Item 3.02 Unregistered Sales of Equity Securities.
On May 14, 2008, in connection with the closing of the initial public
offering (the "Offering") of 18,750,000 common units representing limited
partner interests ("Common Units") in Western Gas Partners, LP (the
"Partnership"), the Partnership entered into a Contribution Agreement (the
"Contribution Agreement") with Anadarko Petroleum Corporation ("Anadarko"),
Western Gas Resources, Inc. ("WGR"), WGR Holdings, LLC ("WGR Holdings"), Western
Gas Holdings, LLC (the "General Partner," and together with the Partnership,
Anadarko, WGR and WGR Holdings, the "Western Gas Parties"), WGR Asset Holding
Company, LLC ("Asset HoldCo"), Western Gas Operating, LLC ("Operating GP") and
WGR Operating, LP ("OLP"). Immediately prior to the closing of the Offering,
pursuant to the Contribution Agreement, the Partnership issued to WGR Holdings
the right to receive any Common Units not purchased pursuant to the 30-day
option granted to the underwriters of the Offering to purchase up to an
additional 2,812,500 Common Units.
On June 11, 2008, the underwriters of the Offering exercised their option
and purchased 2,060,875 Common Units (the "Additional Units") from the
Partnership for approximately $34.0 million. The proceeds from this transaction
of approximately $31.8 million (net of underwriting discounts and structuring
fees) will be used to reimburse Anadarko for capital expenditures it incurred
with respect to assets it contributed to the Partnership. Pursuant to the
Contribution Agreement, concurrently with the closing of the sale of the
Additional Units, 751,625 Common Units were issued to WGR Holdings. The issuance
was undertaken in reliance upon the exemption from the registration requirements
of the Securities Act of 1933, as amended, contained in Section 4(2) thereof.
The Partnership believes that exemptions other than the foregoing exemption may
exist for these transactions.
The foregoing description is qualified in its entirety by reference to the
full text of the Contribution Agreement, which is incorporated herein by
reference to Exhibit 10.2 of the Partnership's Current Report of Form 8-K, filed
with the Securities and Exchange Commission on May 14, 2008 (File No.
001-34046).
As more fully described in the section "Certain Relationships and Related
Party Transactions" of the Partnership's Registration Statement on Form S-1, as
amended, filed with the Securities and Exchange Commission on April 25, 2008
(File No. 333-146700), which is incorporated herein by reference, each of the
Partnership, the General Partner, Operating GP, OLP, Holdings, Asset HoldCo and
WGR are direct or indirect subsidiaries of Anadarko. As a result, certain
individuals, including officers of Anadarko and officers and directors of the
General Partner, serve as officers and/or directors of more than one of such
entities. The General Partner holds the 2.0% general partner interest in the
Partnership and Anadarko indirectly owns approximately 59.6% of the limited
partner interest in the Partnership.
Item 8.01. Other Events
On June 6, 2008, the underwriters notified the Partnership of their intent to
exercise the over-allotment option and purchase the Additional Units. On June
11, 2008, the Partnership announced that it has closed the issuance of the
Additional Units under the over-allotment option granted to the underwriters in
connection with the Offering. As described above, the underwriters exercised
their option and purchased the Additional Units from the Partnership for
approximately $34.0 million. The proceeds from this transaction of approximately
$31.8 million (net of underwriting discounts and structuring fees) will be used
to reimburse Anadarko for capital expenditures it incurred with respect to
assets it contributed to the Partnership. A copy of the press release announcing
the closing is attached hereto as Exhibit 99.1 and is incorporated herein by
reference.
Item 9.01. Financial Statements and Exhibits
(a) Exhibits
Exhibit
Number Description
10.1 Contribution, Conveyance and Assumption Agreement by and among Western
Gas Partners, LP, Western Gas Holdings, LLC, Anadarko Petroleum
Corporation, WGR Holdings, LLC, Western Gas Resources, Inc., WGR Asset
Holding Company LLC, Western Gas Operating, LLC and WGR Operating, LP,
dated as of May 14, 2008 (incorporated by reference to Exhibit 10.2 to
Western Gas Partners, LP's Current Report on Form 8-K filed May 14,
2008 (File No. 001-34046)).
99.1 Western Gas Partners, LP Press Release, dated June 11, 2008.
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