Williams Partners Agrees to Acquire Additional Interests in Two Marcellus Shale Gathering Systems & Sell Ownership Stake in D...
February 09 2017 - 4:30PM
Business Wire
Williams Partners L.P. (NYSE: WPZ) today announced that it has
entered into an agreement with Western Gas Partners, LP (NYSE: WES)
(“Western Gas”), and certain of its affiliates pursuant to which
Williams Partners will increase its ownership stake in two
Marcellus Shale natural gas gathering systems already operated by
Williams Partners. In exchange, Western Gas and its affiliates will
receive Williams Partners’ 50 percent ownership stake in Delaware
Basin JV Gathering LLC (“DBJV”) that is operated by Western Gas.
Under the terms of the transaction, Williams Partners will receive
Western Gas’ 33.75 percent ownership stake in both the Rome and
Liberty natural gas gathering systems in northern Pennsylvania, and
a cash payment of $155 million.
When closed, the transaction will increase Williams Partners’
ownership interest to 67.5 percent (subject to customary joint
venture partners’ rights) in both the Rome and Liberty gathering
systems that are operated by Williams Partners and included in its
Bradford Supply Hub in the Northeast G&P segment. Current
throughput on the Rome and Liberty gathering systems is
approximately 1.6 billion cubic feet per day.
In addition, Williams Partners has entered into a separate
agreement with Anadarko Petroleum Corporation (NYSE: APC)
(“Anadarko”) to sell Williams Partners’ 33.33 percent interest in
the Ranch Westex gas processing plant in the Delaware Basin for $45
million in cash.
“This transaction allows Williams Partners to increase its
ownership in the Bradford Supply Hub, our largest gathering
franchise in the Marcellus, contributing free cash flow today while
exiting non-operated partial-ownership positions that were expected
to require significant cash contributions,” said Alan Armstrong,
chief executive officer of Williams Partners’ general partner. “The
Marcellus area hit a record-gathering volume for us in January and
furthermore stands to benefit from the increased takeaway capacity
from our Atlantic Sunrise Project.”
Williams Partners will continue its presence in the Delaware
Basin, serving its gathering and processing customers there through
its Williams Partners-operated gathering systems.
The partnership expects to use the aggregate cash consideration
that is part of both transactions for general partnership purposes
including funding growth capital.
The two transactions are expected to close in late first-quarter
or early second-quarter 2017. The agreements are subject to
customary closing conditions, including expiration of the waiting
period under the HSR Act.
About Williams Partners
Williams Partners is an industry-leading, large-cap natural gas
infrastructure master limited partnership with a strong growth
outlook and major positions in key U.S. supply basins. Williams
Partners has operations across the natural gas value chain from
gathering, processing and interstate transportation of natural gas
and natural gas liquids to petchem production of ethylene,
propylene and other olefins. Williams Partners owns and operates
more than 33,000 miles of pipelines system wide – including the
nation’s largest volume and fastest growing pipeline – providing
natural gas for clean-power generation, heating and industrial use.
Williams Partners’ operations touch approximately 30 percent of
U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a
premier provider of large-scale U.S. natural gas infrastructure,
owns approximately 74 percent of Williams Partners.
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although the partnership
believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Additional information about issues that could lead to
material changes in performance is contained in the partnership’s
annual and quarterly reports filed with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20170209006256/en/
Williams Partners L.P.Media Contact:Keith Isbell,
918-573-7308orInvestor Contacts:John Porter,
918-573-0797orBrett Krieg, 918-573-4614
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