Natural gas pipeline under construction. (Source: Shutterstock)
Western Midstream announced the closing of its acquisition of Meritage Midstream Services II LLC on Oct. 13.
The purchase, announced in early September for $885 million, was paid for with cash on hand and a $600 million issuance of senior grade notes, according to a statement from Western.
With the acquisition, Western takes over privately held Meritage’s natural gas gathering and processing business in the Powder River Basin of Wyoming, with approximately 1,500 miles of high- and low- pressure natural gas pipelines. The lines are supported by more than 1.4 million dedicated acres controlled by a diverse set of investors.
Western believes expanding its footprint in the Power River Basin is a strong move, considering the steady development of the area by E&P companies, President and CEO Michael Ure said when the acquisition was announced.
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