WESTERN GAS RESOURCES COMPLETES UNION TEXAS ACQUISITION
WESTERN GAS RESOURCES COMPLETES UNION TEXAS ACQUISITION DENVER, Nov. 1 /PRNewswire/ -- Western Gas Resources Inc.
(NYSE: WGR) announced today that it completed the previously announced purchase of the gas processing division of Union Texas Products Corp., a subsidiary of Union Texas Petroleum Holdings Inc. The total consideration for the purchase was approximately $142.7 million, including transaction costs and the assumption of certain long-term liabilities of the division as of the closing. The gas processing acquisition is comprised of 12 plants in Texas, Oklahoma and Louisiana with gas throughput capacity of approximately 578 MMcf per day. Five of the 12 plants are straddle plants which process gas dedicated to or gathered by unrelated pipeline companies. The remaining seven processing plants have approximately 4,500 wells with 380 Bcf of dedicated natural gas reserves through approximately 5,300 miles of gathering systems.
The company financed the acquisition from Union Texas Petroleum by the issuance of $100 million of long-term debt by its existing bank group and with $38.2 million of net proceeds received from the sale of 400,000 shares of 7.25 percent Cumulative Senior Perpetual Convertible Preferred Stock to The 1818 Fund L.P. The 1818 Fund is managed by Brown Brothers Harriman & Co. The 1818 Fund was created to offer mid- size, public and private U.S. companies long-term equity support for their corporate goals. As previously announced, the company has filed with the Securities and Exchange Commission for a proposed offering of 4,100,000 shares of Common Stock, 3,500,000 shares to be sold by the company and 600,000 shares to be sold by a stockholder. The underwriting syndicate, co-managed by Morgan Stanley & Co. Inc. and Donaldson, Lufkin & Jenrette Securities Corp., will be granted an option to purchase up to an additional 615,000 shares from the company to cover any over- allotments. The net proceeds from the offering will be used to retire a portion of the long-term indebtedness incurred in the acquisition from Union Texas Petroleum. The company owns and operates natural gas gathering and processing facilities and markets and transports natural gas and natural gas liquids. -0- 11/1/91 /CONTACT: Ronald O. Wirth of Western Gas Resources, 800-933-5603/ (WGR) CO: Western Gas Resources Inc.; Union Texas Products Corp. ST: Colorado, Texas, Oklahoma, Louisiana IN: OIL SU: TNM SG -- DV001 -- 0069 11/01/91 08:31 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 1, 1991|
|Previous Article:||POUGHKEEPSTE SAVINGS BANK REPORTS THIRD QUARTER RESULTS AND FURTHER COST-REDUCTION EFFORTS|
|Next Article:||BRISTOL-MYERS SQUIBB INTRODUCES PRAVACHOL, A NEW CHOLESTEROL-LOWERING THERAPY|