Williams Partners LP (WPZ) agreed to acquire a gathering system and other assets in the Marcellus shale from Delphi Midstream Partners LLC in a deal valued at roughly $750 million based on Wednesday's close.
The deal, expected to close in the first quarter of 2012, consists of a combination of $300 million cash and approximately 7.5 million of Williams Partners common units.
Delphi Midstream is owned by private-equity firm American Securities LLC and management. The gathering system includes natural-gas pipelines in Pennsylvania and southern New York, as well as associated gathering facilities.
Williams Partners said the deal continues its strategy in the alternative Marcellus shale basin and other energy-producing areas. The company said the transaction wasn't included in its guidance and capital spending plans in November, but that it plans to give an update when it reports fourth-quarter financial results in February.
Williams Partners, the midstream asset-holder of Williams Cos. (WMB), in November reported that its third-quarter profit rose 27% amid wider margins from its natural-gas liquids business and higher pipeline fees.
Williams Partners' common units closed Wednesday at $59.58 and were inactive premarket. The stock is up 28% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com