Summary
This 8-K filing from The Williams Companies, Inc. (WMB) on February 10, 2017, primarily reports on a material definitive agreement entered into by its subsidiary, Williams Partners L.P. (WPZ). WPZ is acquiring a 33.75% non-operated interest in the Liberty and Rome natural gas gathering systems in northern Pennsylvania from Western Gas Partners, LP (WES) in exchange for a 50% non-operated interest in West Texas midstream assets (Delaware Basin Gas Gathering System) and $155 million in cash. This strategic swap is expected to close in late Q1 or early Q2 2017. In addition, WPZ is selling its 33.33% interest in Ranch Westex JV, LLC, which holds midstream processing facilities in the Delaware Basin, to Anadarko Pecos Midstream LLC (APM) for $45 million. This sale is contingent upon the closing of the primary asset swap with WES. These transactions signal a portfolio adjustment for Williams Companies, focusing on refining its midstream asset base.
Key Highlights
- 1Williams Partners L.P. (WPZ) is acquiring the Liberty and Rome natural gas gathering systems in northern Pennsylvania from Western Gas Partners, LP (WES).
- 2The acquisition from WES involves WPZ exchanging its 50% interest in the Delaware Basin Gas Gathering System and $155 million in cash.
- 3The transaction is expected to close in late first-quarter or early second-quarter of 2017, with an effective date of January 1, 2017.
- 4WPZ is also selling its 33.33% interest in Ranch Westex JV, LLC to Anadarko Pecos Midstream LLC (APM) for $45 million.
- 5The sale to APM is contingent on the closing of the primary asset swap with WES.
- 6Williams Companies (WMB) owns approximately 74% of WPZ, including its general partner interest, indicating a significant indirect impact on the parent company.