Citi Comments on Western Gas Acquisition

Western Gas WES announced its second acquisition so far this year “and increased the distribution to $0.405/unit ($1.62 annualized), which is up ~16% YoY and ~3.8% sequentially,” Citi writes. “The announced acquisition is a drop-down from Anadarko Petroleum APC of a natural gas treating facility in the Powder River Basin for $130 million. “This transaction has been fully financed through $25 million of cash on hand with the remaining consideration in the form of equity that was issued back to APC at a price of $34.88/unit.” Western Gas closed Tuesday at $36.16.