Business Wire 6-Dec-2018 8:15 AM
Williams (NYSE:WMB) today announced the sale of certain pipeline systems located in the Gulf Coast area to Easton Energy LLC for $177 million in cash. The sale closed on Nov. 30, 2018.
The 31-mile Texas Belle Pipeline, which transports natural gas liquids from Mont Belvieu to customers along the Houston Ship Channel is included in this transaction as are the Purity Pipeline System, certain assets in the Live Oak Pipeline System and additional idle pipelines located along the Gulf Coast.
Proceeds from the transaction will contribute to funding Williams' extensive portfolio of attractive growth capital and investment opportunities. Williams' previous 2019 guidance is not impacted by this transaction.
"We continue to assess and execute on opportunities to optimize our portfolio," said Williams Senior Vice President for Corporate Strategic Development, Chad Zamarin. "We're pleased to be able to leverage these assets, which were not core to our business strategy, into a source for growth capital and a driver for improved credit metrics."
Post this transaction, Williams' Atlantic-Gulf business segment still includes 506 miles of purity product pipelines.
Credit Suisse Securities (USA) LLC served as the lead financial adviser to Williams for this transaction.
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. www.williams.com
About Easton Energy LLC
Easton Energy is a Houston based midstream company focused on developing infrastructure assets that support the transportation, storage, and processing of natural gas liquids (NGL), refined products, and petrochemicals. Easton's primary assets include liquid hydrocarbon salt cavern storage facilities at Markham, TX and approximately 416 miles of product distribution pipelines that connect key product markets along the Texas and Louisiana Gulf Coast. Easton Energy is backed by Cresta Energy Capital. For more information, please visit: www.easton.energy
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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