Western Gas Partners, LP (NYSE: WES) today announced first-quarter 2012 financial and operating results. Net income available to limited partners for the first quarter of 2012 totaled $43.8 million, or $0.48 per common unit (diluted). The Partnership’s first-quarter Adjusted EBITDA (1) was $84.8 million and Distributable cash flow (1) was $73.1 million, resulting in a Coverage ratio (1) of 1.59 times for the period.
Total throughput attributable to the Partnership for the first quarter of 2012 averaged 2,414 MMcf/d, 5 percent above the prior quarter and 10 percent above the first quarter of 2011. These results include the net throughput attributable to the Mountain Gas Resources assets acquired from Anadarko Petroleum Corporation for all periods of comparison and throughput attributable to the Platte Valley system beginning March 2011. Capital expenditures attributable to the Partnership, excluding acquisitions, totaled approximately $52.2 million during the first quarter of 2012. Of this amount, maintenance capital expenditures were approximately $5.8 million, or 7 percent of Adjusted EBITDA.
“Our first quarter was yet another quarter of strong, stable results,” said Western Gas Partners’ President and Chief Executive Officer, Don Sinclair. “While we believe that the current natural gas price environment creates challenges for our entire industry, the strength of our business model enables us to maintain the full-year guidance that we provided in February.”
The Partnership previously declared a quarterly distribution of $0.46 per unit for the first quarter of 2012, payable on May 14, 2012, to unitholders of record at the close of business on April 30, 2012, representing a 5-percent increase over the prior quarter and an 18-percent increase over the first-quarter 2011 distribution of $0.39 per unit. The first-quarter 2012 Coverage ratio of 1.59 times is based on the quarterly distribution of $0.46 per unit.CONFERENCE CALL TOMORROW AT 11 A.M. CDT Management will host a conference call on Thursday, May 3, 2012, at 11 a.m. Central Daylight Time (12 p.m. Eastern Daylight Time) to discuss first-quarter 2012. To participate via telephone, please dial 877.621.4819 and enter participant code 71023847. Please call in 10 minutes prior to the scheduled start time. To access the live audio webcast of the conference call and slide presentation, please visit www.westerngas.com. A replay of the call will also be available on the Web site for approximately two weeks following the conference call. Western Gas Partners, LP is a growth-oriented Delaware master limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. With midstream assets in East, West and South Texas, the Rocky Mountains and the Mid-Continent, the Partnership is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, natural gas liquids and crude oil for Anadarko and other producers and customers. For more information about Western Gas Partners, please visit www.westerngas.com. This news release contains forward-looking statements. Western Gas Partners believes that its 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 news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to safely and efficiently operate our 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; and construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures, as well as other factors described in the “Risk Factors” section of the Partnership’s most recent Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases by Western Gas Partners. Western Gas Partners undertakes no obligation to publicly update or revise any forward-looking statements. Reconciliation of GAAP to Non-GAAP Measures Below are reconciliations of Distributable cash flow (non-GAAP) and Adjusted EBITDA (non-GAAP) to net income (GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management believes that the presentation of Distributable cash flow, Adjusted EBITDA and Coverage ratio are widely accepted financial indicators of a company’s financial performance compared to other publicly traded partnerships and are useful in assessing our ability to incur and service debt, fund capital expenditures and make distributions. Distributable cash flow, Adjusted EBITDA and Coverage ratio, as defined by the Partnership, may not be comparable to similarly titled measures used by other companies. Therefore, the Partnership’s consolidated Distributable cash flow, Adjusted EBITDA and Coverage ratio should be considered in conjunction with net income and other performance measures, such as operating income or cash flows from operating activities.
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