Declares Common and Preferred Dividends

DENVER, December 3, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) announced today that its Board of Directors has declared a quarterly dividend of $0.05 per share of common stock, payable to stockholders of record on December 31, 2002.

In addition, the Board declared quarterly dividends of $0.65625 per share on the $2.625 Cumulative Convertible Preferred Stock (NYSE:WGR pfA). The preferred dividend is payable to stockholders of record on December 31, 2002.

The dividends for these securities will be paid on February 14, 2003.

Announces Redemption and Delisting Of All Outstanding Shares
of $2.28 Cumulative Preferred Stock

DENVER, November 26, 2002 -- Western Gas Resources, Inc. (the "Company") (NYSE:WGR) announced today that it has called for redemption all outstanding shares of its $2.28 Cumulative Preferred Stock, $.10 par value (the "Preferred Stock"). The redemption date of the Preferred Stock will be December 27, 2002 (the "Redemption Date"), and the redemption price will be $25.00 per share of Preferred Stock, plus all dividends (whether or not earned or declared) accumulated and unpaid to, but not including, the Redemption Date (i.e., the redemption price will be $25.56398 per share of Preferred Stock) (the "Redemption Price"). The redemption of the Preferred Stock is being effected pursuant to paragraph (v) of the Certificate of Designation of the Preferred Stock.

On or before the Redemption Date, the funds necessary for the redemption of the outstanding shares of Preferred Stock will have been set aside by the Company in trust for the pro rata benefit of the holders of the shares of the Preferred Stock called for redemption. Subject to the applicable escheat laws, any moneys so set aside by the Company and unclaimed at the end of two years from the Redemption Date will revert to the general funds of the Company, after which reversion the holders of the shares of the Preferred Stock called for redemption may look only to the general funds of the Company for the payment of the Redemption Price.

Notwithstanding that any certificates representing the Preferred Stock called for redemption (the "Certificates") have not been surrendered for cancellation, on and after the Redemption Date, the Preferred Stock will no longer be deemed to be outstanding, dividends on the Preferred Stock will cease to accrue, and all rights of the holders of the Preferred Stock will cease, except for the right to receive the Redemption Price, without interest thereon, upon surrender of the Certificates.

The Company has applied to the New York Stock Exchange for delisting of the Preferred Stock, effective on the Redemption Date or shortly thereafter.

As of November 13, 2002, approximately 546,846 shares of the Preferred Stock were outstanding. The notice of redemption and related materials will be mailed to registered holders of the Preferred Stock called for redemption on or about November 26, 2002. Shares of the Preferred Stock called for redemption are to be surrendered to EquiServe, as redemption agent, for payment of the Redemption Price, by mail, by hand or by overnight delivery at the addresses set forth in the letter of transmittal that will accompany the notice of redemption. Questions relating to, and requests for additional copies of, the notice of redemption and the related materials should be directed to the redemption agent at EquiServe Trust, at 1-800-736-3001.

Western is a leading independent gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are based primarily in Wyoming, including the developing Powder River Basin coal bed methane play, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas- producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States. For additional Company information, visit Western's Web site at www.westerngas.com.

Announces Third Quarter 2002 Results

DENVER, November 12, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) today announced that, for the quarter ended September 30, 2002, it had net income of $13.4 million, or $0.34 per share of common stock on a fully diluted basis. This compares to net income of $14.8 million for the same period in 2001, or $0.36 per share of common stock on a fully diluted basis. Earnings per share for both periods are after the requirements for preferred dividends.

For the third quarter of 2002, EBITDA (earnings before interest, taxes, depreciation and amortization) was $48.3 million from revenues of $615.2 million, net cash provided by operating activities was $4.6 million and cash flow from operations (net cash provided by operating activities before adjustments for working capital) was $37.9 million.

For the nine months ended September 30, 2002, net income was $35.2 million, or $0.86 per share of common stock on a fully diluted basis. This compares to net income of $84.8 million for the same period in 2001, or $2.23 per share of common stock on a fully diluted basis. Earnings per share for both periods are after the requirements for preferred dividends.

For the nine months ended September 30, 2002, EBITDA was $131.3 million, net cash provided by operating activities was $72.9 million, cash flow from operations was $107.8 million and revenues were $1.8 billion.

Recurring earnings, which are calculated by deducting from net income the after-tax effect of gains and losses from asset sales, were $13.7 million for the third quarter of 2002 and $35.6 million for the nine months ended September 30, 2002. This compares to recurring earnings of $15.1 million and $78.1 million for the same periods in 2001.

Total gas sales volumes marketed, including equity gas production, gas produced at the Company's plants and gas purchased from third parties for resale, averaged 2.0 billion cubic feet per day (Bcfd) in the third quarter of 2002. Average gas prices for marketed volumes were $2.77 per Mcf. Gas volumes marketed decreased as a result of fewer sales of gas purchased from third parties for resale.

Total NGL sales volumes marketed, including NGLs produced at the Company's plants and NGLs purchased from third parties for resale, averaged 2.2 million gallons per day (MMGald) in the third quarter of 2002. Average NGL prices for marketed volumes were $0.42 per gallon. NGL volumes marketed decreased as a result of fewer sales of NGLs purchased from third parties for resale.

Operations. The Company's fully integrated operations include exploration and production, gathering and processing, gas transportation and marketing.

Exploration and production realized operating income (EBITDA before general and administrative expenses) of $10.6 million for the third quarter of 2002 compared to $6.2 million for the same period in 2001. This increase was due to significant volume growth from the Powder River Basin CBM development and higher gas prices resulting from firm transportation capacity to more favorable Mid-Continent gas markets. Natural gas equity production in the third quarter of 2002 increased 41 percent compared to the same period in 2001, averaging 139 million cubic feet equivalent per day (MMcfed). All of the Company's production growth was achieved organically through the drill bit in the Powder River Basin coal bed methane (CBM) play and the Greater Green River Basin. Average gas prices realized at the wellhead, net of fuel, shrink, gathering and transportation, were $1.41 per Mcf before the benefit of equity hedging.

Gathering and processing realized operating income of $25.5 million for the third quarter of 2002 compared to $25.7 million for the third quarter of 2002. Gas throughput volumes in the third quarter of 2002 increased eight percent compared to the same period in 2001 to 1.2 Bcfd. The increase in gas throughput volumes was largely a result of increased gathering volumes of equity and third party CBM production from the Powder River Basin. Plant gas sales averaged 445 MMcfd at a realized price of $2.27 per Mcf. Plant NGL sales averaged 1.5 MMGald at a realized price of $0.40 per gallon. These prices do not reflect the effect of equity hedging. The Company continues to connect third-party wells to maintain stable gathering volumes against normal field declines.

