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
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
EQT to Cut Workforce 15% Following Close of Equitrans Acquisition
2024-10-02 - EQT Corp. closed its $5.5 billion all-stock buy of Equitrans Midstream Corp. on Sept. 22.
Mach to Sell Additional Common Units to Fund A&D
2024-09-25 - Mach Natural Resources announced that the underwriters of its public offering of 7.27 million units have exercised an option to purchase an additional 1 million common units at $16.50 per unit.