Late Tuesday, Western Gas Partners, L.P. (WES) reported an increase in net income for the fourth quarter from the prior-year period, helped by lower operating expenses and an interest income that offset a 19% decline in revenue. In addition, the board of directors of the partnership's general partner approved a capital budget of $31 million for 2009.
For the fourth quarter, the company's net income rose to $20.11 million from $11.90 million in the previous-year quarter. Net income available to limited partners for the quarter totaled $16.13 million, or $0.30 per limited partner unit.
On average, six analysts polled by Thomson Reuters expected the company to report earnings for the quarter of $0.31 per share. Analysts' estimates typically exclude special items.
The company noted that the results include the full-year effect of the partnership's acquisition of Powder River assets from Anadarko Petroleum Corp. (APC), which closed in December 2008.
Total revenues for the quarter declined 18.5% to $57.41 million from $70.46 million in the same period last year. Wall Street analysts had a consensus revenue estimate for the quarter of $36.09 million.
Operating expenses for the quarter declined to $38.93 million from $51.41 million in the previous-year quarter. Operating income for the quarter was $18.49 million, down from $19.05 million a year ago.
The company's interest income for the quarter was $4.26 million, compared to interest expense of $1.65 million in the prior-year period. Income tax expense declined to $2.65 million from $5.49 million in the year-ago period.
Total throughput volumes for the quarter were 1,074 MMcf/d, an increase of about 2% over 1,057 MMcf/d for the same period last year.
Capital expenditures for the quarter totaled about $12.8 million.
For fiscal year 2008, the company's net income surged to $65.28 million from $36.66 million a year ago. Net income available to limited partners for the year was $41.26 million, or $0.77 per limited partner unit.
Revenues for the year rose to $311.65 million from $261.49 million in the prior year.
For fiscal year 2009, the company forecasts adjusted EBITDA between $90 million and $110 million.
The company also said that the board of directors of the partnership's general partner approved a capital budget of $31 million. The company predicts total capital expenditures for the year to be between $27 million and $31 million.
WES closed Tuesday's regular trading session at $13.02, up $0.39 or 3.09% on a volume of 0.28 million shares.
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