Gas transportation realized operating income of $3.0 million in both the third quarter of 2002 and 2001. Gas transportation volumes in the third quarter of 2002 were 182 MMcfd.

Marketing realized operating income of $9.7 million for the third quarter of 2002 compared to operating income of $8.9 million for the same period in 2001. The results for the marketing business for both periods benefited from transactions utilizing the Company's firm transportation capacity where regional differentials widened and its storage positions.

Powder River Basin Coal Bed Methane. Net CBM production volumes in the Powder River Basin development increased 40 percent to approximately 123 MMcfd in the third quarter of 2002 as compared to the same period in 2001. As of September 30, 2002, net CBM production was approximately 128 MMcfd. By year-end, the Company expects net CBM production volumes to show an approximate 30 percent increase in 2002 compared to 2001. Through October 31, 2002, the Company has participated in the drilling of 865 gross CBM wells and expects to participate in the drilling of over 900 wells by year-end. In 2003, the Company expects to continue its aggressive development program and participate in the drilling of approximately 800 gross wells on its 515,000 net acre leasehold in the play. Approximately one-half of the 800-well drilling program is independent of an Environmental Impact Statement (EIS), which is expected to be completed in the first quarter of 2003.

CBM gas production from the Company's All Night Creek development area in the Big George coal of the Powder River Basin development has increased approximately 225 percent from a year ago to approximately 13.5 MMcfd gross as of October 31, 2002. Eighty-two wells are currently producing and 94 wells are dewatering or awaiting connection. In addition, the Company's Pleasantville pilot in the Big George is now producing 700 Mcfd. Industry-wide Big George production has seen a 200 percent growth rate in the last 12 months to approximately 42 MMcfd.

Green River Basin. In the Green River Basin of Wyoming, the Company holds approximately 32,500 net acres, or 203,000 gross acres, largely concentrated in the very active Pinedale Anticline/Jonah Field area. The Company will participate in 26 gross wells in 2002 and plans to participate in a comparable drilling program in 2003. Net production from the area averaged 12.5 MMcfed in the third quarter.

Hedging. In the third quarter of 2002, the Company's equity-hedging positions increased operating income by $6.9 million as compared to an increase of $10.6 million in the third quarter of 2001. For the fourth quarter of 2002, the Company has hedged approximately 60 percent and 68 percent of its estimated equity gas and equity NGL volumes respectively at NYMEX or Mt. Belvieu-equivalent prices as outlined in Table A below.

For 2003, the Company has hedged approximately 51 percent and 36 percent of its estimated equity gas and NGL volumes respectively at NYMEX or Mt. Belvieu-equivalent prices as outlined in Table B below.

Balance Sheet. At September 30, 2002, Western had total assets of $1.3 billion, cash and cash equivalents in short-term investments of $6.4 million, total debt outstanding of $357.2 million and a debt to capitalization ratio of 42 percent.

CEO Comments. Chief Executive Officer and President Peter A. Dea commented, "We were very pleased with our performance in the third quarter. Our equity hedging program and firm transportation agreements provided by our marketing department insulated us from the weak Rocky Mountain natural gas prices and improved netbacks in our production business by approximately $1.18 per Mcf. We also remain on target to grow production 30 percent on a year-over-year basis as we continue to drill into our existing leasehold and deliver value to our stockholders.

"The nearly 100 percent success of our drilling program for 2001 and 2002 confirms the long-term value to our shareholders of our 10-year drilling inventory of similar low-risk, low-cost and high-return reserves. Low finding and development costs of approximately $0.50 per Mcf for both plays combined further complement the low-risk long-lived reserves in the Powder River Basin CBM and Pinedale Anticline developments.

"Furthermore, the high-graded gathering and processing facilities continue to provide a solid foundation, providing stable income and cash flow to internally fund our growth projects. Overall, the fully integrated nature of our focused natural gas strategy provided solid income for another consecutive quarter."

Operational performance guidance for the remainder of 2002. Operational performance guidelines for 2002 were provided in a press release by the Company dated February 28, 2002 and updated May 15, 2002 and August 13, 2002. The following information represents modifications to the previous guidance.

Production. Production volumes are expected to average 142 MMcfed net for the fourth quarter of 2002. This includes 125 MMcfd of CBM production in the Powder River Basin and 17 MMcfed from the Greater Green River Basin. The Company anticipates selling approximately 65 to 70 percent of its production in the Mid-Continent market centers and 30 to 35 percent in the Rocky Mountain market centers. This does not reflect the benefit of equity hedges, which effectively reduces the Company's exposure to Rockies' pricing to approximately eight percent of its production. Gathering and transportation costs, including firm transportation costs associated with equity production volumes, are expected to average $0.70 per Mcf. LOE for all production is expected to average approximately $0.45 per Mcf. This includes production overhead of $0.09 per Mcf and other miscellaneous expenses of $0.06 per Mcf. The company follows the successful efforts method of accounting for oil and gas exploration and production activities.

Gathering and Processing. Throughput volumes for the fourth quarter of 2002 are expected to average 1,125 MMcfd. Natural gas plant sales volumes are expected to average 475 MMcfd and NGL plant sales volumes are expected to average 1.4 MMGald. The gross operating margin (gross revenues less product purchase expenses) for the gathering and processing business is expected to average approximately $0.39 per Mcf of facility throughput. Gross operating margin is dependent on commodity prices, and these estimates are based on an assumption of $3.25 per Mcf for natural gas and $25.60 per barrel for crude oil (NYMEX-equivalent prices.) Plant operating expenses are expected to average $0.17 per Mcf of throughput.

Marketing. Marketed natural gas volumes (which include production, plant and third-party gas) are expected to be approximately 2.0 Bcfd for the fourth quarter of 2002. Gas marketing margins are expected to be approximately $0.01 per Mcf. Marketed NGL volumes, including plant and third party volumes, are expected to be approximately 2.0 MMGald. NGL marketing margins are expected to be approximately $0.005 per gallon. These assumptions include the impact of mark-to-market accounting for the Company's marketing activities.

Other expenses. General and administrative expenses are expected to be approximately $8.0 million for the fourth quarter of 2002 and interest expenses are estimated to be approximately $7.0 million. The tax rate is expected to be 37.4 percent.

