Profile: Western Gas Partners LP (WES.N)
3 Sep 2015
Western Gas Partners, LP, (the Partnership), incorporated on August 21, 2007, is a master limited partnership (MLP) that owns, operates, acquires and develops midstream energy assets. The Partnership is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, Natural gas liquids (NGLs) and crude oil for Anadarko Petroleum Corporation (Anadarko) and its consolidated subsidiaries, as well as third-party producers and customers. Anadarko is an independent oil and gas exploration and production company engaged in upstream oil and gas business, and explores for and produces natural gas, crude oil, condensate and NGLs. The Partnership’s services include gathering, stabilization, compression, treating and dehydration, processing, fractionation, and storage, transportation and marketing.
At the initial-stages of the midstream value chain, the Partnership’s gathering systems transport raw, or untreated, natural gas to a central location for treating and processing. Its gathering system involves miles of gathering lines connected to wells. In connection with the gathering services, the Partnership retains, stabilizes and sells drip condensate, which falls out of the natural gas stream during gathering. The Partnership’s Stabilization process includes separation of the heavier hydrocarbons found in natural gas from the lighter components by using a distillation process or by reducing the pressure and letting the more volatile components flash. The Partnership provides stabilization for condensate at many of its processing plants (such as the DJ Basin and Brasada complexes).
The Partnership provides Midstream natural gas services, other than transportation, under contractual arrangements that vary in the amount of commodity price risk they carry. Three typical contract types are: Fee-based, Percent-of-proceeds, percent-of-value or percent-of-liquids and Keep-whole. Under fee-based arrangements, the service provider typically receives a fee for each unit of natural gas gathered, treated and/or processed at its facilities. Under Percent-of-proceeds, percent-of-value or percent-of-liquids arrangements, the service provider remits to the producers either a percentage of the proceeds from the sale of residue and/or NGLs or a percentage of the actual residue and/or NGLs at the tailgate. Under Keep-whole arrangements, the service provider keeps 100% of the NGLs produced, and the processed natural gas, or value of the gas, is returned to the producer. The Partnership uses two types of contracts for the transportation of natural gas, NGLs and crude oil: Firm and Interruptible. Firm transportation service requires the reservation of pipeline capacity by a customer between certain receipt and delivery points. Interruptible transportation service is short-term in nature and is used by customers that either do not need firm service or have been unable to contract for firm service.
Gathering, Processing and Treating
The Partnership has gathering, processing and treating facilities at Northeast Wyoming and Southwest Wyoming regions. In Northeast Wyoming, the Partnership’s assets are located at Bison, Fort Union, Hilight and Newcastle. In Southwest Wyoming, the Partnership’s assets are located at Granger complex, Red Desert complex and Rendezvous. The Bison treating facility treats and compresses gas from coal-bed methane wells in the Powder River Basin of Wyoming. The Bison pipeline is connected directly to the facility, which is the inlet into the pipeline. The Bison treating facility also has access to Fort Union’s pipeline and the Thunder Creek pipeline. Fort Union’s gas supply is comprised of coal-bed methane volumes that are either produced or gathered by the customers throughout the Powder River Basin. The Fort Union system delivers coal-bed methane gas to the hub in Glenrock, Wyoming, which has access to the following interstate pipelines: Colorado Interstate Gas Company LLC’s pipeline (CIG); Tallgrass Interstate Gas Transmission system’s pipeline (TIGT), and Wyoming Interstate Company’s pipeline (WIC).
The Hilight gathering system serves the gas gathering needs of conventional producing fields in Johnson, Campbell, Natrona and Converse Counties. The Hilight plant delivers residue into the Partnership’s MIGC LLC (MIGC) transmission line. Gas gathered and processed through the Newcastle system is from 11 third-party customers. The Newcastle gathering system and plant primarily service gas production from the Clareton and Finn-Shurley fields in Weston County, Wyoming. Propane products from the Newcastle plant are typically sold locally by truck, and the butane/gasoline mix products are transported to the Hilight plant for further fractionation. Residue from the Newcastle system is delivered into MGTC, Inc. (MGTC) intrastate pipeline, a Hinshaw pipeline that supplies local markets in Wyoming, for transport, distribution and sale. The Granger complex is supplied by the Moxa Arch and the Jonah and Pinedale anticline fields.
The Granger gas gathering system had 667 active receipt points as of December 31, 2014. The residue from the Granger complex is delivered to the following pipelines: CIG; Kern River pipeline (Kern River pipeline) and the Mountain Gas Transportation, Inc.’s (MGTI) pipeline through a connect with Tesoro Logistics LP’s (Tesoro) Rendezvous pipeline (Rendezvous pipeline); Northwest pipeline (NWPL), and the Partnership’s Overland Trail Transmission, LLC’s pipeline (OTTCO). The Red Desert complex gathers, compresses, treats and processes natural gas and fractionates NGLs produced in the eastern portion of the Greater Green River Basin, providing services primarily to the Red Desert and Washakie Basins. Residue from the Red Desert complex is delivered to CIG and WIC, while NGLs are delivered to MAPL, as well as to truck and rail loading facilities. Tesoro and Anadarko are the firm shippers on the Rendezvous gathering system. The Rendezvous gathering system provides mainline gathering service for gas from the Jonah and Pinedale anticline fields and delivers to its Granger plant, as well as Tesoro’s Blacks Fork gas processing plant, which connects to Questar Pipeline Company’s pipeline (Questar pipeline), NWPL and the Kern River pipeline via the Rendezvous pipeline.
