Williams Partners L.P. (WPZ) today announced that its subsidiary Utica Gas Services has successfully completed the previously announced acquisition of approximately 13 percent of additional equity interest in Utica East Ohio Midstream LLC (UEO) from a subsidiary of EV Energy Partners, L.P. (EVEP) for approximately $357 million.
With this acquisition, Williams Partners has increased its equity interest in UEO from 49 percent to 62 percent. UEO is a substantial natural gas midstream business in the Utica Shale in eastern Ohio. The gathering, processing, fractionation and storage assets are anchored by long-term, fee-based contracted commitments.
“We are very pleased to expand our ownership position in this valuable asset in the Utica,” said Alan Armstrong, chief executive officer of Williams Partners’ general partner. “UEO has experienced consistent volume growth and we see attractive growth opportunities as the Utica continues to develop.”
Simultaneous with the Williams Partners transaction, the other member of UEO acquired approximately 8 percent of additional equity interest in UEO.
About Utica East Ohio Midstream LLC
UEO is a joint project to develop infrastructure for the gathering, processing and fractionation of natural gas and natural gas liquids (NGL) in the Utica Shale play in eastern Ohio. Williams Partners, along with another equity owner, operates the infrastructure complex which consists of natural gas gathering and compression facilities, four processing plants with a total capacity of 800 MMcf per day, a 135,000 barrel per day NGL fractionation facility, approximately 600,000 barrels of NGL storage capacity and other ancillary assets, including loading and terminal facilities that are operated by our partner. These assets earn a fixed fee that escalates annually within a specified range.
About Williams Partners
Williams Partners (WPZ) 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 and also in Canada. 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 (WMB), a premier provider of large-scale North American natural gas infrastructure, owns 60 percent of Williams Partners, including all of the 2 percent general-partner interest. www.williams.com.