Earnings Conference Call. Western invites you to participate in its third quarter 2002 earnings conference call today at 8:00 a.m. (Mountain Time) by dialing (719) 457-2661. Please dial in five to ten minutes before the start of the call. A replay of the conference call will be available after 10:00 a.m. (Mountain Time) today for one week following the call by dialing (719) 457-0820 (passcode 526178). The live conference call may also be accessed on the Internet by logging onto Western's Web site at www.westerngas.com . Select Financial/Investor Information followed by the Current News option on the menu. Log on at least ten minutes prior to the start of the call to register, download and install any necessary audio software. An audio replay will be available on the web site through November 30, 2002.

Company Description. Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are located primarily in Wyoming, including the developing Powder River Basin coal bed methane play, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future drilling activity, production and sales volumes, margins and expenses. Although the Company believes that its expectations are based on reasonable assumptions, Western can give no assurances that its goals will be achieved. These statements are subject to a number of risks and uncertainties, which may cause actual results to differ materially. These risks and uncertainties include, among other things, changes in natural gas prices, government regulation or action, litigation, environmental risk, weather, rig availability, transportation capacity and other factors as discussed in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.

Announces Third Quarter 2002 Results Conference Call

DENVER, November 11, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) will release its third quarter 2002 earnings results at approximately 7:00 a.m. Eastern time on Tuesday, November 12, 2002. Western invites you to listen to its third quarter conference call via telephone or live Webcast on Tuesday, November 12, 2002 at 10:00 a.m. Eastern, 8:00 a.m. Mountain time.

To listen via telephone, dial (719) 457-2661 five to ten minutes before the start of the call. A replay will be available through midnight, November 19th, by dialing (719) 457-0820, pass code 526178.

The live conference call may also be accessed on the Internet by logging onto Western's Web site at www.westerngas.com . Select Financial/Investor Information, then the Current News option on the menu. Log on at least ten minutes prior to the start of the call to register, download and install any necessary audio software. An audio replay of the call will also be available on the Web site through November 30, 2002.

Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are based primarily in Wyoming, including the Powder River Basin coal bed methane development, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States.

To Present at Merrill Lynch Global Energy Investor Conference

DENVER, November 4, 2002 -- Western Gas Resources, Inc. ("Western") (NYSE:WGR) announced today that it would present at the Merrill Lynch Global Energy Investor Conference on November 5, 2002. Merrill Lynch will webcast Western's presentation, audio only, at 3:35 P.M. Eastern Standard Time on November 5, 2002 on the Merrill Lynch MLX website at www.mlx.ml.com . The presentation may also be accessed on Western's web site at approximately 4:00 P.M. Eastern Standard Time ("EST") on November 5, 2002. The web site address is www.westerngas.com . Go to Financial/Investor Information, then Current News.

Western is a leading independent gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are based primarily in Wyoming, including the developing Powder River Basin coal bed methane play, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States.

Announces Third Quarter 2002 Results Conference Call

DENVER, October 16, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) will release its third quarter 2002 earnings results at approximately 7:00 a.m. Eastern time on Tuesday, November 12, 2002. Western invites you to listen to its third quarter conference call via telephone or live Webcast on Tuesday, November 12, 2002 at 10:00 a.m. Eastern, 8:00 a.m. Mountain time.

To listen via telephone, dial (719) 457-2661 five to ten minutes before the start of the call. A replay will be available through midnight, November 19th, by dialing (719) 457-0820, pass code 526178.

The live conference call may also be accessed on the Internet by logging onto Western's Web site at www.westerngas.com . Select Financial/Investor Information, then the Current News option on the menu. Log on at least ten minutes prior to the start of the call to register, download and install any necessary audio software. An audio replay of the call will also be available on the Web site through November 30, 2002.

Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are based primarily in Wyoming, including the Powder River Basin coal bed methane development, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States.

Announces Completion of Sale of Toca Facility

DENVER, September 25, 2002 -- Western Gas Resources, Inc. ("Western") (NYSE:WGR) today announced that it has completed the sale of the Toca natural gas processing plant and natural gas liquids fractionator in St. Bernard Parish, Louisiana to an affiliate of Enterprise Products Partners L.P. (NYSE:EPD). The adjusted purchase price was $32.2 million in cash with an effective date of June 1, 2002.

The purchase price includes a natural gas processing plant with a capacity of 160 million cubic feet per day and a fractionator that can separate 14,200 barrels per day of mixed natural gas liquids into propane, normal butane, isobutane and natural gasoline. The purchase also includes storage and truck, rail and barge loading facilities, which support the complex.

Western does not expect to recognize a material gain nor loss on the sale. The proceeds from this transaction will be used initially to reduce amounts outstanding under the Company's revolving credit facility.

Western is a leading independent gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are based primarily in Wyoming, including the developing Powder River Basin coal bed methane play, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States.

This press release contains a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995. While the Company believes that this forward-looking statement regarding the amount of gain or loss, if any, from the sale of the Toca facility is reasonable, it is subject to certain risks and uncertainties, which could cause actual results to differ. These risks and uncertainties include, among other things, factors as discussed in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.

Announces Second Quarter 2002 Results

DENVER, August 13, 2002 -- Western Gas Resources, Inc. (NYSE: WGR) today announced that, for the quarter ended June 30, 2002, it had net income of $13.8 million or earnings of $0.34 per share of common stock on a fully-diluted basis. This compares to net income of $29.5 million for the same period in 2001 or earnings of $0.77 per share of common stock on a fully- diluted basis. Earnings per share for both periods are after giving effect to preferred stock dividends.

For the second quarter of 2002, EBITDA (earnings before interest, taxes, depreciation and amortization) was $45.7 million and cash flow from operations (net cash provided by operating activities before adjustments for working capital) was $29.2 million. Revenues totaled $614.9 million.

For the six months ended June 30, 2002, net income was $21.8 million or earnings of $0.52 per share of common stock on a fully-diluted basis. This compares to net income of $70.0 million or earnings of $1.85 per share of common stock on a fully-diluted basis for the same period in 2001. Excluding an asset sale in 2001, the Company had net income from recurring operations for the six months ended June 30, 2001 of $63.9 million or earnings of $1.69 per share of common stock on a fully-diluted basis. Earnings per share for both periods are after giving effect to preferred stock dividends.

