Williams, CPPIB Form $3.8 Billion Midstream Venture for Marcellus and Utica Shales
March 18 2019 - 7:14PM
Dow Jones News
By Josh Beckerman
Williams Cos. (WMB) and Canada Pension Plan Investment Board are
forming a $3.8 billion midstream joint venture focused on the
western Marcellus and Utica shales.
The venture will include the Williams-owned Ohio Valley
Midstream system, as well as Utica East Ohio Midstream system,
which was 62%-owned by Williams before a Monday transaction
increased its stake to 100%. Williams bought the other 38% from
Momentum Midstream, whose backers include private-equity firm
Yorktown Partners.
CPPIB will invest about $1.34 billion for a 35% stake in the
venture.
Williams expects the combination of the two systems to "create a
more efficient platform for capital spending in the region,
resulting in reduced operating and maintenance expenses."
CPPIB, which recently invested in Encino Acquisition Partners,
said the venture will provide "additional exposure to the
attractive North American natural gas market."
CPPIB's investment is expected to close in the second or third
quarter.
The joint venture excludes Williams's ownership interests in
Flint Gathering, Cardinal Gathering, Marcellus South Gathering,
Laurel Mountain Midstream and Blue Racer Midstream.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
March 18, 2019 18:59 ET (22:59 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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