By Angela Chen
Williams Partners L.P. agreed to buy an additional 21% equity
interest in Utica East Ohio Midstream LLC from EV Energy Partners
LP for about $575 million.
Williams Partners, which already has a 49% equity interest in
Utica East, will now have a 70% interest in the company. Utica East
is a natural-gas midstream business in eastern Ohio's Utica shale
region. The deal is expected to add to Williams' earnings this
year.
Tulsa-based Williams Partners focuses on large-cap natural gas
infrastructure.
"Acquiring these cash-generating assets supports our strategy to
grow our natural gas midstream position in key basins," Williams
Partners Chief Executive Alan Armstrong said. He said the
transaction has "attractive growth opportunities."
Williams Partners agreed to waive $43 million of general partner
incentive distribution rights from 2015 to 2017. It will finance
the deal through equity and debt, including revolver
borrowings.
The deal is expected to close by the middle of July.
Shares of Williams Partners, inactive premarket, have been down
about 5% this year through Thursday's close.
Write to Angela Chen at angela.chen@dowjones.com
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