For the six months ended June 30, 2002, EBITDA (earnings before interest, taxes, depreciation and amortization), was $82.9 million and cash flow from operations (net cash provided by operating activities before adjustments for working capital) was $ 69.9 million. Revenues were $1.2 billion.

Overall, the Company benefited from its hedge positions for natural gas. These equity-hedging positions increased operating income by $3.0 million in the second quarter of 2002 and by $12.3 million in the six months ended June 30, 2002. This compares favorably to a reduction of operating income by $1.7 million in the second quarter of 2001 and to a reduction of operating income by $16.0 million in the six months ended June 30, 2001 resulting from hedge positions in that year.

Volumes and prices. Natural gas production in the second quarter of 2002 increased sharply compared to the same period a year ago and total gas sales volumes increased slightly. The volume increases, however, were more than offset by significant reductions in the prices received for natural gas and natural gas liquids from a year ago.

Natural gas equity production in the second quarter of 2002 increased 25 percent compared to the same period in 2001, averaging 121 million cubic feet equivalent per day (MMcfed). All of the Company's production growth was achieved organically through the drill bit in the Powder River Basin coal bed methane play and the Greater Green River Basin.

Total gas sales volumes, including equity gas production, gas produced at the Company's plants and gas purchased from third parties for resale, increased one percent to an average of 1.9 billion cubic feet per day (Bcfd) in the second quarter of 2002 compared to the same period in 2001.

Natural gas liquid (NGL) sales volumes averaged 2.1 million gallons per day (MMGald) in the second quarter of 2002. This represents a decrease of 10 percent as compared to 2001, which was largely the result of the Company's reduced emphasis on the trading of third-party NGLs.

Average gas prices decreased 32 percent to $3.07 per Mcf compared to $4.53 per Mcf for the same period in 2001. Average NGL prices decreased 23 percent to $0.41 per gallon compared to $0.53 per gallon in the same period in 2001.

Operations. The Company's fully integrated operations include exploration and production, gathering and processing, gas transportation and marketing.

Exploration and production realized operating income (EBITDA before general and administrative expenses) of $9.0 million for the second quarter of 2002 compared to $16.9 million for the same period in 2001. This decrease was due to substantially lower gas prices realized. The price decreases were partially offset by significant volume growth from the Powder River Basin CBM development.

Gathering and processing realized operating income of $26.9 million for the second quarter of 2002 compared to $36.0 million for the second quarter of 2001. This decrease was again primarily due to the reduction in product prices.

Gas transportation realized operating income of $4.1 million for the second quarter of 2002 compared to $4.5 million for the second quarter of 2001.

Marketing realized operating income of $14.2 million for the second quarter of 2002 compared to operating income of $18.2 million for the same period in 2001. The results for the marketing business for both periods benefited from transactions utilizing the Company's contracts for storage and for firm transportation capacity where regional differentials widened.

Powder River Basin CBM. Net CBM production sold increased 31 percent to 112 MMcfd in the second quarter of 2002 compared to a year ago. The Company has participated in the drilling of 675 wells through July 31, 2002 and plans to participate in a total of over 900 wells in 2002.

Big George update. On August 4, 2002, the Company's All Night Creek development was producing 10.7 MMcfd of gas from 63 wells with an additional 27 wells dewatering and 48 wells awaiting connection. Overall, total industry production from the Big George coal has increased 300 percent over the last year to approximately 34 MMcfd. The Company expects to have wells drilled in 12 additional Big George areas by year-end.

Greater Green River Basin. Production sold from the Pinedale Anticline, Jonah Field and Sand Wash Basin development areas in Southwest Wyoming and Northwest Colorado averaged 8.7 MMcfed net in the second quarter of 2002. Western plans to participate in a total of approximately 31 wells in 2002.

The first phase of the Company's 50 percent-owned Rendezvous gathering expansion into the Pinedale Anticline is completed. The second phase construction is underway with completion expected by October 2002. Volumes on the operational portion of the system have reached 125 MMcfd in July in 2002.

Hedging positions. The Company's hedging positions for approximately 63 percent of its equity volumes of natural gas in 2002 and 25 percent of its equity volumes of natural gas in 2003 remain unchanged. The Company's hedges for 68 percent of its NGLs in 2002 also remain unchanged.

Balance sheet. At June 30, 2002, Western had total assets of $1.3 billion, cash and cash equivalents in short-term investments of $27.7 million, total debt outstanding of $381.6 million and a debt to capitalization ratio, net of cash and cash equivalents, of 42 percent.

CEO comments. Peter Dea, President and Chief Executive Officer, commented, "In the second quarter of 2002, we continued to grow production by 31 percent from the Powder River coal bed development in the Wyodak and Big George coals. The vast majority of our 2002 natural gas sales continue to benefit from equity hedge positions and firm transportation capacity to the Mid-continent. Overall, our operating income in the gathering and processing, exploration and production and marketing businesses are all ahead of our projections through the first six months of 2002."

Operational performance guidance for the remainder of 2002. Operational performance guidelines for 2002 were provided in a press release by the Company dated February 28, 2002 and updated May 15, 2002. The following information represents modifications to the previous guidance.

Production. Production volumes are expected to average 147 MMcfed net during the second half of 2002. This includes 130 MMcfd of CBM production in the Powder River Basin and 17 MMcfed from the Greater Green River Basin. The Company anticipates selling approximately 65 to 70 percent of its production in the Mid-continent region and 30 to 35 percent in the Rocky Mountain region. This excludes the effect of equity hedges. LOE expenses for all production are expected to average approximately $0.45 per Mcf for the remainder of the year. This includes production overhead of $0.09 per Mcf and other miscellaneous expenses of $0.06 per Mcf. The company follows the successful efforts method of accounting for oil and gas exploration and production activities.

Gathering and Processing. Throughput volumes for the second half of 2002 are expected to average 1,125 MMcfd. This assumes completion of the Toca sale and the resulting elimination of associated volumes. Natural gas sales are expected to average 495 MMcfd and NGL sales volumes are expected to average 1.5 MMGald for the second half of 2002. The gross operating margin (gross revenues less product purchase expenses) for the gathering and processing business is expected to average approximately $0.39 per Mcf of facility throughput for the remainder of 2002. Gross operating margin is dependent on commodity prices, and these estimates are based on an assumption of $3.25 per Mcf for natural gas and $25.60 per barrel for crude oil (NYMEX-equivalent prices.) Plant operating expenses are expected to average $0.17 per Mcf of throughput.

