July 14, 2009 / 12:15 PM / 10 years ago

UPDATE 1-Western Gas to buy certain Anadarko assets for $107 mln

* To buy assets of gas plant Chipeta from Anadarko

* Deal valued at $107 mln, to be financed with debt

* Anadarko to retain 24 pct interest in Chipeta

* Chipeta has current throughput of about 375 MMcf/d * Acquisition expected to close in Q3 July 14 (Reuters) - Western Gas Partners LP (WES.N) said it agreed to buy certain midstream assets in Utah’s Uintah basin from its largest customer and parent company Anadarko Petroleum Corp (APC.N) for about $107 million — financed primarily with debt.

“These assets will be an excellent complement to our existing portfolio due to their predominantly fee-based revenue stream, substantial organic growth potential and location serving one of Anadarko’s core strategic production areas,” Chief Executive Robert Gwin said in a statement.

The company, which gathers and transports natural gas, expects the deal to immediately add to cash available for distribution.

Under the acquisition, Western Gas would buy a 51 percent membership interest in Chipeta Processing LLC, which owns the Chipeta natural gas processing plant complex in Utah.

Following the closing of the acquisition, Anadarko will retain a 24 percent membership interest in Chipeta. Anadarko spun off Western Gas in 2008.

Western Gas shares closed at $15.76 and Anadarko’s closed at $42.76 on Monday, both on the New York Stock Exchange.

For the alerts, double-click [ID:nWNAB6834] (Reporting by Shradhha Sharma in Bangalore; Editing by Aradhana Aravindan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below