Williams sells Kansas gathering system to FrontStreet unit for $100 million
Tulsa-based Williams Cos. Inc. has signed a letter of intent to sell its Kansas Hugoton natural gas gathering system to FrontStreet Hugoton LLC, a unit of FrontStreet Partners LLC, Darien, Conn.
By OGJ editors
HOUSTON, July 9 -- Tulsa-based Williams Cos. Inc. has signed a letter of intent to sell its Kansas Hugoton natural gas gathering system to FrontStreet Hugoton LLC, a unit of FrontStreet Partners LLC, Darien, Conn. FrontStreet will pay $100 million for the system, but the sale price will be subject to certain post-closing adjustments, Williams said.
Sale of the assets, which is expected to close by July 31, is part of Williams's plan to "strengthen its balance sheet and more tightly focus its portfolio of energy businesses," it said.
The Hugoton system extends over seven counties in southwestern Kansas and comprises more than 1,800 miles of 2-30-in. gathering lines. The system, which has 55,000 hp of compression, is operated by BP PLC unit BP America Production Co.
"The sale will help us focus our midstream operations in our core growth areas in Wyoming, the San Juan basin, and the Gulf Coast (region), particularly the deepwater Gulf of Mexico," said Phil Wright, president and CEO, Williams's energy services unit.
Sales of assets such as this one are part of Williams's overall plan to create a net $8 billion improvement in the company's finances in the coming year, the company said. To date, Williams is $3 billion shy of meeting its goal.