3. Acquisitions, Divestitures, and Assets Held for Sale

Acquisition On December 15, 2016, the Company closed the GOM Acquisition for $1.8 billion using a portion of the net proceeds from the September 2016 issuance of 40.5 million shares of its common stock. The GOM Acquisition constitutes a business combination and was accounted for using the acquisition method of accounting. Fair-value measurements of the assets acquired and liabilities assumed at the acquisition date were finalized during the quarter ended June 30, 2017. There were no material changes to the fair value of the assets acquired and liabilities assumed from the amounts included on the Company’s Consolidated Balance Sheet at December 31, 2016.

Property Exchange On March 17, 2017, WES acquired a third party’s 50% nonoperated interest in the DBJV system in exchange for WES’s 33.75% interest in nonoperated Marcellus midstream assets and $155 million in cash. WES recognized a gain of $126 million as a result of this transaction. After the acquisition, the DBJV system is 100% owned by WES and consolidated by Anadarko.

Divestitures and Assets Held for Sale The following summarizes the proceeds received and gains (losses) recognized on divestitures and assets held for sale for the six months ended June 30:



millions	2017		2016
Proceeds received, net of closing adjustments	$	3,460	$	900
Gains (losses) on divestitures, net	1,009		(102		)

2017 During the six months ended June 30, 2017, the Company divested of the following U.S. onshore assets:


•	Eagleford assets, in South Texas, in the Exploration and Production reporting segment for net proceeds of $2.1 billion and a net gain of $729 million


•	Eaglebine assets, in Southeast Texas, in the Exploration and Production reporting segment for net proceeds of $534 million and a net gain of $281 million


•	Utah CBM assets, in the Exploration and Production and Midstream reporting segments for net proceeds of $70 million and a net loss of $52 million


•	Marcellus assets, in Pennsylvania, in the Exploration and Production and Midstream reporting segments for net proceeds of $758 million and net losses of $129 million in the fourth quarter of 2016 and $54 million for the six months ended June 30, 2017

At June 30, 2017, the Company’s Consolidated Balance Sheet included long-term assets of $185 million, which included $35 million of goodwill, and long-term liabilities of $14 million associated with Marcellus Exploration and Production assets held for sale. As of June 30, 2017, $196 million was held in escrow by the purchaser, pending regulatory approval.

2016 During the six months ended June 30, 2016, the Company’s divestitures were primarily related to the following U.S. onshore assets included in the Exploration and Production reporting segment:


•	Wamsutter assets, in Wyoming, for net proceeds of $593 million and a net loss of $53 million


•	Steward assets, in West Texas, for net proceeds of $138 million, with no gain or loss recognized


•	East Chalk assets, in East Texas/Louisiana, for net proceeds of $99 million and a net gain of $13 million

U.S. onshore Ozona assets included in the Exploration and Production and Midstream reporting segments satisfied criteria to be considered held for sale during the second quarter of 2016, at which time the Company remeasured them to their current fair value using a market approach and Level 2 fair-value measurement and recognized a loss of $50 million. The sale of these assets closed in the third quarter of 2016.