Williams (NYSE: WMB) today announced the sale of certain pipeline
systems located in the Gulf Coast area to Easton Energy LLC for $177
million in cash. The sale closed on Nov. 30, 2018.
The 31-mile Texas Belle Pipeline, which transports natural gas liquids
from Mont Belvieu to customers along the Houston Ship Channel is
included in this transaction as are the Purity Pipeline System, certain
assets in the Live Oak Pipeline System and additional idle pipelines
located along the Gulf Coast.
Proceeds from the transaction will contribute to funding Williams’
extensive portfolio of attractive growth capital and investment
opportunities. Williams’ previous 2019 guidance is not impacted by this
transaction.
“We continue to assess and execute on opportunities to optimize our
portfolio,” said Williams Senior Vice President for Corporate Strategic
Development, Chad Zamarin. “We’re pleased to be able to leverage these
assets, which were not core to our business strategy, into a source for
growth capital and a driver for improved credit metrics.”
Post this transaction, Williams’ Atlantic-Gulf business segment still
includes 506 miles of purity product pipelines.
Credit Suisse Securities (USA) LLC served as the lead financial adviser
to Williams for this transaction.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale infrastructure
connecting U.S. natural gas and natural gas products to growing demand
for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams
is an industry-leading, investment grade C-Corp with operations across
the natural gas value chain including gathering, processing, interstate
transportation and storage of natural gas and natural gas liquids. With
major positions in top U.S. supply basins, Williams owns and operates
more than 33,000 miles of pipelines system wide – including Transco, the
nation’s largest volume and fastest growing pipeline – providing natural
gas for clean-power generation, heating and industrial use. Williams’
operations handle approximately 30 percent of U.S. natural gas. www.williams.com
About Easton Energy LLC
Easton Energy is a Houston based midstream company focused on developing
infrastructure assets that support the transportation, storage, and
processing of natural gas liquids (NGL), refined products, and
petrochemicals. Easton’s primary assets include liquid hydrocarbon salt
cavern storage facilities at Markham, TX and approximately 416 miles of
product distribution pipelines that connect key product markets along
the Texas and Louisiana Gulf Coast. Easton Energy is backed by Cresta
Energy Capital. For more information, please visit: www.easton.energy
Portions of this document may constitute “forward-looking statements”
as defined by federal law. Although the company believes any such
statements are based on reasonable assumptions, there is no assurance
that actual outcomes will not be materially different. Any such
statements are made in reliance on the “safe harbor” protections
provided under the Private Securities Reform Act of 1995. Additional
information about issues that could lead to material changes in
performance is contained in the company’s annual and quarterly reports
filed with the Securities and Exchange Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181206005187/en/
Copyright Business Wire 2018
Source: Business Wire
(December 6, 2018 - 8:15 AM EST)
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