2018 Q2 Form 10-Q Financial Statement

#000142390218000014 Filed on May 02, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2018 Q1 2017 Q1
Revenue $518.1M $501.1M $516.2M
YoY Change -1.4% -2.93% 34.73%
Cost Of Revenue $95.66M $94.32M $189.4M
YoY Change -52.94% -50.2% 147.58%
Gross Profit $422.4M $406.7M $326.8M
YoY Change 31.12% 24.46% 6.55%
Gross Profit Margin 81.54% 81.18% 63.31%
Selling, General & Admin $142.1M $127.2M $99.50M
YoY Change 43.1% 27.84% 0.4%
% of Gross Profit 33.64% 31.27% 30.45%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $88.49M $84.79M $69.70M
YoY Change 19.53% 21.65% 7.08%
% of Gross Profit 20.95% 20.85% 21.33%
Operating Expenses $230.6M $212.0M $169.2M
YoY Change 33.06% 25.3% 3.11%
Operating Profit $114.2M $224.9M $137.6M
YoY Change -44.82% 63.45% -9.59%
Interest Expense $42.25M $38.02M $36.03M
YoY Change 16.39% 5.5% 12.12%
% of Operating Profit 36.99% 16.91% 26.19%
Other Income/Expense, Net $1.277M $817.0K $446.0K
YoY Change 369.49% 83.18% 216.31%
Pretax Income $77.47M $191.9M $106.2M
YoY Change -55.78% 80.67% -14.61%
Income Tax $10.30M $10.88M $3.552M
% Of Pretax Income 13.3% 5.67% 3.34%
Net Earnings $100.2M $131.5M $75.94M
YoY Change -4.54% 73.2% -7.18%
Net Earnings / Revenue 19.34% 26.25% 14.71%
Basic Earnings Per Share
Diluted Earnings Per Share $457.7K $600.7K $346.7K
COMMON SHARES
Basic Shares Outstanding 218.9M shares 218.9M shares 218.9M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q2 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $55.00M $524.0M $123.0M
YoY Change -70.9% 326.02% 10.81%
Cash & Equivalents $55.32M $523.7M $122.7M
Short-Term Investments
Other Short-Term Assets $27.06M $23.26M $11.04M
YoY Change 158.97% 110.69% 171.6%
Inventory $9.000M $9.000M $8.000M
Prepaid Expenses
Receivables $166.9M $188.4M $152.5M
Other Receivables $8.000M $7.000M $2.000M
Total Short-Term Assets $249.4M $735.8M $286.2M
YoY Change -25.72% 157.07% -3.01%
LONG-TERM ASSETS
Property, Plant & Equipment $6.214B $6.064B $5.267B
YoY Change 16.19% 15.13% 6.61%
Goodwill $416.2M $416.2M $417.6M
YoY Change -0.35% -0.35% -0.38%
Intangibles $761.1M $768.2M $796.6M
YoY Change -3.6% -3.57% -3.45%
Long-Term Investments $754.3M $557.7M $591.1M
YoY Change 29.79% -5.65% -3.19%
Other Assets $14.38M $14.53M $16.43M
YoY Change -10.27% -11.6% 5.67%
Total Long-Term Assets $8.419B $8.080B $7.349B
YoY Change 13.59% 9.95% 3.93%
TOTAL ASSETS
Total Short-Term Assets $249.4M $735.8M $286.2M
Total Long-Term Assets $8.419B $8.080B $7.349B
Total Assets $8.669B $8.816B $7.635B
YoY Change 11.89% 15.47% 3.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $331.0M $360.0M $187.0M
YoY Change 67.17% 92.51% 79.81%
Accrued Expenses $131.4M $79.12M $58.08M
YoY Change 130.6% 36.22% -54.76%
Deferred Revenue $24.10M $22.02M
YoY Change
Short-Term Debt $28.00M $28.00M $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $517.2M $506.0M $280.2M
YoY Change 86.34% 80.63% 7.75%
LONG-TERM LIABILITIES
Long-Term Debt $4.177B $4.176B $3.120B
YoY Change 27.32% 33.85% 2.33%
Other Long-Term Liabilities $138.5M $128.8M $183.0M
YoY Change -3.15% -29.64% -43.69%
Total Long-Term Liabilities $4.476B $4.461B $3.312B
YoY Change 30.35% 34.67% -2.01%
TOTAL LIABILITIES
Total Short-Term Liabilities $517.2M $506.0M $280.2M
Total Long-Term Liabilities $4.476B $4.461B $3.312B
Total Liabilities $4.993B $4.967B $3.593B
YoY Change 34.54% 38.25% -1.32%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $994.0M $1.041B $1.042B
YoY Change
Total Liabilities & Shareholders Equity $8.669B $8.816B $7.635B
YoY Change 11.89% 15.47% 3.65%

Cashflow Statement

Concept 2018 Q2 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income $100.2M $131.5M $75.94M
YoY Change -4.54% 73.2% -7.18%
Depreciation, Depletion And Amortization $88.49M $84.79M $69.70M
YoY Change 19.53% 21.65% 7.08%
Cash From Operating Activities $329.1M $300.2M $191.7M
YoY Change 37.3% 56.6% -18.75%
INVESTING ACTIVITIES
Capital Expenditures -$579.3M -$533.2M -$125.9M
YoY Change 330.39% 323.51% -8.1%
Acquisitions
YoY Change
Other Investing Activities -$184.4M $9.000M -$126.5M
YoY Change -874.79% -107.11% -82.08%
Cash From Investing Activities -$763.7M -$524.2M -$252.4M
YoY Change 589.88% 107.67% -70.05%
FINANCING ACTIVITIES
Cash Dividend Paid $120.1M $101.3M
YoY Change 18.65% 14.55%
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $630.0M $0.00
YoY Change
Cash From Financing Activities -33.90M $668.2M -$175.7M
YoY Change -46.02% -480.38% -128.39%
NET CHANGE
Cash From Operating Activities 329.1M $300.2M $191.7M
Cash From Investing Activities -763.7M -$524.2M -$252.4M
Cash From Financing Activities -33.90M $668.2M -$175.7M