Marketing. Marketed natural gas volumes (which include production, plant and third-party gas) are expected to range from 1.6 to 1.7 Bcfd. Gas marketing margins are expected to range from $0.01 to $0.02 per Mcf. Marketed NGL volumes, including plant and third party volumes, are expected to range from 2.3 to 2.4 MMGald. NGL marketing margins are expected to average between $0.001 and $0.002 per gallon. These assumptions include the impact of mark- to-market accounting for the Company's marketing activities.

Other expenses. General and administrative expenses are expected to be $16 to $17 million for the second half of 2002 and interest expenses are estimated to be $14 to $15 million.

Earnings conference call. Western invites you to participate in its second quarter 2002 earnings conference call today at 8:00 a.m. (Mountain Time) by dialing (719) 457-2600. Please dial in five to ten minutes before the start of the call. A replay of the conference call will be available after 10:00 a.m. (Mountain Time) today for one week following the call by dialing (719) 457-0820 (passcode 265685). The live conference call may also be accessed on the Internet by logging onto Western's Web site at www.westerngas.com. Select Financial/Investor Information followed by the Current News option on the menu. Log on at least ten minutes prior to the start of the call to register, download and install any necessary audio software. An audio replay will be available on the web site through August 30, 2002.

Company description. Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are based primarily in Wyoming, including the developing Powder River Basin coal bed methane play, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States. For additional Company information, visit Western's Web site at www.westerngas.com .

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding commodity prices, expenses, sales and operating margins, sales volumes, drilling activity and production volumes for the remainder of 2002. Although the Company believes that its expectations are based on reasonable assumptions, Western can give no assurances that its goals will be achieved. These statements are subject to a number of risks and uncertainties, which may cause actual results to differ materially. These risks and uncertainties include, among other things, changes in natural gas prices, government regulation or action, litigation, environmental risk, weather, rig availability, transportation capacity and other factors as discussed in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.

Announces Second Quarter 2002 Results Conference Call

DENVER, July 23, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) will release its second quarter 2002 earnings results at approximately 7:00 a.m. Eastern time on Tuesday, August 13, 2002. Western invites you to listen to its second quarter conference call via telephone or live Webcast on Tuesday, August 13, 2002 at 10:00 a.m. Eastern, 8:00 a.m. Mountain time.

To listen via telephone, dial (719) 457-2600 five to ten minutes before the start of the call. A replay will be available through midnight, August 20th, by dialing (719) 457-0820, pass code 265685.

The live conference call may also be accessed on the Internet by logging onto Western's Web site at www.westerngas.com . Select Financial/Investor Information, then the Current News option on the menu. Log on at least ten minutes prior to the start of the call to register, download and install any necessary audio software. An audio replay of the call will also be available on the Web site through August 31, 2002.

Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are based primarily in Wyoming, including the developing Powder River Basin coal bed methane play, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States.

Announces Sale of Toca Facility

DENVER, July 10, 2002 -- Western Gas Resources, Inc. ("Western") (NYSE:WGR) today announced that it has executed an agreement to sell the Toca natural gas processing plant and natural gas liquids fractionator in St. Bernard Parish, Louisiana to an affiliate of Enterprise Products Partners L.P. ("Enterprise") (NYSE:EPD). The purchase price is $32.5 million in cash.

The purchase price includes a natural gas processing plant with a capacity of 160 million cubic feet per day and a fractionator that can separate 14,200 barrels per day of mixed natural gas liquids into propane, normal butane, isobutane and natural gasoline. The purchase also includes storage and truck, rail and barge loading facilities, which support the complex.

The purchase is subject to a preferential purchase right by the owners of the Yscloskey natural gas processing plant in St. Bernard Parish, Louisiana. Enterprise is one of the largest owners in the Yscloskey plant with a 28.2 percent ownership interest. Because of the preferential right, this transaction is not expected to close until September 24, 2002, with an effective date of June 1, 2002. The Company does not expect to recognize a material gain nor loss on the sale. The proceeds from this transaction will be used initially to reduce amounts outstanding under the Company's revolving credit facility.

"The sale of the Toca facility is in keeping with our stated strategy to focus on four core operating areas, the Powder River and Green River Basins of Wyoming, West Texas and northern Oklahoma. The Toca facility was our only asset in the Gulf Coast region and not part of our future growth plans," said Peter Dea, President and Chief Executive Officer of Western.

Western is a leading independent gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company's producing properties are based primarily in Wyoming, including the developing Powder River Basin coal bed methane play, where Western is a leading acreage holder and producer. The Company also designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent and West Texas regions of the United States.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While the Company believes that these forward-looking statements regarding the sale of the Toca facility are reasonable, they are subject to certain risks and uncertainties, which could cause actual results to differ materially. These risks and uncertainties include, among other things, various contingencies under the executed agreement with Enterprise and other factors as discussed in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.

Declares Common and Preferred Dividends

DENVER, May 31, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) announced today that its Board of Directors has declared a quarterly dividend of $0.05 per share of common stock, payable to stockholders of record on June 28, 2002.

In addition, the Board declared quarterly dividends of $0.5703125 per share on the $2.28 Cumulative Preferred Stock (NYSE:WGR pf), and $0.65625 per share on the $2.625 Cumulative Convertible Preferred Stock (NYSE:WGR pfA). Each preferred dividend is payable to stockholders of record on June 28, 2002. The dividends for all securities will be paid on August 12, 2002.

Announces Management Changes

DENVER, May 21, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) announced today a number of executive management changes, including four promotions and the addition of an Exploration and Acquisitions Manager.

William J. Krysiak was promoted to Executive Vice President and Chief Financial Officer. Mr. Krysiak is responsible for Western's corporate finance, accounting and financial planning functions. He joined Western in 1985 and most recently was Chief Financial Officer.

John F. Chandler was promoted to Executive Vice President-Upstream and Marketing. Mr. Chandler is responsible for Western's upstream exploration and production business, in addition to governmental affairs, marketing, financial risk management and human resources. He joined Western in 1984 and most recently was Senior Vice President of Marketing, Production and Business Development.

Edward A. Aabak was promoted to Executive Vice President-Midstream. Mr. Aabak is responsible for Western's integrated midstream business including operations, engineering, environmental & safety, business development and insurance and risk management. He joined Western in 1993 and most recently was Senior Vice President of Operations.

Vance S. Blalock, was promoted to Vice President, Treasurer. Ms. Blalock is responsible for Western's credit and cash management, debt compliance, information technology, and various other internal accounting functions. She joined Western in 1981 and most recently was Treasurer.

