Western Gas Partners, LP (WES) announced it has entered into an agreement (PSA) with Williams Partners L.P. (WPZ), whereby WES will acquire WPZ's 50% non-operated interest (DBJV Interest) in the assets of Delaware Basin JV Gathering LLC (DBJV) in exchange for WES's 33.75% non-operated interest in two natural gas gathering systems (Non-Operated Marcellus Systems) located in northern Pennsylvania and US$155 million in cash.
"This highly strategic transaction increases our exposure to the Delaware Basin, enables us to aggressively support our customers' accelerating drilling plans, and advances our objective of providing sustainable distribution growth over time," said Chief Executive Officer, Don Sinclair. "With this consolidation of ownership in DBJV, we are taking another important step in the development of our fully integrated gas gathering and processing footprint in the Permian Basin. Our ability to develop these types of asset positions has proven to be successful in generating incremental returns for our unitholders, with the DJ Basin being our most notable example."
WES currently holds a 50% interest in, and operates, DBJV's assets, which consist of a 577 mile natural gas gathering system serving Anadarko and third party producers in Loving, Ward, Winkler and Reeves Counties, Texas. For the nine months ended 30 September 2016, the DBJV Interest generated US$16.6 million in net income and US$26.3 million in Adjusted EBITDA. The Non-Operated Marcellus Systems consists of a 531 mile natural gas gathering system. For the nine months ended 30 September 2016, the Non-Operated Marcellus Systems generated US$48.6 million in net income and US$61.8 million in Adjusted EBITDA.
Read the article online at: https://www.worldpipelines.com/business-news/13022017/western-gas-partners-to-acquire-interest-in-delaware-basin-jv-gathering-llc/