Williams Partners to buy Williams' Piceance basin gathering, processing
Williams Partners LP will buy Williams Cos. Inc.’s gathering and processing assets in Colorado’s Piceance basin for $782 million, the companies reported.
By OGJ editors
HOUSTON, Oct. 28 -- Williams Partners LP will buy Williams Cos. Inc.’s gathering and processing assets in Colorado’s Piceance basin for $782 million, the companies reported. Williams owns about 77% of Williams Partners, including the general-partner interest.
The assets include the Parachute natural gas plant (OGJ Newsletter, Oct. 8, 2010), three other treating plants with combined processing capacity of 1.2 bcfd, and a gathering system of about 150 miles. More than 3,300 wells are connected to the gathering system, said the companies, including pipelines up to 30-in. OD.
Williams Partners' total for the assets will include $702 million in cash and $80 million in WPZ limited-partner and general-partner units. The transaction is to close in November.
Williams Partners expects the new assets to generate about $105 million in “segment profit plus depletion, depreciation and amortization” for its midstream business in 2011.