Subsequent Event
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9 Months Ended |
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Sep. 30, 2014
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Subsequent Events [Abstract] | |
Subsequent Event [Text Block] | 10. SUBSEQUENT EVENT On October 28, 2014, WES announced its entry into an Agreement and Plan of Merger by and among WES, Maguire Midstream, LLC, Nuevo Midstream, LLC (“Nuevo”) and the other parties thereto, pursuant to which WES will acquire Nuevo for $1.5 billion in cash, subject to adjustment. Nuevo’s assets currently include a cryogenic processing complex, gas gathering system and related facilities and equipment. The assets serve production from Reeves, Loving and Culberson Counties, Texas and Eddy and Lea Counties, New Mexico. WES expects to fund this acquisition with (i) cash on hand, (ii) borrowings under the WES RCF and (iii) the issuance of $750.0 million of Class C units to Anadarko. The Class C units will receive distributions in the form of additional Class C units until the end of 2017 (unless earlier converted), and will be disregarded with respect to calculating WES’s cash distributions until they are converted to common units. The Class C units will convert into common units on a one-for-one basis on December 31, 2017, unless WES elects to convert such units earlier or Anadarko extends the conversion date. Pursuant to the terms of a joint venture agreement between Anadarko and a third party, WES has offered the third party the right to acquire a 50% interest in Nuevo. The third party is required to respond to WES’s offer within thirty days of receiving notice, and will have an additional thirty days to fund its share of the purchase price if it accepts the offer. WES is prepared to purchase 100% of Nuevo if the third party does not participate. WES expects the acquisition will close in the fourth quarter of 2014 subject to regulatory approval and customary closing conditions. |