Legacy Reserves LP has agreed to buy natural-gas assets in East
Texas from Anadarko Petroleum and Western Gas Partners LP valued at
a combined $440 million, a move that marks Legacy's entry into the
East Texas market.
The separate deals, both expected to close in the third quarter,
would give the company 567 miles of high-pressure pipeline and
low-pressure gathering lines and a 502 million cubic feet
equivalent a day processing plant with access to five major gas
markets.
Legacy projected its third-quarter production would increase by
about 70 million cubic feet equivalent a day.
In an unrelated deal, the Midland, Texas, master limited
partnership said it had reached an agreement with funds managed by
TPG Special Situations Partners to develop Legacy's Permian Basin
properties.
Under the terms of that deal, TSSP will initially control an
87.5% stake of Legacy's working interest in the oil and gas
properties in exchange for covering 95% of the costs related to
Legacy's drilling and completion costs.
Legacy's shares were inactive after being halted after hours and
closed at $8.08 on Monday.
Write to Maria Armental at maria.armental@wsj.com
Access Investor Kit for Anadarko Petroleum Corp.
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