Williams Partners, Access Midstream Partners to merge

Oct. 27, 2014
Williams Partners LP and Access Midstream Partners LP, both owned by Williams Cos., Tulsa, have agreed to merge. Williams in June purchased the remaining 50% general partner interest that it didn’t previously hold in Access Midstream, giving way to the merger proposal.

Williams Partners LP and Access Midstream Partners LP, both owned by Williams Cos., Tulsa, have agreed to merge. Williams in June purchased the remaining 50% general partner interest that it didn’t previously hold in Access Midstream, giving way to the merger proposal (OGJ Online, June 16, 2014).

Williams Partners will become wholly owned by Access Midstream. The merged MLP will be named Williams Partners LP and will be based in Tulsa with major offices in Oklahoma City, Houston, Pittsburgh, Salt Lake City, and Calgary.

The merged MLP’s assets will include the Transco, Northwest, and Gulfstream natural gas interstate pipeline network; large-scale positions in natural-gas supply areas in the Marcellus, Utica, Piceance, Four Corners, Wyoming, Eagle Ford, Haynesville, Barnett, Midcontinent, and Niobrara; and oil and natural gas gathering services in the deepwater Gulf of Mexico.

The MLP also will own downstream assets residing on the Gulf Coast and in western Canada. Williams plans to complete the drop-down of its remaining NGL and petrochemical services assets and projects by yearend or early next year. The company expects to have invested $600 million in the drop-down assets by yearend.

Following the closing of the merger, J. Mike Stice is expected to continue in the role as a director of the general partner of the merged MLP. Stice, who currently serves as chief executive officer of the general partner of Access Midstream, will retire as an officer of the company upon the closing of the merger.

Robert S. Purgason, current chief operating officer of the general partner of Access Midstream, is expected to join Williams as senior vice-president overseeing Access Midstream operations. Purgason will report directly to Alan Armstrong, Williams’ president and chief executive officer.

Purgason also will serve the merged MLP as one of its general partner’s senior vice-presidents rather than as its chief operating officer. Alan Armstrong is expected to serve as the merged MLP’s general partner’s chief executive officer.