, Ft. Union Non-Marcellus Dry Gas Throughput Covered by Demand Charge (MMcf/d) 510 Demand Charge Cost of Service TXEP TXEG Total Non-Marcellus Dry Gas Throughput (MMcf/d) % of Non-Marcellus Dry Gas Throughput Covered by Demand Charge % *As of September 30, 2014 Brasada Dry Gas Basin Pipelines 15

16 ($/unit) ($MM) (MMcf/d) ($Billions) WES Legacy Performance 1 3,500 3,000 2,500 2,000 1,500 1, , Throughput 1, , , , Annual Distributions E Note: 1) As reported 2) Dated as of FQE 9/30/2014 3) Per guidance estimates provided on October 28, Enterprise Value As of FYE 12/ /30/20142 Adjusted EBITDA E 16

17 (%) (%) WES/WGP Outlook 2014 Outlook 1 Adjusted EBITDA Total CAPEX $625MM - $650MM Maintenance CAPEX 3 7% - 10% $670MM - $720MM Distribution Growth No less than 16% in 2014; 15% in 2015 WES (50) May-08 Dec-09 Aug-11 Apr-13 Nov-14 Unit Price Performance Since IPO 190 WGP Distribution Growth No less than 36% in 2014 WGP Notes: 1. Reflects guidance estimates provided on October 28, Includes equity investments; excludes acquisition capital 3. As a % of Adjusted EBITDA (10) Dec-12 Jun-13 Dec-13 May-14 WGP Alerian MLP Index Nov-14 17

18 APPENDIX 18

19 Non-GAAP Adjusted EBITDA Reconciliation 1 Year Ended December 31, (in thousands) Reconciliation of net income (loss) attributable to Western Gas Partners, LP to Adjusted EBITDA Net Income (loss) attributable to Western Gas Partners, LP 77, , , , ,136 Add: Distributions from equity investees 5,487 5,935 10,612 20,660 22,136 Non-cash equity-based compensation expense (2) 3,580 4,787 13,754 73,508 3,575 Expenses in excess of Omnibus Cap Interest expense 9,955 18,794 31,559 42,060 51,797 Income tax expense 12 10,572 2,161 1,258 4,431 Depreciation, amortization and impairments (2) 37,858 69,972 85, , ,375 Other expense (3) - 2,126 3,683 1, Less: Equity income, net 6,982 6,640 10,091 16,111 23,732 Interest income, net - affiliates 16,900 16,913 16,900 16,900 16,900 Other income (3)(4) 37-2, Income tax benefit (2) ,801 Adjusted EBITDA 111, , , , ,773 Notes: (1) As reported (2) Includes $56.2 million and $69.8 million of equity-based compensation associated with the Western Gas Holdings, LLC Equity Incentive Plan, as amended and restated, paid and contributed by Anadarko during the three months and year ended December 31, 2012, respectively. (3) Includes WES s 51% share prior to August 1, 2012, and its 75% share after August 1, 2012, of depreciation, amortization and impairments; other expense; and other income attributable to Chipeta. (4) Excludes income of $0.4 million for each of the three months ended December 31, 2013 and 2012, and $1.6 million for each of the years ended December 31, 2013 and 2012, related to a component of a gas processing agreement accounted for as a capital lease. 19

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