Western also announced the addition of F.X. O'Keefe as Exploration and Acquisitions Manager. Mr. O'Keefe will lead a team responsible for identifying and capturing new growth opportunities in the Rocky Mountain region. Mr. O'Keefe's career includes 20 years with Amoco and BP, including Geoscience Manager, Technology Director and most recently as Business Unit Leader, Alaska Exploration.

Peter Dea, President and CEO, stated, "These promotions and the addition of Mr. O'Keefe to the Western team strengthens our ability to advance the strategic direction of our Company as we take Western to the next level of success. Their vast expertise, combined with their proven track record, provides the key leadership to effectively coordinate Western's growing business activities in our existing core projects, as well as identify new growth opportunities in the Rocky Mountain region."

Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a full range of services to its customers from the wellhead to the sales delivery point. The Company designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent, Gulf Coast and West Texas regions of the United States.

Announces First Quarter 2002 Results

DENVER, May 9, 2002 -- Western Gas Resources, Inc. ("Western") (NYSE:WGR) today announced that for the quarter ended March 31, 2002, it had net income of $8.0 million or earnings of $.18 per share of common stock on a fully-diluted basis. This compares to net income of $40.6 million or earnings of $1.08 per share of common stock on a fully-diluted basis during the same period in 2001. Exclusive of an after-tax gain from an asset sale in the first quarter of 2001, net income in the first quarter of 2002 was $34.5 million or earnings of $.92 per share of common stock on a fully-diluted basis. Earnings per share, on a fully-diluted basis for both periods, are after giving effect to preferred stock dividends.

For the first quarter of 2002, EBITDA (earnings before interest, taxes, depreciation and amortization) was $37.2 million and cash flow from operations was $40.8 million. Revenues totaled $616.8 million.

Volumes and prices. Natural gas production and total gas sales volumes in the first quarter of 2002 increased sharply compared to the same period a year ago. However, the volume increases were more than offset by significant reductions in the prices received for natural gas and natural gas liquids from a year ago. These price reductions were the primary contributor to the decrease in net income.

Natural gas equity production increased 33 percent from the first quarter 2001, averaging 121 million cubic feet equivalent per day (MMcfed). All of the Company's production growth was achieved organically through the drill bit in the Powder River Basin coal bed methane play and the Greater Green River Basin.

Total gas sales volumes, including equity gas production, gas produced at the Company's plants and gas purchased from third parties for resale, increased 47 percent to an average of 2.4 billion cubic feet per day in the first quarter of 2002.

Natural gas liquid (NGL) sales volumes averaged 1.9 million gallons per day in the first quarter of 2002. This represents a decrease of 13 percent as compared to 2001, which was largely the result of the Company's reduced emphasis on the trading of third-party NGLs and the rejection of ethane at the Company's Granger facility during the quarter.

Average gas prices decreased 65 percent to $2.47 per Mcf compared to $6.97 per Mcf for the same period in 2001. Average NGL prices decreased 41 percent to $0.37 per gallon compared to $0.63 per gallon in the same period in 2001.

Operations. The Company's fully integrated operations include exploration and production, gathering and processing, gas transportation and marketing.

Exploration and production realized operating income (EBITDA before general and administrative expenses) of $7.5 million for the first quarter of 2002 compared to operating income of $33.1 million for the first quarter of 2001. This decrease was primarily due to substantially lower natural gas prices, partially offset by significant volume growth from the Powder River Basin coal bed methane ("CBM") development.

Gathering and processing realized operating income of $18.2 million for the first quarter of 2002 compared to $44.0 million for the first quarter of 2001. This segment was also impacted by lower commodity prices.

Gas transportation realized operating income of $4.5 million for the first quarter of 2002 compared to $5.3 million for the first quarter of 2001. The transportation segment includes results from two pipelines in the Powder River Basin, MIGC and MGTC.

Marketing realized operating income of $16.6 million for the first quarter of 2002 compared to $1.2 million for the same period in 2001. This segment includes the effect of hedging activity related to equity gas and NGL volumes. These equity-hedging positions increased operating income by $9.4 million in the first quarter of 2002 and reduced operating income by $14.5 million in the first quarter of 2001.

Powder River Basin Coal Bed Methane. Net CBM production volumes averaged 106 MMcfd in the first quarter of 2002, an increase of 32 percent from the same period in 2001. On May 1, 2002, CBM production was approximately 113 MMcfd net. Western plans to participate in over 900 wells in the Powder River Basin in 2002. Approximately 46,000 horsepower of new compression is being added to the development during the first half of 2002 to accommodate additional production growth.

The Company's All Night Creek area in the Big George coal, which began dewatering in October of 2000, is currently producing an average of approximately 7.5 MMcfd from 51 wells. An additional 18 wells are currently dewatering in the pilot with another 29 wells awaiting hook up to the Company's gathering system. Additional compression is currently being added in the area. In total, over 300 Big George wells have been drilled to date and the Company expects to drill over 100 gross wells in various pilots in the Big George coal by year-end. Industry, including Western, is now producing approximately 28 MMcfd from the Big George in four pilots over a 40-mile area.

During the first quarter of 2002, Western averaged 348 MMcfd of CBM gathering volumes, including third-party gas. This represents a 36 percent increase compared to the same period in 2001. Of that volume, approximately 130 MMcfd was transported through the Company's wholly-owned MIGC pipeline. The Company remains the largest gatherer and transporter of CBM in the Powder River Basin.

On April 26, 2002, the Interior Board of Land Appeals (IBLA) ruled that the Bureau of Land Management (BLM) did not comply with the National Environmental Policy Act (NEPA) prior to issuing three federal oil and gas leases held by unaffiliated third parties in the Powder River Basin, 156 IBLA at 358-59. There has not been a final decision regarding the validity of the three leases. The IBLA has remanded the case to the Wyoming BLM State Director without specifying a remedy. The State Director could, among other things, require additional NEPA analysis to be done on these three leases. The Powder River Basin Environmental Impact Statement is currently being conducted basin wide. This study includes a NEPA analysis covering coal bed methane development.

Additionally, the decision by the IBLA is still under review by the parties involved in the case and further action may include a petition to overturn the decision by the Secretary of the Interior, a petition for reconsideration or filing for judicial review. Western does not have any interests in these leases nor have we received notice of any challenge to leases that we hold. Management is continuing to monitor the development of the issue.

