TULSA, Okla. and
FORT WORTH, Texas, Nov. 15, 2018 /PRNewswire/ -- Williams
(NYSE: WMB) and Brazos Midstream ("Brazos") today announced that they have agreed
to enter into a joint venture (the "Partnership") in the
Delaware Basin. Under terms of the
agreement, Williams will contribute its existing Delaware Basin assets to the Partnership, in
exchange for a 15 percent minority position in the joint venture.
The contribution of the Williams assets will expand the footprint
of the current Brazos system and
the combined capabilities of the Partnership will provide existing
and prospective customers with an enhanced suite of services.
Brazos – with an 85 percent
ownership in the joint venture – will operate pro-forma 725 miles
of gas gathering pipelines, 260 MMcf/d of natural gas processing,
75 miles of crude oil gathering pipelines, and 75,000 barrels of
oil storage, located across Reeves, Loving, Ward,
Winkler, Pecos, and Culberson counties in Texas. In
addition, Brazos is currently
constructing its previously announced 200 MMcf/d Comanche III
natural gas processing plant to be fully operational by first
quarter 2019, bringing the Partnership's total operated processing
capacity in the Delaware Basin to
460 MMcf/d. The joint venture will be supported by over 500,000
acres of long-term dedications currently under full-field
horizontal development from leading major and independent oil and
gas producers.
As part of the transaction, Williams and Brazos have also entered into an agreement to
jointly develop natural gas residue solutions to further benefit
Delaware Basin producers.
"This joint venture increases our scale in the Delaware Basin, including a much larger
footprint, new processing capabilities, and greater exposure to an
impressive customer base," said Williams Senior Vice President for Corporate
Strategic Development, Chad Zamarin.
"We are pleased to partner with Brazos Midstream on this joint
venture. Their high-quality gathering pipelines and processing
assets, combined with their industry-leading capabilities in
Reeves, Ward, and Pecos counties are an excellent match for the
gathering systems and additional capabilities that Williams is
contributing as part of this transaction. With the residue gas
position that we will establish together with Brazos, we unlock additional opportunities for
value, as growing Permian natural gas supply increasingly needs
access to high-value demand markets, including premium Gulf Coast
markets served by our Transco system, the nation's largest pipeline
system by volume."
"Brazos operates a
strategically-located midstream platform in a region that has seen
tremendous production growth," said Brazos Chief Executive Officer, Brad Iles. "This year we have continued to
expand our asset base in cooperation with our new sponsor, Morgan
Stanley Infrastructure Partners, in order to provide exceptional
service to our producer customers."
Iles continued, "We are excited to form this joint venture with
Williams and greatly appreciate the confidence they have in
Brazos to entrust us with
operatorship of their assets and stewardship of their customers.
Williams is well-known as one of the nation's premier natural gas
midstream companies, and we believe this partnership will greatly
enhance both companies' efforts to develop top-tier assets in the
Permian Basin."
Williams President and Chief
Executive Officer, Alan Armstrong
added, "This transaction is another example of high-grading our
portfolio by leveraging an existing asset into a larger integrated
system with better growth, in a manner that improves our credit
metrics over time."
RBC Capital Markets acted as the lead financial adviser to
Williams for this transaction.
Today's announcement does not affect Williams' current financial
guidance.
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 Transco, the nation's largest volume and
fastest growing pipeline – providing natural gas for clean-power
generation, heating and industrial use. Williams' operations handle
approximately 30 percent of U.S. natural gas.
For more information, please visit www.williams.com
About Brazos Midstream
Headquartered in Fort Worth,
Texas, Brazos is one of the
largest private natural gas and crude oil midstream companies in
the Delaware Basin. The Company's
assets are located in Reeves,
Ward and Pecos counties and include approximately 520
miles of natural gas and crude oil gathering pipelines, a natural
gas processing complex with 260 MMcf/d of processing capacity in
operation with an additional 200 MMcf/d of capacity under
construction, and approximately 75,000 barrels of crude oil
storage. Brazos serves leading
major and independent oil and gas producers, which together have
made long-term dedications from over 400,000 acres.
For more information, please visit www.brazosmidstream.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.
Brazos Media
Contact:
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Meggan
Morrison
|
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M2
Communications
|
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(972)
639-8715
|
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meggan@m2commsgroup.com
|
|
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Williams Media
Contact:
|
Keith
Isbell
|
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(918)
573-7308
|
|
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Williams Investor
Contacts:
|
John
Porter
|
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(918)
573-0797
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|
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Paul
Schroedter
|
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(918)
573-9673
|
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SOURCE Brazos Midstream