Midstream-energy assets operator Western Gas Partners LP (WES) Tuesday said its second quarter profit increased from last year, due to stable throughput and lower operating expenses.
Net income available to limited partners was $17.8 million or $0.32 per limited partner unit for the second quarter, compared to $8.1 million or $0.15 per limited partner unit in the prior year quarter.
On average, 7 analysts polled by Thomson Reuters expected the company to earn $0.28 per share for the second quarter. Analysts' estimates typically exclude one-time items.
Second quarter total revenues decreased to $50.0 million from $90.6 million in the same quarter last year. Three analysts had a consensus revenue estimate of $52.61 million for the second quarter.
"We reported strong performance during the second quarter, primarily as a result of stable throughput and continued progress on cost-reduction initiatives with respect to both operating expenses and capital expenditures," said Western Gas Partners' president and chief executive officer, Robert Gwin.
Total throughput averaged 1,060 MMcf/d, up 6% from 1,122 MMcf/d in the second quarter of 2008.
Total operating expenses for the second quarter eased to $34.2 million from $73.0 million in the previous year quarter.
For the first-half of 2009, Western Gas posted net income available to limited partners of $34.4 million or $0.62 per limited partner unit, compared to $8.1 million or $0.15 per limited partner unit in the year-ago period.
Total revenues for the year-to-date period declined to $100.9 million from $172.0 million in the prior year period.
During the quarter, Western Gas agreed to acquire certain midstream assets in the Uintah Basin in northeastern Utah from Anadarko Petroleum Corp. (APC) for around $107 million. The acquisition is expected to close in the third quarter.
Western Gas sees the acquisition to be immediately accretive to cash available for distribution.
WES closed Tuesday's regular trading session at $16.72, down 19 cents or 1.12%. In the after-hours, the shares further lost 29 cents or 1.73%.
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