Western Gas acquires Anadarko
Anadarko has been acquired by Western Gas.
Western Gas Partners, LP appear to have completed successful contract negotiation as it has announced its acquisition of midstream assets from Anadarko.
President and chief executive of Western Gas Don Sinclair spoke about the benefits the successful sales negotiations will bring his firm.
"As a result of our capital markets activity in 2011, we are able to consummate this material transaction while still maintaining conservative leverage ratios," he explained.
In order to manage the risk associated with these assets, a five-year, fixed-price commodity swap has been entered into.
The company's board of directors approved the transaction, which has an effective date of January 1st 2012.
Funding the acquisition is $160 million (£103 million) of cash, a $300 million credit draw and the issue of 632,783 common units to Anadarko and 12,914 general partner units to Western Gas.
Another gas firm - Seaboard Holdings - was recently taken over by the Weir Group in a deal worth $675 million.
Posted by Ken Hayes
Sources: Western Gas press release, December 15th