Western Gas Partners to acquire Anadarko US midstream assets

Western Gas Partners has entered an agreement to purchase midstream energy assets from Anadarko Petroleum for $483m.

The company will buy the Red Desert natural gas processing complex and related assets, which are primarily located in the greater Green River Basin of south-west Wyoming, US.

The assets include Anadarko’s 100% stake in Mountain Gas Resources, a 22% interest in Rendezvous Gas Services and related facilities.

Mountain Gas Resources is the owner of the Red Desert Complex, and Rendezvous owns a 338 mile mainline gathering system that serves the Jonah and Pinedale Anticline fields in Wyoming.

The Red Desert Complex consists of the Patrick Draw processing plant, the Red Desert processing facility, 1,295 miles of gathering lines and related facilities.

The Patrick Draw processing facility has a capacity of 125mmcf per day, and the Red Desert processing plant has a capacity of 48mmcf per day.

The acquisition is part of Western Gas Partners’ strategy to increase its portfolio in liquids-rich areas.

Western Gas Partners president and CEO Don Sinclair said that the assets were a great complement to the company’s existing footprint in the greater Green River Basin, which continues to see solid resource development.

"As a result of our capital markets activity in 2011, we are able to consummate this material transaction while maintaining conservative leverage ratios," Sinclair said.

The company will finance the transaction with $160m cash on hand, $300m through its credit facility, and the issuance of 632,783 common units to Anadarko and 12,914 general partner units to its general partner Western Gas Holdings.

The transaction will close in January 2012.

Western Gas Partners is a limited partnership formed by Anadarko to own, operate, acquire and develop midstream energy assets.