Western Gas Partners LP, which was formed by Anadarko Petroleum Corp. to operate and develop midstream assets, plans to pay its founder $107 million to acquire some midstream properties in Anadarko’s prized Greater Natural Buttes Field in the Uinta Basin of northeastern Utah.

The acquisition includes a 51% stake in Chipeta Processing LLC, which owns the Chipeta natural gas processing complex. The complex includes two recently completed processing trains: a refrigeration unit completed in November 2007 with a design capacity of 240 MMcf/d and a 250 MMcf/d capacity cryogenic unit that was commissioned in April.

Chipeta provides processing services to Anadarko and third-party producers in the Greater Natural Buttes Field and has current throughput of 375 MMcf/d. Once the acquisition closes, which is expected in 3Q2009, Anadarko would retain a 24% stake in Chipeta.

“We continue to execute our growth strategy by regularly acquiring assets from Anadarko,” said Western Gas Partners CEO Robert Gwin. “These assets will be an excellent complement to our existing portfolio due to their predominantly fee-based revenue stream, substantial organic growth potential and location serving one of Anadarko’s core strategic production areas.”

In its first asset sale after going public from Anadarko, Western Gas Partners in December closed a $210 million purchase of some of Anadarko’s Powder River Basin processing and gathering infrastructure (see Daily GPI, Dec. 23, 2008).

The acquisition is to be financed primarily with debt. The partnership would issue a three-year, $101.5 million 7% note to Anadarko. It also would issue Anadarko 351,424 common units and would issue 7,172 common units to Western Gas Holdings LLC, the partnership’s general partner, at an implied price of $14.89/unit.

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