Anadarko Petroleum agreed to sell its Springfield Pipeline system for $750 million to its master limited partnership, Western Gas Partners. With the purchase the company will own 50.1% of the overall gathering system in the Eagle Ford shale.
The 795 MMcf/d Springfield gas system consists of 548 miles of gathering pipe, while the 260,000 bpd oil gathering system has 241 miles of oil lines. The deal, which also includes 260,000 bbls of oil storage capacity and 24 compressors, is expected to close March 15.
“With the support of Anadarko and the strength of our portfolio, we believe we can continue to deliver meaningful distribution growth even in this commodity price environment,” Western CEO Don Sinclair said in the media release.
Western Gas, headquartered in The Woodlands, TX, owns assets in Colorado, Utah and Wyoming, north-central Pennsylvania, Kansas and Oklahoma.