Western Gas Partners has agreed to buy the Bison natural gas treatment plant and related midstream assets in the Powder River Basin from Anadarko for $130 million, Western Gas said Tuesday.
Western Gas said it will acquire Anadarko's full ownership interests in the Bison assets in northeast Wyoming. The facilities have a combined CO2 treatment capacity of 450,000 Mcf/day.
Houston-based Western Gas is a limited partnership formed by Anadarko to own and operate midstream assets, owning gathering and processing assets in Texas, the Rocky Mountains and the Mid-Continent regions.
Western Gas expects to finance the deal with $25 million in cash and the issuance of about 2.9 million common units to Anadarko and 60,210 general partner units to Western Gas Holdings, the general partner of Western Gas, at an implied price of $34.88/unit.
That price represents about 8.8 times the assets' forecasted earnings before interest, taxes, depreciation and amortization for the next 12 months, Western Gas said.
Western Gas said it expects to close the deal in July, with an effective date of July 1.
