Business Context and Reporting Period
This Form 8-K Current Report was filed by Western Gas Equity Partners, LP (the "Partnership") on November 9, 2017. The report details corporate governance changes and amendments to the Partnership Agreement effective as of the filing date.
Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses on legal and governance matters rather than financial performance.
Material Changes
- Board Appointment: Daniel E. Brown was appointed to the Board of Directors of Western Gas Equity Holdings, LLC (the General Partner), replacing Darrell E. Hollek. Mr. Brown currently serves as Executive Vice President, U.S. Onshore Operations for Anadarko Petroleum Corporation.
- Partnership Agreement Amendment: The General Partner entered into Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership. This amendment addresses changes to the Internal Revenue Code enacted by the Bipartisan Budget Act of 2015 (BBA) regarding partnership audit and adjustment procedures.
- Amendment Purpose: The revisions facilitate the General Partner's obligations as the "Partnership Representative" under the BBA and aim to maintain the current economic balance where partners bear the economic burden of adjustments for the reviewed year.
Guidance, Outlook, and Risks
The filing does not contain financial guidance, outlook, or management commentary on future performance. The primary contingency noted is the implementation of the BBA audit procedures, which the Partnership has addressed through the amendment to its governing agreement.
Key Facts for Investor Verification
- Verify the background and potential conflicts of interest for the new director, Daniel E. Brown, given his executive role at Anadarko Petroleum Corporation.
- Review Exhibit 3.1 (Amendment No. 1) to understand the specific legal mechanisms adopted to comply with the Bipartisan Budget Act of 2015.
- Confirm the effective date of the Board change and the Partnership Agreement amendment is November 9, 2017.