Western Gas To Pay Anadarko $107 Million For Venture Stake

   DOW JONES NEWSWIRES 
 

Western Gas Partners LP (WES) agreed to acquire Anadarko Petroleum Corp.'s (APC) 51% stake in a natural-gas processing facility and related assets in Utah for $107 million.

It is the latest deal for the companies - seven months ago Western Gas paid $210 million for assets in the Powder River Basin in Wyoming. Anadarko created Western Gas last year to own and operate midstream natural-gas assets such as gathering and transportation.

The latest deal consists of a 51% membership interest in Chipeta Processing LLC, which provides processing services to Anadarko and other companies operating in the area. Anadarko will retain a 24% interest.

The deal will be financed primarily through the issuance of a three-year $101.5 million note to Anadarko, which also will receive 351,424 units. There are currently 53.4 million Western Gas units outstanding.

After the closing, expected this quarter, Western Gas will have $100 million of borrowing capacity under Anadarko's $1.3 billion credit facility.

Units of Western Gas closed at $15.76 on Monday while Anadarko's shares finished at $42.76. Neither traded premarket Tuesday.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail]