Summary
This 8-K filing by The Williams Companies, Inc. (WMB) on November 1, 2005, primarily concerns a proposed transaction involving Williams Partners L.P. (Williams Partners). Williams intends to sell a portion of its existing gathering and processing assets located in the Four Corners area to Williams Partners, which is a limited partnership where a WMB subsidiary acts as the general partner. The transaction will see Williams Partners acquire approximately a 25 percent interest in these Four Corners assets. For illustrative purposes, WMB provided unaudited operating income plus depreciation figures for these specific assets. On a 100% basis, these figures were $154 million in 2002, $151 million in 2003, $165 million in 2004, and $136 million for the first nine months of 2005. The terms and pricing are subject to board approvals and the deal is anticipated to close in the second quarter of 2006.
Key Highlights
- 1Williams Companies is proposing to sell a 25% interest in its Four Corners gathering and processing assets to its subsidiary, Williams Partners L.P.
- 2The transaction is structured as an asset dropdown from Williams to Williams Partners.
- 3Unaudited operating income plus depreciation for the Four Corners assets on a 100% basis was $154M (2002), $151M (2003), $165M (2004), and $136M (9M 2005).
- 4The specific terms and purchase price are subject to board approvals from both Williams and Williams Partners.
- 5The anticipated closing date for the transaction is the second quarter of 2006.
- 6A press release from Williams Partners dated November 1, 2005, detailing the transaction is attached as an exhibit.