2010-09-15-2010-07-22-2010-09-09

Raised ownership in Overland Pass Pipeline Co. LLC JV with ONEOK to 50%, which features 760-mile NGL pipeline from WY to KS.

Williams Partners LP, Tulsa, Okla., (NYSE: WPZ) has completed its transaction with ONEOK Partners LP (NYSE: OKS) to increase its ownership of Overland Pass Pipeline Co. LLC to 50% for approximately $424 million.

Williams Partners funded the transaction with a combination of cash on hand and borrowings from its existing credit facility.

Overland Pass Pipeline Co. is a joint venture that ONEOK Partners and Williams (NYSE: WMB) established in May 2006. The Overland Pass pipeline includes a 760-mile NGL pipeline from Opal, Wyo., to the Midcontinent NGL market center in Conway, Kan., along with 150- and 125-mile extensions into the Piceance and Denver-Julesberg Basins in Colorado, respectively.

The pipeline, which went into service in November 2008, can transport approximately 140,000 barrels per day with the ability to expand capacity to 255,000 barrels per day with additional pump facilities.

Williams Partners' equity NGL volumes from its two Wyoming plants and its Willow Creek facility in Colorado are dedicated for transport on Overland Pass Pipeline under a long-term shipping agreement.

Williams Partners has notified ONEOK Partners that it intends to operate Overland Pass Pipeline Co., given its 50%ownership interest. The partnership plans to work closely with ONEOK Partners to enable a smooth transition of the operations. The two partnerships will work together to facilitate expansion opportunities due to increased demand for service on Overland Pass pipeline.

ONEOK Partners will use the proceeds from the transaction to pay short-term debt and to fund capital projects.

The transaction is not expected to affect ONEOK Partners' 2010 net income guidance of $450 million to $490 million. Earnings from Overland Pass Pipeline Co. will be accounted for prospectively as equity earnings from investments, beginning in September 2010.

ONEOK Partners owns an extensive natural gas liquids system in the Mid-Continent, including fractionators and storage, in Mont Belvieu, Texas, Conway and Hutchinson, Kan., and Medford, Okla. It also owns interstate natural gas liquids distribution pipelines between Conway and Mont Belvieu.

Williams Partners is a midstream MLP with operations in the Rockies, Appalachia and onshore and offshore the Gulf of Mexico.