Western Gas Partners, LP. Third-Quarter Review. November 12, 2008

Transcription

1 Western Gas Partners, LP November 12, 2008

2 Western Gas Partners, LP Cautionary Language Re: Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Western Gas Partners, LP 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 presentation. These factors include the ability to consummate the transactions discussed in this presentation; the ability to meet financial guidance; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices; 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 Form S-1 registration statement filed with the Securities and Exchange Commission and other public filings and press releases by Western Gas Partners, LP. Western Gas Partners, LP undertakes no obligation to publicly update or revise any forwardlooking statements. 2

3 Highlights Business Objective: Increase Cash Distributions Per Unit Over Time Declared third-quarter cash distribution of $0.30 per unit Generated quarterly distribution coverage of 1.27x Continued focus on capital discipline and operating cost management Agreed to acquire midstream assets from Anadarko for $210 million 3

4 3Q08 Financial Highlights Revenues Increased 33% over 3Q07 Adjusted EBITDA Increased 11% over 3Q07 Maintenance Capex 19% of Adjusted EBITDA during quarter Distributable Cash Flow 1.27x coverage of quarterly distribution 4

5 Operating Highlights (in thousands) Gathering & Transportation: Throughput Volumes (MMbtu/d) Affiliates Third parties Total Throughput Volumes Rates ($/MMbtu)* 3 rd Quarter 2 nd Quarter * Calculated using gathering, treating, and transportation volumes 5

6 East Texas Region Dew/Pinnacle Gathering System & Pinnacle Gas Treating Facility Dew/Pinnacle Gathering System Well-completion delays and Hurricane Ike reduced throughput volumes in 3Q08 Completed two-stage compression upgrade Pinnacle Gas Treating Actively marketing 11 LTD of sour gas treating capacity 6

7 Mid-Continent Region Hugoton Gathering System Active third-party drilling programs continue Condensate margins benefited from favorable pricing although the third-quarter had seasonally low volumes 7

8 West Texas Region Haley Gathering System 3Q throughput improved from 2Q as a result of several successful well connections Anadarko/Chesapeake JV drilling program expected to focus on areas near our gathering system 8

9 Rocky Mountain Region MIGC Pipeline, Helper and Clawson Gathering Systems Powder River (MIGC) Helper MIGC Pipeline Capacity is fully subscribed Powder River production growth continues Clawson Helper and Clawson Systems Cardinal Draw drilling activity now underway following approval of environmental assessment study 9

10 Expanding the Portfolio 10

11 Asset Overview Hilight System 100% ownership Gathering and processing 100% third-party production Fort Union Gas Gathering 14.81% ownership of LLC Gathering and treating 78% third-party production Newcastle System 50% ownership Gathering and processing 100% third-party production Subject to ROFR 11

12 Acquisition Highlights Acquiring Powder River Basin midstream assets for $210 million Consideration: Cash (funded by note to APC) and common units Financing terms $175 million note: 5-year bullet maturity with fixed rate of 4.00% for the first two years and LIBOR thereafter 2.56 million common units: implied price of $13.69 (implied value of $35 million) Commodity swap with APC WES receives fixed price on actual volumes Five-year agreement, fixed commodity pricing established for first two years 12

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