Net Change In Cash -468.5M $444.1M -$236.4M
YoY Change -807.7% -287.84% -2103.55%
FREE CASH FLOW
Cash From Operating Activities $329.1M $300.2M $191.7M
Capital Expenditures -$579.3M -$533.2M -$125.9M
Free Cash Flow $908.4M $833.4M $317.6M
YoY Change 142.69% 162.41% -14.84%

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CY2017Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
12570000 USD
CY2018Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
14525000 USD
CY2017Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
3491000 USD
CY2018Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
128757000 USD
CY2017Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
446000 USD
CY2018Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
817000 USD
CY2017Q1 us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
1268000 USD
CY2018Q1 us-gaap Other Operating Activities Cash Flow Statement
OtherOperatingActivitiesCashFlowStatement
2103000 USD
CY2017Q4 us-gaap Partners Capital
PartnersCapital
1061125000 USD
CY2018Q1 us-gaap Partners Capital
PartnersCapital
1041066000 USD
CY2018Q1 us-gaap Partners Capital Account Distributions
PartnersCapitalAccountDistributions
120140000 USD
CY2017Q4 us-gaap Partners Capital Attributable To Noncontrolling Interest
PartnersCapitalAttributableToNoncontrollingInterest
2883754000 USD
CY2018Q1 us-gaap Partners Capital Attributable To Noncontrolling Interest
PartnersCapitalAttributableToNoncontrollingInterest
2808029000 USD
CY2017Q4 us-gaap Partners Capital Including Portion Attributable To Noncontrolling Interest
PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest
3944879000 USD
CY2018Q1 us-gaap Partners Capital Including Portion Attributable To Noncontrolling Interest
PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest
3849095000 USD
CY2018Q1 us-gaap Partners Capital Other
PartnersCapitalOther
150000 USD
CY2017Q1 us-gaap Payments For Capital Improvements
PaymentsForCapitalImprovements
125944000 USD
CY2018Q1 us-gaap Payments For Capital Improvements
PaymentsForCapitalImprovements
302297000 USD
CY2017Q1 us-gaap Payments Of Dividends
PaymentsOfDividends
101254000 USD
CY2018Q1 us-gaap Payments Of Dividends
PaymentsOfDividends
120140000 USD
CY2017Q4 us-gaap Prepaid Insurance
PrepaidInsurance
2955000 USD
CY2018Q1 us-gaap Prepaid Insurance
PrepaidInsurance
1753000 USD
CY2017Q1 us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
ProceedsFromEquityMethodInvestmentDividendsOrDistributionsReturnOfCapital
3453000 USD
CY2018Q1 us-gaap Proceeds From Equity Method Investment Dividends Or Distributions Return Of Capital
ProceedsFromEquityMethodInvestmentDividendsOrDistributionsReturnOfCapital
8013000 USD
CY2017Q1 us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
24000000 USD
CY2018Q1 us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
0 USD
CY2017Q1 us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
-11000 USD
CY2018Q1 us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
1337517000 USD
CY2017Q1 us-gaap Profit Loss
ProfitLoss
102661000 USD
CY2018Q1 us-gaap Profit Loss
ProfitLoss
150488000 USD
CY2017Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
7871102000 USD
CY2018Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
8272083000 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
5730891000 USD
CY2018Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
6063547000 USD
CY2017Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
0 USD
CY2018Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
630000000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
267905000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
440723000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
496050000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
469728000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
460992000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
1697687000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation
RevenueRemainingPerformanceObligation
3833085000 USD
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod
P9M
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod
P1Y
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod
P1Y
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod
P1Y
CY2018Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period
RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionPeriod
P1Y
CY2017Q1 us-gaap Revenues
Revenues
516193000 USD
CY2018Q1 us-gaap Revenues
Revenues
437168000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
1269000 USD
CY2018Q1 us-gaap Share Based Compensation
ShareBasedCompensation
1630000 USD
