DOW JONES NEWSWIRES
Western Gas Partners LP (WES) agreed to acquire Anadarko
Petroleum Corp.'s (APC) 51% stake in a natural-gas processing
facility and related assets in Utah for $107 million.
It is the latest deal for the companies - seven months ago
Western Gas paid $210 million for assets in the Powder River Basin
in Wyoming. Anadarko created Western Gas last year to own and
operate midstream natural-gas assets such as gathering and
transportation.
The latest deal consists of a 51% membership interest in Chipeta
Processing LLC, which provides processing services to Anadarko and
other companies operating in the area. Anadarko will retain a 24%
interest.
The deal will be financed primarily through the issuance of a
three-year $101.5 million note to Anadarko, which also will receive
351,424 units. There are currently 53.4 million Western Gas units
outstanding.
After the closing, expected this quarter, Western Gas will have
$100 million of borrowing capacity under Anadarko's $1.3 billion
credit facility.
Units of Western Gas closed at $15.76 on Monday while Anadarko's
shares finished at $42.76. Neither traded premarket Tuesday.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com