Williams closed on its acquisition of MountainWest Pipelines Holding Co., previously announced on Dec. 15, according to a press release on Feb. 14.
The company purchased the interstate natural gas pipeline systems from Southwest Gas Holdings Inc. for a total enterprise value of $1.5 billion - $1.07 billion cash, along with $0.43 billion of assumed debt.
"This acquisition enhances our position in the western U.S. and is complementary to our current footprint, providing us with infrastructure for natural gas deliveries across key demand markets," Williams president and CEO Alan Armstrong commented in the release.
Through the acquisition, Williams adds to its "infrastructure network and increases its business mix of FERC-regulated natural gas transmission and storage" with the addition of 2,000 miles of pipeline systems holding approximately 8 Bcf/d of transmission capacity spanning Utah, Wyoming and Colorado.
TD Securities and J.P. Morgan served as Williams' co-financial advisers, while Moelis & Co. and Lazard Freres & Co. LLC served as Southwest Gas Holdings' co-financial advisers. Davis Polk & Wardwell LLP provided representation to Williams, while Morrison & Foerster LLP represented Southwest.
"With the acquisition now complete, we look forward to welcoming MountainWest employees to Williams and bringing value to our shareholders by delivering safe and reliable services to both Williams and MountainWest customers as we increase the utilization of our existing large scale platforms," Armstrong continued.
Recommended Reading
Laredo Oil Subsidiary, Erehwon Enter Into Drilling Agreement with Texakoma
2024-03-14 - The agreement with Lustre Oil and Erehwon Oil & Gas would allow Texakoma to participate in the development of 7,375 net acres of mineral rights in Valley County, Montana.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
New Fortress Energy Sells Two Power Plants to Puerto Rico
2024-03-18 - New Fortress Energy sold two power plants to the Puerto Rico Electric Power Authority to provide cleaner and lower cost energy to the island.
SilverBow Rejects Kimmeridge’s Latest Offer, ‘Sets the Record Straight’
2024-03-28 - In a letter to SilverBow shareholders, the E&P said Kimmeridge’s offer “substantially undervalues SilverBow” and that Kimmeridge’s own South Texas gas asset values are “overstated.”
Enerplus Increases Quarterly Cash Dividend
2024-02-23 - Enerplus Corp. increased its dividend 8% to US$0.065 (CA$0.088) per share.