Western Midstream Partners LP (WES) has signed a deal to acquire privately held Meritage Midstream Services II LLC in an all-cash, $885 million transaction. 

Denver-based Meritage owns and operates an extensive natural gas gathering and processing (G&P) business in the Powder River Basin (PRB) of Wyoming. The assets, located in Converse, Campbell and Johnson counties, include about 1,500 miles of high and low-pressure natural gas gathering pipelines, 380 MMcf/d of natural gas processing capacity and the 120-mile, 38,000 b/d Thunder Creek natural gas liquids (NGL) pipeline which connects to the processing facilities. 

“The addition of the Meritage assets meaningfully expands the financial and operational scale of our existing Powder River Basin footprint by adding significant...