Western Gas Partners, LP (WES) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $143 million, or $ 0.35 a share in the quarter, against a net loss of $155.88 million, or $1.60 a share in the last year period. Revenue during the quarter grew 22.63 percent to $510.82 million from $416.56 million in the previous year period. Gross margin for the quarter contracted 536 basis points over the previous year period to 67.26 percent. Operating margin for the quarter period stood at positive 35.46 percent as compared to a negative 28.20 percent for the previous year period.
Operating income for the quarter was $181.16 million, compared with an operating loss of $117.48 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $268.37 million compared with $221.36 million in the prior year period. At the same time, adjusted EBITDA margin contracted 60 basis points in the quarter to 52.54 percent from 53.14 percent in the last year period.
"The Partnership delivered yet another outstanding financial quarter highlighted by the resiliency of our portfolio and the strength of our organic growth opportunities. Volumes and producer activity continue to accelerate at our Ramsey plant in the Delaware Basin, where Train V is now online and Train II has returned to service,” said chief executive officer, Benjamin Fink. "Additionally, Ramsey Train VI remains on schedule to begin service in the fourth quarter of 2017."
Operating cash flow improves
Western Gas Partners, LP has generated cash of $917.58 million from operating activities during the year, up 16.79 percent or $131.94 million, when compared with the last year. The company has spent $1,105.53 million cash to meet investing activities during the year as against cash outgo of $500.28 million in the last year. It has incurred net capital expenditure of $1,150.34 million on net basis during the year, up 127.55 percent or $644.81 million from year ago.
Cash flow from financing activities was $447.84 million for the year as against cash outgo of $254.39 million in the last year period.
Cash and cash equivalents stood at $357.92 million as on Dec. 31, 2016, up 265.11 percent or $259.89 million from $98.03 million on Dec. 31, 2015.
Debt moves up
Western Gas Partners, LP has witnessed an increase in total debt over the last one year. It stood at $3,091.46 million as on Dec. 31, 2016, up 14.90 percent or $400.81 million from $2,690.65 million on Dec. 31, 2015. Western Gas Partners Lp has witnessed an increase in long-term debt over the last one year. It stood at $3,091.46 million as on Dec. 31, 2016, up 14.90 percent or $400.81 million from $2,690.65 million on Dec. 31, 2015. Total debt was 39.98 percent of total assets as on Dec. 31, 2016, compared with 40.12 percent on Dec. 31, 2015.
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