Western Midstream Partners (WES), through one of its operating subsidiaries, has completed the acquisition of Meritage Midstream Services II.
The acquisition deal, valued at $885m, was announced in September 2023.
Privately held midstream company Meritage owns and operates a natural gas gathering and processing business in the Powder River Basin, Wyoming, US.
Its assets include around 1,500 miles of high and low-pressure natural gas-gathering pipelines with an estimated 380 million cubic feet per day (mcfd) of natural gas processing capacity, and the Thunder Creek natural gas liquid (NGL) pipeline.
Meritage also owns a 38,000-barrels-of-oil-equivalent-per-day NGL pipeline, which connects to Meritage’s processing facilities.
WES said the acquisition transforms its existing asset footprint in the Powder River Basin with a diversified customer base, expanded gathering and processing facilities, and long-term contracts backed by minimum volume commitments and acreage dedications.
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In a press statement, WES said: “As previously announced, for the third quarter 2023, management intends to recommend a Base Distribution increase of $0.0125, or $0.05 annualised, resulting in a total annualised distribution of $2.30 per common unit.”
Earlier, WES said it expects the acquisition to increase its total natural gas processing capacity to 440mcfd.
WES president and CEO Michael Ure earlier said: “The addition of the Meritage assets meaningfully expands the financial and operational scale of our existing Powder River Basin footprint by adding significant producer inventory and further diversifying our growing G&P customer portfolio.
“The Powder River Basin has attracted investment from some of the largest E&P companies due to the basin’s multi-stacked pay horizon potential.”