At the Rocky Mountains in the Colorado and Utah region, the Partnership had gathering, processing and treating facility at DJ Basin complex, processing facility at Chipeta, and gathering and treating facilities at Clawson and Helper. There were 2,881 active receipt points connected to the DJ Basin complex as of December 31, 2014. The DJ Basin complex is primarily supplied by the Wattenberg field, in which Anadarko controls 840,000 gross acres and drilled 369 wells and completed 330 wells during the year ended December 31, 2014. As of December 31, 2014, the DJ Basin complex had the following delivery points for gas not processed within the DJ Basin complex: Anadarko’s Wattenberg plant; DCP Midstream’s (DCP) Spindle, Mewbourn and Platteville plants, and AKA Energy Group, LLC’s Gilcrest plant. Chipeta’s inlet is connected to Anadarko’s Natural Buttes gathering system, the Questar pipeline and the Three Rivers Gathering, LLC’s system, which is owned by Ute Energy and another third party. The Chipeta plant delivers NGLs to MAPL, which provides transportation through Enterprise’s Seminole pipeline (Seminole pipeline) and TEP’s pipeline in West Texas and ultimately to the NGL fractionation and storage facilities in Mont Belvieu, Texas. The Chipeta plant has natural gas delivery points through the following pipelines: CIG, Questar pipeline; and WIC. The Clawson Springs field covers 7,000 gross acres and produces primarily from the Ferron Coal play. The Clawson gathering system delivers into the Questar pipeline. The Questar pipeline provides transportation to regional markets in Wyoming, Colorado and Utah and also delivers into the Kern River pipeline, which provides transportation to markets in the Western United States, primarily California. The Helper and the Cardinal Draw fields are Anadarko-operated coal-bed methane developments on the southwestern edge of the Uinta Basin that produce from the Ferron Coal play. Anadarko owns 19,000 gross acres in each of the Helper and Cardinal Draw fields. The Helper gathering system delivers into the Questar pipeline.
In the Mid-Continent and North-central Pennsylvania region, the Partnership has gathering assets include Hugoton, Non-Operated Marcellus and Anadarko-Operated Marcellus are located at Southwest Kansas & Oklahoma and North-central Pennsylvania regions. In the Texas region, the Partnership’s assets include Dew, Pinnacle, Mont Belvieu JV, Brasada complex, Haley and DBM complex.
The Partnership competes with Regency Energy Partners LP, National Fuel Gas Midstream Corporation, Thunder Creek Gas Services, LLC, Enterprise Products Operating LLC, Energy Transfer Partners, LP, Kinder Morgan, Inc., Tesoro Logistics LP, ETC Texas Pipeline, Ltd., Midcoast Energy Partners, LP, XTO Energy, DCP and AKA Energy Group, LLC, MIGC, Enterprise/Jonah Gas Gathering Company, Enterprise GC, LP, Regency Gas Services, LP, Targa Midstream Services, LP, ONEOK Gas Gathering Company, Tallgrass Energy Partners, LP, Rowdy Gathering Company, Linn Energy, DCP Midstream, LP, Targa Resources LP, Phillips 66, Lone Star NGL LLC and ONEOK Partners, LP.
The Partnership’s oil, gas and NGL assets include MIGC, OTTCO, GNB NGL, White Cliffs, FRP, TEG and TEP, and are located in the Northeast Wyoming, Southwest Wyoming, Utah, Oklahoma, Colorado and Texas regions. The MIGC transportation system receives gas from various coal-bed methane gathering systems throughout the Powder River Basin and the Hilight system, as well as from WBI Energy Transmission, Inc. on the north end of the transportation system. MIGC volumes are redelivered to the hub in Glenrock, Wyoming, which has access to the following interstate pipelines: CIG, TIGT, and WIC. Supply points to the OTTCO transportation system include the Granger complex and ExxonMobil Corporation’s Shute Creek plant, which are supplied by the eastern portion of the Greater Green River Basin, the Moxa Arch and the Jonah and Pinedale anticline fields. Primary delivery points include the Red Desert complex, two third-party industrial facilities and an interconnection with Kern River pipeline. The GNB NGL pipeline receives NGLs from Chipeta’s gas processing facility and Tesoro’s-stagecoach/Iron Horse gas processing complex. The GNB NGL pipeline delivers NGLs to MAPL, which provides transportation through the Seminole pipeline and TEP in West Texas, and ultimately to NGL fractionation and storage facilities in Mont Belvieu, Texas.
The White Cliffs pipeline is supplied by production from the DJ Basin and offers the only direct route from the DJ Basin to Cushing, Oklahoma. The White Cliffs pipeline delivery point is SemCrude’s storage facility in Cushing, Oklahoma, a crude oil marketing center, which ultimately delivers to Gulf Coast and mid-continent refineries. The Partnership’s assets under development include Lancaster Train II in the DJ Basin and DBM Trains IV and V in West Texas.
The Partnership competes with West Texas LPG Pipeline LP and TransCanada Corporation.
Western Gas Partners LP
1201 Lake Robbins Dr
THE WOODLANDS TX 77380-1181