Legacy Reserves clinches Texas deals
HOUSTON, July 7, 2015 – Legacy Reserves has agreed to purchase natural gas assets valued at $440 million from US oil and gas exploration independent Anadarko Petroleum and its master limited partnership Western Gas located in the East Texas Basin.
The deals are planned to close in the third quarter of this year with the Legacy acquiring about 910 miles of pipeline and gathering lines, a processing plant with a capacity of 14.2 mcm (502 mcf) per day. These deals mark the company’s entrance into the midstream in Texas.
Under these new agreements, Legacy will take over 8,000 acres of Anadarko’s assets that are in the counties of Anderson, Freestone, Leon, Limestone and Robertson. These assets have proven resources of 11.9 bcm (420 bcf) equivalent and produce 2 bcm (70 mcf) equivalent.
“This acquisition represents a material entry into East Texas, a region we have wanted to enter for several years due to its long-lived, low-decline, low-cost nature and high potential for bolt-on acquisitions,” said CEO and President of Legacy Paul Horne in a company release on Monday.