Western Gas Partners LP will acquire Nuevo Midstream LLC for $1.5 billion in cash. The transaction is expected to close by the end of the year, pending the completion of customary regulatory approvals and closing conditions.

Formed in April 2011 with an initial $65 million equity commitment from EnCap Flatrock Midstream and management, Nuevo is a pure-play midstream company focused on developing and operating natural gas gathering, compression, processing, treating, transportation and marketing services to oil and gas producers in the Delaware Basin in West Texas and southeast New Mexico. Equity commitments to Nuevo ultimately reached more than $300 million from a group of investors led by EFM Funds I and II, management and Wells Fargo Energy Capital. Western Gas is a growth-oriented MLP formed by Anadarko Petroleum Corp. to own, operate, acquire and develop midstream energy assets to serve Anadarko and other third-party producers and customers.