CY2017Q1 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
12294000 USD
CY2018Q1 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
12382000 USD
CY2017Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
2495000 USD
CY2018Q1 us-gaap Taxes Payable Current
TaxesPayableCurrent
2666000 USD
CY2018Q1 wgp Above Market Component Of Swap Extensions
AboveMarketComponentOfSwapExtensions
14282000 USD
CY2018Q1 wgp Contractwith Customer Asset Increase Decreasefor New Accounting Standards
ContractwithCustomerAssetIncreaseDecreaseforNewAccountingStandards
5129000 USD
CY2018Q1 wgp Contractwith Customer Asset Increasefor Additional Estimated Revenues
ContractwithCustomerAssetIncreaseforAdditionalEstimatedRevenues
3425000 USD
CY2018Q1 wgp Contractwith Customer Liability Increase Decreasefor New Accounting Standards
ContractwithCustomerLiabilityIncreaseDecreaseforNewAccountingStandards
120717000 USD
CY2018Q1 wgp Contractwith Customer Liability Increasefor Cash Received Netof Revenue Recognized
ContractwithCustomerLiabilityIncreaseforCashReceivedNetofRevenueRecognized
28538000 USD
CY2018Q1 wgp Contributions Of Equity Based Compensation From Parent
ContributionsOfEquityBasedCompensationFromParent
1470000 USD
CY2018Q1 wgp Debt Activity Other
DebtActivityOther
18366000 USD
CY2017Q1 wgp Deferred Purchase Price Obligation Including Accretion And Revisions
DeferredPurchasePriceObligationIncludingAccretionAndRevisions
-4094000 USD
CY2018Q1 wgp Deferred Purchase Price Obligation Including Accretion And Revisions
DeferredPurchasePriceObligationIncludingAccretionAndRevisions
0 USD
CY2017Q1 wgp Gain Loss On Disposition Of Assets And Other Net
GainLossOnDispositionOfAssetsAndOtherNet
119487000 USD
CY2018Q1 wgp Gain Loss On Disposition Of Assets And Other Net
GainLossOnDispositionOfAssetsAndOtherNet
116000 USD
CY2018Q1 wgp Number Of Days Subsequent To Quarter End That Cash Is Required To Be Distributed
NumberOfDaysSubsequentToQuarterEndThatCashIsRequiredToBeDistributed
P55D
CY2017Q1 wgp Proceeds From Above Market Component Of Swap Extensions
ProceedsFromAboveMarketComponentOfSwapExtensions
12297000 USD
CY2018Q1 wgp Proceeds From Above Market Component Of Swap Extensions
ProceedsFromAboveMarketComponentOfSwapExtensions
14282000 USD
CY2017Q1 wgp Proceeds From Payment To Affiliate
ProceedsFromPaymentToAffiliate
-14000 USD
CY2018Q1 wgp Proceeds From Payment To Affiliate
ProceedsFromPaymentToAffiliate
0 USD
CY2018Q1 us-gaap Revenue Recognition Long Term Contracts
RevenueRecognitionLongTermContracts
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;font-style:italic;font-weight:bold;">Revenue and cost of product.</font><font style="font-family:inherit;font-size:10.5pt;"> Upon adoption of the new revenue recognition standard on January 1, 2018 (discussed in </font><font style="font-family:inherit;font-size:10.5pt;font-style:italic;">Recently adopted accounting standards</font><font style="font-family:inherit;font-size:10.5pt;">), WGP changed its accounting policy for revenue recognition as described below.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">WES</font><font style="font-family:inherit;font-size:10.5pt;font-style:italic;"> </font><font style="font-family:inherit;font-size:10.5pt;">provides gathering, processing, treating, transportation and disposal services pursuant to a variety of contracts. Under these arrangements, WES receives fees and/or retains a percentage of products or a percentage of the proceeds from the sale of the customer&#8217;s products. These revenues are included in Service revenues and Product sales in the consolidated statements of operations. Payment is generally received from the customer in the month following the service or delivery of the product. Contracts with customers generally have initial terms ranging from </font><font style="font-family:inherit;font-size:10.5pt;">5</font><font style="font-family:inherit;font-size:10.5pt;"> to </font><font style="font-family:inherit;font-size:10.5pt;">10</font><font style="font-family:inherit;font-size:10.5pt;"> years.