Anadarko Petroleum Corp. announced a transaction to sell substantially all of its remaining midstream assets for $4.015 billion to Western Gas Partners LP. Concurrently WES announced it has entered into a merger agreement with Western Gas Equity Partners LP, which will result in a simplified midstream structure. The sale is expected to close in the first quarter of 2019, concurrently with the closing of the merger. The closing of the asset sale and merger is subject to the parties obtaining regulatory approvals and other customary closing conditions. The closing of the merger is subject to obtaining WES unitholder approval.
Under the terms of the asset sale transaction, WES will acquire substantially all of Anadarko’s remaining midstream assets, which are largely associated with Anadarko’s two premier US onshore oil plays in the Delaware and DJ basins. The acquired assets include DBM Oil Services (100% interest), APC Water Holdings (100% interest), the Bone Spring Gas Plant (50% non-operated interest), and the MiVida Gas Plant (50% non-operated interest) in the Delaware Basin of West Texas. In the DJ Basin of northeast Colorado, WES will acquire Anadarko’s 100% interest in both the DJ Basin Oil System and the Wattenberg Plant.