APC Anadarko Petroleum Corporation

By Allison Prang 

Anadarko Petroleum Corp. is selling what is largely left of its midstream assets to Western Gas Partners LP, a partnership it formed a decade ago, in a deal that it said is valued at about $4.02 billion.

Western Gas Partners will be buying all of Anadarko's stake in DBM Oil Services and APC Water Holdings and half of its nonoperated interests in Bone Spring Gas Plant and MiVida Gas Plant. The partnership will also buy Anadarko's full stakes in DJ Basin Oil System and Wattenberg Plant, both of which are in northeast Colorado, Anadarko said. Western Gas is also buying Anadarko's various equity interests in three different pipelines.

Anadarko said of the $4.02 billion, nearly $2.01 billion is in cash. The rest of the deal is in Western Gas equity, Anadarko said.

Anadarko started Western Gas Partners 10 years ago to specifically focus on midstream energy assets, according to Anadarko's website.

Western Gas Partners along with Western Gas Equity Partners LP, a partnership also formed by Anadarko, said Thursday that Western Gas Equity Partners will buy Western Gas Partners and basically all of Anadarko's stake in the firm as well. Western Gas Equity Partners will own the bulk of Western Gas Partners, and Anadarko will own 2%, the Western Gas entities said.

For every share of Western Gas Partners they own, those shareholders will get about 1.53 shares of Western Gas Equity Partners, the companies said. Western Gas Partners will no longer be publicly traded after the deal, the entities added.

Shares of all three entities were unchanged in premarket trading.

(END) Dow Jones Newswires

November 08, 2018 07:44 ET (12:44 GMT)

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