Western Gas Partners LP said it agreed to buy certain midstream assets in Utah's Uintah basin from its largest customer and parent company Anadarko Petroleum Corp for about $107 million -- financed primarily with debt.
These assets will be an excellent complement to our existing portfolio due to their predominantly fee-based revenue stream, substantial organic growth potential and location serving one of Anadarko's core strategic production areas, Chief Executive Robert Gwin said in a statement.
The company, which gathers and transports natural gas, expects the deal to immediately add to cash available for distribution.
Under the acquisition, Western Gas would buy a 51 percent membership interest in Chipeta Processing LLC, which owns the Chipeta natural gas processing plant complex in Utah.
Following the closing of the acquisition, Anadarko will retain a 24 percent membership interest in Chipeta. Anadarko spun off Western Gas in 2008.
Western Gas shares closed at $15.76 and Anadarko's closed at $42.76 on Monday, both on the New York Stock Exchange.
(Reporting by Shradhha Sharma in Bangalore; Editing by Aradhana Aravindan)