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Williams Acquires Additional Interests in Two Marcellus Shale Gathering Systems

Williams Partners L.P., March 30, 2017

Williams Partners L.P. has announced that it has completed separate transactions with Western Gas Partners, LP (“Western Gas”), Anadarko Petroleum Corporation (“Anadarko”), and Energy Transfer Partners, L.P. (“Energy Transfer”), and certain of their respective affiliates, for an aggregate cash consideration of $200 million paid to Williams Partners and an increase in Williams’ Partners’ ownership in two Marcellus Shale gathering systems, in exchange for Williams Partners’ assignment of interests in certain non-operated Delaware Basin assets.

Under the transaction with Western Gas, closed earlier in the month, Williams Partners increased its ownership stake in two Marcellus Shale natural gas gathering systems already operated by Williams Partners. In exchange, Western Gas and its affiliates received Williams Partners’ 50 percent ownership stake in certain gathering systems in the Delaware Basin that are operated by Western Gas. Under the terms of the transaction, Williams Partners received Western Gas’ 33.75 percent ownership stake in both the Rome and Liberty natural gas gathering systems in northern Pennsylvania, and a cash payment of $155 million.

The completion of this transaction increases Williams Partners’ ownership interest to 67.5 percent in both the Rome and Liberty gathering systems that are operated by Williams Partners and included in its Bradford Supply Hub in the Northeast G&P segment. Current throughput on the Rome and Liberty gathering systems is approximately 1.6 billion cubic feet per day.

Under the separate transactions with Anadarko and Energy Transfer, Williams Partners sold each of them half of its 33 1/3 percent interest in Ranch Westex JV LLC, owner of the Bone Springs gas processing plant in the Delaware Basin, for a total of $45 million in cash ($22.5 million each).

Williams Partners expects to use the $200 million aggregate cash consideration for general partnership purposes including funding growth capital.

About Williams Partners

Williams Partners is an industry-leading, large-cap natural gas infrastructure master limited partnership with a strong growth outlook and major positions in key U.S. supply basins. Williams Partners has operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. Tulsa, Okla.-based Williams, a premier provider of large-scale U.S. natural gas infrastructure, owns approximately 74 percent of Williams Partners.


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