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">Service revenues &#8211; fee based is recognized for fee-based contracts in the month of service based on the volumes delivered by the customer. Producers&#8217; wells or production facilities are connected to WES&#8217;s gathering systems for gathering, processing, treating, transportation and disposal of natural gas, NGLs, condensate, crude oil and produced water, as applicable. Revenues are valued based on the rate in effect for the month of service when the fee is either the same rate per unit over the contract term or when the fee escalates and the escalation factor approximates inflation. Deficiency fees charged to customers that do not meet their minimum delivery requirements are recognized as services are performed based on an estimate of the fees that will be billed upon completion of the performance period. Because of its significant upfront capital investment, WES may charge additional service fees to customers for only a portion of the contract term (i.e., for the first year of a contract or until reaching a volume threshold), and these fees are recognized as revenue over the expected period of customer benefit, which is generally the life of the related properties.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">WES also receives Service revenues &#8211; fee based from contracts that have minimum volume commitment demand fees and fees that require periodic rate redeterminations based upon the related facility cost of service. These fees include fixed and variable consideration that are recognized on a consistent per-unit rate over the term of the contract. Annual adjustments are made to the cost of service rates charged to customers, and a cumulative catch-up revenue adjustment related to services already provided to the minimum volumes under the contract may be recorded in future periods, with revenues for the remaining term of the contract recognized on a consistent per-unit rate.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">Service revenues &#8211; product based includes service revenues from percent-of-proceeds gathering and processing contracts that are recognized net of the cost of product for purchases from WES&#8217;s customers since it is acting as the agent in the product sale. Keep-whole and percent-of-product agreements result in Service revenues &#8211; product based being recognized when the natural gas and/or NGLs are received from the customer as noncash consideration for the services provided. Noncash consideration for these services is valued at the time the services are provided. Revenue from product sales is also recognized, along with the cost of product expense related to the sale, when the product received as noncash consideration is sold to either Anadarko or a third party.</font></div><div style="line-height:120%;text-align:justify;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;font-weight:bold;">1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION</font><font style="font-family:inherit;font-size:10.5pt;font-weight:bold;"> (CONTINUED)</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">WES also purchases natural gas volumes from producers at the wellhead or from a production facility, typically at an index price, and charges the producer fees associated with the downstream gathering and processing services. When the fees relate to services performed after control of the product has transferred to WES, the fees are treated as a reduction of the purchase cost. Revenue from product sales is recognized, along with cost of product expense related to the sale, when the purchased product is sold to either Anadarko or a third party.</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;">WES receives aid in construction reimbursements for certain capital costs necessary to provide services to customers (i.e., connection costs, etc.) under certain service contracts. Aid in construction reimbursements are reflected as a contract liability upon receipt and amortized to Service revenues &#8211; fee based over the expected period of customer benefit, which is generally the life of the related properties.</font></div></div>
CY2018Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10.5pt;"><font style="font-family:inherit;font-size:10.5pt;font-style:italic;">Use of estimates. </font><font style="font-family:inherit;font-size:10.5pt;">In preparing financial statements in accordance with GAAP, management makes informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Management evaluates its estimates and related assumptions regularly, using historical experience and other methods considered reasonable. Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. Effects on the business, financial condition and results of operations resulting from revisions to estimates are recognized when the facts that give rise to the revisions become known. The information furnished herein reflects all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the consolidated financial statements, and certain prior-period amounts have been reclassified to conform to the current-year presentation.</font></div></div>

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