Williams, Williams Partners Sell Canadian Operations
August 08 2016 - 6:36PM
Dow Jones News
By Tess Stynes
Williams Cos. and Williams Partners LP agreed to sell their
Canadian operations to Inter Pipeline Ltd. for a total of 1.35
billion Canadian dollars (US$1.03 billion).
Excluding certain items, Williams Partners is expected to
receive roughly $817 million, while Williams is expected to receive
$209 million from the deal, which is expected to close this
year.
Chief Executive Alan Armstrong said the move marks progress on
the pipeline giant's 2016 capital and financing plan released in
January.
Williams and Williams Partners last week said they expected the
sale of the Canadian business would further reduce the need to
access capital markets to raise funds.
Last week Williams also said it was slashing its dividend by 69%
so it can reinvest roughly $1.7 billion into affiliate Williams
Partners, which needs greater financial flexibility between now and
the end of 2017. The cut came in the wake of a failed $33 billion
merger with Energy Transfer Equity LP, an oil-and-gas pipeline
company based in Dallas.
Mr. Armstrong last week said Williams plans to remain focused on
expanding its extensive network of gas pipelines-many of which move
fuel from the Gulf Coast to the Eastern Seaboard-a strategy it has
followed since spinning off its oil and gas production business
several years ago.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
August 08, 2016 18:21 ET (22:21 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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