Williams Partners to acquire further interest in Utica Shale infrastructure complex

April 13, 2015

Williams Partners L.P. is to increase its ownership interest in gathering, processing, fractionation and storage assets in the Utica Shale play in eastern Ohio.

Williams Partners L.P. is to increase its ownership interest in gathering, processing, fractionation and storage assets in the Utica Shale play in eastern Ohio.

The company's subsidiary Utica Gas Services, which currently owns a 49 percent equity interest in Utica East Ohio Midstream LLC (UEO), has agreed to acquire an additional 21 percent equity interest from a subsidiary of EV Energy Partners, L.P. for approximately $575 million in cash.

This will give Williams Partners a 70 percent equity interest in UEO, a midstream business that has natural gas gathering and compression facilities, four processing plants with a total capacity of 800 MMcf per day, a 135,000 barrel per day natural gas liquids (NGL) fractionation facility, approximately 600,000 barrels of NGL storage capacity and other ancillary assets, including loading and terminal facilities.

Long-term, fee-based contracted commitments are in place for the gathering, processing, fractionation and storage assets.

"Acquiring these cash-generating assets supports our strategy to grow our natural gas midstream position in key basins," said Alan Armstrong, CEO of the general partner of Williams Partners. "This fixed-fee business will be accretive to Williams Partners beginning in 2015 and the partnership has attractive growth opportunities as the Utica continues to develop."

The other member of UEO has the right to acquire a portion of EV Energy Partners' interests in the business for the same price. If this right is exercised, Williams Partners would acquire an approximate 13 percent interest and the other member would acquire an approximate 8 percent interest.
 

Sponsored Recommendations

2024 Manufacturing Trends — Unpacking AI, Workforce, and Cybersecurity

The world of manufacturing is changing, and Generative AI is one of the many change agents. The 2024 State of Smart Manufacturing Report takes a deep dive into how Generative ...

State of Smart Manufacturing Report Series

The world of manufacturing is changing, and Generative AI is one of the many change agents. The 2024 State of Smart Manufacturing Report takes a deep dive into how Generative ...

Trying to Keep Pace with Supply Chain Disruption?

CPG manufacturers are struggling to keep up with supply chain disruptions. Learn how to build more resilient operations –and reduce demand shock.

Mitigating Cybersecurity Threats – Step-by-Step

Distributor Wesco adds services focused on identifying and solving OT network and security vulnerabilities in critical manufacturing.