Woodlands-based Anadarko has agreed to sell its remaining midstream assets to Western Gas Partners for over $4 billion. 

Under the agreement, Anadarko is set to receive a $2 billion cash payment with the balance to be paid in new Western Gas equity.

Western gas Partners is currently completing its merger with Western Gas Equity Partners, which will result in a simplified midstream structure.

The sale is expected to close in the first quarter of 2019, concurrently with the closing of the merger, Anadarko said.

With the equity portion of the payment, Anadarko will maintain operating control of the limited partnership with approximately 55.5 percent ownership.

Under the terms of the asset sale transaction, WES will acquire substantially all of Anadarko’s remaining midstream assets, which are largely associated with Anadarko’s two U.S. onshore oil plays in the Delaware and DJ Basins.

The acquired assets include the Bone Spring gas plant (50 percent non-operated interest), and the MiVida gas plant (50 percent non-operated interest) in the Delaware Basin of West Texas.