Greater Green River Basin. Production from the Pinedale Anticline, Jonah Field and Sand Wash Basin development areas in Southwest Wyoming averaged 14.6 MMcfed net in the first quarter of 2002. Western plans to participate in approximately 30 wells in 2002.

The first phase of the Company's 50 percent-owned Rendezvous gathering expansion into the Pinedale Anticline is completed. The second phase construction is expected to be completed in November 2002. The first two phases will add a total of 175 MMcfd of gathering capacity. The system can be expanded to a total of 275 MMcfd of gathering capacity with the addition of compression.

Hedging positions. Western's hedging positions for its equity volumes of natural gas and NGLs in 2002 and 2003 remain unchanged since previously reported in the Company's 2001 10-K report and press release dated April 5, 2002.

Balance sheet. At March 31, 2002, Western had total assets of $1.2 billion, cash and cash equivalents in short-term investments of $6.2 million, total debt outstanding of $369.9 million and a debt to capitalization ratio (excluding the impact of available cash) of 44 percent.

CEO comments. Peter Dea, Chief Executive Officer and President, commented, "The first quarter of 2002 saw significant double digit growth in equity and total sales volumes. The strong volume increases could not overcome the erosion of commodity prices relative to the first quarter of 2001. Fortunately, prices have recently improved significantly, and combined with our increasing volume growth, are resulting in favorable conditions for the Company and our shareholders."

Operational performance guidance for the remainder of 2002. Operational performance guidelines for 2002 were provided in a press release by the Company dated February 28, 2002. The following information represents modifications to the previous guidance.

Production. LOE expenses for all production are expected to average approximately $0.38 per Mcf for the remainder of 2002. This includes production overhead of $0.09 per Mcf and other miscellaneous expenses of $0.01 per Mcf.

Gathering and Processing. The gross operating margin (gross revenues less product purchase expenses) for the gathering and processing business is expected to average approximately $0.36 per Mcf of facility throughput for the remainder of 2002. Gross operating margin is dependent on commodity prices, and these estimates are based on an assumption of $3.00 per Mcf for natural gas and $22.00 per barrel for crude oil (NYMEX-equivalent prices.)

Earnings conference call. Western invites you to participate in its first quarter 2002 earnings conference call today at 8:00 AM Mountain Time by dialing (719) 457-2623. A replay of the conference call will be available after 10:00 AM Mountain Time by dialing (719) 457-0820 (passcode 218558). An audio playback will also be available on Western's Web site after 10:00 AM Mountain Time today at www.westerngas.com . This call can be accessed by selecting Financial/Investor Information then the Current News option on the menu. The audio replay will be available on the web site through May 31, 2002.

Company description. Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a full range of services to its customers from the wellhead to the sales delivery point. The Company designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent, Gulf Coast and West Texas regions of the United States.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding commodity prices, expenses, operating margins, drilling activity and production volumes. Although the Company believes that its expectations are based on reasonable assumptions, Western can give no assurances that its goals will be achieved. These statements are subject to a number of risks and uncertainties, which may cause actual results to differ materially. These risks and uncertainties include, among other things, changes in natural gas prices, government regulation or action, litigation, environmental risk, weather, rig availability, transportation capacity and other factors as discussed in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.

Announces First Quarter 2002 Results Conference Call

DENVER, April 29, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) will release its first quarter 2002 earnings results at 7:00 a.m. Eastern time on Thursday, May 9, 2002. Western invites you to listen to its first quarter conference call via telephone or live Webcast on Thursday, May 9, 2002 at 10:00 a.m. Eastern, 8:00 a.m. Mountain time.

To listen via telephone, dial (719) 457-2623 five to ten minutes before the start of the call. A replay will be available through midnight, May 16, by dialing (719) 457-0820, pass code 218558.

The live conference call may also be accessed on the Internet by logging onto Western's Web site at www.westerngas.com . Select Financial/Investor Information, then the Current News option on the menu. Log on at least ten minutes prior to the start of the call to register, download and install any necessary audio software. An audio replay of the call will also be available on the Web site through May 31, 2002.

Company description. Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent, Gulf Coast and West Texas regions of the United States.

To Present at IPAA Oil & Gas Symposium

DENVER, April 22, 2002 -- Western Gas Resources, Inc. ("Western") (NYSE:WGR) announced today that it will present at the IPAA Oil & Gas Symposium at the Sheraton NY Hotel & Towers on April 24, 2002.

The presentation materials may be accessed on Western's web site at approximately 4:10 P.M. Eastern Daylight Time ("EDT") on April 24. The web site address is www.westerngas.com . Go to Financial/Investor Information, then Current News.

Company description. Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent, Gulf Coast and West Texas regions of the United States.

To Present at Howard Weil Energy Conference

DENVER, April 9, 2002 -- Western Gas Resources, Inc. ("Western") (NYSE:WGR) announced today that it would present at the Howard Weil Energy Conference on April 10, 2002.

The presentation materials may be accessed on Western's web site at approximately 3:15 P.M. Eastern Daylight Time ("EDT") on April 10. The web site address is www.westerngas.com . Go to Financial/Investor Information, then Current News.

Company description. Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent, Gulf Coast and West Texas regions of the United States.

Declares Common and Preferred Dividends

DENVER, March 1, 2002 -- Western Gas Resources, Inc. (NYSE:WGR) announced today that its Board of Directors has declared a quarterly dividend of $0.05 per share of common stock, payable to stockholders of record on March 29, 2002.

In addition, the Board declared quarterly dividends of $0.5703125 per share on the $2.28 Cumulative Preferred Stock (NYSE:WGR pf), and $0.65625 per share on the $2.625 Cumulative Convertible Preferred Stock (NYSE:WGR pfA). Each preferred dividend is payable to stockholders of record on March 29, 2002.

The dividends for all securities will be paid on May 15, 2002.

Provides Operational Projections for 2002

DENVER, February 28, 2002 -- Western Gas Resources, Inc. ("Western" or the "Company") (NYSE:WGR) today provided projections related to its expected operational performance in 2002. These Company estimates have been prepared based on current expectations for gas and NGL volumes, commodity pricing differentials, expenses, debt and other items resulting from the Company's planned 2002 capital budget. These projections are forward-looking and subject to various factors, including but not limited to those factors outlined in this release. These estimates do not include possible acquisitions or divestitures or other unforeseen events that may occur after this release.

