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Nuevo Midstream's partners Bill Waldrip, Jay Lendrum, Dennis Jaggi and Billy Lemmons. Image courtesy of Nuevo Midstream.

Texas-based Western Gas Partners agreed Tuesday to buy midstream player Nuevo Midstream for $1.5 billion in cash Thursday.

Western Gas is master limited partnership formed by Texas-based Anadarko Petroleum to own, operate, acquire and develop midstream energy assets to handle production from Anadarko and other producers.

Nuevo’s assets currently include a 300 million cubic feet per day cryogenic processing complex and 275 miles of gathering pipeline and 1,800 gpm of amine treating capacity and four compressor stations.

An additional 30 miles of gathering pipeline that will ad 400 million cubic feet per day of processing capacity is under construction and expected to be in service in 2015.

The assets serve production from Reeves, Loving and Culberson counties, Texas and Eddy and Lea counties, New Mexico and cover over 150,000 acres.

Over 70 percent of Nuevo’s gross margin is fee-based.

Western expects that over 95 percent of its consolidated gross margin will be either fee-based or covered under its fixed-price agreements with Texas-based Anadarko.

The transaction is expected to close by the end of the year.