HOUSTON, March 3, 2015 – Western Gas Partners, LP (NYSE: WES) ("WES" or the "Partnership") announced that it has acquired Anadarko’s 50% interest in the Delaware Basin JV gathering system. The unique structure of the transaction deferred payment of the cash consideration for 5 years. Partnership paid no consideration at closing, but agreed to make a future payment on March 31, 2020 equal to eight times the average of the asset’s 2018 and 2019 earnings before interest, taxes, depreciation and amortization ("EBITDA"), less the capital expenditures incurred by WES from the closing date through February 29, 2020. Based on its current forecast of the asset’s performance and capital needs, the Partnership currently estimates the future payment will be $283 million.
The terms of the acquisition were approved by the board of directors of the Partnership's general partner and by the board's special committee, which is comprised entirely of independent directors. The special committee engaged Evercore Partners to act as its financial advisor.
Baker Botts represented Evercore Partners in the transaction.
Baker Botts Lawyers/Office Involved: Hillary Holmes (Partner, Houston); Sarah Dodson (Associate, Houston)
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