The company paid $128m in cash for the deal and issued 151,235 common units to Anadarko and 3,086 general partner units to Western Gas Holdings, a general partner of Western Gas Partners. The shares were issued at an implied price of about $43.74 per unit.
Chipeta Process owns Chipeta natural gas processing plant complex which includes three processing trains.
The first train has a refrigeration unit with a capacity of 240 million cubic feet per day (MMcf/d), the second train’s cryogenic unit has 250 MMcf/d capacity whereas the third train (Train III) has a 300 MMcf/d capacity cryogenic unit.
The third train cryogenic unit is expected to become operation in the third quarter of 2012.
Western Gas Partners chief operating officer Danny Rea said with Train III very close to completion, the additional interest in Chipeta is a natural complement to the company’s existing asset base.
"Not only does the acquisition add to our fee-based portfolio, but drilling activity in the basin has led to consistent throughput growth despite lower commodity prices and we expect that Train III will be full after commissioning," Rea added.
Western Gas now owns 75% of Chipeta with the remaining 25% interest lying with a third party.
The company also declared the second quarter (Q2) financial and operating results of 2012 and reported the net income for the limited partners for the Q2 of 2012 is $30.2m compared to $32m in 2011.
Western Gas’s Adjusted EBITDA for the 2012 second quarter is $75m where as it was $84.1m for the same quarter of 2011.
The operating results for the second quarter of 2012 has observed a 6% jump in the total throughput attributable to Western Gas Partners at 2,381 MMcf/d in comparison to 2,237 MMcf/d for the same quarter of 2011.
