Western Gas Partners Announces New Growth Projects
HOUSTON -- June 12, 2013
Western Gas Partners, LP (NYSE: WES) today announced two new growth projects.
The Partnership announced that it has exercised an option to acquire a 25%
at-cost interest in a joint venture with Enterprise Products Partners L.P.
which will own two fractionation trains (“Trains 7 and 8”) in Mont Belvieu,
Texas that are currently under construction. Trains 7 and 8 will be operated
by Enterprise Products Partners L.P. and are expected to be in service by the
end of 2013. The Partnership’s interest in the two fractionation trains will
be recorded as an equity investment on its balance sheet, and the Partnership
expects to invest approximately $120 million in 2013 to fund its pro-rata
share of the construction costs.
The Partnership also announced that it would begin the construction of a
second cryogenic processing train at its Lancaster plant in the DJ Basin
(“Lancaster II”) in 2013. Lancaster II is expected to have a capacity of 300
MMcf/d with throughput of 200 MMcf/d guaranteed by a subsidiary of Anadarko.
The Partnership anticipates the project will cost approximately $165 million,
with approximately 50% to be spent in 2013 and the remainder being spent by
early 2015. The new train is projected to commence operations in the first
quarter of 2015, and the Partnership currently projects an estimated base case
return of 17–24% for the project. The partnership has already received air
permits for Lancaster II from the Colorado Department of Public Health and
Environment, and orders for major processing components have been placed.
Previously announced capital expenditure guidance for 2013 does not include
amounts related to the Mont Belvieu fractionation trains or Lancaster II.
Western Gas Partners, LP (“WES”) is a growth-oriented Delaware master limited
partnership formed by Anadarko Petroleum Corporation to own, operate, acquire
and develop midstream energy assets. With midstream assets in East, West and
South Texas, the Rocky Mountains, North-Central Pennsylvania and the
Mid-Continent, WES is engaged in the business of gathering, processing,
compressing, treating and transporting natural gas, condensate, natural gas
liquids and crude oil for Anadarko and other producers and customers.
For more information about Western Gas Partners, LP, please visit
This news release contains forward-looking statements. Western Gas Partners
believe that its expectations are based on reasonable assumptions. No
assurance, however, can be given that such expectations will prove to have
been correct. A number of factors could cause actual results to differ
materially from the projections, anticipated results or other expectations
expressed in this news release. These factors include the ability to meet
financial guidance or distribution growth expectations; the ability to safely
and efficiently operate WES’s assets; the ability to obtain new sources of
natural gas supplies; the effect of fluctuations in commodity prices and the
demand for natural gas and related products; the ability to meet projected
in-service dates for capital growth projects; and construction costs or
capital expenditures exceeding estimated or budgeted costs or expenditures, as
well as other factors described in the “Risk Factors” sections of WES’s most
recent Forms 10-K filed with the Securities and Exchange Commission and other
public filings and press releases by Western Gas Partners. Western Gas
Partners undertakes no obligation to publicly update or revise any
Benjamin Fink, CFA
SVP, Chief Financial Officer and Treasurer
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