UPDATE 1-Western Gas to buy some Anadarko assets for $498 mln
* To buy assets in DJ Basin, Colorado
* Deal to immediately add to distributable cash flow
Aug 2 (Reuters) - Western Gas Partners LP (WES.N: Quote) said it agreed to buy certain Colorado assets from its parent Anadarko Petroleum Corp (APC.N: Quote) for a total of $498 million, mainly to tap into the development surrounding the liquids-rich DJ Basin.
Western Gas expects the acquisition, which includes the 1,734-mile Wattenberg gathering system and related assets in northeastern Colorado, to immediately add to its distributable cash flow.
The average throughput on the gathering system for the second quarter of 2010 was about 275 million cubic feet per day.
The latest deal is the second such transaction between the companies this year. A similar deal was signed in February for about $254.4 million. [ID:nSGE6102H0]
That agreement was preceded by a $107 million asset buy in July last year. [ID:nBNG255796]
The latest deal will be financed through a term loan, a draw on its revolving credit facility, cash on hand and issuance of 1.04 million units to Anadarko at $23.28 each, a discount of 3 percent to their Friday's closing, Western Gas said.
The deal is expected to close in early August, with effective date of July 1, it said.
Units of Western Gas closed at $23.96 Friday, while Anadarko closed at $49.16 on the New York Stock Exchange. (Reporting by Krishna N. Das in Bangalore; Editing by Gopakumar Warrier)
© Thomson Reuters 2015 All rights reserved