Williams Partners Buys Marcellus Shale Pipeline for $750M
Williams Partners (NYSE:WPZ) is buying 43 miles of pipeline and other assets in the Marcellus share from Delphi Midstream Partners for about $750 million.
The deal, slated to close in the first quarter of 2012, includes Delphi’s Laser Northeast gathering system, which is comprised of 33 miles of natural gas pipeline and associated facilities in Pennsylvania and 10 miles of pipeline in southern New York.
As production in the Marcellus increases, the Laser system is expected to reach capacity of 1.3 billion cubic feet a day, Williams said. The acquisition is supported by existing long-term gathering agreements that provide acreage and volume commitments.
Williams plans to fund the purchase with $300 million cash and about 7.5 million of its common shares. The deal is subject to customary regulatory filings and approvals.
The company did not include the acquisition in its November guidance, but said it will update its capital expenditures annual outlook when it reports fourth-quarter results in February.
Delphi is owned by private-equity company American Securities.