Williams Announces Upstream Operator and Joint Venture in the Wamsutter Field
July 06 2021 - 7:30AM
Business Wire
Joint venture with Crowheart Energy transitions
the upstream asset to a proven operator, enhances utilization of
Williams’ midstream infrastructure, creates operating efficiencies,
and positions the Wamsutter Field for growth
Williams (NYSE: WMB) announced today that it has finalized an
upstream joint venture with Crowheart Energy (Crowheart) in the
Wamsutter Field of the Greater Green River Basin of Wyoming. The
joint venture involves the consolidation of three legacy operating
assets consisting of over 1.2 million net acres, over 3,500
operating wells, and more than 3,000 potential development
locations. The transaction consolidates the legacy BP, Southland
and Crowheart upstream assets into one contiguous footprint,
delivering operational cost savings and synergies, while unlocking
significant long lateral development inventory. Williams’ strategic
efforts to combine the Wamsutter Field reserves will enhance the
value of its midstream and downstream natural gas and NGL
infrastructure.
“We are excited to enter into this joint venture with a strong
and well-capitalized operator with an ownership structure that will
reduce costs, stimulate development activity, drive volumes and
position our midstream and downstream assets for growth,” said Chad
Zamarin, Williams Senior Vice President of Corporate Strategic
Development. “Today’s announcement is the culmination of Williams’
consolidation efforts in the Wamsutter Field. With Crowheart as our
operating partner, we position the upstream platform with a proven
in-basin operator who is committed to optimizing and developing the
consolidated assets.”
Under the joint venture, Crowheart will operate the parties’
consolidated upstream position and Williams will continue to
operate and retain full ownership of its midstream assets. Williams
will also retain real estate, surface and other rights designed to
enable further expansion of midstream and renewable energy
opportunities in Wyoming. The existing large scale and efficient
infrastructure will allow this resource to be produced in an
environmentally responsible manner.
Other key highlights of the joint venture include the
following:
- Initially Williams and Crowheart will own 75% and 25%
respective interests, although Crowheart may increase its ownership
through performance under a development program designed to enhance
the value of Williams’ midstream assets.
- Williams retains significant governance rights, including
control of the selection and pace of operations pursued, and the
ability to exit its upstream ownership position.
- Upstream assets will be subject to a single, expanded fixed fee
gathering and processing agreement, eliminating commodity price
sensitive contracts while combining numerous existing agreements
into a simplified structure.
- NGL volumes from each of the legacy upstream assets will be
combined and dedicated to Williams, adding transportation volumes
on Overland Pass Pipeline (OPPL) and Bluestem, and increasing
downstream fractionation volumes at attractive rates.
- Residue gas from the jointly held assets will be aggregated for
downstream marketing and transportation, creating opportunities for
enhanced margin as well as downstream fee-based revenue.
“The Wamsutter Field consolidation is a transformational
milestone for the Greater Green River Basin. It provides the
corporate scale, field operating efficiencies, water infrastructure
backbone and new well development platform needed to make our basin
an important and growing source of natural gas, natural gas liquids
and oil,” said Crowheart Chairman Robb Turner. “Our team looks
forward to working with Williams, our local communities, regulators
and service providers to realize the full potential of this
exciting transaction.”
About Williams
Williams (NYSE: WMB) is committed to being the leader in
providing infrastructure that safely delivers natural gas products
to reliably fuel the clean energy economy. Headquartered in Tulsa,
Oklahoma, 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 connects the best supplies with the
growing demand for clean energy. Williams owns and operates more
than 30,000 miles of pipelines system wide – including Transco, the
nation’s largest volume and fastest growing pipeline – and handles
approximately 30 percent of the natural gas in the United States
that is used every day for clean-power generation, heating and
industrial use.
About Crowheart
Crowheart Energy is a Denver, Colorado based upstream oil and
gas company focused on the safe, efficient and
environmentally-friendly development of operated assets in
Wyoming's Greater Green River Basin. The company was founded in
2017 in partnership with The Madava Group.
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