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Williams Buys 50% of Access Midstream, Seeks Merger
TULSA, Okla. -- Williams Partners LP will pay $5.995 billion to acquire 50% of the general partner interest and 55.1 million limited partner units in Oklahoma City-based Access Midstream Partners LP that are held by Global Infrastructure Partners.
Upon closing, Williams will own 100% of the general partner and 50% of the limited partner interests in Access Midstream Partners, the Chesapeake Energy spinoff company that operates the UEO Buckeye gas processing plant near Kensington, Ohio in Columbiana County.
The transaction is expected to close in the third quarter.
Williams also announced a proposal to merge Williams Partners LP “with and into Access Midstream Partners.”
Directors of Access Midstream say they “will carefully consider [the proposal] and, if appropriate, may authorize the conflicts committee of the board to consider such proposal.”
In a prepared statement, J. Mike Stice, CEO of Access Midstream Partners (ACMP), thanked Global Infrastructure Partners for its partnership, “which dates back to the pre-IPO formation of ACMP in 2009. …I am also excited about ACMP being a part of the Williams family of companies. Since Williams invested in ACMP in 2012, it’s been clear to me that our companies share many common values.”
Access Midstream describes itself as the shale gas industry’s largest gathering and processing partnership as measured by throughput volume. The company owns, operates, develops and acquires natural gas gathering systems and other midstream energy assets. Its operations are focused on the Utica, Marcellus, Barnett, Eagle Ford, Haynesville and Niobrar shale plays in the mid-continent region of the United States.
Williams owns interests in or operates 15,000 miles of interstate gas pipelines, 1,000 miles of NGL transportation pipelines, and more than 10,000 miles of oil and gas gathering pipelines. The company's facilities have daily gas processing capacity of 6.6 billion cubic feet of natural gas, NGL production of more than 200,000 barrels per day and domestic olefins production capacity of 1.35 billion pounds of ethylene and 90 million pounds of propylene per year.
SOURCES: Williams Partners LP, Access Midstream Partners LP.
Published by The Business Journal, Youngstown, Ohio.
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