Under the agreement, Western Gas will purchase Anadarko’s 100% ownership interest in Kerr-McGee Gathering, which owns the 1,734-mile Wattenberg gathering system and related facilities including the Fort Lupton processing plant with capacity of 105 million cubic feet per day (mmcf/d).
The average throughput on the gathering system for the second quarter of 2010 was approximately 275mmcf/d, with Anadarko’s equity throughput representing approximately 60% of this amount. The transaction is expected to close in early August 2010, with an effective date of July 1, 2010.
Don Sinclair, president and CEO of Western Gas, said: “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.”
With midstream assets in East and West Texas, the Rocky Mountains and the Mid-Continent, Western Gas is engaged in the business of gathering, compressing, processing, treating and transporting natural gas.
