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
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Sinopec Brings West Sichuan Gas Field Onstream
2024-03-14 - The 100 Bcm sour gas onshore field, West Sichuan Gas Field, is expected to produce 2 Bcm per year.
US Gas Rig Count Falls to Lowest Since January 2022
2024-03-22 - The combined oil and gas rig count, an early indicator of future output, fell by five to 624 in the week to March 22.
Rystad: More Deepwater Wells to be Drilled in 2024
2024-02-29 - Upstream majors dive into deeper and frontier waters while exploration budgets for 2024 remain flat.
Trio Petroleum to Increase Monterey County Oil Production
2024-04-15 - Trio Petroleum’s HH-1 well in McCool Ranch and the HV-3A well in the Presidents Field collectively produce about 75 bbl/d.