Business Context and Reporting Period
This Form 8-K is a current report filed by Western Gas Equity Partners, LP (the "Partnership") on May 8, 2018. The filing discloses a material definitive agreement entered into on May 10, 2018, and the appointment of a new senior executive officer on May 8, 2018.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses on contractual terms and personnel changes rather than financial performance data.
Material Changes and Agreements
Amendment to Wattenberg Gas Gathering Agreement
- Parties: Kerr-McGee Gathering, LLC (a subsidiary of Western Gas Partners, LP) and Kerr-McGee Oil & Gas Onshore LLC (a subsidiary of Anadarko Petroleum Corporation).
- Scope: Gas gathering services in the "North Core," an approximately 92,000-acre section of the northern DJ Basin.
- Terms: Services will be performed on a fixed-fee basis with minimum monthly volume commitments. Anadarko must dedicate all gas produced in the North Core to the gathering system.
- Duration: The agreement expires on or about December 31, 2029.
- Termination: Anadarko may terminate the amendment on or before February 28, 2019. In such an event, Anadarko must reimburse Western Gas Partners for capital costs incurred to build out the system through the termination date.
- Confidentiality: Certain portions of the amendment are redacted pending a FOIA Confidential Treatment Request.
Management Commentary and Personnel Changes
Executive Appointment
- Role: Gennifer F. Kelly was appointed Senior Vice President and Chief Operating Officer of the Partnership's general partner and Western Gas Partners, LP.
- Background: Ms. Kelly, age 45, has over 23 years of industry experience, previously serving as Vice President, Midstream and Marketing for Anadarko since April 2018.
- Compensation: She is eligible for future equity awards and benefits under both the Partnership's and Anadarko's programs. The Partnership will bear expenses for benefits allocable to it.
Investor Verification Checklist
- Verify the specific financial terms of the fixed-fee arrangement and minimum volume commitments in the redacted amendment.
- Confirm the capital expenditure requirements for the North Core gathering system build-out.
- Monitor the status of the FOIA Confidential Treatment Request to access full agreement details.
- Review the impact of the new COO's appointment on operational strategy and alignment with Anadarko.