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

By Douglas A. McIntyre Published Oct 15, 7:18AM EDT

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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

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.