Western Gas Partners Announces Fourth-Quarter and Full-Year 2009 Results

Western Gas Partners, LP (NYSE: WES) today announced fourth-quarter and full-year financial and operating results for 2009. The announced results include the effects of the Partnership’s acquisition of the Chipeta assets from Anadarko Petroleum Corporation (NYSE: APC), which closed in July 2009. In addition, the Partnership today announced its 2010 capital program and outlook for the year.

Net income available to limited partners for 2009 totaled $70.0 million, or $1.24 per limited partner unit (diluted), with 2009 Adjusted EBITDA of $111.2 million and 2009 distributable cash flow of $102.2 million.⁽¹⁾

Net income available to limited partners for the fourth quarter of 2009 totaled $18.9 million, or $0.33 per limited partner unit (diluted). The Partnership’s fourth-quarter Adjusted EBITDA was $29.6 million and distributable cash flow was $26.6 million. These results include the impact of a $2.5 million benefit from a prior period. The coverage ratio for the fourth quarter of 1.13 times excludes the prior-period item and includes the full dilution from the 6.9 million units issued to the public in December 2009 and the 0.6 million units issued to Anadarko in connection with the Granger acquisition in January 2010.

"With a cash flow base that is largely insulated from commodity price changes, our portfolio delivered consistent results in a challenging environment,” said Western Gas Partners’ President and Chief Executive Officer Don Sinclair. "We are most proud of our ability to increase our quarterly distribution three consecutive times in 2009 while maintaining conservative levels of coverage, resulting in a distribution growth rate of 10% for the year.”

Total throughput attributable to the Partnership for the fourth quarter of 2009 averaged 1,180 MMcf/d, 2.4 percent below the prior quarter and 5.8 percent below the fourth quarter of 2008. For the full-year 2009, throughput attributable to the Partnership averaged 1,219 MMcf/d, 1.5 percent below the prior-year average.

Capital expenditures attributable to the Partnership totaled approximately $8.8 million during the fourth quarter of 2009. Of this amount, maintenance capital expenditures were approximately $4.0 million, or 14 percent of Adjusted EBITDA. For the full-year 2009, capital expenditures attributable to the Partnership totaled $42.6 million, which included 51% of the full-year capital expenditures associated with the Chipeta assets.

2010 CAPITAL PROGRAM AND OUTLOOK

The board of directors of the Partnership’s general partner has approved a 2010 capital budget of $32.5 million.

The Partnership’s 2010 performance is expected to be driven primarily by system throughput, as its operations have minimal direct exposure to commodity prices. System throughput will be impacted by successful drilling activity by customers in the Partnership’s areas of operation, and the resulting volume of new production connected to the Partnership’s systems to offset natural field declines. Based on current expectations for drilling and completion activity, Adjusted EBITDA for 2010 is expected to be between $130 and $150 million. Total capital expenditures are expected to be between $28 and $32 million, with maintenance capital expenditures expected to be between 15 percent and 18 percent of Adjusted EBITDA.

CONFERENCE CALL TOMORROW AT 9 A.M. CST

Management will host a conference call on Thursday, Mar. 11, 2010, at 9 a.m. Central Standard Time (10 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2009 results and the outlook for 2010. The dial-in number for the call is 888.679.8034 and the participant code is 53653840. Please call in 10 minutes prior to the scheduled start time. To access the live audio webcast of the conference call, please visit www.westerngas.com. A replay of the call will also be available on the Web site for approximately two weeks following the conference call.

Western Gas Partners, LP is a growth-oriented Delaware limited partnership formed by Anadarko Petroleum Corporation to own, operate, acquire and develop midstream energy assets. With midstream assets in East and West Texas, the Rocky Mountains and the Mid-Continent, the Partnership is engaged in the business of gathering, compressing, processing, treating and transporting natural gas for Anadarko and other producers and customers. For more information about Western Gas Partners, please visit www.westerngas.com.

This news release contains forward-looking statements. Western Gas Partners believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release. These factors include the ability to meet financial guidance or distribution growth expectations; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; and construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures, as well as other factors described in the "Risk Factors” section of the Partnership’s 2008 Annual Report on Form 10-K filed with the Securities and Exchange Commission and other public filings and press releases by Western Gas Partners. Western Gas Partners undertakes no obligation to publicly update or revise any forward-looking statements.

¹ Please see the tables at the end of this release for a reconciliation of GAAP to non-GAAP measures.

Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of Distributable Cash Flow and Adjusted EBITDA (non-GAAP) to Net Income (GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management believes that the presentation of Distributable Cash Flow and Adjusted EBITDA are widely accepted financial indicators of a company’s financial performance compared to other publicly traded partnerships and are useful in assessing our ability to incur and service debt, fund capital expenditures and make distributions. Distributable Cash Flow and Adjusted EBITDA, as defined by the Partnership, may not be comparable to similarly titled measures used by other companies. Therefore, the Partnership’s consolidated Distributable Cash Flow and Adjusted EBITDA should be considered in conjunction with net income and other performance measures, such as operating income or cash flow from operating activities.

Distributable Cash Flow

The Partnership defines Distributable Cash Flow as Adjusted EBITDA, plus interest income, less net cash paid for interest expense, maintenance capital expenditures and income taxes.

Reconciliation of GAAP to Non-GAAP Measures, continued

Adjusted EBITDA

The Partnership defines Adjusted EBITDA as Net Income (loss) attributable to Western Gas Partners, LP, plus distributions from equity investee, non-cash share-based compensation expense, expenses in excess of the omnibus cap, interest expense, income tax expense and depreciation, amortization and impairment, less income from equity investment, interest income, income tax benefit, other income and other nonrecurring adjustments that are not settled in cash.