Anadarko Spinning Off Western Gas Partners in MLP IPO (APC, WES)

Anadarko Petroleum Corp. (NYSE:APC) has filed for an IPO of its Western Gas Partners, LP, for some
$452.8 million.  The company has a proposed sale of 18.75 million units with an additional 2.8125 million units in the overallotment for underwriters.  Western Gas will trade under the "WES" ticker on the NYSE.

This MLP was just formed in August as a midstream asset owner.  UBS Investment Bank was hired as the structuring advisor and will lead the underwriting group as the book-running manager.  This operates in East Texas, the Rocky Mountains, the Mid-Continent and West Texas and is engaged in the business of gathering, compressing, treating and transporting natural gas for Anadarko and third-party producers and customers.

For a comparison on market capitalization, Anadarko Petroleum itself has a $26.5 Billion market cap.  During the year ended December 31, 2006 and the six months ended June 30, 2007, approximately 92% of its total natural gas gathering and transportation volumes were comprised of natural gas production owned or controlled by Anadarko. For the six months ended June 30, 2007, adjusted for divestitures prior to this offering and including the assets being contributed, Anadarko’s total domestic midstream asset portfolio generated approximately $157 million of cash flow from operations and consisted of 25 gathering systems and one transportation system with throughput of approximately 3.0 Bcf/d, approximately 11,200 miles of pipeline, and 25 processing and/or treating facilities.

Jon C. Ogg
October 15, 2007