Western Gas Partners LP, Houston, reported it will buy the Red Desert complex and related assets, primarily in the greater Green River basin of southwestern Wyoming, from Anadarko Petroleum Corp. for $483 million.
Under the agreement, Western Gas will buy Anadarko’s 100% ownership interest in Mountain Gas Resources LLC, which owns the Red Desert complex, a 22% interest in Rendezvous Gas Services LLC, and related facilities.
Red Desert, which represents more than 90% of MGR’s cash flow, includes the 125-MMcfd Patrick Draw processing plant, the 48-MMcfd Red Desert processing plant, 1,295 miles of gathering lines, and related facilities.
Rendezvous owns a 338-mile mainline gathering system serving Jonah and Pinedale Anticline fields in southwestern Wyoming that deliver gas to Western Gas’s Granger complex and other locations. The Western Gas announcement said Red Desert and Rendezvous are together expected to generate more than 98% of MGR’s operating cash flows.
Western Gas expects the transaction to close in January 2012, with an effective date of Jan. 1, 2012.