(By Balachander) Western Gas Equity Partners LP said it priced its initial public offering (IPO) of about 17.18 million common units at $22.00 each, above its proposed range.
The limited partnership estimated pricing to be between $19.00 and $21.00 per common unit.
Texas-based Western Gas Equity plans to use the net proceeds to purchase roughly 7.57 million common units from Western Gas Partners LP (NYSE: WES) representing limited partner interests in WES at $46.00 per unit.
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.
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Western Gas Equity also intends to make a capital contribution to WES on behalf of Western Gas Holdings LLC (WES GP) to maintain WES GP's 2.0 percent general partner interest in WES.
Upon completion of the offering, Western Gas Equity Partners will own a 45.6 percent limited partner interest and all of the general partner interest in WES and all of WES's incentive distribution rights.
Anadarko will own a 92.0 percemt limited partner interest and all of the general partner interest in Western Gas Equity Partners.
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 common units are expected to begin trading on the New York Stock Exchange under the symbol "WGP" on Friday.
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Barclays, Citigroup, Deutsche Bank Securities and Morgan Stanley are acting as joint book-running managers for the offering.