The FINANCIAL -- Anadarko Petroleum Corporation announced a transaction to sell substantially all of its remaining midstream assets for $4.015 billion to Western Gas Partners, LP, with $2.0075 billion cash proceeds, and the balance to be paid in new Western Gas equity.
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.
Benefits For Anadarko
Generates more than $4 billion in net proceeds to Anadarko, including more than $2 billion of cash plus new Western Gas equity units;
Results in expected 2019 cash distributions paid to Anadarko totaling more than $600 million, which is an increase of almost 50 percent versus prior expectations;
Maintains operating control of one of the largest midstream master limited partnerships (MLP), with approximately 55.5 percent pro-forma ownership of the combined entity;
Reduces future midstream capital funding requirements associated with the divested assets.