Western Gas Partners, LP today announced that it has agreed to acquire the Wattenberg gathering system and related assets located in the DJ Basin of northeastern Colorado from Anadarko Petroleum Corporation for total consideration of US$ 498 million.
"We are very excited to move into another liquids-rich basin with the acquisition of the Wattenberg assets, where producers are experiencing strong economic returns," said Western Gas Partners' President and Chief Executive Officer Don Sinclair. "We expect the transaction to be immediately accretive to distributable cash flow. Furthermore, the ongoing developments from horizontal drilling in the basin, as well as the emerging horizontal Niobrara play provide substantial organic growth potential for these assets."
Under the terms of the acquisition agreement, Western Gas will purchase Anadarko's 100% ownership interest in Kerr-McGee Gathering LLC, which owns the 1734 mile Wattenberg gathering system and related facilities, including the Fort Lupton processing plant with capacity of 105 million ft3/d. The average throughput on the gathering system for the second quarter of 2010 was approximately 275 million ft3/d.
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