(By Balachander) Western Gas Equity Partners LP filed with the SEC to raise up to $362.3 million in an initial public offering of common units.
The limited partnership announced its plans to sell 15 million common units in a regulatory filing, which did not disclose the pricing terms.
Texas-based Western Gas Equity expects to receive net proceeds of roughly $282.5 million from the sale of common units.
The limited partnership expects to use the net proceeds to purchase roughly 5.77 million common units from Western Gas Partners LP (NYSE: WES) representing limited partner interests in WES for about $276.8 million.
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Western Gas Partners is a growth-oriented Delaware master limited partnership formed by Anadarko (NYSE: APC) to own, operate, acquire and develop midstream energy assets.
Western Gas Equity also expects to make a capital contribution to WES on behalf of WES GP of around $5.7 million in exchange for 117,708 WES general partner units to maintain WES GP's 2.0 percent general partner interest in WES.
Net income attributable to Western Gas Equity was $35.45 million on revenue of $636.6 million for the nine months ended Sept. 30.
The company proposes to list its common units on the New York Stock Exchange under the symbol "WGP".