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
TC Energy Shareholders OK Spinning Off Liquid Pipelines Business
2024-06-04 - TC Energy will spin off South Bow Corp., with its primary asset the Keystone oil pipeline, while shifting a hefty amount of TC Energy’s debt to the new company.
The OGInterview: Building EIV Capital’s Midstream Investment Strategy
2024-05-01 - Midstream-focused EIV Capital has added non-operated assets and transition projects to its portfolio as a sign of the times.
Riley Permian Increases Stake in West Texas Power JV with Conduit
2024-05-22 - Riley Exploration Permian increased its ownership in RPC Power, a JV with Conduit Power, to 50% from 35% and has agreed to sell up to 10 MMcf/d of natural gas as feedstock supply for the generation facilities as RPC plans to sell to ERCOT.
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-26 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
US Shale Leaders Set Pricing for Tamboran Resources’ IPO
2024-06-17 - Tamboran Resources’ appraisal wells indicate the Beetaloo Basin target formation is similar to the Marcellus Shale in its geophysical properties.