Modeling Assumptions Relating to the Company's Upstream Operations:

Production. Natural gas production for Powder River Basin coal bed methane ("CBM") is expected to average approximately 125 MMcf per day net (320 MMcf per day gross) in 2002. These production increases are expected to occur primarily in the last nine months of the year. Natural gas production volumes from activities in the Greater Green River Basin is expected to average approximately 15 MMcf per day net in 2002.

The Company's gas production is sold into various markets including the Rocky Mountain and Mid-Continent areas. Based on the Company's transportation contracts and derivative contracts for locational differences (basis), the Company expects to realize approximately $0.36 less than the Henry Hub NYMEX price for its production. The sales price is further reduced by approximately 14 percent for fuel and shrink. In addition, in order to deliver its gas from the wellhead to these markets, the Company pays gathering, compression and transportation expenses of approximately $0.65 per Mcf. These realizations do not consider the effect of hedging positions currently in place for 2002, which are detailed in Table A below.

Additional costs to be deducted from the wellhead price are production taxes and lease operating expenses (LOE). Production taxes are expected to average approximately 13 percent of wellhead prices. LOE expenses, which include production overhead and other expenses, is expected to be approximately $0.33 per Mcf.

Modeling Assumptions Relating to the Company's Midstream Operations:

Gathering, Processing and Treating. Gas throughput volumes at the Company's facilities are expected to average approximately 1.25 Bcf per day. Natural gas sales volumes are expected to average approximately 485 MMcf per day. Gas price realizations are estimated to be approximately $0.40 below the NYMEX Henry Hub Index. NGL sales volumes are expected to be approximately 1,400 Mgal per day. Composite NGL price realizations have historically been about 70 to 75 percent of NYMEX crude oil prices adjusted by approximately $0.04 per gallon for the cost of transportation and fractionation. However, the crude oil to NGL relationship can vary dramatically for short periods based on various market factors. These realizations do not consider the effect of hedging positions currently in place for 2002, which are detailed in Table A below.

The revenues from the Company's gathering, processing and treating facilities are derived under percent of proceeds, keep-whole and fee-based contracts. The gross operating margin for services under these types of contracts is expected to average approximately $0.34 per Mcf of facility throughput. Gross operating margin (gross revenues less product purchase expenses) is dependent on commodity prices, and these estimates are based on an assumption of $2.50 per Mcf for natural gas and $20.00 per barrel for crude oil (NYMEX-equivalent prices). Of the average gross operating margin, approximately $0.17 per Mcf is comprised of fee revenues and is not subject to changes in commodity prices.

Plant operating expenses are projected to be approximately $0.15 per Mcf of throughput.

Transportation. Transportation volumes and margins are projected to approximate 2001 levels.

Marketing. Marketed natural gas volumes (which include plant and third-party gas) are expected to range from 1.6 to 1.8 Bcf per day. Gas marketing margins are projected to be approximately $0.02 per Mcf. Volatility of commodity prices and changes in locational differences (basis) between market areas could affect the gas marketing margin either positively or negatively. Marketed NGL volumes, including plant and third-party NGLs, are expected to range from 2,400 to 2,500 Mgal per day. NGL marketing margins and fees are projected to be approximately $0.003 per gallon. These assumptions include the impact of mark-to-market accounting for the Company's marketing activities.

Other Modeling Assumptions:

Other, net Revenues. Other, net revenues are projected to be approximately $6 million for 2002. Among other items, these revenues include revenue from net equity interests in joint ventures, the largest of which are Fort Union Gas Gathering, L.L.C. and Rendezvous Gas Services, L.L.C. Also included in Other, net Revenues are miscellaneous income items such as corporate interest income.

Other Expenses. General and administrative expenses are projected to be approximately $32 million for 2002. Depreciation, depletion and amortization expense is expected to approximate $73 million, and interest expense is projected to be approximately $26 million for 2002.

Income Tax. The corporate income tax rate is projected to be 36.5 percent. Approximately 75 to 80 percent of current year income taxes are expected to be deferred.

Common shares outstanding and preferred dividends. As of December 31, 2001, there were 32,689,009 common shares outstanding. Preferred dividends, assuming preferred shares outstanding at December 31, 2001 remain outstanding for all of 2002, would be $8.5 million in 2002.

Product Prices. Prices for natural gas and NGLs are subject to fluctuations in response to changes in supply, demand, market uncertainty and a variety of additional factors that are beyond the Company's control. To an extent the Company can manage this price risk through hedges of its equity production and as a result, from time to time, the Company enters into hedges. The following table outlines the Company's hedge positions currently outstanding. For 2002, Western has hedged approximately 58 percent of its projected equity natural gas volumes and approximately 59 percent of its estimated equity volumes of crude, condensate and NGLs. The prices reflected in the table are NYMEX equivalents and do not include the cost of the hedges, which approximate $3.0 million. The Company cannot predict the price that it will receive for its un-hedged products or for products beyond the term of the hedges.

Updates. This document will be maintained on Western's web site and is included in a Form 8-K filed with the SEC and the NYSE on February 28, 2002. Although the Company is not undertaking any duty or requirement to update the information contained in this report, if the Company decides to provide to any third party updated information that the Company believes may be material, the Company first will include that information in a Form 8-K filed with the SEC and the NYSE. That information will then be posted on Western's web site. Revisions that may be material could include the addition of information for a new financial reporting period or changes of five percent or more in the Company's production quantities, earnings or cash flow estimates, exclusive of commodity price changes. Minor revisions or updates to this information that the Company does not believe are material may be made directly to the document maintained on the web site without announcement.

Company description. Western is an independent natural gas producer, gatherer, processor, transporter and energy marketer providing a broad range of services to its customers from the wellhead to the sales delivery point. The Company designs, constructs, owns and operates natural gas gathering, processing and treating facilities in major gas-producing basins in the Rocky Mountain, Mid-Continent, Gulf Coast and Southwestern regions of the United States. The Company is also the largest acreage holder and a leading producer, gatherer and transporter in the Powder River Basin coal bed methane development in northeast Wyoming.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding natural gas and NGL production and sales volumes, commodity pricing differentials and other revenues and expenses. Although the Company believes that its expectations are based on reasonable assumptions, Western can give no assurances that its projections are accurate. These statements are subject to a number of risks and uncertainties, which may cause actual results to differ materially. These risks and uncertainties include, among other things, changes in natural gas and NGL prices, government regulation or action, environmental risk, weather, rig availability, transportation capacity, the success of third-party producers drilling near its systems and other factors as discussed in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.