Western Gas Partners LP (NYSE: WES) announced Feb. 28 that it agreed to buy natural gas liquid (NGL) assets from The Woodlands, Texas-based Anadarko Petroleum Corp. (NYSE: APC) for $375 million.
Western Gas, of Houston, will acquire a 20% interest in each of Texas Express Pipeline LLC and Texas Express Gathering LLC and a 33.33% interest in Front Range Pipeline LLC.
"This immediately accretive acquisition marks our entry into the long-haul NGL transportation business, which is a natural complement to our existing portfolio," Don Sinclair, Western Gas CEO, said in the release. "These 100% fee-based assets gather and transport liquids from the Anadarko, Permian, and D-J basins, all of which are recognized as world class resource plays."
The partnership intends to finance the acquisition with borrowings of $350 million from its revolving credit facility, $6 million of cash on hand, and the issuance of 308,490 common units to Anadarko at an implied price of $60.78 per unit.
The terms of the acquisition were unanimously approved by the board of directors of the partnership's general partner and by the board's special committee. The acquisition is expected to close on March 3.
Evercore Partners was financial advisor to the special committee of Western Gas' board. Bracewell and Giuliani LLP was legal advisor to Western Gas.
Recommended Reading
Enchanted Rock’s Microgrids Pull Double Duty with Both Backup, Grid Support
2025-02-21 - Enchanted Rock’s natural gas-fired generators can start up with just a few seconds of notice to easily provide support for a stressed ERCOT grid.
US Oil and Gas Rig Count Rises to Highest Since June, Says Baker Hughes
2025-02-21 - Despite this week's rig increase, Baker Hughes said the total count was still down 34, or 5% below this time last year.
Devon, BPX to End Legacy Eagle Ford JV After 15 Years
2025-02-18 - The move to dissolve the Devon-BPX joint venture ends a 15-year drilling partnership originally structured by Petrohawk and GeoSouthern, early trailblazers in the Eagle Ford Shale.
E&P Highlights: Feb. 18, 2025
2025-02-18 - Here’s a roundup of the latest E&P headlines, from new activity in the Búzios field offshore Brazil to new production in the Mediterranean.
Baker Hughes: US Drillers Add Oil, Gas Rigs for Third Week in a Row
2025-02-14 - U.S. energy firms added oil and natural gas rigs for a third week in a row for the first time since December 2023.