Western Gas Partners, LP announced recently that it has agreed to acquire a 33.75% interest in both the Liberty and Romegas gathering systems from Anadarko Petroleum Corporation for total consideration of$490 million. The Partnership also announced that it has agreed to acquire a 33.75% interest in the Larry’s Creek, Seely and Warrensville gas gathering systems from an affiliate of Chesapeake Energy Corporation for total consideration of$133.5 million (the “Third-Party Acquisition”). The assets in both the Anadarko Acquisition and the Third-Party Acquisition serve production from the Marcellus shale in north-central Pennsylvania Movingand have current total combined throughput of over 1.2 Bcf/d.
“These immediately accretive Marcellus acquisitions further enhance both our geographic diversity and our fee-based asset portfolio,” said Chief Operating Officer,Danny Rea. “We expect that the high quality of the underlying resources in combination with the large inventory of wells not yet connected to the systems will provide significant near-term growth.”
The Partnership intends to finance the Anadarko Acquisition with approximately$220 millionof cash on hand, the borrowing of$246 millionon its revolving credit facility and the issuance of 449,129 common units to Anadarko at an implied price of approximately$54.55per unit. The transaction will be immediately accretive to the Partnership, with the acquisition price representing an approximate 7.6 times multiple of the assets’ forecasted 2013 earnings before interest, taxes, depreciation and amortization (“EBITDA”). The transaction is expected to close onMarch 1, 2013.
The Partnership intends to finance the Third-Party Acquisition with borrowings on its revolving credit facility. The transaction will be immediately accretive to the Partnership, with the acquisition price representing an approximate 9.7 times multiple of the assets’ forecasted 2013 EBITDA. The acquisition is expected to close byMarch 15, 2013.
The terms of the Anadarko Acquisition were unanimously approved by the board of directors of the Partnership’s general partner and by the board’s special committee, which is comprised entirely of independent directors. The special committee engagedEvercore Partnersto act as its financial advisor andBracewell & Giuliani LLPto act as its legal advisor.