Western Gas Adds Colorado Midstream Assets

By Houston Business Journal

Western Gas Partners LP said Tuesday that it has made its first third-party acquisition with a deal to buy some Denver-Julesburg Basin midstream assets from Encana Oil & Gas (USA) Inc. for $303.3 million.

The Woodlands-based energy company has been steadily buying up chunks of midstream assets in other deals, most recently a purchase in August from its parent, Anadarko Petroleum Corp. (NYSE: APC), of Anadarkoâ¿¿s stake in Kerr-McGee Gathering LLC, also located in the DJ Basin of northeastern Colorado.

As part of the deal, Western Gas (NYSE: WES) will enter into long-term, fee-based agreements with Encana to gather and process existing gas production, as well as to expand the existing gathering systems and processing capacity to meet future needs in the basin.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/houston/news/2011/01/18/western-gas-adds-colorado-midstream.html?ana=thestreet

Copyright bizjournals.com 2010

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