Western Gas Partners, LP will buy the Red Desert Complex and related assets, primarily in the greater Green River Basin of southwestern Wyoming, from Anadarko Petroleum Corp. for $483 million.
“We continue to execute our strategy of growing the WES portfolio in liquids-rich areas,” said Western Gas Partners’ President and CEO Don Sinclair. “These assets are a great complement to our existing footprint in the greater Green River Basin, which continues to see solid resource development. As a result of our capital markets activity in 2011, we are able to consummate this material transaction while still maintaining conservative leverage ratios.”
Western Gas will purchase Anadarko’s 100% ownership interest in Mountain Gas Resources LLC, which owns the Red Desert Complex, a 22% interest in Rendezvous Gas Services, L.L.C., and related facilities. Red Desert, which represents over 90% of MGR’s cash flow, includes the Patrick Draw processing plant with a capacity of 125 MMcf/d, the Red Desert processing plant with a capacity of 48 MMcf/d, 1,295 miles of gathering lines, and related facilities. Rendezvous owns a 338-mile mainline gathering system serving the Jonah and Pinedale Anticline fields in southwestern Wyoming that delivers gas to WES’s Granger Complex and other locations.