Western Midstream expands Powder River Basin footprint with $885 million deal

(Reuters) -Western Midstream Partners said on Tuesday it was acquiring Meritage Midstream Services II LLC for $885 million as the pipeline and oil & gas processing plant operator aims to expand its footprint in Wyoming’s Powder River Basin.

Denver-headquartered Meritage owns and operates a large-scale natural gas gathering and processing business in the Powder River Basin.

According to Western Midstream CEO Michael Ure, Meritage’s assets would add significant producer inventory and further diversify Western Midstream’s growing gas gathering and processing customer portfolio.

The deal is expected to close during the fourth quarter of 2023.

(Reporting by Mrinalika Roy in Bengaluru; Editing by Shilpi Majumdar)