Williams Completes Sale of Four Corners Area Business to Harvest Midstream Company for $1.125 Billion
October 01 2018 - 4:15PM
Business Wire
Williams Uses Portion of Proceeds to Fund the
Recent Joint-Venture Acquisition of DJ Basin Assets
Williams (NYSE: WMB) announced today that it has completed the
sale of assets and equity comprising its previous Four Corners Area
business (“FCA”) in New Mexico and Colorado to Harvest Midstream
Company (“Harvest”) for $1.125 billion in cash.
The cash proceeds will contribute to funding Williams’ extensive
portfolio of attractive growth capital and investment expenditures,
including the company’s recent joint-venture acquisition with KKR
of Discovery DJ Services from TPG Growth that was completed Aug. 3,
2018. Under terms of the joint venture, Williams holds a 40 percent
ownership stake after an initial economic contribution of
approximately $469 million to the total purchase price. Williams is
also the operator of these assets in the Denver-Julesburg (“DJ”)
Basin and holds a majority of governance voting rights in the joint
venture. Williams and KKR have renamed the DJ Basin business,
“Rocky Mountain Midstream LLC.”
“Completing both the FCA transaction and the Discovery DJ
Services acquisition follows our strategy to connect the best
supplies to the best markets,” said Alan Armstrong, president and
chief executive officer of Williams. “We have divested a business
from a maturing basin at an attractive multiple and redeployed a
portion of that capital to a higher-growth basin where our newly
named ‘Rocky Mountain Midstream’ business presents strong
future-growth opportunities, including sites with permitting
underway for greater than 1 billion cubic feet per day of gas
processing.”
The FCA assets divested by Williams are located in the San Juan
and Rio Arriba Counties in New Mexico and in La Plata County in
Colorado and include 3,700 miles of pipeline, two gas processing
plants, and one CO2 treating facility.
“The Four Corners Area has been an important part of Williams
since 1983, and I appreciate the hard work and dedication of the
FCA team through the years,” Armstrong said. “Harvest is an
outstanding midstream services provider and is ideally positioned
in that basin to operate these assets in a manner that optimizes
throughput and lowers cost.”
For the transaction to divest its assets in the Four Corners
Area, Williams’ lead financial adviser was Morgan Stanley; Davis
Polk acted as legal counsel. For the Discovery acquisition, Simmons
acted as the lead financial adviser to both Williams and KKR;
Gibson Dunn served as legal counsel to Williams, and Simpson
Thatcher served as legal adviser to KKR.
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 the nation’s largest
volume and fastest growing pipeline – providing natural gas for
clean-power generation, heating and industrial use. Williams’
operations touch approximately 30 percent of U.S. natural gas.
www.williams.com
About Harvest Midstream Company
Harvest Midstream Company, formerly Harvest Pipeline Company, is
a privately held midstream services provider based in Houston,
Texas, that operates crude oil and natural gas gathering, storage,
transportation, treatment and terminalling assets across the Lower
48 and Alaska. To learn more visit www.harvestmidstream.com.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20181001005801/en/
WilliamsMedia Contact:Keith Isbell,
918-573-7308orInvestor Contacts:John Porter,
918-573-0797orPaul Schroedter, 918-573-9673
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