DOW JONES NEWSWIRES
Cabot Oil & Gas Corp. (COG) is selling some of its midstream
shale assets in the Marcellus Shale in Pennsylvania to Williams
Partners LP (WPZ) in a $150 million deal that includes a 25-year
gathering agreement.
Williams Partners is the holder of gas-transportation and
gathering assets for Williams Cos. (WMB).
The companies said the assets include 75 miles of pipelines and
two compressor stations, the sale of which should close before the
end of the year.
Under the gathering agreement, Williams's field services company
will construct miles of pipelines and trunk lines and build two new
compressor stations. Williams will also connect all Cabot drilling
program wells with specific gathering lines and move Cabot output
to five interstate delivery points during the term of the
agreement.
Williams Partners Senior Vice President Alan Armstrong said the
additional expansion in the Marcellus Shale was ideal growth for
the company.
Cabot's third-quarter profit sank 90% on lower natural-gas
prices, reduced oil production and one-time items. It has seen
results decline in recent quarters.
Williams Partners's third-quarter profit fell 19% on higher
interest costs related to acquisitions from Williams Cos.
None of the companies' shares were active after the news. Cabot
stock closed up 3.2% at $34.42 and Williams Partners shares rose
0.7% to $45.81. The former's shares have struggled this year,
falling 21%, while the latter's stock has climbed more than the
broader market with a 49% increase.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com