Western Gas’s new gathering agreement
Western Gas Partners (WES) recently announced a new long-term gas-gathering agreement with SWEPI LP, a subsidiary of Royal Dutch Shell, in the Delaware Basin. According to the related press release, “WES will provide gathering, processing and related services to Shell for a minimum period of 20 years.”
Crestwood Equity Partners (CEQP) also signed a similar agreement with SWEPI LP. For more details, read Crestwood Looks Attractive after Its Recent Strategic Measures.
Western Gas’s Delaware focus
Western Gas Partners increased its 2016 capital guidance in its 2Q16 earnings release due to increased activity by its sponsor, Anadarko Petroleum (APC), in the Delaware Basin.
APC and other upstream producers are benefiting from falling drilling completion and exploration costs in the region, indirectly benefiting WES.