Western Gas Partners LP said Tuesday that it will acquire natural gas gatherer and processor Nuevo Midstream LP for $1.5 billion.
The Houston-based company said the deal is valuable given Nuevo Midstream's strategic location. Nuevo Midstream's work focuses on natural gas gathering and processing in the Delaware Basin in West Texas and southeast New Mexico.
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The deal is expected to close in the current quarter.
Western Gas Partners, a limited partnership formed by Anadarko Petroleum Corp., said that the deal will add to its distributable cash flow per unit in 2015.
Western Gas Partners' units rose $1.01 to close at $73.96 and added $1.26 cents in after-hours trading following the announcement.